Member Info for moneyspider

No debt sets them apart from others and I believe will be able to take advantage this year - should be £50m plus by now!

The announcement today of more investment into the EV infrastructure should bode well for Fulcrum. One of a small number of companies capable of rolling this out. Feel this is a good share to be in at the moment.

I thought that Good was going to use Kraken from Octopus and now another billing system announced. Wow - hopefully they get this one right?

Let's remember the share price was over £10 before. BK was at the helm when the black hole of £10m sent the share price down and a number of us lost out. To still get paid over £200k p.a. and now have a bonus for getting the price past £2 is a joke. First all board salaries need to be cut down, then once they have proven that they are on the right track with gross profit growth and operational savings a scheme could be put in place.

They have probably done as well as they could during the pandemic. Slightly concerned that the overheads are at 6.3% of T/O and the gross margin is only 2.2% and that the cash levels have gone from £17m to £6m. They promised high single digit margins a while ago, but only 2.2%. This needs to go over 6% just to cover costs. I am hopeful that they take advantage in the market - so a holder for now. If they reduced the board costs we could be in profit soon.

Yes some chunky trades. Think that the confidence that we might go into a second lockdown seems to be increasing which will have a large effect on the corporate market segment. Also really think that there is an opportunity from start up's to offer competing services at a lower cost. Tough times ahead for a while, difficult to value the business.

Not sure on the valuation as I was surprised at the level Bristol got sold at, I really expected them to go for £1. So I am seeing this as an opportunity now against what I thought in the past.

So Bristol Energy got sold to Together Energy for £14m. This loss making business - £10m last year has only 112k domestic customers. On the basis that YU has cash in the bank and is generating a gross profit and forecasting net profits. This share is undervalued. Not sure how long it is going to take to get the market to realise this. Maybe time to top up.

What about the bad debt? you can take off 5% at least for that on turnover. You can gloss this up all you want but this is a failed business. Loads of money invested, losses every year and now they have credit from Smartest just to survive. Which is a debt - they owe this money to them. Can't see them making any money unless they scale a lot faster and keep overheads low. Players like Bulb and Octopus have entered the business market and have much lower rates than YU, just look at the Bulb website. These players are very well funded!

Andy28 - you are right, I do pop up on here when RNS gets released to put my view point. I bought YU shares ages ago and was taken in by the board reporting profits and amazing growth, this all turned out to be false and a blackhole appeared which re-rated the stock - was not pleasant. This made me look at the business and market in more depth. The RNS claimed that they have collected 99.5% of cash from the invoices during the period. I would claim this this is impossible, when most of the other business suppliers are reporting payment issues from business customers and a number of administrations. Drax and BG have taken a provision for these. The cash that they report - does that include the VAT deferral? - 20% of the invoices is a lot, also the RO payment to be made by Oct at the latest will be £9m plus, as RO is charged on all MWh, even if they are green (REGO's). The winter period goes against an energy supplier with a fixed rate product as wholesale charges and volume increase in this period. No mention in the RNS of the gross margin in the period just an EBITDA loss, which will increase over the winter. I suspect that without Smartest support they would have gone bust - and this credit support is really a debt on the business as it is secured against the business/customers. My view is that they will have to raise further equity in the winter or ask smartest for more credit. Another issues is that other CEO's and directors of similar business are paid far less than the £250k each. BK owns the majority of the stock so should not take a large salary. They should be buying the stock now to show confidence or convert a % of salary to shares.

The collection of invoices at 99.5% is the best performance of any energy supplier, but I struggle to believe this. Are they saying that no business have gone into administration that they supply. Other suppliers are reporting some customers struggling to pay. I'm afraid that the incorrect reporting that has been endemic in this business is continuing. Be wary.

The update will just reinforce the good start that they have had to the year with Covid-19 not really effecting the business. Signed some good contracts over £100m. More details on this and other should see this share climb back well of £1.70 IMHO.

Hang in there, will be soon over £1.50

Was hoping for a counter bid - that's gone away now and 2 shareholders on the board that will stop that in the future. Can't seem to work out their investment / exit strategy. Time to sell up and move along me thinks!

Octopus Energy has now been valued at over £1bn with an investment from Orgin Energy of $500m, and that's on a loss making business. Concerned about the slow growth with TEP. Would like to see them having a growth strategy.

If the Directors are not buying when the share price is this low, I thinks shows that they have very little confidence. Especially the FD who could average down on his last purchase. The news from the market is that business customers are not paying their bills whilst the lock down occurs (why would they). This will mean a massive % drop in revenue but YU will still have the costs of power and gas it bought forward. I don't think that this business can survive as Government won't give any support to energy suppliers.

The energy wholesale price is falling, YU's M2M position will get worse eating up a lot of the credit that smartest provide. 45% of their business customers would have stopped consuming, no income from these, more bad debt and because they would have hedged their customers they will have to sell back the volume at a large loss. The market is wide open for new players to come in after Covid-19 without this legacy and compete hard for business. The board indicated last time that they would have high single digit margins, not 4.5%. Too many lies by the BOD - can't trust them.

Yes this is heading for the trash can! Just sold out at a massive loss

Yu only has business customers, the risk this business has is that they have bought volume forward to supply these businesses. Now that it is likely that we will have a shutdown of business and many businesses in danger of going out of business, the problems only magnify for Yu. Volume will have to be sold back at a huge loss, the bad debt numbers will grow. Other energy suppliers that have residential customers will be able to switch volume here as many people will be home working. Sell out why you can.

I have to agree a bid is very close. Time to top up!