Member Info for moneyspider

I did try to warn shareholders that this would take years to recover at the margins that they now predict. Really incompetent management buying a new office building when they have not proven their business model.

The RO payment is a large chunk of cash that they should have collected from customers which will fall due by the 31st October at the latest (with interest payments for the companies that did not pay in July). Looks like YU did not make any payments or that would have been included in the results - so by my simple calcs on 85m t/o they would have to pay around £11m. So the cash in the business will be extremely tight going forward into the winter period.

I did think that this was a good business when they stated that they were in profit and making good margins. Turns out to be all lies which is now being confirmed by the poor numbers. That's why my view has changed. This business will go bust.

Why won't they tell us how much the large industry payment is??? They only have £13.9m of free cash. BK is a con merchant, taking money out on the IPO and The Group has transacted with CPK Investments Limited, an entity owned by Bobby Kalar, during the current and prior financial period.
CPK Investments Limited owns the Nottingham property from which the Group operates and rents it to Kensington Power Limited under an operating lease. During H1 2019 the Group paid £60,000 in lease rentals and service charges to CPK Investments Limited (H1 2018: £60,000). The amount owing to CPK Investments at 30 June 2019 was £nil.

Looking at the numbers this is very disappointing. Cash of £17m but will have to pay large ROC payment at the end of October which on their turnover will be about £11m, that leaves £6m cash - just about covers the losses. The margin of only 3.2% - when they stated that they should get to 7-10% is not good. The costs to support the sales is 7.9% of turnover so the margin can't even cover the costs. This will never get into profit and will be calling for cash in the next 6 months. I have to right off this investment that I made a while ago. The BOD should be NOT taking £250k salaries on a massively loss making business. The lies that they keep telling continue - was 18% margin, then 7-10%, now 3% - soon be negative.

This will be a very important update - they said that they would have margins of 7-10%. They have not given any material update since then so they must be on target for this or they should have issued an RNS so the results should be very positive when most other energy suppliers are selling at a loss. Here's hoping the share will rise to off-set the losses I have here.

Think that they overpaid for a break-even business that is losing customers at a high rate. Good move by SSE to refocus the business into assets that will have good returns. The energy retail market is crazy with retailers selling at a loss. Bulb will mop up many of the SSE customers as they are cheaper than OVO.

It was reported in the press over the weekend that Octopus are looking to take on the customers of the CooP, looks like the market is consolidating and the challenger brands like Ovo, Octopus and Bulb are building up large market shares at the expensive of the Big 6. They have done this by pricing a very low margins, clearly a high volume scale model. YU will need to change its business model to lower margin, high volume of customers or it will just not be able to grow. There is a great opportunity in the business market to be the market leader but at margins of 7-10% they will not be competitive. This looks to me like they will need to raise further equity in the future to do this.

and if the buy-back starts as that indicated then this will fly.

The YU board need to buy shares, need to reduce their over inflated salaries, bring in a new CEO that has good experience not an ex care home owner. Tell the market when it expects to start to make a profit, give a clear indication of the cashflow in the business - not juts using a number at a point in time is meaningless. Then it will allow investors to value the business.

The board has reacted very well to the short attack, they have changed the board to strengthen corporate governance, they have defended their position very well, they have purchase shares, they have informed their key shareholders on what's happening, they have indicated a US listing - NOW time for the company to put a buy back strategy into operation and then we will be flying back to where this share should be. GLA

Got some more this morning - easy money over the next few weeks. Would expect day traders to cash in today so expect a bumpy ride.

Can't blame people for profit taking but this will soon be through £10 GLA

Climb is back on - should be over £10 soon

The market is very crowded, with British Gas lite the main player in the business market. They have slimmed down their business and all is on-line only - they offer the cheapest rates. I was told that Gross Margins are about 3% in the market. This is why I can't see YU Energy making a profit for some time, they will have to build massive volume at low margins and cut their costs by 50% to break-even. Board salaries are too high £250k each for a loss making business. So I don't see the shares being worth anything until they prove that they can build volume at good margins and keep bad debt and costs under control. I just don't think the BOD have the depth and expertise to do this. A while ago I would have bought back in at around £1, but even at that rate I'm not sure there will be any upside.

Me too..... this is easy money

If the board were to cut their salaries and buy some shares it could have an effect on the price. However, it seems to me that you can have a £250k salary, state your numbers incorrectly, have a £10m hole, slow down your sales, not tell anyone when you could make a profit and then issue share options at a lower price for the fat cats. This is laughable. There is no confidence in the CEO of this business - he was claiming before that they were in profit etc. I personally lost a significant sum of money and never see it coming back.

MKS123 - what margin will they make on water? I agree you buy forward to hedge the customers but you have to pay wholesalers for energy on GTMA terms around the 15th of the month, this is before YU collect the cash from the customers, so the cash outflow will increase, also it's impossible to hedge 100% due to weather - if its colder the customer will consume more than forecast (for example) - this additional volume will be purchased at the then market price and collected through the customer later. All this leads to increase pressure on energy companies cash in the winter period. Also I believe that YU does have some fixed rates as well as variable.

At last a sensible post. The profit depends upon higher margin contracts and lots of them. The market is highly competitive with gross margins much lower than YU claim they might be able to get. Most of the business is through energy brokers who have a wide choice of suppliers. The management here are not being transparent. The cash will reduce as we come into winter when energy costs are much higher. Can't see them ever making a profit.

Don't be fooled by the cash improvement - the Government has a green tax called ROC's which is charged in customers bills and paid for once a year by the energy companies - that bill will be due by 31st October. The rate is £48/MWh of energy purchased, so YU will have a bill of over £8m to pay. So in reality the cash needs to be reported by them after taking these out to get a true picture. Just look at all the other energy companies that have failed due to using these customer payments and not able to pay when due.

I think that they have missed the boat on a take over. Their revenue is slowing as they stated that sales are down and there is no profit yet. Can't see this as any value to energy suppliers as they will just hover up customers using energy brokers. The Bolton debt is a worry £500k off the bottom-line. I would have thought that this is material to their earnings and they should be informing the market. As I have said my target is to get in at under £1, then I think there could be some value in the longer term.