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I am very excited Banker2 for these results especially as June was record breaking and if this carried forward into July, Aug and Sept FY will smash the forecast 128m turnover to bits.

H2 is always a good 50% higher than H1 so could and depending on Monthly bookings strength like June £100m could be smashed just for H2 taking yearly rev total to way over £150m

Market starting the realise the YU of old is dead and the new beast is going to be a major player going forward.

You could hear the excitement in BKs podcast yesterday about the results next week and constantly pointing out

1. We hedge
2. We are not domestic we are B2B
3. Shoddy companies going to the wall not well run companies

People seem to forget YU market cap is under £40m

Yet growing at the speed of the tech stock , no debt, profitable and no cash issues as sat on a war chest of a considerable size in relation to it MC

This sector shake up will benefit YU massively going forward

Yep saw that last night as well, a couple of those have been a concern for some time Symbio the number 1

This carnage is a really good thing going forward in a selfish way for YU as BK was very clear on this and also the guy from Octopus to many bAdley run companies and this is the end of the road for them and this could be a defining period for YU to move from the small/medium challenger to mid tier without having to buy out smaller rivals as they will fade away and natural YU will pick up clients going forward

This media frenzy will slow YUs SP appreciation no doubt about it as today we should be back to yesterday’s level, YU have clearly stated all is good, thriving and can’t wait to release figures next week.

But the media will hound the sector for weeks now

Exactly upsidepotenial,

People do not invest these days, they speculate which is really sad and dangerous, if you know the company and sector they operate in your onto a winner. We all knew this yesterday,

You are B2B , YU hedge , YU have no Debt, YU have cash etc the newspapers do not differentiate they just say the entire sector is going bust as they are also uneducated and do not do proper research.

Indeed BK was very excited about releasing the results and very confident going forward. Feel sorry for those who bailed under 190p yesterday

BK was very clear on YU, they are doing very well and explained why the issues are here and how it is affecting DOMESTIC not B2B especially as YU hedges.

This carnage has created opportunity

1. Nice entry point on SP
2. Blood bath will create opportunity for YU to grab the B2B side of failed domestic and B2B suppliers

All well at YU group and he made it very clear b2B is very different to retail where the issues lie.

Also made it very clear if there was an issue he would have RNSed as a legal obligation. Results out next week and very excited to announce

Reading between the lines in the papers who obviously scare monger to hell the issue is the price cap to retail, the price cap is meaning even heavily hedged the price cap means ever client is more expensive than the price cap allows and ego loss making regardless.

YU do not service retail only business and the price cap isn’t applicable in the business world

In simple terms

Company xxx signs up for 3 year tariff, YU buys 3 years of the energy at the current price for the 3 year duration. Therefore current sky high prices have no effect on YU unless like in C19 the energy was under used and they sold back at a lower price taking a hit.

This time if under used they win significantly.

Ergo YU are actually in a very strong position compared to peers

This is from YUs annual statement

Key sentence is matched back to back contract hedging with supplier and client. So all this talk of YU is supporting long term fixed contracts at the current silly prices is total rubbish.

Commodity and energy prices
The Group uses commodity purchase contracts to manage its exposures to fluctuations in gas and electricity commodity prices. The Group’s objective is to reduce risk from fluctuations in energy prices by entering into back to back energy contracts with its suppliers and customers, in accordance with a Board approved risk mandate. Commodity purchase contracts are entered into as part of the Group’s normal business activities.
The majority of commodity purchase contracts are expected to be delivered entirely to the Group’s customers and are therefore classified as “own use” contracts. These instruments do not fall into the scope of IFRS 9 and therefore are not recognised in the financial statements. A proportion of the contracts in the Group’s portfolio are expected to be settled net in cash where 100% of the volume hedged is not delivered to the Group’s customers and is instead sold back via the commodity settlement process in order to smooth demand on a real time basis. An assumption is made based on past experience of the proportion of the portfolio expected to be settled in this way and these contracts are measured at fair value. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss.
As far as practical, in accordance with the risk mandate, the Group attempts to match new sales orders with corresponding commodity purchase contracts. There is a risk that at any point in time the Group is over or under-hedged. Holding an over or under-hedged position opens the Group up to market risk which may result in either a positive or negative impact on the Group’s margin and cash flow, depending on the movement in commodity prices. The Group applies premia in its pricing of contracts to cover some market volatility.

No director buys as in closed period until after results

Just read those tweets and spot on this guy talks sense big time. Media and big 6 causing havoc and 6 months hedging should be the normal.

What has taken it down is a few suppliers are in trouble and at least one big supplier ‘bulb’ due to high gas and elec spot prices. If they fold no one wants to take on the existing clients as obviously on low fixed rates and they have not hedged enough to cover them so would be instantly losing money. What business would take that on.

Problem here is sector wide and the good being tarred with the bad and Nervous investors think YU will also be affected.

I personally very much doubt it as YU forward hedge to prevent exactly this issue to the high or low commodity prices a form of armour which means they have stable margins as less risk and miss out gambling to increase margins

YU should be rewarded for this not punished and hopefully they release a reassuring message but as no material change to the business they do not have to.

But this will create opportunity for the companies that come out of this

Yu Energy
@EnergyforYu
·
38m
What better way to kick off a Monday than with a new job role! We're looking for a Billing Analyst If you're:
?? A team player
?? Curious with attention to detail
?? Experienced in the energy/ metering industry

Doesn’t come across as a company in trouble it’s business as usual

Totally agree, ut YU have always been radio silent

Description
The energy commodity market has continued to be extremely volatile during 2020. The downtrend experienced in late 2019 continued in H1 2020 and was worsened by the “demand shock” events linked to the coronavirus pandemic and the associated lockdowns (the impact on Group profitability is discussed as part of the Finance Review).
In late 2020 and early 2021 the Group had seen steep increases in commodity prices. Such increases reduce the mark-to-market exposure and credit line risk associated with a falling commodity market, reducing liquidity risks. However, a rising market can provide a profitability risk
if the Group is under-hedged or experiences any delays
in the customer registration and onboarding process.
Mitigation
The SmartestEnergy trading arrangement is now well established and has helped significantly reduce the impact of market volatility on the Group and in particular the Group’s cash reserves.
The Group has been automating processes across the business, particularly over customer onboarding to ensure that contracts are processed from sale to commodity trading quickly and efficiently. Such efficiency minimised the exposure to unexpected price movements.
The Group continues to monitor its forward hedging commitment under a detailed risk mandate, to mitigate its risks to volatile commodity markets.

MKS, totally agree ther will be huge winners from this carnage, YU are very risk averse and spent 2 years getting rid of crap off the books for higher margin clients and also in a hedging arrangement.

Now if me YU should release an RNS clarifying or release H1 numbers early as the silence will be deafening and who is going to buy with the scaremongering papers making statement that only the big 6 will survive.

Agreed all the talk is around domestic , bulb is big but debt ridden and never made a profit, the gov can’t bail out one and let the tidders fail. Also the problem seems that other supplier are reluctant to take on the failed in such large amounts.

It is coming home to roost now that all these levies for green stuff is hurting the sector and consumers , we are in very interesting times and only the strong, well run and well funded will survive and they become one of only xxx rather than 70 options

Aha thanks, I can think of two suppliers about to fold Symbio and Avro both recently asked for financials by Ofgem.