Last checked at 17 Jul 2017 07:00
17 July 2017
Yü Group PLC("Yü Group" or the "Group")
Trading Update and Notice of Results
Yü Group PLC (AIM: YU.), the independent supplier of gas and electricity to the UK corporate sector, is pleased to provide a trading update in respect of the six month period ended 30 June 2017.
Group revenues for the period are anticipated to be in the region of £19 million which compares with £5.1 million in the first half of last year. Gross margins in the period have continued to be in line with market expectations.
As at 30 June 2017, the Group had £16.1 million of contracted revenue which is expected to be recognised in the remaining six months of the current financial year. Therefore, the Group expects to report revenues of at least £35 million for the full year to 31 December 2017 ("FY17"), ahead of market expectations. Contracted revenue expected to be recognised for the year to 31 December 2018 ("FY18") is already in excess of £20 million.
The size of the growth opportunity for the Group indicates that by investing further in the sales team and support infrastructure, the Group can accelerate its growth and profitability more rapidly than had previously been anticipated. While the Group is likely to exceed current market expectations for revenue for FY17 and for FY18, the Board also currently expects EBIT for FY17 and FY18 to be marginally ahead of market expectations. This reflects the planned investment in the business along with the Board's and the market's expectation of a more competitive gross margin emerging as the Group attracts a greater proportion of larger corporate clients.
The Group had net cash at the period end of £5.9 million (31 December 2016: £5.2 million) which is on deposit with the Group's bank and is being utilised, as intended, to support Letters of Credit to ensure that the Group continues to adhere to its stated hedging policy. Cash generation in the second half of the year is expected to continue, but not at the same rate as in the first half due to the payment of certain industry levies during this period.
Bobby Kalar, Chief Executive of Yü Group, said: "We are delighted with the Group's progress. The business is developing well and we remain focussed on our long term sales growth strategy. Investment in our people and procedures is helping accelerate our rapid growth while maintaining customer satisfaction. I look forward to the future with confidence."
Interim results
The Group intends to publish its interim results for the six month period ended 30 June 2017 on Tuesday 19 September 2017.
For further information, please contact:
Yü Group PLC Bobby Kalar Nick Parker
| +44 (0) 115 975 8258
|
Shore Capital Bidhi Bhoma Edward Mansfield Anita Ghanekar | +44 (0) 20 7408 4090 |
Alma PR Josh Royston Hilary Buchanan John Coles |
+44 (0) 7780 901 979 +44 (0) 7515 805 218 +44 (0) 7836 273 660 |
Notes to Editors
Information on the Group
Yü Group PLC, trading as Yü Energy, is an independent supplier of gas and electricity focused on servicing larger corporate and SME businesses throughout the UK. It has no involvement in the domestic retail market. The Group was listed on the AIM market of the London Stock Exchange following a successful IPO in March 2016.