Last checked at 30 Jan 2017 07:00
30 January 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 year ended 31 December 2016.
It is anticipated that Group revenues for the year will be slightly ahead of current market forecasts and management's expectations at the time of the interim results announcement on 20 September 2016. Gross margins in the year have remained firm. In line with the growth of the business, there has been a commensurate increase in fixed costs and headcount. The Board remains confident that the Group will report results in line with market expectations for FY16.
The net cash raised at the time of the IPO has been placed on separate deposit with the Group's bankers and is being utilised, as intended, to support Letters of Credit to ensure that the Group continues to adhere to its stated hedging policy. To facilitate the growth in the average size of the Group's customers, the Company has moved to invoicing customers in arrears of energy usage in line with general industry practice (rather than in advance as had been the historic practice of the business). As a consequence, during the year, there has been a growth in trade debtors and working capital requirement within the business. The Group's balance sheet remains strong and the business continues to be cash positive going forward.
As at 31 December 2016, the Group had in excess of £20 million of revenues already contracted for the financial year ending 31 December 2017. This compares with contracted revenue of £8.4 million at the start of last year.
Bobby Kalar, Chief Executive of Yü Group, said: "We are delighted with the Group's progress during the year and have delivered on our short-term objectives as envisaged at the time of IPO in March 2016. The business is developing well and I look forward to the future with confidence."
Preliminary results
The Group intends to publish its preliminary results for the year ended 31 December 2016 on Tuesday 28 March 2017.
For further information, please contact:
Yü Group PLC Bobby Kalar Nick Parker
| +44 (0) 115 975 8258
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Shore Capital Bidhi Bhoma Edward Mansfield Anita Ghanekar | +44 (0) 20 7408 4090 |
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Alma PR Josh Royston Hilary Buchanan John Coles |
+44 (0) 20 8004 4218
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Notes to Editors
Information on the Group
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.