Nottingham-based Yü Group has hailed “a strong performance ahead of expectations” in a year end trading update.
The independent supplier of gas, electricity, meter asset owner and installer of smart meters to the UK corporate sector, has recorded record-breaking results for the financial year ended 31 December 2023.
Full year revenue is expected to exceed £450m, growing from £279m in 2022, while EBITDA is anticipated to be significantly ahead of current market expectations.
This progress is expected to continue into 2024 and beyond as energy markets begin to normalise. The firm noted that it has secured contracted revenues of £519.7m to be delivered in FY24, up 111% on the prior year.
Bobby Kalar, CEO of Yü Group, said: “Once again, the Group has delivered a fantastic all-round performance, and I am delighted to report another set of record-breaking results.
“We have a clear strategy and the processes in place to deliver exceptional profitable growth whilst navigating a turbulent commodity market. The contracted revenue and bookings momentum provides the Board with confidence in delivering continued significant organic growth for FY24 and beyond.
“Over the previous few years, the gas and power markets have experienced unprecedented volatility in reaction to geopolitical events. At its peak in 2022 wholesale gas was trading at over 600p per therm. In 2023 gas prices have significantly softened and whilst this is great news for consumers, the rate and speed has caused short term mark-to-market pressure on our hedging credit lines.
“Our balance sheet remains strong and will strengthen further as energy prices continue to normalise, enabling the short-term cash held with our trading counterparty to flow back into the Group in the coming months.
“Our focus on strict controls and gross margin enhancement have delivered an increased Net Customer Contribution (NCC), as such the Group expects to deliver an exceptionally strong adjusted EBITDA margin for FY23.
“Our Yü Smart business is now in a scale up phase and will provide material benefits to the wider group. We continue to monitor asset supply challenges due to shipping constraints in the Red Sea and, although we have healthy stock pipelines, an extended disruption could have the ability to impact H2 24.
“We are confident that the Group has the proven capability to deliver value consistently and consecutively for its investors. I look forward to showcasing our results post publication of our annual accounts. A huge thank you to my team who have supported the Group’s vision.”
