Friday, August 7, 2020

Pandemic hits revenue at utilities supplier

H1 revenues are expected to be down at Yü Group PLC, the Nottingham-headquartered supplier of gas, electricity and water to the UK corporate sector, as a result of COVID-19.

According to a trading update for the six months ended 30 June 2020, group revenues for the period are expected to be approximately £45.0m (H1 2019: £56.6m), reflecting the impact of COVID-19 and the associated reduction in customer energy consumption.

The Group however noted that there has been a marked increase in customer demand throughout May and June and volumes are on trend to return to pre lockdown levels.

Meanwhile, again due to the negative impact of COVID-19, the company expects an adjusted EBITDA loss in H1 2020 in the region of £2m.

Bobby Kalar, Chief Executive of Yü Group, said: “The health and wellbeing of our people has been paramount during the recent pandemic and I’m pleased that our business continuity plan has worked well. The Group’s ability to adapt quickly continues to underpin the accelerated sales growth and efficiency plan.

“Bookings were deliberately slowed in early 2019 whilst processes and systems were redesigned. I’m pleased to confirm bookings have grown in 2020 and Q3 has started with a better than expected month of bookings as a result of our continued confidence around our processes. In addition, customer consumption levels have recovered significantly above that of management expectations with Q3 2020 trending towards pre COVID-19 levels.

“Controls implemented across the organisation in H2 2019 are now fully embedded into our culture and continue to show a positive contribution towards cash collections, revenue protection and gross margin optimisation.

“COVID-19 has impacted the Group, however notwithstanding this, management objectives for the current year will be to continue the momentum on recovering customer volumes and accelerating our growth trajectory in H2 2020. I remain confident in the outlook for the Group’s growth and its future profitability.”

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