Revenue has broken through the £100m barrier at Yü Group, the independent supplier of gas, electricity and water to the UK business sector, according to final results for the year to 31 December 2019.
Revenue increased by 38 per cent to £111.6m at the Nottingham-headquartered firm from £80.6m in 2018, while loss for the year improved by 20.7% to £5.0m for 2019, in comparison to 2018’s £6.3m loss.
Bobby Kalar, Group Chief Executive Officer, said: “One of the main objectives of the year under review was to strengthen our internal processes so that scaling would not create further pressure points on the business as we have witnessed in the past. We have been working on transforming the customer journey from ‘prospect’ through to ‘cash’ and I’m pleased with the positive results so far.
“Significant milestones have been achieved and we are now well placed to deliver profitable growth. Improvements made during the year included adopting more disciplined processes and cost controls, and focusing on enhancing gross margin, and as a result the Group has exceeded market forecasts for revenues and adjusted EBITDA for 2019.
“Whilst there has been, to date, a manageable financial and operational impact of Covid-19, the Board continues to assess the rapidly evolving situation which adds a level of uncertainty as we start the new year. Looking forward, we expect revenue, bad debt, operating cashflow to be impacted, as well as temporary reduced sales growth.
“However, the Group is in a more robust position than previously, with significantly improving margins on the contracts we have booked. The Group has available cash of £10.9m at 31 March 2020, with an additional £6.1m in cash collateral deposits with trading counterparties expected to be available in Q2 2020.
“The health and welfare of our employees is paramount and I’m pleased we have been able to successfully transition all of our workforce to working remotely with negligible impact to the running of the business. As is the case with many UK businesses at this time, we have been focusing on cost savings as well as utilising the assistance offered by HMRC.
“The fundamental market opportunity remains significant, with the Group at present only servicing 0.2 per cent. of the B2B market. The Group is now in a position, once the economic context recovers, to drive sustainable, profitable growth, with a fresh, new approach to businesses’ utility needs.
“As such, we continue to be confident in the medium and long term market opportunities, and look forward to getting back to disrupting the energy market through significant and profitable growth. I would like to thank all of our employees for their consistent hard work and I look forward to updating the market again in due course.”