Yü Group’s CEO has said the business is “primed and ready for profitable growth” following publication of its final results for the year to 31 December 2020.
The statement comes despite the company posting a loss for the year of £1.2m, though this was “significantly ahead of market expectations,” and an improvement on the firm’s 2019 loss of £5m.
Meanwhile the independent supplier of gas, electricity and water to the UK SME and Corporate sector also noted that revenue was ahead of market expectations at £101.5m, though down from £111.6m in 2019.
Bobby Kalar, Chief Executive Officer, said: “The business is primed and ready for profitable growth.
“I am pleased to confirm a strong performance for FY2020 and a good start to 2021, further strengthening our 2021 contracted revenue from the £93m already secured in 2020.
“Our strategy is working well and as such the Board is confident that the business is on track to deliver its operational KPIs and to report profitable growth in FY2021. This has been a fantastic effort by the whole team through a difficult period and is a huge boost for 2021 and beyond.
“Our strong top line performance and earnings in FY2020 have exceeded market expectations and are a clear indicator of the Group’s positive trajectory and speed of travel.
“Monthly bookings have far exceeded the Board’s expectations, particularly pleasing in light of the ongoing economic impact of the pandemic. I’m pleased to report that we’ve continued to see improved Q1 2021 booked revenue compared to the same period last year.
“Net customer contribution, which measures gross margin less bad debt, rose to 6.1% in 2020, up from 2.5% in 2019, demonstrating a clear improving trend and this gives the Board significant comfort that the business is performing ahead of plan.
“Given the collective shock suffered by British businesses in an extraordinary year, I am pleased with the Group’s operational performance. Our intra month bill to cash position has remained strong and we continue to have significant cash in the bank, while maintaining a laser like focus on collection of customer receivable balances.
“The Group acquired two cash generative customer books in 2020 and successfully integrated circa 5,000 meter points quickly and seamlessly over a 24 hour period following completion of each acquisition.
“Strategic acquisitions form part of our ambitious scaling plan. As the market consolidates further, and with an interesting pipeline of opportunities, I am confident the Group is well placed to continue acquiring value creating books that complement our portfolio.
“It has clearly been a positive year for the Group, however, it has also been a challenging period and I want to thank all the team for their unwavering support, commitment and hard work. Having quickly adapted to how our business operated and served our customers under the lockdown, I’m proud of the resilience the Group has shown.
“Record bookings, billing efficiencies and strong cash collection throughout the year, as well as acquiring two competitor customer books, shows organisational strength and is testament to the team’s progress and maturity.
“I still passionately believe in the original growth opportunity that prompted me to found this business and the very significant growth and market share potential in this sector. As CEO and majority shareholder, I remain fully committed to successfully steering the business through this next exciting growth phase.
“Underpinning our growth ambitions in an extraordinarily large market is our sound balance sheet, experienced and vested management team and scalable platform. We have made a good start to 2021. I’m pleased to be able to look forward to the future with absolute confidence. From the ‘hard yards’ I see good times ahead.”