Yü Group, the independent supplier of gas, electricity and water to the UK corporate sector, has outperformed forecasts in terms of profitability, growth and forward looking contracted revenue in a tough year for the energy industry.

According to final audited results for the year to 31 December 2021, revenue grew to £155.4m from £101.5m in 2020. Meanwhile the company posted a profit before tax of £3.3m, up from a £1.5m loss in 2020.

Bobby Kalar, Group Chief Executive Officer, said: “We have delivered on our promise to deliver profitable growth, which is set to continue.

“2021 was a remarkable year and a stellar performance that’s seen the Group outperform forecasts in terms of profitability, growth and forward looking contracted revenue. Despite the turbulence of the global energy commodity market the business has remained focussed and disciplined underpinned by our robust hedging strategy.

“Our strategy is working well and the ‘hard yards’ have harvested rewards. With a very strong start to 2022 I’m pleased our January and February bookings, revenue and profitability have continued the momentum demonstrated in 2021.

“Our operational KPI’s used to measure and track performance drove over-performance in 2021. Revenue has increased by 53% to £155m, adjusted EBITDA and profit after tax leapt to £1.7m and £4.5m respectively, from losses in 2020, average monthly booking have jumped by 66% compared to £8.3m last year and the meter points on supply have increased by 83% in the year. I’m pleased our winning formula will continue in 2022 and beyond.

“Our inorganic strategy is contributing positively to our growth ambition. Being awarded the AmpowerUK B2B customer book in November by Ofgem, and two more customer books this year, provides an endorsement of our credentials and gives us confidence we are ready for bigger books be it via acquisition or via Ofgem’s Supplier of Last Resort process.

“We are making good progress with our Digital by Default strategy, which is seeing us design optimal processes for our customers with the launch of our digital customer portal and CRM customer journey.

“This year we will be supporting our customers transition on to our digital platform while continuing to deliver our unparalleled level of service. We now have the digital foundations in place and firmly embedded and we are looking forward to further enrichment of our data to drive profitable growth.

“It’s been a tough year for the energy industry in terms of unprecedented wholesale gas volatility causing some suppliers to exit the market, exacerbated by the effects of the pandemic. However, our results show we have not only ‘weathered the storm’ but ‘blown it away’ in all key areas.

“Our forward order book at 31 December 2021 stands at a record £157m to outflow during FY22. Our Digital by default transformation strategy is progressing well, and we’ve once again demonstrated our ability to migrate customer books onto our scalable platform. Our focus this year will be to continue the momentum of 2021 with continued emphasis on growth, profitability and further developing our already strong forward order book.

“We’ve become one of the fastest growing utility challenger brands in the UK and central to this success as always are the amazing people who I have the good fortune to work with every day. A huge thank you to all my team.”

The chair of the Midlands branch of insolvency and restructuring trade body R3 is urging directors of the region’s businesses to seek advice if they are worried about their businesses, as corporate insolvency figures continue to soar compared to this time last year.

Figures published by the government’s Insolvency Service show that the number of companies entering insolvency decreased by 3.2% in February to a total of 1,515 compared to January’s total of 1,565. However, administrations increased to a 15-month high and overall levels of corporate insolvencies increased by 121.2% compared to February 2021’s figure of 685.

R3 Midlands chair Eddie Williams, a partner at PwC in the East Midlands, said: “The increase in administrations suggests that there are several insolvent businesses which still have some prospect of rescue, given this is one of the main statutory purposes of the administration process.

“Wherever possible, the insolvency profession will work to secure the rescue of businesses in administration to help ensure better outcomes for the company, its staff and its creditors.

“It is notable, however, that despite the month-on month-decline in corporate insolvencies, the Insolvency Service statistics show a marked year-on-year increase and highlight that corporate insolvency has returned to its higher pre-pandemic levels. The February figure of 1,515 is 12.6% higher than in February 2020, when corporate insolvencies totalled 1,346.

“It is evident that the ending of the peak of the pandemic and the lifting of the final set of restrictions has not led to the shot in the arm the business community had hoped for. Although the economy grew in January and firms benefited from restrictions ending in February, it took time for footfall to increase, and it will take a while before anything resembling normality returns.

“Consumer spending has declined and, here in the Midlands, consumer confidence is low as people are concerned about the economy and their own financial position. Inflation is now a real problem for local firms and individuals alike. This situation is unlikely to improve anytime soon given the impact current geopolitical events will have on energy costs.

“In addition to this, the restrictions on using winding-up petitions are coming to an end later this month – something which could see an increase in creditors turning to legal action to recover unpaid debts.

“Now is the time for directors to be alert to the signs of financial distress and to take the necessary action. We know conversations about finances are some of the hardest to have but speaking up about concerns at an early stage typically leads to a better outcome than holding back until the problem worsens.”