Yu Group PLC Trading Update and Notice of Results (1663L)
17 July 2017 - 4:00PM
UK Regulatory
TIDMYU.
RNS Number : 1663L
Yu Group PLC
17 July 2017
17 July 2017
Yü Group PLC
("Yü Group" or the "Group")
Trading Update and Notice of Results
Yü Group PLC (AIM: YU.), the independent supplier of gas and
electricity to the UK corporate sector, is pleased to provide a
trading update in respect of the six month period ended 30 June
2017.
Group revenues for the period are anticipated to be in the
region of GBP19 million which compares with GBP5.1 million in the
first half of last year. Gross margins in the period have continued
to be in line with market expectations.
As at 30 June 2017, the Group had GBP16.1 million of contracted
revenue which is expected to be recognised in the remaining six
months of the current financial year. Therefore, the Group expects
to report revenues of at least GBP35 million for the full year to
31 December 2017 ("FY17"), ahead of market expectations. Contracted
revenue expected to be recognised for the year to 31 December 2018
("FY18") is already in excess of GBP20 million.
The size of the growth opportunity for the Group indicates that
by investing further in the sales team and support infrastructure,
the Group can accelerate its growth and profitability more rapidly
than had previously been anticipated. While the Group is likely to
exceed current market expectations for revenue for FY17 and for
FY18, the Board also currently expects EBIT for FY17 and FY18 to be
marginally ahead of market expectations. This reflects the planned
investment in the business along with the Board's and the market's
expectation of a more competitive gross margin emerging as the
Group attracts a greater proportion of larger corporate
clients.
The Group had net cash at the period end of GBP5.9 million (31
December 2016: GBP5.2 million) which is on deposit with the Group's
bank and is being utilised, as intended, to support Letters of
Credit to ensure that the Group continues to adhere to its stated
hedging policy. Cash generation in the second half of the year is
expected to continue, but not at the same rate as in the first half
due to the payment of certain industry levies during this
period.
Bobby Kalar, Chief Executive of Yü Group, said: "We are
delighted with the Group's progress. The business is developing
well and we remain focussed on our long term sales growth strategy.
Investment in our people and procedures is helping accelerate our
rapid growth while maintaining customer satisfaction. I look
forward to the future with confidence."
Interim results
The Group intends to publish its interim results for the six
month period ended 30 June 2017 on Tuesday 19 September 2017.
For further information, please contact:
Yü Group PLC
Bobby Kalar
Nick Parker +44 (0) 115 975 8258
Shore Capital
Bidhi Bhoma
Edward Mansfield
Anita Ghanekar +44 (0) 20 7408 4090
Alma PR
Josh Royston +44 (0) 7780 901 979
Hilary Buchanan +44 (0) 7515 805 218
John Coles +44 (0) 7836 273 660
Notes to Editors
Information on the Group
Yü Group PLC, trading as Yü Energy, is an independent supplier
of gas and electricity focused on servicing larger corporate and
SME businesses throughout the UK. It has no involvement in the
domestic retail market. The Group was listed on the AIM market of
the London Stock Exchange following a successful IPO in March
2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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