Yu Group PLC Yü Group appointed as SOLR for Ampower's customers (5747R)
08 November 2021 - 6:00PM
UK Regulatory
TIDMYU.
RNS Number : 5747R
Yu Group PLC
08 November 2021
Yü Group PLC
("Yü Group" or the "Group")
Yü Group appointed as Supplier of Last Resort for Ampower's
customers by Ofgem
-- Additional customer book will add scale and is immediately earnings enhancing
-- Customers already seamlessly integrated to Yü Group platform
-- Testament to strength of Yü Group and the robust systems and processes in place
Yü Group PLC (AIM; YU.), the independent supplier of gas,
electricity and water to the UK corporate sector, has been
appointed by Ofgem as Supplier of Last Resort (SOLR) for Ampoweruk
Ltd ("Ampower") and agreed to take on their electricity and gas
customer book from Sunday 7 November.
Ampower supplied 8,158 predominantly electricity business sites,
increasing the Group's meter portfolio by 38%. Group revenues are
forecasted to immediately increase by over GBP7.5 million per
month. Earnings will be enhanced immediately.
Under Ofgem's SOLR process, business customers transfer to a new
supplier on a flexible, "deemed", basis with a variable tariff
reflective of current market conditions. The Group is confident in
its ability to retain a significant proportion of the Ampower
business customer book, leading to substantial increase in forward
contracted revenue.
Yü Group has already integrated the new customers on to the
Group's scalable platform; and certain industry processes will
continue in the coming days to complete the transfer. The Group is
in the process of contacting the customers impacted and will ensure
they continue to receive an uninterrupted supply after Ampower
ceased trading on 6 November 2021.
In line with the SOLR process, certain costs incurred by Yü
Group will be recovered through the established industry levy.
Whilst Yü Group's focus will remain on serving the UK corporate
sector, the Group has the necessary capability and experience to
serve Ampower's very small number of domestic customers.
The Group has already taken steps to hedge the increased
customer demand forecasted in accordance with its robust trading
risk mandate.
Underlying trading remains strong as reported at the half year
results with the Group continuing to drive profitable growth.
Bobby Kalar, Group Chief Executive Officer, Commented:
" I'm very pleased to have been awarded the Ampower customer
book. In recognition of our strong systems and experienced team
these customers have already been migrated onto our scalable
operating platform seamlessly over the weekend with negligible
impact on resource or capacity. Our experience and track record
means we are confident the customer transition will be seamless,
quick and well communicated.
Our robust hedging strategy and strength of balance sheet are
underpinned by a proven business model and a solid and scalable
platform. This gives the Board confidence that we are well
positioned to deliver a good blended mix of both organic and
inorganic growth and we are proud to be in a strong position to
allow us to play a part in supporting the industry.
We remain well disciplined, selective and focussed on achieving
good profitable growth. I would like to thank my team for their
phenomenal performance and unwavering support."
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement via Regulatory
Information Service ('RIS'), this inside information is now
considered to be in the public domain.
For further information, please contact:
Yü Group PLC
Bobby Kalar
Paul Rawson +44 (0) 115 975 8258
SP Angel Corporate Finance
LLP
Jeff Keating
Bruce Fraser
Caroline Rowe +44 (0) 20 3470 0470
Tulchan Group
Giles Kernick
Olivia Peters
Oliver Norgate +44 (0) 20 7353 4200
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCDKOBDDBDBODK
(END) Dow Jones Newswires
November 08, 2021 02:00 ET (07:00 GMT)
Yu (LSE:YU.)
Historical Stock Chart
From Mar 2024 to Apr 2024
Yu (LSE:YU.)
Historical Stock Chart
From Apr 2023 to Apr 2024