Yü Group , the smart multi-utility provider to businesses, today provided its final results for the year ended 31 December 2022.
The company continued to see strong momentum in financial results, governed via its clear financial framework. Revenue growth increased by 79% from the previous year to £278.6m, alongside contracted revenue for FY23 hitting £247m, up 57% from the prior year. Adjusted EBITDA increased to £7.9m, up £6.2m year-on-year and profit before tax increased 72% to £5.8m. This performance reflects higher net customer contribution margins combined with improved overhead efficiency from the Group's investment in digital. Finally, the Group saw an operating cash inflow of £14.7m, with net cash available of £18.8m.
Yü Group’s significant strategic progress was underpinned by further enhancement of its 'Digital by Default' platform, improving customer experience, driving efficiencies, and creating value through data science. Alongside this, the successful rollout of Yü Smart benefited customers and improved debtor control and profitability. With this in mind, Yü Smart is expected to generate a positive EBITDA contribution in FY23.
The company performed above management expectations, and the Board is confident in continuing this strong trajectory in 2023. As such, significant revenue growth is expected, supplementing the £247m contracted at the end of 2022 to deliver in 2023.
Bobby Kalar, Group Chief Executive Officer, stated: "I'm proud to lead a team who have seized this opportunity to build and grow new capabilities. I clearly see the ability for the Group to accelerate its profitability by leveraging off our growing revenues and providing new services. Cash flow and cash management will remain a key focus, including through our smart meter rollout.
We have got off to a fantastic start in 2023 with our exceptional performance continuing. Whilst we remain vigilant, we look forward to delivering continued shareholder value in 2023 and beyond."
View from Vox
Yü Group has managed to deliver a remarkable performance despite a series of ‘black swan’ challenges throughout 2022, which took out many weaker players in the industry.
Despite the war in Ukraine resulting in greatly increased commodity prices, the company’s focus on its digital services, namely the ‘Digital by Default’ programme and its smart meter business Yü Smart, have translated into fruitful revenue growth and profits soaring in 2022.
As the company already notes a very strong start to this year, the outlook for energy prices in 2023 is set to further benefit Yü Group and show some relief to the industry at large. In February, the energy regulator Ofgem lowered its energy price cap for April to June 2023 to £3,280, which is nearly £1,000 lower than the cap set in January, illustrating a drop in wholesales prices.
Finally, Yü Group’s dominance in their industry has also led them to be selected as an award nominee for CityAM's Business of the Year category, recognised among the likes of industry leaders such as Rolls Royce and Lidl.
As Yü Group continues along its strong trajectory for 2023, make sure to follow the company to keep up to date with the latest announcements .