Yü Group (YU. ) shares jumped 11% this morning after it reported outstanding financial performance.

Yü said adjusted 1H22 EBITDA, operational cashflow, and net profitability all significantly exceeded management expectations, and the company now expects the strong performance to continue for the remainder of the financial year.

The company saw positive cash generation, with cash balances ahead of management expectations, even after the payment of annual ROC obligations in August.

Yü said it expects to deliver FY22 EBITDA in excess of £4.7m. 

Yü also said it continues to monitor the ability of its customers to meet increased prices as the market enters a period of increased contract renewals. The company said it has begun engaging with BEIS to implement the Government's business support package.

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Today's results continue the trend of Yü Group's outperforming expectations since its financial restructuring in 2019.

In July, the company announced solid growth in H1 2022, with revenues soaring 90% YoY to £125m and average monthly bookings up 49% to £14.3m. 

At the time, Yü forecast adjusted EBITDA margin to rise 50% for the year. The company ended 1H with a strong cash position of £15.7m, up 36.5% YoY

Yü's strong performance has been driven by three main factors: 

  • A robust commodity hedging position 
  • A margin improvement strategy, seeking improved customer value propositions, and 
  • Its Digital by Default strategy, which has enabled Yü Group to find service and cost efficiencies, further improving margin.

This year, the company launched Yü Smart to drive growth through new opportunities in smart metering and EV charge installations. With soaring energy prices in the UK and Europe, more and more businesses are looking to optimise their energy usage through digital monitoring. With an estimated £50b addressable market in that space, Yu Group is set to deliver on its medium-term goal of £500m in revenues with an adjusted EBITDA margin of over 4%.

Having delivered strong performance through the challenging times of the last four quarters, Yü is well-positioned and well-funded for continued growth.

Markets cheered today's news, sending YU. shares up 11% this morning.

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