Yü Group (YU.,) the smart multi-utility provider to businesses, has released a trading update demonstrating continued strong trading momentum, with key performance indicators of revenue, profitability and cash generation all showing very strong growth.
Yü's growth momentum in average monthly bookings, which started in Q4 2022, has persisted throughout 2023. The company has seen a surge in customer contracts due to pent-up demand resulting from the softening commodity markets. This influx of customers not only boosts Yü's revenue but also enhances revenue visibility for the fiscal year 2023 and beyond.
Strategic investments in the Digital by Default strategy and the rollout of Smart Metering have been instrumental in providing scalability and significant cost-efficiency benefits. These initiatives have proven effective in reducing bad debt levels and ensuring strong cash collection from the company's customer base.
Yü expects its revenue, profit margins, and cash flow for the year ending 31 December 2023 to significantly exceed current market expectations.
Bobby Kalar, Chief Executive Officer, commented: "I'm delighted to report a further increase in our expectation of revenue, profit and cash, and I'm looking forward to present a ninth consecutive half year improvement in our interim results. I look forward to updating shareholders as the Group continues to deliver and set new records."
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Yü Group has continued to build on the strong momentum it saw in 2022. Although the energy market has shown some relief this year as wholesale prices begin to soften, there is still demand from businesses to carefully manage their energy bills, as the energy price cap is set to remain more than £1,000 higher than the average bill before the COVID pandemic. As such, Yü Group’s Smart Meters can expect to see continued demand throughout the remainder of 2023.
With the strong performance demonstrated in 2023, broker SP Angel has revised its forecasts upwards, with revenue predicted to reach £392.4m in 2023 and £447.3m in 2024. The update saw Yü Group’s shares leap 26% in early trading.
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 in 2022, recognised among the likes of industry leaders such as Rolls Royce and Lidl.
The Group will provide a further scheduled trading update on H1 2023 in late July 2023, so make sure to so you don't miss this update.