Yü Group (YU.), the smart multi-utility provider to businesses, has announced record trading for 2022, with full year revenues now expected to grow 76% top reach at least £275m. That’s ahead of earlier guidance of c.£266m.
The strong performance was driven by a 78% increase in signed annualised contracts, delivering average annual monthly bookings of £24.5m across the year, including a monthly average of £48.6m in the last quarter.
The company said that the high levels of organic growth were expected to continue into 2023 and beyond, with £246.8m of contracted revenue already in the bag for FY 23. It said it had “clear visibility” of its £500m revenue target at a 4% EBITDA margin, with margins in the second half having “dwarfed” the 2.1% achieved in H1 22
Chief executive Bobby Kalar commented: “The impact of our "digital by default" transformation has exceeded management expectations in terms of its contribution to margin and efficiency. Our single platform seamless onboarding has created operational leverage alongside opening up additional profitable sales streams. The full impact will become materially beneficial in 2023 and beyond.”
Yü ended the year with net cash of £18.8m, £12m higher than a year earlier. That’s prompted the group to plan a “modest” dividend before establishing a progressive dividend policy that balances shareholder returns with the ability to invest in further growth.
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Yü has found itself in the right place at the right time as businesses struggle with rising energy bills, and its heavy investment in digitising its business is allowing the inherent market demand to be translated into blistering sales and profit growth.
Although conditions in the energy market are expected to soften, further profit growth is expected to be driven by the nationwide expansion of smart metering services, Yü Smart. Building on the back of the acquisition of Magnum Utilities in May 2022, the group installed its first smart meters in August 2022 and is expected to be fully operational across the country this year.