Yü Group PLC, the independent supplier of gas and electricity to the UK corporate sector, has reported a material increase in revenues as it continues to expand its smart metering business.
The group’s revenue surged by 40% to £645.5 million, driven primarily by a significant increase in the volume of energy supplied, which grew by 78% to 2.21 TWh. This translated into an Adjusted EBITDA of £48.8 million, representing an 11% increase compared to the previous year. Profit before tax similarly improved by 12% to £44.5 million.
Investors will be delighted to learn Yü Group has continued to expand its footprint in the UK corporate energy market, laying the foundations for future growth. The number of meter points supplied grew to 88,000, representing a 65% increase from the previous year.
Despite this significant growth, the Group’s market share stands at just 2.7% of its £50 billion addressable market, pointing to substantial opportunities for further expansion.
Yü Group’s management has set targets for 2025, including expanding to over 120,000 supplied meter points and over 60,000 smart meter assets owned. Revenue is expected to range between £730 million and £760 million. However, energy prices are anticipated to act as a headwind to sales growth, with a 9% year-on-year price reduction already embedded in the contract book.
The company hiked its dividend by 50% to 60p for the full year. Yü Group’s medium-term target is to achieve three times dividend cover on earnings per share.
Yü Group’s hedging agreement has provided the company with the ability to boost investment back into growth as it has lessened the demand for posting cash a collateral. Cash balances were £80.2 million , up £48.1 million on the year, largely as a result of the hedging agreement.
“The team and I continue to focus on delivering our strategy, which has delivered another new set of record results, with further strong growth in revenue, profit and cash terms. I’m particularly pleased that this is our 6th year of profit growth, and we have taken revenue from £81m in 2018 to £646m in 2024. This growth is set to continue, although at a slower pace in percentage terms due to the larger base,” said Bobby Kalar, Chief Executive Officer of Yü Group.
“Our disciplined approach to growth and the focus on our core target market remains, and our smart metering business is starting to bear considerable fruits.
“Whilst softened commodity markets provide a lower revenue per customer, our 78% growth in delivered energy volume demonstrates the opportunity being taken. We continue to grow market share, nearly doubling year-on-year to 2.7%, and we have a huge addressable market available and are set-up to scale.
“Our smart metering business continues to perform well. I’m really pleased and proud that from standstill in 2023 we now have a fully functioning engineering capability across the Country, with our own training centre and a highly skilled and driven management team. I’m very much looking forward to guiding this business as it develops further.”