Yü Group shares gain on bumper revenue growth

Yü Group shares jumped on Tuesday after the company announced exceptional financial results, surpassing expectations for revenue and EBITDA in 2023.

The UK energy supplier reported full-year revenue is expected to top £450 million, representing over 60% organic growth year-over-year. EBITDA is also projected to significantly exceed market expectations thanks to tight cost controls and operating leverage.

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Yü Group shares were 8% higher at the time of writing.

Yü Group achieved monthly bookings growth of over 120% to above £55 million on average. The company maintained a strong net cash position of £31.9 million at year end, with an additional £49.8 million held on deposit to support hedging strategies.

Bobby Kalar, Yü Group CEO, said “Our systems, processes and balance sheet strength enabled us to deliver record financials despite energy market volatility. We expect this momentum to continue as markets stabilize.”

Kalar emphasized Yü Group’s hedging strategy as key to delivering profitable growth and cash flow generation amidst turbulence. A focus on higher credit quality and predictable consumption smart meters also fueled further volume growth.

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With contracted revenues of £520 million for 2024, up 111%, Kalar said “We are positioned for another year of standout performance. As prices normalize, we expect substantially higher cash flow as collateral is returned to the business.”

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