Yu Group boosts turnover by over 400%

Yu Group, the Nottingham-based supplier of gas and electricity to businesses, has seen its revenue and profits soar for the six months to 30 June.

The firm’s revenues has risen by more than 400% to £20.7m, while profits come in at £1.16m. Yu says revenues for the year to 31 December 2018 expected to be “substantially ahead” of current expectations with contracted revenue already at £23.2m.

The firm says an increased focus on larger corporates has boosted performance.

Bobby Kalar, chief executive officer, said: “I am delighted to report that investment in our infrastructure to scale the business has resulted in a significant increase in expected revenues for the current year and beyond. We will continue to build on our investment to strengthen the business further for future growth.

“The rapid increase in revenue means that we expect profits this year and next year to be ahead of expectations. This has been achieved in conjunction with the increased investment in staff and a shift in revenue mix towards larger corporate customers and the broker sales channel. Maintaining the culture and vision for the business has been a priority, and I am pleased that our steadfast approach is proving successful.

“We continue to focus upon cash generation with Group cash balances rising in the first six months of the year by £688,000 to £5.9 million, and operating cash inflow of £1.1 million. This supports our progressive dividend policy and thus we are delighted to be able to announce an enhanced interim dividend of 1.00p per share, an increase of 33 per cent.

“We have entered the second half with a robust financial position, high levels of visibility over future revenue, a strong pipeline and a large market opportunity, which leaves the Board confident in the future growth prospects for the Group.”