Losses narrow at energy firm as company recovers ground

Yü Group, the Nottingham and Leicester-based utilities provider to businesses, says it is set to post full-year results for 2019 that are ahead of market expectations.

Revenues for the 12 months are expected to be around £110m – up from £80m – as it recovers from a torried 2018 which saw the company mired by accounting irregularities. Yü Group also said that losses in the second half of 2019 will be “significantly below” those in the first six months of the year.

Bobby Kalar, chief executive of Yü Group, said: “Our team’s determination over this past year to transform Yu Group into a disciplined, higher margin business has been momentous and necessary.

“Significant controls implemented across the organisation have now been embedded by the business and are showing a positive contribution towards areas such as cash collections, revenue protection and gross margin optimisation.

“With a new and evolving Board capable of guiding us in our next phase of growth, and our new progressive trading arrangement with SmartestEnergy to enhance and futureproof our cashflow, the focus in the year ahead is to continue to build on this solid platform and accelerate manageable growth whilst reducing the cost to serve.

“A core indicator, Adjusted EBITDA, is improving in line with our plan and we are able to invest in our automated digital strategy. I’m confident we have weathered the storm and while we remain cognisant of lessons learned, we are now very much a forward-facing business. I look forward to a successful year ahead.”