Profits soar at Nottingham utilities supplier

Yü Group, the Nottingham-based supplier of gas, electricity and water to the corporate sector, saw its profits leap to £4.4m in the six months to 30 June – a sizeable increase on the £0.9m it posted during the previous half-year.

In a statement to the London Stock Exchange this morning (27 September), the utilities supplier said its digital strategy and the successful launch of its “game-changing” Yü Smart metering service had contributed to its forward momentum.

The spike in profit, Yü said, had been aided by a £3.3m gain based on the company’s £0.3bn market-to-market hedge position.

Yü Group’s revenue also increased significantly during the period, rising from £65.8m to £129.2m.

The energy supplier said it expected to continue on its upward trajectory for the remainder of the year, and welcomed the Government’s energy bill relief scheme, which it said would “provide clarity” and “help businesses through the coming winter.”

However, the firm’s CEO Bobby Kalar said businesses would “feel the ongoing pressure of volatile wholesale commodity prices for some time.”

Hailing Yü’s performance, Kalar said: “I’m very pleased to report another set of excellent results reflecting a strong and reliable performance. Remembering this is our fourth consecutive and consistent set of results I’m proud to confirm our key financial KPI’s are performing well and have exceeded our forecasts following two recent upgrades.

“Revenue is up by 96%, cash in hand has increased 37%, average monthly booking have increased by 49% and EBITDA has jumped over 400% compared to H1 2021. Our strategy is working well and our strengthened and highly disciplined business driven by our joined-up processes, people and platforms continues to deliver a seamless customer experience.

“Our digital transformation program is on course and several digital projects are now live and embedded into the business. We will see additional benefits of reduced operating costs, better efficiencies and greater predictability as we scale these digital channels.”

He added: “We performed well in the pandemic; even better in 2021, despite challenges in the market; and we expect even better performance in the remainder of 2022 and beyond. I’m reassured our business continues to prosper and will use its strength and experience as an anchor for any further turbulence. As we continue to enjoy the fruits of our hard work, I look forward to delivering significant shareholder value in the near future.”