Share price hits new high at Yü Group
The share price at Nottingham-based supplier of gas and electricity Yü Group reached new highs on Friday (February 23) after the firm revealed it has signed a deal for a new hedging facility with Shell Energy.
News of the five-year deal saw the share price at the firm rise to £13.01 each at close of trading – up over 12% on its opening price. Earlier in the day, shares reached £13.46 – a fresh high since Yü Group floated almost eight years ago.
Bobby Kalar, CEO of Yü Group, said: “I’m very excited for the future of the Group and look forward to working with Shell Energy Europe Limited, one of Europe’s largest traders of gas, power and environmental products.
“This new strategically important facility is the result of a thorough selection process and is further validation of the strength and maturity of Yü Group following the extensive due diligence and stress-testing of our business model.
“The new hedging facility unlocks over £50m of cash currently posted as collateral and removes a material working capital constraint to the business lifting exposure to mark to market movements from future energy market fluctuations.
“This provides us with substantial strategic and financial benefits, enabling increased distributions whilst continuing to invest to deliver our ambitious growth agenda.
“I recognise it’s been a very busy period for my team and would like to thank them for their continued support. I look forward to the future with absolute confidence.”
The new hedging facility replaces the previous arrangement with SmartestEnergy that had been in place since 2019.
