Strong growth in bookings and revenue with confidence in delivering profitable growth
Yü Group PLC, the independent supplier of gas, electricity and water to the UK corporate sector, is pleased to provide an update on trading for the six months ended 30 June 2021.
Bobby Kalar, Group Chief Executive Officer, said :
“We are delighted to have made a very strong start to the year and expect this positive momentum to continue. Our strategy is delivering, the business is performing well, and we are on track to make further strong progress during 2021 and beyond.
We were particularly pleased with an exceptional end to H1 which saw record monthly bookings of £18.4m in June, an increase of 38% from our previous high of £13.3m in July 2020. I would like to thank our fantastic team for their remarkable efforts in what has been a very busy and successful period for the business.
With our strong operational and financial H1 performance and the volume used by our SME customers returning to pre COVID levels, we look to the future with continued confidence and excitement, reflecting a very positive outlook.”
Financial and Operational review
· Significant revenue growth in H1, expected to increase by 41.6% on prior year, to approximately £65.0m (H1 2020: £45.9m), driven by strong organic growth from new bookings and increased customer demand.
· Average Monthly Bookings1 of £9.7m for H1 2021, an increase of 56.5% vs. H1 2020, with June recording a record monthly booking of £18.4m.
· Positive adjusted EBITDA2 expected for H1 2021, significantly improved from 2020 (H1 2020: £1.8m loss, H2 2020: £0.1m profit) as the Group delivers on its strategic objectives.
· Strong balance sheet with positive cash position at £11.5m, broadly flat during H1 2021 (31 Dec 2020: £11.7m) despite investment in new Leicester office, funded from Group cash, and early payment of a portion of industry liabilities otherwise due in H2 2021.
· Launch of new sales and innovation office, coupled with investment in digital technology, expected to enhance organic growth and EBITDA returns from FY 2022.
The Board is confident that the Group will meet FY 2021 market expectations.
With revenue of at least £65m for H1 2021, strong monthly bookings and aggregate forward contracted revenue secured at 30 June 2021 approximately 40% above that at 30 June 2020, FY 2021 revenue is expected to increase significantly from the £101.5m reported for FY 2020.
The Board expects to report a strong EBITDA performance for FY 2021, with further improvement into FY 2022 as the Group benefits from high scale benefits and its digital roll out.
1 Average Monthly Bookings represents the monthly average of the annualised value of new or renewed contracts entered in to with customers during the period. The figures are annualised amounts, and therefore do not reflect the total contract value booked on new business where contracts are over 1year duration (the Group sells predominantly 1, 2 or 3year contracts).
2 Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation. It also excludes share based payments and unrealised gains or losses on derivative contracts.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside is now considered to be in the public domain.
For further information, please contact:
Yü Group PLC
+44 (0) 115 975 8258
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