In its results for the year to 31 December 2021, Yu Group (YU ), an independent supplier of gas, electricity and water to the UK corporate sector, has reported “a remarkable year and a stellar performance” in terms of profitability, growth and forward looking contracted revenue.
“Despite the turbulence of the global energy commodity market the business has remained focussed and disciplined underpinned by our robust hedging strategy,” it noted to investors.
During the full year, revenue increase by 53%, to £155.4m, up from £101.5m reported in FY20, driven by high organic growth and the integration of AmpowerUK’s customer book.
Profit after tax was also reported at £4.5m, up substantially from a loss of £1.2m in FY20.
Yu’s underlying profitability continues to improve, with adjusted EBITDA increasing to £1.7m from a loss of £1.7m reported in FY20. The Group said it is “fully driven” to further increase adjusted EBITDA from the 1.1% achieved in FY21 and on significantly increased revenue.
The Company had net cash of £6.8m as of 31 December 2021, compared to £11.4m in FY20, consisting of £7.0m of cash less lease liabilities. The Group added that it has no other debt.
While average annualised monthly bookings came to £13.8m, an increase from £8.3m in FY20, total meter points also stood at 31,862, an increase of 83% from the end of FY20.
Yu said finishing 2021 with £157m of revenue already contracted for FY22 will provide further evidence of its growth potential and the opportunities available in a consolidating market.
In FY21, Yu successfully launched its ‘Digital by Default’ strategy which is aimed at providing digitally led innovation. The Group expects this to deliver significant benefit to future results.
This programme will design optimal processes for its customers through a digital customer portal which is expected to increase scale, drive efficiency and create further value for Yu.
“Our strategy is working well and the ‘hard yards’ have harvested rewards. With a very strong start to 2022 I’m pleased our January and February bookings, revenue and profitability have continued the momentum demonstrated in 2021,” commented Bobby Kalar, Yu Group’s CEO.
He informed investors: “Our operational KPI’s used to measure and track performance drove over-performance in 2021. I’m pleased our winning formula will continue in 2022 and beyond.”
Looking ahead, Yu said it holds “significant confidence” in high revenue growth based on its increased forward contract book. Despite turbulence in the wider external market, the Group said it remains strong and focussed on delivering continued profitable and controlled growth.
Yu added that very strong current trading provides “a high level of excitement in the future.”
Commenting on the company’s outlook going forward, Kalar highlighted to investors: “It’s been a tough year for the energy industry in terms of unprecedented wholesale gas volatility causing some suppliers to exit the market, exacerbated by the effects of the pandemic.
However, our results show we have not only ‘weathered the storm’ but ‘blown it away’ in all key areas. Our forward order book at 31 December 2021 stands at a record £157m to outflow during FY22. Our Digital by default transformation strategy is progressing well, and we’ve once again demonstrated our ability to migrate customer books onto our scalable platform. Our focus this year will be to continue the momentum of 2021 with continued emphasis on growth, profitability and further developing our already strong forward order book.”
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