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Yu Group PLC saw its share price fall on Tuesday, despite ‘strong’ trading in 2024 meaning the group expects to post a more than 30% growth in revenue for the year.
The Nottingham, England-based independent supplier of gas and electricity, meter asset owner and installer of smart meters to the UK corporate sector expects to deliver a 34% jump in revenue for 2024, rising to £650 million from £460 million the year before.
Its shares, however, were down 10% at 1,668.00 pence each in London on Tuesday morning.
Yu Group also expects to post a full-year earnings before interest, tax, depreciation and amortisation margin that beats market expectations, driven by ‘strong contract profitability in [the second half of 2024], robust hedging policy and tightly managed bad debt’.
Though Yu Group did not on Tuesday outline what it believes the market consensus to be, broker Panmure Liberum has forecast Ebitda of £46.5 million for the group, which would be up 8.8% from £42.6 million last year.
Chief Executive Officer Bobby Kalar said: ‘The group has delivered a strong 2024 and I’m delighted, once again, to update shareholders on our progress. Yu Energy, our supply business, has seen around a 40% increase in revenue despite lower commodity pricing, and we enter 2025 with 88,000 meter points, up 65%.
‘Yu Smart continues to deliver incredible advantages to our customers and the group, and we now have national coverage of skilled engineers. We have financed 27,200 smart meter assets which provide a growing index-linked annuity income stream alongside other significant benefits to our customers and our own operation.
‘I look back with pride on our journey and the hard yards invested, which have seen a quadrupling of revenue in the last four years. While our increased scale suggests a lower organic growth rate in the future, our group is well placed to continue to take market share with a significant opportunity remaining.’
Looking ahead, contracted revenue for 2025 has increased 8.5% to £566 million, compared to £520 million at the same time last year.
Yu Group will publish its 2024 results on March 18.
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