30th Mar 2021 10:19
(Alliance News) - Yu Group PLC, a supplier of gas, electricity and water to the UK business market, reported on Tuesday a narrowed annual loss, with sales momentum that developed in the second half of 2020 continuing into the new year.
The stock was down 8.8% at 328.50 pence in London in morning trade, hitting an intraday low of 310.00p.
Cheshire, England-based Yu said its pretax loss loss was cut to GBP1.5 million from GBP6.0 million in 2019, despite a 9.1% decline in revenue to GBP101.5 million from GBP111.6 million.
Adjusted loss before interest, tax, depreciation and amortisation narrowed to GBP1.7 million from GBP4.2 million, which the company said was "significantly above market expectations".
Business picked up substantially in the second half of the year, after the "shock" of the onset of the pandemic, Yu said, with 22% sequential revenue growth from the first half. It saw record monthly billings of GBP10.3 million in the second half, up 62% from the first.
This momentum has continued into the first quarter of 2021, Yu said, with contracted revenue up 16% to GBP93 million from GBP80 million at the same point a year ago.
The company struggled with bad debt last year, with overdue customer receivables increasing to eight days from seven days in 2019, but bad debt was "contained" at 3.1%, Yu said.
Yu declared no dividend for 2020, unchanged from 2019. Its last payout was a 1.2 pence interim dividend in 2018.
"Our strong top-line performance and earnings in [financial year] 2020 have exceeded market expectations and are a clear indicator of the group's positive trajectory and speed of travel," said Chief Executive Officer Bobby Kalar. "Monthly bookings have far exceeded the board's expectations, particularly pleasing in light of the ongoing economic impact of the pandemic."
Kalar added: "I still passionately believe in the original growth opportunity that prompted me to found this business and the very significant growth and market share potential in this sector."
By Tom Waite; [email protected]
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