Yu Group Swings To Annual Profit, Hikes Dividend Payment

6th Mar 2018 11:07

LONDON (Alliance News) - Yu Group PLC on Tuesday hiked its dividend as it swung to a full year profit on the back of a sharp rise in revenue.

The gas and electricity supplier recorded GBP1.8 million pretax profit for 2017, compared with GBP1.4 million pretax loss in the prior year period. This was after revenue almost tripled to GBP47.0 million from GBP16.3 million the year before.

Yu proposed a 2.0 pence final dividend, up 33% from 1.5p the year prior. For the full year, the dividend grew to 3.0p from 2.25p.

"This has been a record year for the group with substantial increases in both sales and profits, reflecting the success of the business model," Yu Chief Executive Officer Bobby Kalar said. "During the year we have invested carefully to position the business so that it can take advantage of the extensive opportunity available."

"Having had an opportunity to re-evaluate the growth potential of the business going forward," Kalar added, "the board has resolved to accelerate the growth targets, particularly with higher volume mid-sized corporate clients and energy brokers. As a result, our expectations for group revenue over the next few years have increased significantly."

"The predictability within the business, coupled with the scalability of our model, provides the board with considerable confidence in future growth."

Yu explained 2018 had started well. Contracted revenue for the year stood at more than GBP50 million. Yu also expected revenue to grow rapidly in the new year. As a result, it forecasts revenue in 2018 to be "ahead" of current market expectations and 2019 to be "significantly ahead."

"In consequence," Kalar explained, "operating profits for both FY 2018 and FY 2019 and expected to be ahead of current market expectations after taking into account planned investment in infrastructure and staffing to support the Group's continued growth."

Shares in Yu were 13% higher at 1,385.00p on Tuesday.

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