25th Jan 2022 10:57
(Alliance News) - Yu Group PLC on Tuesday said it expects to report a profit for 2021 that is significantly ahead of market expectations, driven by record bookings and a double-digit rise in revenue.
Shares in the UK supplier of gas, electricity and water were 9.7% higher at 304.40 pence on Tuesday in London. The stock has more than doubled in value over the past 12 months.
For the year, Yu expects positive adjusted earnings before interest, tax, depreciation and amortisation that will be significantly ahead of previous expectations. Yu recorded an adjusted Ebitda loss of GBP1.7 million in 2020. Revenue is set to be in excess of GBP150 million in 2021, reflecting at least 48% growth from GBP101.5 million.
The group reported record average monthly bookings of GBP13.8 million, up 67% from GBP8.3 million, while the number of meter points rose 83% to 31,900 as at December 31, from 17,400 the same date a year prior.
Looking ahead, Yu said it has strong forward visibility for 2022, with GBP156.5 million in contracted revenue, up 68% from GBP93 million in 2021.
"The group has entered 2022 with excellent forward revenue visibility supported by a solid forward and hedged order book. Alongside driving growth, management have focussed relentlessly on improving margin through an appropriate hedging policy. The group performance incentivisation structures have been embedded in management culture, and I'm pleased to see this reflected in the performance of the business," said Chief Executive Officer Bobby Kalar.
By Dayo Laniyan; [email protected]
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