Yu Group maiden revenue to be 'slightly' ahead of expoctations

Gas and electricity supplier Yu Group anticipates maiden revenue for the year to be ahead of expectations, while it has moved to charge customers in arrears of energy, instead of in advance.

The AIM-listed company, which floated in March 2016, anticipates revenue for the 2016 calendar year will be “slightly" ahead of expectations.

The company said that gross margins in the year have remained firm, while In line with the growth of the business, there has been a “commensurate increase in fixed costs and headcount".

As the end of 2016, the company had in excess of £20m of revenue already contracted for the 2017 financial year, which is considerably higher than the £8.4m contracted revenue at the start of last year.

The company said that its continues to be cash positive going forward.

Cash raised at the time of the initial public offering is being used to support Letters of Credit to ensure that the Yu Group adheres to its hedging policy.

To facilitate the growth in the average size of customers, the company has moved to invoicing customers in arrears of energy usage in line with general industry practice, rather than in advance, which has led to a growth in trade debtors and working capital.

Chief executive Bobby Kalar said: "We are delighted with the group's progress during the year and have delivered on our short-term objectives as envisaged at the time of IPO in March 2016. The business is developing well and I look forward to the future with confidence."

Shares in Yu Group were up 1.54% to 330p at 0838 GMT.