Yu Group reports 'strong' start to year despite market volatility

Corporate gas, power and water supplier Yü Group reported a “strong start” to the year in a trading update on Thursday, with the good momentum from 2021 continuing.

The AIM-traded firm, which was holding its annual general meeting, said it expected overall performance in 2022 to be in line with market expectations.

It said the four months ended 30 April saw “significant” revenue growth at improved profit margins, providing it with “high confidence” for the rest of the year.

Average monthly bookings for the period stood at £13m, up 81% year-on-year.

The group said it was focussed on delivering “profitable and controlled” growth, based on a strong forward contract book, as well as unlocking the benefits of its 'digital by default' strategy.

During the period, the group also announced the creation of a metering services division, providing it with the ability to control a larger part of the value chain and drive “significant” value enhancement over the medium term.

“I am pleased to report a very strong start to the year,” said chief executive officer Bobby Kalar.

“Despite commodity market volatility, we have delivered record revenues for the four months to 30 April, with continued strong momentum.”

Kalar added that he was “delighted” the group had acquired the management capability of a smart metering business, describing it as a “game-changer”.

“I look forward to scaling this new capability, combined with the efficiencies from our digital by default strategy, to further enhance our growth and profitability.”

Yü Group said it would provide a further update in its July trading update, covering the period ending 30 June.

At 1044 BST, shares in Yü Group were down 1.4% at 204.6p.

Reporting by Josh White at Sharecast.com.