Yu Group PLC – Final Results

Yu Group PLC – Final Results

Yü Group PLC (AIM; YU.), the independent supplier of gas, electricity and water to the UK corporate sector, announces its final results for the year to 31 December 2018.

Financial Review:

31 December

2018

2017 (restated)

£’000

£’000

Revenue

80,635

45,631

Adjusted EBITDA*

(6,283)

1,537

Adjusted PBT

(6,618)

1,271

(Loss)/profit for the year

(6,267)

711

Operating cash (outflow)/inflow

(1,320)

533

Cash

14,612

4,887

Overdue customer receivables**

9 days

14 days

(Loss)/earnings per share:

Adjusted

(37.0)p

10.0p

Statutory

(42.0)p

5.0p

Dividend per share

1.2p

3.0p

 *Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and also before non-recurring costs, share based payments and unrealised gains or losses on derivative contracts. For FY 2018, it also excludes the impact of first time adoption of IFRS 9.
** Overdue customer receivables relate to the total accrued income which is outside of the normal billing cycle, plus overdue trade receivables (net of VAT and CCL), net of provision for doubtful debts.

  • Revenue increased by 77 per cent. to £80.6m (2017: £45.6m)
  • Adjusted EBITDA loss of £6.3m (2017: £1.5m profit), following a detailed accounting review
  • Restatement of prior year accounts, reducing 31 December 2017 net assets by £2.4m
  • Cash and cash equivalents of £14.6m at 31 December 2018 and £16.5m at 30 April 2019
  • Contracted revenue for 2019, as at 31 December 2018, of £88m
  • Overdue customer receivables of 9 days at 31 December 2018, down from 14 days at 31 December 2017
  • Raised £11.6m (net of costs) from a share placing in March 2018

Operational Review:

  • Implementation of new control, accounting and governance processes, supported by a third-party review by PwC
  • Invested in further strengthening management, sales and product development teams, and back office teams to improve systems, controls and management information
  • Continued to trade forward gas and electricity markets to reduce risk of energy market volatility
  • Launch of our business water retail product offering
  • Maintained customer service levels (including three ring pick up policy)

Bobby Kalar, Group Chief Executive Officer, said:

“The accounting and system failings uncovered in the second half of 2018 have had a major impact on the Group and I would personally like to apologise to all our stakeholders for the mistakes made. We have made significant progress in implementing new systems and processes and the Board is confident that we have weathered the storm.

“The business rationale remains strong with an enormous potential market for a high-quality service provider of gas, electricity and water to the SME and corporate sector. I believe the Group is well placed to achieve long term profitable growth underpinned by the people and systems we have in place.”

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