Yu Group (YU) H1 2025 earnings summary

Executive summary

• Revenue increased 9% year-over-year to £341m in H1 25, with meter points supplied up 48% to 106,900 and adjusted EBITDA up 4% to £22.9m.

• Earnings per share rose 2% to 96p, and net cash position strengthened by 27% to £109.9m.

• Dividend per share increased 16% to 22p, reflecting a progressive dividend policy.

• Strong order book with £1,168m in aggregate contracted revenue and significant forward visibility.

• Meter points supplied surged 48% to 106,900, and smart meter assets' recurring revenue (ILARR) rose 200% to £1.8m.

Financial highlights

• Adjusted EBITDA margin was 6.7%, slightly down from 7.1% in H1 24, due to tighter overhead control offsetting reduced customer contribution.

• Profit before tax rose 14% to £22.6m, with a margin of 6.6%.

• Gross margin held at 13.6%, and net customer contribution was 10.8%.

• Operating cash inflow reached £39.6m, with a cash collection rate of 97.8%.

• Adjusted EPS: 96p (up 2% year-over-year, fully diluted).

Outlook and guidance

• EPS is forecasted to increase in H2 25, with continued focus on margin discipline and overhead leverage.

• Ambition for 20k–25k smart meter installations in FY25, supported by expanded engineering capacity.

• On track to deliver EBITDA and adjusted EPS for FY25 in line with market expectations.

• Strong cash generation and balance sheet discipline underpin progressive dividend policy and potential for inorganic growth.

• Significant net cash balance provides flexibility for future growth and investment.