Yu Group (YU) H2 2024 earnings summary

Executive summary

• Revenue increased 40% year-over-year to £646m, with adjusted EBITDA up 11% to £48.8m and profit before tax up 12% to £44.5m.

• Market share rose to 2.7%, with 88,000 meter points supplied (+65%) and energy supplied up 78% to 2.21TWh.

• Yü Smart division scaled rapidly, installing 22,900 new smart meters (+169%) and growing owned meter assets to 27,200.

• Net cash position strengthened to £80.2m, supporting a 50% increase in total dividend to 60p per share.

• Five-year trading agreement with Shell enhances commodity hedging, freeing up capital for growth.

Financial highlights

• Adjusted EBITDA margin at 7.6% (down from 9.5%); gross margin at 14.5% (down from 18.1%).

• EPS (adjusted, fully diluted) up 11% to 210p; net cash up 150% to £80.2m.

• Aggregate contracted revenue up 25% to £1.03bn; average monthly bookings £42.6m (down 23%).

• Dividend per share increased to 60p (FY23: 40p), with a final recommended dividend of 41p.

• Overdue customer receivables improved to 3 days (from 4 days).

Outlook and guidance

• FY25 revenue guidance of £730m–£760m, with continued growth in meter points and smart meter assets.

• Targeting 120,000 supplied meter points and 60,000 owned smart meters by end FY25.

• Adj EBITDA and EPS growth expected in line with market expectations; dividend cover to reduce to 3x.

• Significant market opportunity remains with only 2.7% market share in a £50bn+ addressable market.