Yu Group (YU) Trading Update summary

Financial and operational performance

• H1 2024 revenue reached approximately £310m, up 60% year-on-year, despite lower energy consumption due to mild weather.

• Supplied meter points increased by 35% in H1 2024 and 82% since June 2023, closing at 72,300.

• Yü Smart meter installations rose 125% to 9,000 in H1 2024, with cumulative meters financed at 13,100, generating £0.6m in forward annualised income.

• Net cash stood at £86.8m at 30 June 2024, after significant dividend, share buy-back, and capex outflows.

• Monthly average bookings were £46.9m, reflecting lower commodity prices but offset by strong market positioning.

Strategic and operational developments

• New five-year commodity hedging agreement with Shell Energy enhances access to electricity and gas markets.

• Share premium account cancellation in July 2024 adds £12.3m to distributable reserves.

• Engineering field force headcount doubled to 101, supporting growth in smart meter installations.

• Improved customer service rating to 'Excellent' on Trustpilot, with a score of 4.3.

• Recognized in 'The Times' 100 Best Places to Work for the second consecutive year.

Outlook and guidance

• On track to deliver EBITDA and EBIT margins and profitability for FY24 in line with market expectations.

• Strong growth in meter points and installations expected to continue, leveraging digital capabilities.

• Significant net cash balance anticipated at year-end, after meeting annual ROC liability.

• Progressive dividend policy supported by increased profitability and strong cash generation.

• Interim results scheduled for release on 24 September 2024.