Shares in energy supplier Yu Group (LSE: YU) jumped 15% on Tuesday after the company said it expects to deliver “record breaking” full-year results with revenue and earnings significantly ahead of expectations.
In a trading update, the gas and electricity provider to the UK corporate sector said revenue is forecast to top £450 million in 2023, a 61% increase from £279 million last year. This was fueled by average monthly bookings more than doubling to £55.0 million.
Yu said earnings before interest, tax, depreciation and amortisation (EBITDA) will also be “significantly ahead of current market expectations,” building on 2022’s £7.9 million. It also expects to expand its adjusted EBITDA margin compared to 2022’s 2.8%, thanks to “strict controls and operating leverage.”
The company has already secured £519.7 million in contracted revenue for 2024, all of which it anticipates will be realised next year.
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“Once again, the group has delivered a fantastic all-round performance, and I am delighted to report another set of record-breaking results,” said Chief Executive Officer Bobby Kalar. “We have a clear strategy and the processes in place to deliver exceptional profitable growth.”
Yu Group’s shares have doubled over the past year as the company continues its rapid expansion in the UK energy market. Tuesday’s trading update indicates that dynamic growth is set to continue into 2024 and beyond.