By Nicholas Earl
Yu Group has eased its way through the volatility energy market and vastly ramped up the scale of its business, increasing its monthly bookings by 49 per cent and its overall meter points by 25 per cent over the first six months of trading this year.
The challenger retail supplier has also successfully launched its smart metering business, Yu Smart, which has helped widened its earning margins from 0.8 per cent to 2.1 per cent and lowered its operational costs from 6.1 per cent to 4.6 per cent of overall revenue.
These reforms have powered the energy firm to a 389 per cent boom in profits, reporting earnings after tax of £4.4m in its interim results.
Its revenues have spiked from £65.8m this time last year to £129.2m at the end of June 2022.
This has placed the company in a strong cash position, with £15.7m in the coffers, while its robust hedging strategy will help insulate the business from future market shocks.
Chief executive Bobby Kalar said: “We performed well in the pandemic; even better in 2021, despite challenges in the market; and we expect even better performance in the remainder of 2022 and beyond.
“I’m reassured our business continues to prosper and will use its strength and experience as an anchor for any further turbulence. As we continue to enjoy the fruits of our hard work, I look forward to delivering significant shareholder value in the near future.”
He also praised the business support package unveiled by the Government earlier this month to combat spiralling energy bills.
However, Kalar still feared businesses will suffer from volatile wholesale markets “for some time” to come.
Yü Group is a business supplier which has taken on energy users from fallen firms during the recent market crisis.
This includes customers from Ampower, Whoop Energy and Xcel Power Limited.
The company trades publicly on the FTSE AIM All-Share.
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