Yü Group, the Nottingham-headquartered utilities supplier, has reported a record-breaking performance for 2022, exceeding management expectations.
Full year revenue has skyrocketed, to exceed £275m, an increase of over 76% on FY21 (£155m).
The company’s adjusted EBITDA margin for the year, meanwhile, is anticipated to be significantly ahead of current market expectations.
The firm also hailed record-breaking annualised contracts.
Yü Group is anticipating its growth to continue in to FY23 and over the medium term.
Bobby Kalar, CEO of Yü Group, said: “I’m thrilled to report a fantastic, record-breaking performance for FY22. While the Board modelled a strong outcome for FY22 we may have underestimated the accelerated contribution our strengthened business would have on the Group’s FY financial metrics.
“Record breaking organic revenues, profitability and forward contracted revenues have all exceeded management expectations. We are now in the fast lane of growth and expect to exceed current guidance that had already been upgraded in March, July, September and November 2022.
“Our balance sheet is very strong, with excellent cash conversion and I’m very pleased to report a fourth consecutive year of EBITDA improvement. Cash has also far exceeded management expectations, more than doubling from FY21. Net customer contribution (being gross margin less bad debt) is being managed as we grow. Adjusted EBITDA margin has also dwarfed the 2.1% achieved in H122 (FY21: 1.1%) and as such we have clear visibility of our stated £500m revenue at 4%+ target.
“As a consequence of our strong cash generation, management intends to make a modest shareholder distribution in respect of the financial performance achieved in FY22, details of which will be announced alongside publication of the Company’s audited results for FY22. In considering the level of dividend management will ensure it does not constrain or hinder our growth ambitions or abilities to take advantage of corporate and other growth opportunities as they arise.
“The impact of our ‘digital by default’ transformation has exceeded management expectations in terms of its contribution to margin and efficiency. Our single platform seamless onboarding has created operational leverage alongside opening up additional profitable sales streams. The full impact will become materially beneficial in 2023 and beyond.
“I’m pleased to welcome the Yü Smart team to our family, after completing the purchase from Magnum Utilities in May 2022 using cash from our balance sheet. The management have worked hard to achieve, from a standing start, full industry accreditation and the necessary licences to install and maintain metering infrastructure.
“Yü Smart installed its first SMETs meter in August 2022 and by year end was achieving hundreds of installs a month. As Yü Smart gains national coverage and full operational scale in 2023 it will complement our retail business in contributing significant Group profitability.
“As always delivering such positive results takes a huge team effort and I would like to thank all of my team for trusting the Board and believing management’s vision. The hard yards continue to bear fruit.”
