Yu Group, a provider of energy and utility supply solutions to U.K. businesses, announced that it anticipates surpassing market forecasts for full-year adjusted Ebitda. Additionally, the company reported increased earnings for the first half of the year.
For the six months ending June 30, Yu Group achieved a pretax profit of £8.9 million ($10.9 million), compared to £5.5 million during the same period last year. Revenue also experienced a significant boost, rising to £194.9 million from £129.2 million. This growth can be attributed to strong organic expansion and an improved gross margin of 17.2%, up from 14.1%.
Adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda), a key metric for the company, were recorded at £13.7 million, marking a substantial increase from £2.7 million. This surge in earnings was driven by a higher net customer contribution.
Chief Executive Bobby Kalar expressed optimism about future performance, stating, “We now forecast a new record performance to follow in the second half of 2023, with Ebitda expected to exceed £33 million for the entire year. This is a significant improvement from current market expectations of £19 million.”
Yu Group confirmed a contracted book value of £358 million for the year 2024.
Furthermore, the company’s board has declared an interim dividend of 3 pence per share for shareholders. This decision reflects their confidence in the company’s financial position and growth prospects.
At 1354 GMT, shares of Yu Group saw a 2.6% increase, rising 25.0 pence to reach 975.0 pence.
