GCIYü Group appoints Adam Young to aid growth strategy
(AIM: YU. ) has appointed Adam Young as Digital Marketing and Sales Director to support its growth strategy by unlocking new routes to market via a new digital programme.
The London-listed firm, which supplies gas, electricity and water to the UK corporate sector, said Young is expected to lead Yu Group’s transformation into a data-driven, ‘digital by default’ business that will further accelerate the Company’s growth, profitability and ability to scale.
The Group said Adam will work alongside Jason Prothero, Commercial and Transformation Director, and be part of Yü Group’s further strengthened Executive Committee reporting directly to the CEO. Adam will replace Simon Smith who is leaving due to personal reasons.
The Company explained to investors that Young is joining Yu Group from Arco Limited, where he spent 13 years working in leadership positions within the digital and marketing teams.
Young led Arco’s transformation from traditional catalogue marketing to a best-in-class digital product and prior to this, he spent over ten years at the brewery group, Carlsberg UK, where he helped develop the company’s sales strategy for the UK, the Group told its shareholders.
Today’s appointment follows the recent publication of the Company’s half-year results for the six months to 30 June 2021 in which the Group reported a strong financial and operational performance alongside positive momentum heading into the second half of the year.
Bobby Kalar, CEO of Yu Group commented: “I am delighted to welcome Adam as our Digital Marketing and Sales Director. Adam has a proven track record of driving digital change and will bring relevant expertise and experience to support our digital transformation programme.”
He added, “This programme will support our growth strategy by unlocking new routes to market, enabling us to continue to scale the business and take market share. I would like to thank Simon for his contribution to Yü Group and wish him well for the future.”
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Last month, in its half-year results for the six months to 30 June 2021, Yu Group told investors that it has seen a “solid” 1H performance with this positive momentum continuing into 2H21.
The Group, which supplies gas, electricity and water to the UK corporate sector, said it had come out with “better than expected” results for 1H21 after revenue grew by 43% to £65.8m.
CEO of Yu Group, Bobby Kalar said he believes the company’s business model “is more than delivering” and that it remains on track to exceed market profitability forecasts going forward.
During 1H21, the Company reported revenue growth of 43% to £65.8m up from £45.9min 1H20 which is said was driven by strong organic growth and recovery of customer demand.
Profit after tax came to £0.9m, an increase of £2.6m year-on-year, up from a loss of £1.7m.
The Company highlighted that underlying profitability ‘continues to see significant improvement,’ after reporting adjusted EBITDA at £0.5m, up from a £1.8m loss in 1H20.
In particular, gross margin rose by 2.1% to 7.8% (1H20: 5.7%) while strong customer collection performance drove lower provision for bad debt. Average monthly bookings rose 55% to £9.6m while the number of meter points also increased by 112% from 30 June 2020.
Yu Group said its business maintains both a strong cash position and strong balance sheet and remains debt free. As at 30 June 2021, held £11.5m (31 December 2020: £11.7m).
In terms of current trading, the Company has now secured £90.5m of contracted revenue for 2022 at 31 August 2021 which it outlined would provide ‘good forward revenue visibility.’
In short, Yu said it believes it is well positioned to continue in its business objectives despite the increased commodity markets which has led to some increased competition on renewals.
Going forward, the Company expects FY21 to be in line with market expectations with strong organic growth expected to continue for 2H21 while adjusted EBITDA for FY21 expected to be ahead of market expectations based on strong net customer contribution performance.
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