GCIYü Group reports 60% revenue surge and 125% increase in smart meter installations in H1
() , a provider of smart energy solutions, issued a trading update for the 6 months to June 30, 2024 (H1 2024).
Yü reported revenues of £310m for H1, up 60% year-on-year despite mild spring temperatures reducing consumption during the half. Monthly average bookings were down slightly to £46.9m compared to £51.3m in H1 2023, reflecting lower commodity prices.
Despite the decrease in bookings, Yü delivered a 35% increase in supplied meter points in H1 2024 half-on-half, and 82% year-on-year, to 72,300. Similarly, the group's smart metering division Yü Smart continued to scale, with meter installations in the period up 125% year-on-year.
Yü finished the half with £86.8m in cash, a significant increase from last June's £53.8m, on the back of strong operational cash inflow. During the period, Yü signed a new 5-year commodity hedging agreement with Shell Energy, providing capital and cost-efficient access to electricity and gas commodity markets.
Bobby Kalar, CEO, commenting: "I'm proud to report a continued set of strong results; with revenue, meter points supplied energy, and meters installed increasing by c.60%, 82% and 125% respectively on the same period in 2023.
We continue to focus on delivery of our strategy, increasing market share through our unique Digital by Default offering and supported by our new agreement with Shell, and to deliver sustainable margins as we scale."
View from Vox
Yü Group delivers excellent H1 results with a 60% increase in turnover underpinned by strong organic growth, and a rough doubling of supplied energy and smart meters during the period. The group is on track to deliver EBITDA and EBIT margins and therefore profitability for FY24 in line with current market expectations, despite market headwinds eg lower commodity pricing and the impact of mild temperatures in H1 2024.
Cash generation remains strong and the group ended the half with £86.8m in cash, a significant increase from last year, from strong operational cash inflow, and after £10.2m of dividend and share buy-back payments, £1.8m of cap-ex in metering assets, and corporation tax payments on account. Yü remains committed to its progressive dividend policy, bolstered by the increased profitability and cash generation.
Yü also saw robust growth in meter points supplied by Yü Energy and smart meters installed by Yü Smart. In total, 13,100 meters were financed, providing a £0.6m forward annualised, indexed annuity income. Momentum is strong into H2, leveraging the group's Digital by Default offering, and building revenue and margin opportunity for FY25 and beyond within the £50bn market.
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