UK's Yu Group H1 revenue rises 19% on higher volumes

By Reuters News


Overview

  • UK gas and electricity supplier's H1 revenue grew 19% yr/yr, driven by higher volumes

  • Adjusted EBITDA rose 4% yr/yr as gross profit increased, while gross margin narrowed

  • Company declared interim dividend of 24 pence per share amid continued meter and contract growth


Outlook

  • Yu Group expects FY26 revenue, adjusted EBITDA and EPS in line with market expectations

  • Company expects contract book to approach £2bln by end-2026

  • Yu Group says strong cash generation will support increased shareholder distributions


Result Drivers

  • VOLUME AND METER GROWTH - Revenue growth was driven by a 43% increase in meter points and a 25% rise in energy volumes supplied

  • MARGIN PRESSURE - Gross margin declined due to increased industry costs and ongoing competitive pressures

  • SMART METER INVESTMENT - Growth in smart meter assets led to a 67% increase in recurring index-linked annuity income


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 405 mln

H1 Adjusted EBITDA

GBP 24 mln

H1 Dividend

GBP 0.24

H1 Operating Cash Flow

GBP 38 mln

H1 Pretax Profit

GBP 22 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the multiline utilities peer group is "buy."

  • Wall Street's median 12-month price target for Yu Group PLC is GBp2,134.00, about 17.9% above its September 21 closing price of GBp1,810.00

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Sept 21 - UK's B90 Holdings H1 revenue rises 38%, net loss narrows

  • Sept 21 - UK's Invinity H1 revenue rises on project deliveries

  • Sept 20 - UK property asking prices rise for first time since May, Rightmove says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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