Yu Group, the U.K. supplier of gas, power, and water, announced on Tuesday that it anticipates reporting robust 2023 results that surpass market expectations. The company attributes this positive outlook to the acceleration of both revenue and earnings margins during the first half of the year.
Digital Strategy and Smart Metering Drive Margin Expansion
Yu Group’s emphasis on its digital strategy and the rollout of smart metering has resulted in an anticipated expansion of its earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. These expected improvements for the six months ending June 30 exceed the company’s medium-term goal of achieving a 4% EBITDA margin.
Revised Revenue Targets for Short to Medium Term
In addition to the positive earnings outlook, Yu Group has revised its revenue targets for the short to medium term. The company now aims to achieve £500 million ($641.3 million) in revenue, along with a sustainable EBITDA margin of over 5%. Previously, the company had set its sights on GBP500 million in revenue for the mid-term.
Beating Revenue Expectations with Record Monthly Bookings
Yu Group is confident in surpassing revenue expectations for the year, although specific figures were not disclosed. The company attributes this optimism to accelerated growth witnessed during the half-year period, with record monthly bookings being a highlight.
Strong Financial Position and Growth Prospects
Closing the period with net cash of GBP36.6 million (excluding leases), Yu Group anticipates further increases in the second half of the year. This strong financial position, coupled with its growth prospects, underlines Yu Group’s positive outlook for the future.
