Yu Group has seen its shares soar nearly six per cent after announcing it is on course to “substantially” outperform market expectations for revenues and profits this year.
The challenger group reported meter points increases from 22,500 in December 2022 to 39,700 just six months later.
Meanwhile, average monthly bookings for the FTSE Aim All-Share company climbed to £51.3m for the first six months of the year – up 109 per cent on December, when its ledger totalled £24.5m, a more than doubling of its portfolio value.
Liquidity was also robust, with net cash more than doubling from £17.6m to £36.6m in the first six months and £20.9m year-on-year.
Looking ahead, Yu Group now anticipates an expansion in its profit margins courtesy of its digital by default strategy and smart meter roll out it.
It has consequently lifted its earnings targets, having exceeded its goal of four per cent margins in pre-tax profits, and is setting a medium term goal of £500m revenue with a five per cent margin for its gross earnings.
Bobby Kalar, chief executive officer, said: “We continue to deliver strong financial performance as more customers lock in the benefit of a softening commodity market.”
He expected to see “revenue and profitability growth in the full year and beyond.”
The energy boss also highlighted the growing rollout of Yu Smart, with a current smart meter installation run rate of 700 per month, which is expected to scale significantly – with plans to also transition from the use of third-party meters to in-house options.
Earlier this year, Kalar told City A.M. that his firm was thriving by “picking contracts from the Big Six” who were complacent with their offerings to customers.
The big six energy firms for businesses are Centrica-owned British Gas, EDF Energy, EON, Npower, Scottish Power and SSE.
He said: “They should be worried about challengers coming and taking their customers and growing – with the controls, guidelines and governance that comes with a very disciplined and a mature challenger brand.”
Yu Group is currently trading at 790p per share on the London Stock Exchange, up 5.9 per cent in the early afternoon.