Yu Group PLC Acquisition of B2B Customer Book (5913E)
November 09 2020 - 2:00AM
UK Regulatory
TIDMYU.
RNS Number : 5913E
Yu Group PLC
09 November 2020
9 November 2020
Yü Group PLC
("Yü Group" or the "Group")
Acquisition of B2B Customer Book
Yü Group PLC, the independent supplier of gas, electricity and
water to the UK business sector is delighted to announce the
acquisition of the business customer book of a Midlands-based
energy group.
Transaction highlights
-- The acquisition will add c400 meter points to Yü Group's
current meter portfolio of c14,000.
-- The Board expects the acquisition to be earnings enhancing from mid-November 2020.
-- The customer book consists of gas contracts to small and
medium sized businesses across Great Britain.
-- The Group will hedge the book based on lower gas commodity
markets, leading to attractive margins.
Information on the assets acquired
The customer book has been acquired from a Midlands-based group,
which is divesting its mains gas supply book to focus on its core
activities. The customer book consists of gas contracts to a
diverse customer base, operating within sectors including
healthcare, manufacturing and retail.
The acquired business reported cGBP3m of unaudited revenue for
the year ended 31 March 2020.
Strategic rationale
The customer book has already been integrated into the highly
scalable Yü Group platform and will complement strong organic
growth. With the customer book consisting of gas contracts there
are clear opportunities for Yü Group to provide additional products
and services including electricity and water. Further, Yü Group's
ability to hedge commodity volume on lower forward commodity market
prices will ensure the customer book delivers attractive
margins.
Terms of the Acquisition
Yü Group will pay GBP0.2m in cash for the assets, which includes
an element of consideration based on a discount to the customer
receivables balance acquired, net of provision.
Bobby Kalar, Chief Executive of Yü Group, commented:
"We are delighted to be adding these additional customers to our
highly scalable platform.
We have already successfully migrated the customers with the
acquisition being imminently earnings enhancing with no noticeable
additional cost to serve. Beyond this, there is further value we
can provide our new customers with the additional products and
services we offer.
Following the recent successful acquisition and seamless
integration of Bristol Energy, this acquisition clearly
demonstrates our abilities to strategically grow our business. We
now have a proven template for deals to complement our accelerating
organic portfolio. We see a number of further opportunities in the
market, and combined with our continued significant organic growth,
are excited by the future."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information, please contact:
Yü Group PLC
Bobby Kalar
Paul Rawson +44 (0) 115 975 8258
SP Angel Corporate Finance
LLP
Jeff Keating
Bruce Fraser
Caroline Rowe +44 (0) 20 3470 0470
Tulchan Group
David Allchurch
Giles Kernick +44 (0) 20 7353 4200
Notes to Editors
Information on the Group
Yü Group PLC, trading as Yü Energy, is an independent supplier
of gas, electricity and water focused on servicing the corporate
sector throughout the UK. It has no involvement in the domestic
retail market. The Group was listed on the AIM market of the London
Stock Exchange in March 2016. For 2019 the Group had revenue of c.
GBP112m.
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END
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