Consistent growth and recent upgrades to earnings forecasts from Yu Group (YU.AIM) have sent the shares up 87% over the past six months and the independent gas and electricity supplier’s latest trading update (28 November) helped sustain the rally.

Energy crisis beneficiary Yu said sales, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) and operational cash flow for the year to December 2022 are expected to ‘significantly exceed’ market expectations.

Yu Group helps business customers to manage rising energy costs and it recently launched Yu Smart to support growth through opportunities in smart metering and electric vehicle charge installation.

The company said it had enjoyed record average monthly bookings from new and renewed customer contracts over the last three months, leaving it on course for a 67% rise in sales to £260 million
for 2022.

Management believes this ‘exceptional’ trading performance can continue beyond 2022. ‘EBITDA profitability is expected to continue its strong trajectory,’ insisted the company.

Yu Group continues to make progress towards its medium-term goal of £500 million of revenues with an adjusted EBITDA margin north of 4%.

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