LONDON (ShareCast) - (ShareCast News) - Independent gas and electricity supplier Yu Group said on Monday that it is on track to meet market expectations for the full year.
In a trading update for the six months to 30 June, the company said group revenues for the period are expected to be in line with management's view at the time of admission to trading on AIM.

"Gross margins in the period have been robust and, despite significant growth in the business and the number of employees, overhead costs have been controlled tightly and the group remains on track to meet market expectations for FY16."

Yu said the net cash raised through the initial public offering has been placed on separate deposit with the group's bankers and is being used as intended to support letters of credit so the company continues to adhere to its stated hedging policy.

Annualised bookings for the first six months of the year were around 60% ahead of budget and although some of these contracts will not have an impact on the current year, Yu said they "provide considerable comfort regarding the ongoing rapid growth of the group".

As at 30 June 2016, Yu had £13.4m of contracted annual revenues for the financial year ending 31 December 2016 compared to £8.4m at the start of the year.

Chief executive Bobby Kalar said: "We are delighted with the group's progress over the first half of the year and have delivered on our objectives as envisaged at the time of IPO in March 2016. The business is developing well which, combined with the proceeds from our recent placing, underpins the strong growth potential of the group. I look forward to the future with confidence."

At 1443 BST, Yu shares were up 5.4% to 234.50p.

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