LONDON (ShareCast) - (Sharecast News) - Corporate sector gas, electricity and water provider Yu Group updated the market on 2020 on Tuesday, reporting that revenue was "significantly ahead" of market expectation at over £100m.
The AIM-traded firm said adjusted EBITDA for the year ended 31 December was expected to be ahead of market expectations as well, after a strong performance in the second half, despite the impact of Covid-19.

It said it was in a "very strong" cash position at £11.7m, making for an increase of £9.3m during the year.

The board also reported an "exceptional" operational cash performance, with its bill-to-cash ratio at 99%, making for a record year.

Significant revenue growth was expected, based on clear momentum in new sales and on contracts already secured.

Looking ahead, Yu said its strong momentum was expected to continue into 2021, as it continued its strategy to grow organically and to increase its share of the available addressable £35bn market.

"I'm encouraged by the strong finish to the year," said chief executive officer Bobby Kalar.

"Despite the inevitable challenge of the pandemic, we've successfully and seamlessly adjusted our business to manage the impact on our customers without detriment to our growth strategy and operational performance."

Kalar said a "solid" forward order book and a "laser-like focus" on managing customer receivables gave him confidence in the company's ability to deliver sustainable and growing profitability.

Though it was inevitable that some of Yu's customers would cease trading due to the harsh economic environment, as a business he said it was important it worked with those customers to help recover debts due.

"We will continue investing for growth in market leading digital technology to support our businesses' transformational growth, bringing true entrepreneurial disruption to a technologically benign market."

At 1159 GMT, shares in Yu Group were up 32.17% at 158.6p.

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