LONDON: Yü Group PLC, the independent utilities supplier to the UK business sector, has completed the acquisition of the B2B customer book from Bristol Energy Limited, a wholly owned subsidiary of Bristol City Council, a news release said.

Yü Group has paid £1.24 million in cash on completion and, as part of the acquisition, has acquired £1.0 million of receivables of which the majority is due for payment to Yü Group in August 2020. A further £100,000 is payable by the Group deferred for three months. In addition, the Group has assumed liabilities totalling £580,000 payable in August 2021.

Bristol Energy has established relationships with a focussed and resilient customer base in Bristol and the South West. All customers are on fixed contracts with the opportunity for fully green products. The B2B Book supplies a broad range of sectors, including Bristol City Council.

Bristol Energy management will provide full support for Yü Group throughout the transition of the contracts. All parties will follow Ofgem’s best practice for customer migration.

Based on management accounts, the B2B book, for the financial year to 31st March 2020, showed revenues of £15.2 million and generated an operating loss of £0.48 million.

Bobby Kalar, Chief Executive of Yü Group, commented: “We are delighted to have successfully executed the purchase of Bristol Energy’s B2B Book post extensive due diligence. The transaction allows the Group to layer in a fantastic customer base to our accelerating organic portfolio and increase value by offering additional products and services not available previously. This Acquisition forms part of our strategic growth plan, leverages our disciplined controls and scalable technology platform and highlights the Group’s ability and appetite to scale.

Immediate opportunities to synergise the customer book will further our ability to extract value while keeping overheads down. Management’s objective will be to transition Bristol Energy customers onto our platform quickly and seamlessly while enhancing value and creating a proven template for further value additive potential acquisitions.

I remain convinced that there is a substantial market opportunity for Yü Group. With significant organic growth potential and a strong balance sheet, we see a great opportunity to increase market share and drive sustainable, profitable growth, creating value for all our stakeholders.”