LONDON: 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.
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 c£3m of unaudited revenue for the year ended 31 March 2020.
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.
Yü Group will pay £0.2m 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.”
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. £112m.
Yü Group PLC is a specialist supplier of energy and utility solutions to UK businesses. We offer commercial electricity, gas and water supply solutions to SMEs and corporate customers. Learn more about us. Acquisition of Bristol Energy B2B Customer Book.