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More non-domestic energy customers are seeking the installation of prepayment meters (PPMs) to help manage their bills, Yu Group’s chief executive has told Utility Week.
Bobby Kalar was speaking as the company, which supplies around 26,000 business customers, posted record-breaking financial results for year-end 2022.
Yu Group saw its revenue soar, increasing by 79% to almost £280 million, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up 359% to £7.9 million.
Kalar said it had been a challenge for the supplier to convince customers that their bills were increasing by as much as they were, and that Yu Group was in “continuous engagement” with customers about the state of the market.
He added that consumers were increasingly seeking to move over to a smart PPM in order to better manage their soaring energy costs.
The chief executive said: “We’re getting more customers asking for us to fit in prepayment meters so that they can manage their own bills, rather than wait till the end of the month or the beginning of the following month.”
He added: “More and more of these requests are coming in from our existing customers which tells me two things.
“Firstly, they are taking this seriously, they’re worried about these rising energy costs. And secondly, they’re actually doing something about it in terms of managing that supply.
“If they’re topping up every day or every week, that’s real money coming out of their account in real time… I see that behavior coming in more and more as this year progresses and as customers see the need to self-manage their usage through their top-ups.”
Yu Group has undergone a major transformation in the last five years, after issuing a profit warning concerning its inability to recover unpaid bills from customers in October 2018.
A year later Kalar said the company had “reset” its business following the accounting issues.
Following the record performance in 2022, Kalar revealed the company was reinstating its dividend, with the board proposing a final dividend of 3p per share.
He said: “I’m pleased to report another fantastic year for Yu Group. We have once again clearly demonstrated our ability to surpass financial performance metrics and, with the strong momentum we have in the business, we are confident of this recurring theme continuing into 2023.
“Our record breaking financial performance and significant strategic progress is a testament to the strength of the group. Revenue increased 79%, EBITDA increased 359%, contracted revenue is up 57% and cash increased by £11.9 million.
“Reflecting our continued confidence in the business we are also pleased to recommend the reinstatement of a progressive dividend policy. To achieve this despite the backdrop of a turbulent energy market is credit to the strong foundations we have in place and the ability and character of the team.”
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