Yu's share price has grown by more than 450% since its March 2016 IPO.
Companies: Yu Group PLC
Independent supplier of gas and electricity Yu Group (LON: Yu.) has today continued its incredible rally since its 2016 IPO after it updated the market on its FY17 results.
The supplier of utilities to UK corporations and SMEs has jumped 11% as Management flagged Revenues "significantly ahead" of expectations, while Profits are also expected to be ahead of market expectations.
The company has found its sweet spot in the market and is capitalising on the opportunities in supplying gas and electricity to the medium-sized corporate sector.
As a result of its success in this middle market, Management is now anticipating...
"... that revenues for 2018 and 2019 will be substantially ahead of our previous expectations."
Chief Executive of Yu Group Bobby Kalar said he was "looking forward to the future with confidence"...
"We are once again delighted with the Group's continued progress. The business is developing well and our focus on our long-term sales growth is paying dividends. We are now in the process of opening a new office in central Leicester in order to accommodate the growing number of people within the business who will deliver and service this growth potential. Investment in our people, culture and procedures is important to accelerate our rapid growth while maintaining customer satisfaction."
Singers said in its note this morning it expects "consensus estimates for revenue to increase substantially" and the Group will continue to be a source of "positive surprises".
The stock trades on a forecast PE multiple of 42x. Prior to today's update Revenues were already forecast to be reported at c. £40m and £60m in FY17 and FY18 respectively, up from the £16.3m reported in FY16.
