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(Sharecast News) - Y Group reported a strong financial performance for the year ended 31 December in an update on Tuesday, with revenue expected to grow by about 40% to nearly 650m, up from 460m in the prior year.
The AIM-traded company said it anticipated EBITDA margins to exceed expectations, driven by strong contract profitability in the second half of the year, a robust hedging strategy, and tight management of bad debt.
Its net cash position had more than doubled to 80.2m, compared to 32.1m in 2023.
Growth in Y Energy, the group's energy supply division, continued at pace, with meter points supplied increasing by 65% to 88,000.
The volume of energy supplied rose organically by around 78%.
Despite a softer commodity pricing environment, average monthly new bookings remained strong at 42.6m.
The trading facility with Shell continued to provide scalable and efficient access to commodity markets, the board reported.
Y Smart, the group's smart metering business, also delivered significant growth, with meter installations rising 169% to 22,900 in 2024, compared to 8,500 in the prior year.
The firm said its had expanded its national coverage of engineers, driving efficiency gains and supporting further scalability.
Looking ahead, Y Group said it was well-positioned for continued growth.
Contracted revenue for the next financial year had increased by 9% to 566m, providing confidence in meeting 2025 expectations.
The Y Smart division was generating an increasing annuity income stream, with secured income linked to 27,200 owned meters now standing at 1.3m, up from 0.2m in the prior year.
"The group has delivered a strong 2024 and I'm delighted, once again, to update shareholders on our progress," said chief executive officer Bobby Kalar.
"Y Energy, our supply business, has seen a 40% increase in revenue despite lower commodity pricing, and we enter 2025 with 88,000 meter points, up 65%.
"Y Smart continues to deliver incredible advantages to our customers and the Group, and we now have national coverage of skilled engineers."
Kalar noted that the company had financed 27,200 smart meter assets, providing a growing index-linked annuity income stream alongside other significant benefits to customers and the firm's own operation.
"I look back with pride on our journey and the hard yards invested, which have seen a quadrupling of revenue in the last four years.
"While our increased scale suggests a lower organic growth rate in the future, our group is well placed to continue to take market share with a significant opportunity remaining.
"Our business is in good shape across Y Energy and Y Smart to continue to deliver."
At 1402 GMT, shares in Yu Group were down 11.7% at 1,638p.
Reporting by Josh White for Sharecast.com.