Business
Acquisition of B2B Customer Book
Acquisition of B2B Customer Book.
About this update from Yu Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5913E\n Yu Group PLC\n 09 November 2020\n \n \n \n \n 9 November 2020\n \n \n Yü Group PLC\n \n \n \n \n \n (\"Yü Group\" or the \"Group\")\n \n \n \n \n \n Acquisition of B2B Customer Book\n \n \n \n \n \n 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. \n \n \n \n \n \n Transaction highlights\n \n \n \n \n \n · \n The acquisition will add c400 meter points to Yü Group's current meter portfolio of c14,000.\n \n \n · \n The Board expects the acquisition to be earnings enhancing from mid-November 2020.\n \n \n · \n The customer book consists of gas contracts to small and medium sized businesses across Great Britain. \n \n \n · \n The Group will hedge the book based on lower gas commodity markets, leading to attractive margins. \n \n \n \n \n \n Information on the assets acquired\n \n \n \n \n \n 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.\n \n \n \n \n \n The acquired business reported c£3m of unaudited revenue for the year ended 31 March 2020.\n \n \n \n \n \n Strategic rationale \n \n \n \n \n \n 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. \n \n \n \n \n \n Terms of the Acquisition\n \n \n \n \n \n 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.\n \n \n \n \n \n \n \n \n Bobby Kalar, Chief Executive of Yü Group, commented:\n \n \n \n \n \n \"We are delighted to be adding these additional cu...