EVEN
BIGGER BETTER FASTER STRONGER"WITH STRONG FOUNDATIONS, DISCIPLINED EXECUTION AND A CLEAR STRATEGIC ROADMAP, WE ARE CONFIDENT IN OUR ABILITY TO DELIVER CONSISTENT PERFORMANCE AND LONG TERM VALUE FOR ALL STAKEHOLDERS."
YÜ GROUP PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS 2025
BUSINESS REVIEW
Financial performance
5 Revenue of £700m, up 8% in year (2024: £646m), with organic meter point growth of 49% to 131k (2024: 88k) and equivalent volume of energy supplied growth of 14% to 2.5 TWh (2024: 2.2 TWh).
5 Adjusted EBITDA¹ at £51m (2024: £49m), with a normalising gross margin of 14.3% (2024: 14.5%), highly effective customer collection rates despite declining economic conditions and continuing leverage of operational overheads through Digital by Default.
5 Profit before tax increased 9% to £49m (2024: £45m).
5 Cash balance of £106m at 31 December 2025 (2024: £85m).
5 Smart meter rollout continues to deliver benefits to the Group with a long-term index-linked annuity income ("ILARR"), of
£2.2m at 31 December 2025 (2024: £1.3m).
5 Adjusted earnings per share, fully diluted, increased to 216p
(2024: 210p).
5 Final recommended dividend of 45p per share (2024: 41p), providing a total 2025 dividend of 67p per share (2024: 60p) and continuing our progressive dividend policy whilst retaining cover of >3.0x on adjusted diluted EPS.
Operational delivery
5 The Group has delivered record-breaking meter growth, delivering 43k net additions (2024: 35k) and growing market share to 3.5% (2024: 2.7%). Market opportunity remains with
3.6m meter points and a £50bn B2B addressable market.
5 Yü Group continues to significantly over-index in acquisition of available switchers, acquiring 11% of market switchers in the B2B market in 2025 (2024: 7%).
5 Yü Smart has had a transformational year, with significant investment in systems and processes as well as engineer training through our technical training and development centre to streamline the meter install process and deliver a seamless customer experience.
5 During 2025, the Group entered a new strategic partnership with HSBC to provide banking arrangements to the Group, offering enhanced capabilities and commercial terms, as well as a clear route to flexible competitive financing arrangements where required.
5 Yü Energy was recognised for a third year in a row in the Sunday Times Top 100 Places to Work.
Current trading and outlook
5 Strong momentum from 2025 has continued into 2026 with record revenue, EBITDA and record cash balance in February, despite market uncertainty.
5 Strong contract book as we enter 2026. £668m contracted revenue at end of 2025 for 2026 delivery, with commodity prices expected to fluctuate dependent on geopolitical and macroeconomic factors with some planned growth in
non-commodity prices as a result of UK policy. Total contract book of £1.4bn (2024: £1.0bn).
5 2026 kicks off the three-year plan to deliver at least 7% market share, with a self-funded incremental £9m+ planned opex investment to grasp the market opportunity planned in year.
5 Management targets growth in 2026:
5 Over 175k meter points under contract and over 60k smart meter assets owned.
5 Contract book growth to over £1.75bn by 31 December 2026.
5 Revenue to be in a range of £850m - £875m.
5 Adjusted EBITDA and PBT in line with 2025, with growth of underlying profitability tempered by overhead investment to support future opportunity.
5 Cash expected to decline marginally due to early ROC
payment and further investment in sales acquisition costs.
5 Progressive dividend policy expected to remain, trending towards the 3x dividend cover on adjusted diluted EPS.
Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, non-recurring costs and share-based payments. See reconciliation in note 7 to the financial statements.
Strategic report Governance Financial statements
OUR ACTIVITIES
Supply of business gas and electricity
WHO WE SERVE
Smart meter installation, maintenance and ownership
CONTENTS
OUR PURPOSE
At Yü, we do not believe that managing the gas and power contract for your business needs to be complicated, drawn out or expensive. Our purpose is to help businesses to realise Yütility
Simplicity, freeing up time and resources so that they can focus on making their businesses thrive.
OUR VISION
To revolutionise the utilities market by empowering businesses with simple, smart, and innovative energy solutions. We aim to disrupt the dominance of the Big Six energy suppliers, champion the adoption of smart meters, and lead the way towards a transparent, sustainable, and customer-centric future.
IFC Strategic Report IFC Business review 02 Strategic approach 10 At a glance 12 Chairman's statement
14 Business model 16 Market opportunity and positioning 18 Chief Executive Officer's statement 20 Investment case
22 Finance review
25 Strategic partnerships
26 Our financial framework and capital allocation policy
28 Key performance indicators
32 Section 172 statement and our stakeholders
36 Risk management
37 Principal risks and uncertainties
42 Corporate Governance 44 Board of directors 46 Corporate governance report 52 Audit Committee report
54 Remuneration report
58 Directors' report
61 Statement of directors' responsibilities
62 Financial Statements
64 Independent auditor's report
Consolidated statement of profit and loss
and other comprehensive income
Consolidated and Company balance sheet
Consolidated statement of changes in equity
Company statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
109 Company information
Micro, small and medium businesses
Multi-site, complex, industrial and commercial companies
Third-party intermediaries ("TPIs")
Other partners
Visit our website to find out more about Yü Group PLC
YÜ GROUP PLC Annual report and financial statements 2025 01
STRATEGIC APPROACH
BHIGH GROIWTHGAs an independent, forward-thinking challenger brand, Yü Group PLC was founded to disrupt the business energy market and provide a reliable alternative to the Big
Six suppliers. Since our inception, we've experienced significant growth, surpassing all expectations. We continue to capitalise on the vast potential of the commercial energy sector, exploring diverse avenues to seize new opportunities.
By offering a compelling customer proposition that fosters loyalty amongst our existing clients, combined with strategic acquisitions, we are committed to sustainably scaling our operations.
Our smart metering division, Yü Smart, has opened up new avenues for growth, expanding our meter ownership, tapping into higher-value opportunities, and generating index-linked rental income that will support our long-term growth.
READ MORE
Our business model: page 14Market opportunity and positioning: page 16
02 YÜ GROUP PLC Annual report and financial statements 2025
Strategic report Governance Financial statements
GER
131k
METER POINTS SUPPLIED
2024: 88k
40%
CONTRACTED REVENUE GROWTH
2024: £1.0bn, 2025: £1.4bn
2.5 TWh
EQUIVALENT VOLUME SUPPLIED
2024: 2.2 TWh
£46m
AVERAGE MONTHLY BOOKINGS
2024: £43m
YÜ GROUP PLC Annual report and financial statements 2025 03
STRATEGIC APPROACH continued
BMORE PROEFITABLET
Our goal is to continue our market-leading business growth but also to ensure that it remains sustainable and controlled. Having faced unprecedented volatility and events within the market over recent years, we have refined our process, controls and strategy to adapt and deliver within the ever evolving landscape.
Our healthy balance sheet position and close supplier relationships, combined with streamlined operational processes, a driven team and low cost to serve, leaves Yü Group well positioned to continue driving profitable and resilient growth.
READ MORE
Finance review: page 22Key performance indicators: page 28
04 YÜ GROUP PLC Annual report and financial statements 2025
Strategic report Governance Financial statements
TER£700m
REVENUE
2024: £646m
£106m
CASH
2024: £85m
£51m1
ADJUSTED EBITDA
2024: £49m
216p2
EARNINGS PER SHARE
2024: 210p
Adjusted EBITDA is reconciled to operating profit on page 23.
Adjusted and fully diluted.
YÜ GROUP PLC Annual report and financial statements 2025 05
STRATEGIC APPROACH continued
FUTILISIANG TECHNOSLOGY
Yü Energy is delighted that in the most recent Market Share Report by Cornwall Insight,
our market-leading growth has continued. Having moved into the Top 20 in 2023, Yü Energy moved into the Top 10 in 2025, now as the seventh largest SME supplier in the UK for business gas and eighth largest SME supplier for electricity meters. Yü Energy held a 3.5% market share of the SME sector by 31 October 2025.
Our relentless obsession with Digital by Default has helped drive this growth
forward, as we have begun to harness the power of Artificial Intelligence to improve every stage of the customer experience and continue to make energy simple for business owners. All of this is supported by our drive to ensure every business utilises a smart meter to improve accuracy, insight and speed to resolve issues.
READ MORE
Smart meters: page 1706 YÜ GROUP PLC Annual report and financial statements 2025
Strategic report Governance Financial statements
TER11%
B2B SWITCHERS CHOOSING YÜ
2024: 7%
£2.2m
INDEXED ANNUITY INCOME FROM SMART METERS
2024: £1.3m
3.5%
MARKET SHARE
2024: 2.7%
16.4k
SMART METERS INSTALLED
2024: 22.9k
YÜ GROUP PLC Annual report and financial statements 2025 07
STROSTRATEGIC APPROACH continued
ROBUST SYSTEMS AND
EXPERIENCED MANAGEMENT
By implementing our robust risk management strategy alongside the rollout of smart meters, we're able to mitigate many of the risks the market presents. This is supported by our experienced management team, which brings a wealth of knowledge from the energy sector and beyond, using its expertise to develop innovative solutions that optimise our performance and set us apart in the market.
READ MORE
Commodity agreement: page 25Our people: page 34
We're also dedicated to fostering the development of our people through strong stakeholder engagement, offering clear career paths and creating unique roles such as our smart meter technician position. Our employees play a vital role in ensuring our customers receive the best possible experience, helping us maintain high retention rates, actively manage our portfolio, and attract new clients.
Our commodity trading agreement with Shell was implemented in 2024, allowing the continued focus on commodity risk management and hedging, without the requirement of posting cash collateral, allowing the Group to invest in other areas to drive growth.
08 YÜ GROUP PLC Annual report and financial statements 2025
Strategic report Governance Financial statements
NGER100%
COMPLIANCE WITH COMMODITY HEDGING RISK MANDATE
0.5%
REDUCTION IN GENERAL OVERHEADS1
2024: 4.9% > 2025: 4.4%
1. General overheads are as defined on page 31.
3.9
TRUSTPILOT SCORE
2024: 4.2
TOP 100
THE SUNDAY TIMES BEST PLACES TO WORK LIST
BIG ORGANISATIONS CATEGORY THIRD CONSECUTIVE YEAR
YÜ GROUP PLC Annual report and financial statements 2025 09
AT A GLANCE
PUSHING BOUNDARIES: GROWING MARKET SHARE
THROUGH ORGANIC GROWTH
2025 delivered ongoing growth for the Group, with continued revenue, EBITDA and contract book progress despite the headwind of reducing market prices. Our strategy of Digital by Default, underpinned by smart metering, continues to deliver benefits to the Group with a 49% increase in meter points supplied and a 60% increase in meters owned as the meter asset provider, all delivered with a flat headcount profile.
£700m
Revenue
+8%
Ongoing growth despite normalisation of energy market
Equivalent volume of energy supplied ("EQVS")1
2.5 TWh
+14%
Enough to supply 1,000,000 homes with electricity2
1.2TWh
2.2TWh
2.5TWh
£460m
£646m
£700m
2023 2023
2024 2024
2025 2025
131k
Meter points supplied
+49%
Sustained growth in meter points
Smart meters installed
16.4k
-28%
Ongoing smart rollout underpinned by systemic transformation in Yü Smart
8.5k
22.9k
16.4k
53k
88k
131k
2023 2023
2024 2024
2025 2025
£51m
Adjusted EBITDA3
+4%
Sustained organic growth in profitability
Profit before tax
£49m
+9%
Increasing profit as the Group scales
£40m
£45m
£49m
£44m
£49m
£51m
2023 2023
2024 2024
2025 2025
Equivalent volume of energy supplied ("EQVS") is as defined on page 28.
Based on average consumption of 2.5 MWh of electricity, ofgem.gov.uk.
Adjusted EBITDA is reconciled to operating profit on page 23.
10 YÜ GROUP PLC Annual report and financial statements 2025
Strategic report Governance Financial statements
£1.4bn
Aggregate contracted revenue4
+40%
£0.8bn
£1.0bn
£1.4bn
Significant growth in future revenues as a result of 2025 delivery
2023
Average monthly bookings4
£46m
+7%
£56m
£43m
£46m
Strong growth in volumes though lower commodity prices
2023
2024 2024
2025 2025
£2.2m
Index-linked annualised revenue on smart meter assets
+69%
Smart meter ownership providing a growing 15+ year index-linked annuity
Cash
£106m
+25%
Continued profitability creating opportunity for growth investment
£33m
£85m
£106m
£0.2m
£1.3m
£2.2m
2023 2023
2024 2024
2025 2025
480
Average headcount
+2%
Impact of Digital by Default mitigating need to grow headcount in line with meter growth
Trustpilot score
3.9
-7%
Slight reduction on prior year
2023
2024
2025
2023
4.1
4.2
3.9
295
472
480
2024
2025
Average monthly bookings and aggregate contracted revenue and volume are as detailed from page 28.
YÜ GROUP PLC Annual report and financial statements 2025 11
CHAIRMAN'S STATEMENT
A STEADFAST COMMITMENT TO OUR STRATEGY
Delivering significant organic growth and customer-centric innovation within a robust corporate governance framework underpinned by the effective management of risk and opportunity.
Robin Paynter Bryant
Independent non-executive Chairman
It is my pleasure to again report success to you in the meeting of our targeted financial and operational results.
The new performance records achieved this year evidence the ongoing roll out of ambitious strategic initiatives devised, and now being delivered upon, by our teams.
As we continue to scale in the markets we serve, customer-centric innovation and a growth-minded challenger ethos remain the core traits of Yü Group.
Our approach is designed to make robust and intelligent corporate governance a guarantor of long-term value and an engine of growth in pursuit of the Group's high organic growth objectives.
Significant and ambitious short, medium and long-term growth plans are well developed, and I have great confidence in the teams' abilities to break further records, across a broad range of key metrics, under the energetic and vigilant leadership of our Chief Executive Officer, the indomitable Bobby Kalar.
The Group continues to scale at pace. Revenue increased to
£700m (2024: £646m) and was delivered via organic growth despite the effects of lower commodity markets.
Our UK market share is now 3.5%, up from 2.7% in 2024, and our forward contract book increased 40% to £1.4bn (2024: £1.0bn).
Profit before tax increased 9% to £49m (2024: £45m) while earnings per share (on a statutory reported basis) grew to 214p (2024: 200p).
Our cash increased to £106m (2024: £85m), and we have increased dividends per share by 12% to 67p (2024: 60p).
Board composition, evolution and succession planning
As stated in the Governance Report on page 46 the Group continuously monitors the evolution of its board's composition and its succession plans.
During 2025, our succession plan for the role of Chief Financial Officer was implemented. Andy Simpson, after an induction and hand-over period which began in February 2025, was welcomed to the Board in September. Andy brings with him deep experience in the financial management of fast-scaling B2B businesses and
is delivering significant added value as a valuable member of our executive management team.
Concomitantly and as planned, Paul Rawson was appointed to the role of non-executive director, thereby enabling the Group to continue to benefit from his clarity of insight and his deep
experience. Paul also continues to serve as Board and Company Secretary.
Two independent non-executive directors, John Glasgow and Tony Perkins, raised their intention in 2025, after a suitable transitional period, to retire from the Group during the course of 2026.
Over the previous decade and since the Group was listed in 2016, John Glasgow has made a truly invaluable contribution, through thick and thin, to getting the Group to where it is today. Tony Perkins has contributed to a significant and positive evolutionary development of the Group's audit and risk management over
the past six years. I wish them both all the best for the future and sincerely thank them for the exceptionally fine work that they have done in furthering the Group's success. Our succession and selection plans will ensure that incoming Directors bring key evolutionary skills and depth of experience to the Board.
The executive management and wider senior leadership teams have continued to grow in number, in depth, and in maturity of experience. They continue to deliver controlled yet significant growth as the Group enthusiastically builds out new capabilities.
I am proud to note the exemplary and continued evolution of the Group's management team: its strength in depth is one of our key strategic enablers.
Delivering for our shareholders and stakeholders
Read more about stakeholder engagement from page 32 and risk management from page 36Your Company has again been recognised by The Sunday Times "Best Places to Work" list, and the Group's ethos and pace of growth continues to allow us to attract first-rate talent into our ranks. Navaz Dean, our HR Director, continues to make a notable contribution to our ongoing success and to maintaining and developing the foundations of future success, viz; our people.
Our shareholders now include a greater number of institutional investors with increasing levels of holdings. We continue to maintain our stakeholder engagement programme, which is carefully designed to benefit existing, future and long-term shareholders.
Summary
Your Board will continue to ensure an appropriate environment within which to deliver growth and innovation whilst maintaining high standards of governance and risk management.
I look forward to the Group continuing to break this year's newly set records as the benefits from various strategic plans and innovative projects flow through to an increase in your company's value.
Robin Paynter Bryant
Chairman
16 March 2026
12 YÜ GROUP PLC Annual report and financial statements 2025
Strategic report Governance Financial statements
"YOUR BOARD WILL CONTINUE TO ENSURE AN APPROPRIATE ENVIRONMENT TO DELIVER GROWTH AND INNOVATION WHILST MAINTAINING HIGH STANDARDS
OF GOVERNANCE AND RISK MANAGEMENT."
YÜ GROUP PLC Annual report and financial statements 2025 13
SIMPLE, RELIABLE AND AFFORDABLE BUSINESS UTILITIES AND SMART METERS
SERVICES
Electricity Gas Green energy Installation Maintenance Ownership
CHANNELS
BENEFITS OF SMART METERS
Inbound | Outbound | Third-party | Other | Reduce | Accurate | Hedging | Index- |
intermediaries | partners | estimated | billing | accuracy | linked | ||
reads | annuity |
income
HOW WE CREATE VALUE
Energy supply to businesses
Engineering and asset management
Innovation and expertise
Skilled workforce
Comprehensive risk management
Asset maintenance and lifecycle optimisation
Dynamic hedging and competitive pricing
Extensive training for engineers
Digital by Default approach
Accurate billing for customers
Excellent customer service
Usage insights to inform decisions
Strong governance and regulatory compliance
Better management of customer outcomes
OUR STAKEHOLDERS
Customers Shareholders
Colleagues
Communities Regulators
Read more about our stakeholders from page 32WHY YÜ?
B2B FOCUSED
Our expertise in the B2B sector means we understand the different needs of business versus domestic consumers. Our focus is on the SME sector, though the Group also serves larger industrial and commercial organisations.
SAFE PAIR OF HANDS
Customers have seen many suppliers fail over recent years. Our diligent approach to risk management means that our customers can be confident that we
are here to stay.
SIMPLICITY
Buying utilities doesn't need to be complicated. We have invested in technology to ensure that our processes are intuitive and that we get things right the first time. We turn around quotes quickly and take the hassle out of choosing a new supplier. We call it Yütility Simplicity!
CUSTOMER SERVICE FOCUS
Part of making utilities simple involves ensuring that customers can complete the jobs they need to do with minimum hassle. We work hard to ensure that customers can self-serve if they want to, and also have access to other communication
GREAT PRICES
In times of energy market volatility, we offer our customers certainty that they are getting a great price. We keep a sharp eye on the market, on our competitors, and on our own costs, so that customers can be confident that we give them the best value for money.
EXPERT PEOPLE
We've been growing fast over recent years and that means lots of new colleagues have joined the Yü family. We take pride
in making Yü a great place to work, giving our colleagues training and development opportunities, and keeping them focused
channels whenever, and wherever, on delivering the best possible outcome
See risk management: page 36they need it.
for our customers.
WHO WE SERVE
Micro, small and medium businesses ("SME")
Multi-site, complex, industrial and commercial companies
Third-party intermediaries ("TPIs")
Other partners
A DIVERSE PORTFOLIO
Overall, our portfolio is diversified across multiple industry segments, reducing any risks that may arise if certain sectors are hit by factors out of our control. Our portfolio has developed to include a range of businesses, from multi-site restaurant chains to independent schools.
CONTRACTED REVENUE BY INDUSTRY
3%
3%
4%
6%
6%
10%
19%
16%
Restaurants Manufacturing
Wholesale, Retail, Personal and Household Goods
Real Estate, Renting and Business Activities
Other Community, Social and Personal Service Activities
Hotels
Health and Social Work Education
19%
Restaurants
16%
Manufacturing
15%
Retail and Wholesale
13% 15%
Construction
Mining and Quarrying
Transport, Storage and Communication
Sale and Repair of Motor Vehicles and Motorcycles
Other
YÜ GROUP PLC Annual report and financial statements 2025 15
CONTINUED GROWTH IN A £50BN+ MARKET
The UK business energy market consists of over 3.6m meters. Yü Energy's unique blend of agility, simplicity and reliability, backed by our Digital by Default strategy and Yü Smart's meter capabilities, continues to support our acquisition of market share and challenge to the Big 6.
Significant market share growth 2025
3.6m
The Big 6 continue to lose market share
SME MARKET SHARE
Total UK market
2.0m
Big Six suppliers
3.5%
BRITISH GAS 27% | E.ON 14% | OTHER SUPPLIERS 6% | |||
SSE 5% | OCTOPUS ENERGY 5% | POSITIVE ENERGY 4% | |||
Yü 4% | TOTAL ENERGIES GAS & POWER 3% | CORONA ENERGY 2% | |||
EDF 16% | |||||
SCOTTISH POWER 5% | |||||
SMARTEST ENERGY 4% | ENGIE 2% | CROWN | ECOTRICITY | ||
GAS.. | |||||
SEFE.. | DRAX | ||||
Yü Group
Yü Energy market share
2.7%
2024
3.5%
2025
The B2B market contains 3.6m meter points, with the SME market alone containing 2.3m. Yü Energy has seen continued growth through 2025, with our market share of the SME sector growing from 2.7% to 3.5%. Yü Energy continues to significantly over-index its share of new business with acquisitions consistently above 10%
of all B2B switchers. Despite having grown from <1% market share to 3.5% market share in three years, the scale of opportunity remains exciting and challenging to make significant gains¹.
* Source Electralink.
"THE OCTOBER 2025 SURVEY HIGHLIGHTED THE GROWTH IN YÜ ENERGY'S SME PORTFOLIO."
Cornwall Insight Market Share Report, October 2025
Energy market stabilising
Wholesale energy prices began to stabilise in 2023 and returned to a normalised pre-pandemic position. Through 2024 and 2025, customers have been acquired and renewed on these more normalised prices, as commodity prices are reflected in tariffs offered to new customer contracts, and as we head into 2026 we can see a normalised contract book.
Revenue per EQVS reduced by 6% in FY25 versus FY24, compared to a 21% reduction in FY24 versus FY23 as we see prices continue to normalise.
Non-commodity headwinds from Nuclear RAB and TNUoS are likely to see an uptick in average pricing upon acquisition in 2026 dependent upon
EVOLUTION OF FORWARD GAS PRICE
300
250
200
p/th
150
100
50
0
commodity pricing.
Cornwall Insight Business Market Share Report, October 2025.
Jan 22
Jul 22 Jan 23 Jul 23 Jan 24 Jul 24
Jan 25
Jul 25
Jan 26
Department for Energy Security and Net Zero Q3 Smart Meter Report 2025.
SMART METERING UNDERPINNING STRATEGIC GROWTH
Leading smart meter uptake
Yü Group welcomes the Department of Energy Security and Net Zero's consultation on the non-domestic smart meter rollout. The core requirement to universally implement smart meter contingent contracts has been in place for all Yü Energy new customer contracts since 2022 and have proven customer benefits to help reduce usage and ensure reliable billing.
SMART METER OPPORTUNITY IN SMALLER BUSINESS SITES
Yü Energy held 69% smart / half-hourly ("HH") meters at 31 December 2025 against a UK-wide 59% smaller non-domestic site rollout. With the transformation to Yü Smart's processes and systems through 2025, this is expected to increase to over 75% through 2026.
METERS SUPPLIED BY METER TYPE
Traditional, non-smart
meters (0.8m)
2.1m
Total meters
800,000
Smart and advanced meters (1.3m)
12%
31%
SMART METERS ELIGIBLE FOR SMART METER HALF HOURLY AND LARGE METERS57%
of non-domestic market still using traditional meters²
YÜ SMART delivering strategic benefits to the Group
In 2023, the Group launched their in-house metering division, Yü Smart, marking a significant milestone in our journey towards sustainability and long-term growth. By owning and operating their own meters, the Group unlocks substantial annuity
income potential, ensuring a steady stream of recurring revenue that will support our continued market expansion and overall growth trajectory.
Throughout 2025, Yü Smart has undergone a thorough system and process transformation, enabling seamless meter installation booking at point of order direct through to engineer install without human intervention. This change will enable Yü Smart to scale with Yü Energy's growth ambitions and deliver our strategic benefits of the long-term annuity income stream.
16.4k
Meters installed
2024: 22.9k
43.6k
Meters owned
2024: 27.2k
15+ year
Asset life
£2.2m/yr
Index-linked annuity income stream
2024: £1.3m
BENEFITS TO CONSUMERS
BENEFITS TO SUPPLIERS
Accuracy
Insight
Trust
Predictability
Accountability
Ownership
YÜ GROUP PLC Annual report and financial statements 2025
17
DELIVERING GROWTH
AND SUSTAINABLE VALUE
A new record performance for the Group as we continue to take market share.
Bobby Kalar
"SUSTAINABLE GROWTH IS NOT A SEPARATE INITIATIVE, IT'S EMBEDDED WITHIN OUR OPERATING MODEL AND LONG-TERM PLANNING."
Chief Executive Officer
I am pleased to report another year of strong growth and profitability. This marks our fifth consecutive year of profitable growth, reinforcing my confidence that our strategy continues to deliver value to our growing investor base.
Yü Energy
Our gas and electricity supply business has performed strongly, delivering year on year organic meter point growth of 49% and combined volume growth ("EQVS") of 14%, increasing our market share to 3.5%.
Whilst I'm pleased with our full year performance and confident in the strength and predictability of our forward-facing business model, supported by our Digital by Default strategy, I believe we can grow even faster and deliver even better shareholder returns. To this end, my team and I have secured a Board-approved mandate to invest a further £9m to deliver our next three year business plan.
I have been clear in my ambition to significantly scale the Group and showcase the business as a standout success story. Achieving our stated target of 7% market share is firmly within our control. In 2025 alone, we successfully contracted 11% of all market switching activity. Additional routes to market are now in motion
with increased technology integration across the business, I believe 7% represents a prudent and achievable target. Further validation of this trajectory comes from the recent independent leading consultancy for the industry, The Cornwall Report, which confirms that Yü Energy is the fastest-growing B2B supplier in the UK.
It is important to recognise that the demand for supplying and distributing business gas and electricity to the end user will not diminish with the introduction of technology or predatory pricing but instead will become more competitive. Suppliers who are not agile or entrepreneurial will over the course of the next few years struggle to maintain market share as underinvestment and creaking systems begin to take their toll. While our focus remains to "stick to our knitting" through strategic and sustainable organic growth, we remain wide awake and attentive for book purchasing opportunities.
Yü Smart and meter ownership
Our Smart business, which primarily focuses on the installation and maintenance of smart meters to help customers better manage their energy usage and payment behaviour, continues
to complement our supply business. That said, I am disappointed that we did not meet our installation targets this year.
During the year, we implemented automated booking and engineering scheduling capabilities to support future demand. However, we were slow to adapt to these changes, and the transition from manual spreadsheets to automation created temporary delays. We also underestimated the level of resourcing required to support the increasing installation demand generated by our retail business.
I am confident that these short-term growing pains are now behind us and that we are well positioned to deliver our 2026 installation targets.
Growing strategic partnerships
I'm pleased to welcome HSBC as the Group's preferred corporate banking partner, following a significant and robust RFI tender process involving a number of top-tier corporate finance institutions.
HSBC has demonstrated a particularly strong appetite for, and understanding of, our business operations and is well aligned with the Group's corporate banking requirements as we pursue our ambition to become the largest and fastest-growing independent energy supplier in the UK.
Additionally, our partnership with Shell Energy remains strong. Our significant volume growth over the past few years has been applauded by Shell and corroborates our strong alignment for market growth within our respective businesses. Our collaborative alliance and strong working relationship will continue to bear fruit.
It should also be noted that a significant factor in selecting the counterparty that best aligned with and supported our needs did not hinder our growth. We will not again be beholden to, or have our strategy dictated by, trading or banking counterparties who are not aligned with the Group's interests.
Strategic report Governance Financial statements
MARKET SHARE GROWTH
2022
2023
2024
2025
SS2B
0.9%
1.4%
2.7%
3.5%
7.0%+
"THE CORNWALL REPORT CONFIRMS THAT YÜ ENERGY IS THE FASTEST-GROWING B2B SUPPLIER IN THE UK."
0% 2% 4% 6% 8%
Three year business plan
As Chief Executive of this exceptional business, I have carefully reflected on the Group's long-term trajectory, the pace of growth we can responsibly achieve, and the sustainable value that growth can create for our shareholders, customers and communities.
Being mindful that over the past five years we have delivered
a consistent, disciplined performance. Our focus on operational excellence, service quality, prudent financial management
and robust risk controls have positioned the Group as a reliable, predictive operator and a value creating investment for long-term shareholders. Importantly, this growth has been underpinned
by strong governance and a clear commitment to regulatory compliance. Whilst my team has remained rightly focused on delivering cyclical results, we have also been preparing deliberately for the next phase of our growth. Behind the scenes, we have strengthened our operational capabilities, enhanced systems resilience, invested in leadership capacity and refined our capital allocation framework, positioning us in 2026 to further invest in additional value creating opportunities.
Our three year business plan, SS2B, maintains the same disciplined approach that has characterised our success to date. We will continue to prioritise high standards of service, operational efficiency, prudent debt management and strict adherence to trading and risk mandates.
SS2B, reflects a step-change in our ambition. I am confident in our ability to deliver against our three year business plan and take advantage of the opportunity to expand our market presence within the UK.
Our approach to capital allocation will remain disciplined, with all projects self-funded via in-year earnings. We will prioritise projects that enhance resilience, improve efficiency, strengthen the long-term value of our asset base and underpin a stable and predictable earnings profile.
This approach enables sustainable cash generation and prudent leverage to support reinvestment in sales and technology, maintain a robust balance sheet, strengthening liquidity, and deliver attractive long-term shareholder returns. Sustainable growth is not a separate initiative, it's embedded within our operating model and long-term planning.
Our business has been built for durability. The investments we are making this year are designed to enhance resilience, scale and sustainability over the coming years, not simply reporting cycles.
With strong foundations, disciplined execution and a clear strategic roadmap, we are confident in our ability to deliver consistent performance, and long-term value for all stakeholders. Central
to our medium-term success is the Group's ability to pivot towards value creating opportunities and while we have achieved success domestically, I am pleased to have established a subsidiary 'hub of talent' and office presence in the UAE.
Our UAE office represents an exciting new opportunity for us to deliver operational improvements and efficiencies through the development of robotic technology and AI automation that
will accelerate our growth ambitions while positioning ourselves as the tech outlier and disruptor in the B2B energy space.
I am personally leading this strategy and, as such, I am spending more time in the UAE supported by my fantastic UK team, and
I look forward to updating you on progress in due course.
We have made a great start to 2026, and with a strong
forward-contracted order book already locked in and a focused and capable workforce to help deliver the full year targets, I am confident the Group will enjoy continued growth in our key performance indicators, and I look forward to the year ahead with confidence.
Summary
Finally, it takes a special kind of individual to thrive in a fast-paced, entrepreneurial environment with high expectations and slim margins for error. I am proud to lead an entire workforce of such people, all of whom are dedicated to my quest and ambition for this Group. To my team, thank you for your extraordinary efforts in helping the business achieve its 2025 targets.
Bobby Kalar
Chief Executive Officer
16 March 2026
OUR STRONG
INVESTMENT CASE
YÜTILITY SIMPLICITY
Yü Group prides itself on being the only supplier offering businesses straightforward, comprehensive and cost-effective multi-utility plans for gas and electricity. We offer our customers simple, fixed-price utility plans, combined with a focus on customer service, to help save businesses time and money.
Our online portal, extensive support articles and multi-channel customer service provide the best experience for our customers at every interaction.
SIGNIFICANT SUPPLY OPPORTUNITY
As the leading challenger brand, we're continuing to take market share in a £50bn+ addressable market with significant barriers to entry. Our SME market positioning gives us a competitive advantage with huge opportunity for growth through multiple avenues and routes to market.
PROVEN STRATEGY
Our clear financial framework delivers very strong, profitable growth, with excellent earnings visibility and clear trajectory for sustainable growth. Everything
we do is underpinned by our Bigger, Better, Faster,
Stronger approach.
Bigger
Targeting significant growth delivered organically through a multi-channel approach and through the strategic acquisition of customer books
from competitors.
Better
Continued development of the Group's strong financial performance through increased top-line revenue, improving net customer contribution and leveraging overheads.
Faster
Our Digital by Default strategy drives new opportunities to grow, giving customers easy access to sign up. It also lowers our cost to acquire and serve, supported by data science to enhance business outcomes.
Stronger
Managing the Group's ambitious growth plans requires robust governance, robust hedging, customer centricity and a workforce fully engaged and aligned to the Group's vision.
SMART METERS
CHANGING THE GAME
Our metering division, Yü Smart, has opened up significant opportunity for the Group in the form of growth, annuity income and favourable customer outcomes. We are continuing to increase our ownership of meters whilst better understanding usage and payment habits to optimise our trading decisions and billing accuracy.
Smart meters have unlocked asset ownership opportunities which provide 15+ year, index-linked rental income, simultaneously helping to reduce risk.
STRONG FOUNDATIONS
A strong balance sheet, capital light model and excellent cash generation supported by a newly established strategic banking relationship, create opportunities to invest for growth. Our strong hedge book provides sustainable profitability despite changing energy markets. We have proven our agility and adaptability to volatile market conditions, not just showing our resilience, but thriving despite a number of well-publicised supplier failures. Now the
market has stabilised, we are well positioned to continue growing our market share.
Through our efficient and professional commodity hedging activities, supported by the capital light trading agreement with Shell, we access wholesale commodity markets to forward buy our customers'
demand requirements, which mitigates risks from market volatility and preserves gross margin assumed at the point of sale.
DIGITAL INNOVATION
Our Digital by Default strategy is revolutionising how businesses buy their energy, continually improving customer experience, and significantly reducing our cost to serve.
Businesses are able to onboard and manage their accounts
online, and speak to an adviser instantly via live chat.
Our technology stack seamlessly guides customers through the entire lifecycle, from onboarding to renewal, whilst gathering insights that inform future decisions. We constantly review our processes against the customer journey, ensuring we stay ahead of the competition.
EXPERT MANAGEMENT
Our ambitious, highly experienced leadership team is committed to delivering for all our stakeholders, sharing their wealth of knowledge and industry insight to ensure success in every area. We are proud of our people and believe we
have some of the best talent in the industry driving consistent growth and providing an excellent customer experience.
OPERATIONAL MOMENTUM TO DRIVE GROWTH
Providing sustainable, profitable growth, with strong momentum going into 2026.
Andy Simpson
Chief Financial Officer
In overview
5 Revenue increased 8% to £700m (2024: £646m)
5 Adjusted EBITDA increased 4% to £51m (2024: £49m)
5 Profit before tax increased 9% to £49m (2024: £45m)
5 Net cash inflow of £21m (2024: £53m, including one-off £50m return of cash collateral)
5 Closing cash of £106m, representing 631p per share (2024: 508p)
5 Adjusted fully diluted EPS of 216p, up 3% (2024: 210p)
5 Delivering on progressive dividend policy, with return increased by 12%
5 Final dividend of 45p per share recommended, following 22p interim payment
5 Forward contracted revenue of £1.4bn (2024: £1.0bn)
5 Investment in smart meters providing ILARR3 of £2.2m (2024: £1.3m)
Financial metrics Other metrics
£'m unless stated (* % of revenue) | Change | 2025 | 2024 |
Revenue | +8.5% | 700.4 | 645.5 |
Gross margin* % | -0.2% | 14.3% | 14.5% |
Net customer | |||
contribution 1* % | -0.8% | 11.7% | 12.5% |
General overheads* % | +0.5% | (4.4%) | (4.9%) |
Adjusted EBITDA* % | -0.4% | 7.2% | 7.6% |
Adjusted EBITDA2 | +1.8 | 50.6 | 48.8 |
Profit before tax | +4.2 | 48.7 | 44.5 |
Net cash flow | -32.0 | 20.7 | 52.7 |
Cash | +20.7 | 105.9 | 85.2 |
Earnings per share (adjusted, fully diluted) | +6p | 216p | 210p |
Dividend per share (interim and final) | +7p | 67p | 60p |
£'m unless stated | Change | 2025 | 2024 |
One year forward contract revenue4 | +18% | 668 | 566 |
Aggregate contracted revenue4 | +40% | 1.4bn | 1.0bn |
Equiv. volume of energy supplied4 | +14% | 2.5 TWh | 2.2 TWh |
Smart meter assets, ILARR3 | +0.9 | 2.2 | 1.3 |
Overdue customer receivables4 | +1 day | 4 days | 3 days |
Net customer contribution represents gross margin less bad debt.
Adjusted EBITDA: Earnings before interest, tax, depreciation and amortisation, and before any non-recurring costs and share-based payment charges and as reconciled to statutory operating profit on page 23 and in note 7 to the financial statements.
ILARR: Index-linked, annualised recurring revenue, estimated from investment in smart meters.
Contracted revenue, equivalent volume of energy supplied, and overdue customer receivables are as defined on pages 28 to 31.
Results summary
I am pleased to report the Group has continued to deliver sustained profitable growth, as well as significant growth in both market share and cash generation. The energy market had continued to normalise through 2025 after significant market turmoil over the previous five years, with the Group delivering ongoing revenue growth despite declining market prices. Recent global events have created renewed uncertainty to commodity prices. Continued growth in EPS and cash generation, the dividend for 2025 of 67p (including a 45p recommended final dividend) per share is up 12% from 2024.
Delivering organic volume and meter growth Revenue of £700m (2024: £646m) is an increase of 8%, with revenue achieving a compound annual growth rate ("CAGR") of 47% since 2020.
Meter points contracted grew by 49% to 131k at the end of 2025, with the average number of meter points supplied during the year up 29%. Average consumption per meter fell by 12% during 2025 from 31.2 MWh ("megawatt hours") to 27.6 MWh, as a result of which EQVS to customers increased by 14% to 2.5 TWh. Revenue per MWh of EQVS has decreased 6% from £292 in 2024 to £275 in 2025 as a result of lower global commodity prices.
The Group's forward contract book provides ongoing visibility and security of future revenues which underpin 2026 and 2027 revenues. As the energy market normalised, customer demand for increased contract length is growing with 8% growth from 2024, increasing certainty but reducing the annualised bookings with reduced customer renewal opportunities as they hold longer contracts.
The aggregate contract book grew 40% to £1.4bn of secured future revenue, of which £668m will be delivered in 2026.
We have seen H2 2025 bookings and forward contracted revenue converging at a price around 5% below that delivered in 2025, demonstrating that the historical high prices have now largely washed through. Based on current market conditions, it is expected that commodity prices will fluctuate dependent on
geopolitical and macroeconomic factors with some planned growth in non-commodity prices as a result of UK government policy.
Sustainable profitability as we scale
Adjusted EBITDA has increased by 4%, with net profit increasing by 7%. This has led to growth in earnings per share of 7% on a basic, reported basis and 3% (to 216p) on an adjusted, diluted basis.
Profitability met management expectations, with adjusted EBITDA of £51m (2024: £49m), representing a 7.2% margin (2024: 7.6%);
and 7.0% profit before tax margin (2024: 6.9%).
Gross margin decreased, as expected, to 14.3% (2024: 14.5%) as industry and commodity costs continued to stabilise with resultant less volatile commodity prices increasing competition and therefore squeezing margins. Gross margin on the over
£1.4bn of contracted revenue continues to be underpinned by the Group's closely managed commodity hedging strategy, which locks in contract margin on signing of new contracts.
With changes to National Insurance and ongoing economic uncertainty, we have taken a cautious view of the bad debt charge, increasing from 2.1% of revenue in 2024 to 2.6% in 2025. While the bad debt percentage has increased for the Group as a result of the impact of wider market challenges on our customers, we remain confident that our internal approaches and strategies continue to mitigate the risk and help deliver the right customer outcome.
General overheads decreased to 4.4% of revenue (2024: 4.9%) from the leverage benefit of the Group's digital strategy, with cost to serve, systems and certain fixed costs not increasing with revenue growth as tight control of costs ensures the business scales appropriately.
Adjusted EBITDA reconciliation
£'m
2025
2024
Adjusted EBITDA
50.6
48.8
% of revenue
7.2%
7.6%
Adjusted items:
Non-recurring operational costs
(0.6)
(1.4)
Share-based payment charges
(2.1)
(4.0)
Depreciation and amortisation
(2.9)
(2.5)
Statutory operating profit
45.0
40.9
Net finance income
3.7
3.6
Profit before tax
48.7
44.5
As further disclosed in note 7 of the financial statements, adjusted EBITDA provides management with a profitability measure based on business trading performance. It excludes
£0.6m of costs that have been incurred by the Group diversifying and investing into operations that are outside of the normal course of business and therefore excluded from adjusted EBITDA.
Adjusted EBITDA also excludes £2.1m (2024: £4.0m) of share-based payment charges as they are not related to business operational trading which provides clearer views of operating cash generation in the year.
Net finance income remained relatively flat at £3.7m (2024: £3.6m) with the improvement in the Group's cash balance offset by the reducing Bank of England base rate. Profit before tax increased
£4m to £49m (2024: £45m).
Increasing cash whilst investing for future returns Cash has continued to grow, increasing from £85m to £106m. This significant cash generation, supported via the commodity
arrangement with Shell, allows for strategic investments to unlock additional value without any requirement for additional debt, whilst increasing shareholder distribution.
Movement in cash
Cash flow £'m
2025
2024
Adjusted EBITDA
50.6
48.8
Commodity trading cash collateral
-
49.8
Early payment of ROC liability
-
(9.0)
ROC liability movement
17.4
13.5
Customer acquisition costs
(19.1)
(12.3)
Corporation tax payments
(11.1)
(11.3)
Other working capital movement
(1.5)
(7.4)
Operating cash flow
36.3
72.1
Investment in smart meter assets
(3.3)
(4.5)
Other investing activities
(5.5)
(5.2)
Share buy-back
-
(4.0)
Dividends paid
(10.6)
(9.4)
Other financing activities
3.8
3.7
Net cash movement in year
20.7
52.7
Closing cash balance
105.9
85.2
Opening cash balance
85.2
32.5
Increasing cash whilst investing for future returns
continued
Corporation tax payments totalled £11m (2024: £11m), with tax
losses now utilised.
In total, operating cash flow of £36m (2024: £72m) provides a continued strong base despite significant investments in operating costs to drive growth and/or margin improvement.
Net current assets increased by £14m to £60m (2024: £46m), reflecting the strength of the Group's cash position and balance sheet.
The Group continues to drive its investment in smart meter activities, with £3.3m capital investment (2024: £4.5m). In addition to the clear customer benefits of smart meters, they also provide the Group with increased hedging and customer outcome benefits, as well as an index-linked annuity income stream.
The Group exited 2025 with an ILARR of £2.2m (2024: £1.3m), providing a growing impact on forward EBITDA secured by a longterm capital-based return. The Group continues to plan additional investment going forward and is expected to significantly increase this income stream.
The cash balance of £106m (2024: £85m) includes £74m of future liabilities (2024: £55m); annual ROC liability payment of
£53m (2024: £35m) payable in August 2026 and quarterly HMRC liabilities of £21m (2024: £20m).
The Group's Capital Allocation Strategy remains strong, with our focus remaining to use our earnings to continue funding customer acquisition, smart meters and system investment, as well as targeted investments to support the long-term Digital by Default strategy and deliver improved products and services to our customers. We continue to deliver a progressive dividend strategy whilst funding ongoing organic growth.
Other financing activities include repayments of certain lease obligations in respect of vehicles together with interest on borrowings wholly secured on the investment in smart
meters. The Group entered into an additional £10m loan facility agreement in June 2025, in addition to an existing £5.2m facility agreed during 2023 with Siemens Finance in relation to the finance of such meters.
Increased shareholder distributions and progressive dividend policy
The Group's cash performance enabled continued growth in dividend payments, the total awarded rising by 13% to £10.6m (2024: £9.4m).
An interim dividend of 22p (2024: 19p) per share is to be supplemented by a final recommended dividend of 45p (2024: 41p) per share. The Group has previously announced a
progressive dividend policy, increasing returns with expected EPS growth, and maintaining dividend cover at 3x over the short to medium term.
The final recommended dividend of 45p per share is payable on 18 June 2026. The shares will go ex-dividend on 28 May 2026, and the record date is 29 May 2026.
Summary: continued financial progression
In summary, the Board is very pleased with the continued delivery of sustained operational and financial growth, cash generation and again being the fastest growing B2B supplier in the UK. We have increased our market share to 3.5% and contract book
by 40%, as we continue to deliver upon our Digital by Default strategy and take market share from the Big 6 providers. The scale of opportunity to the Group remains both exciting and deliverable. With the foundations in place, the Board has agreed a new three year plan which will see a step-change in our ambition to accelerate our growth to more than double our market share and continue to deliver shareholder value.
As the Group continues to grow, our partners' support has grown with us. Shell continues to provide a highly supportive commodity hedging agreement. We have also invested in our banking arrangements in 2025, establishing a strategic relationship with HSBC to support our growth plans as needed through our next three year plan. It is pleasing to see the ongoing support and commitment of our strategic partners.
The introduction of market-wide half hourly settlement combined with the consultation from Ofgem to universally implement smart-contingency contracts from 2027 underpins our investment
and strategy in Yü Smart. Meter ownership continues to provide a beneficial investment case with a valuable 15+ year annuity income stream, already at £2.2m at the end of 2025. The ongoing relationship with Siemens Finance, which was increased by £10m in 2025, continues to support this growth.
The development of smart meters provides material benefits in risk management and optimisation in our supply business, alongside customer benefits.
Dividends and shareholder distributions have continued to increase year on year to £10.6m (2024: £9.4m), enabled by strong cash generation. The Board is confident that the stated progressive dividend policy and strong positioning of the Group
provide substantial onward potential for dividend and distribution
growth in 2026 and beyond.
Andy Simpson
Chief Financial Officer
16 March 2026
STRATEGIC PARTNERSHIPS
STRENGTHENING OUR CORPORATE RELATIONSHIPS
BANKING PARTNERSHIP WITH HSBC TO SUPPORT GROWTH
In 2025, HSBC have been appointed as the Groups preferred Corporate Banking partner. Having been established through 2025 as the primary banking facility for the group, they are now working with the Group on any financing requirements that could become required to support the ambition to be the largest and fastest-growing independent energy supplier in the UK.
"I'M PLEASED TO WELCOME HSBC AS THE GROUP'S PREFERRED CORPORATE BANKING PARTNER, FOLLOWING A SIGNIFICANT
AND ROBUST RFI TENDER PROCESS INVOLVING A NUMBER OF TOP-TIER CORPORATE FINANCE INSTITUTIONS."
Bobby Kalar
CEO Yü Energy
KEY BENEFITS:
TREASURY MANAGEMENT
System linked efficient treasury management, ensuring improved accuracy of receipts and payments, improving customer experience as payment rapidly reflected upon customer portal
VALUE ENHANCEMENT
Improved interest rate yield, combined with lower currency rates and cost to serve
ACCESS TO DEBT AND CREDIT FACILITIES
Significant and wide opportunities to the group to access efficient capital as required to support growth ambitions
TRANSFORMATIONAL TRADING WITH SHELL
Yü Group signed a five-year commodity trading arrangement with Shell Energy Europe Limited ("SEEL"), effective from February 2024.
The arrangement provides access to gas and electricity commodity markets to forward hedge the commodity risk exposure, without need for significant cash collateral to be lodged.
Entering into the third year of the arrangement, the Board are delighted with the strength of the trading relationship with Shell, as the two organisations continue to collaborate to deliver value enhancing propositions to our customers.
In light of the latest political situation in the Middle East and the risk to gas prices, the Shell trading arrangement backed by the Company's risk averse hedging mandate ensured the Company has significantly mitigated the risk of rising prices to existing customer contracts and can continue to manage risk for new customer acquisition without significant capital collateral risk.
KEY BENEFITS:
SCALABLE
The arrangement means SEEL will support Yü Energy for gas and electricity commodity arrangements both now and as we scale. The facility provided can take the Group to >£2bn revenue and beyond.
VALUE ENHANCING
Our customers can continue to benefit from fair prices, with Yü Energy able to access the market for traded commodity products for the coming days, weeks, months and
seasons ahead.
CAPITAL LIGHT
SEEL's structure is "capital light" for Yü Energy, allowing cash that was previously held on the balance sheet to be invested in initiatives which could further accelerate growth or performance.
SUSTAINABLE
The agreement allows access to renewable or sustainable sources of gas and electricity, allowing Yü Energy customers to benefit from low carbon offers backed by significant assets.
OUR FINANCIAL FRAMEWORK ENABLES A FOCUS ON SHAREHOLDER VALUE
GROWTH
BIGGER | Subscription revenue model
Being Bigger in a huge market and benefiting from a subscription revenue model
Our focus:
5 High organic growth in gas and electricity supply activities
5 Clear forward revenue visibility from one, two and three year
supply contracts
5 Contracted revenue supplemented by customers supplied on variable out of contract arrangements
5 Clear, consistent and simple billing
5 Inorganic growth in existing or new areas
Our position:
3.5%
market share, up from 2.7%
£1.4bn
of revenue already contracted,
of which £668m relates to FY26
£46m
of average monthly bookings
PROFITABILITY
BETTER | Net customer contribution
FASTER | Leverage overheads
Generating Better net customer contribution
(improving gross margin and controlling bad debt)
Our focus:
5 Ensuring a quality customer book, priced dependent on credit risk with security deposits and Pay as You Go, as suitable for customer requirements
5 Strong hedging and customer lifecycle management
5 Managing customer credit risk, with continually improving processes and range of potential solutions
5 Clear, consistent and simple billing
5 Increasing our smart metering rollout and capability to deliver
better outcomes
Our Faster Digital by Default approach allows us to leverage overheads as we scale
Our focus:
5 Unlock scale benefits by ensuring our platforms are fit for growth
5 Increase efficiency, via technology, process improvement and simplicity, to reduce cost to serve and acquire
5 Ongoing scale benefits with systems fit for significant continuous growth with low additional investment
5 Cost-conscious culture to deliver low administrative costs
5 Targeted, controlled opex investment in future value creation
(e.g. Sales)
Our position: Our position:
14.3%
gross margin
11.7%
net customer contribution¹
4.4%
general overheads1
NCC represents gross margin less bad debt, and general overheads are those costs charged against adjusted EBITDA, both expressed as a
percentage of revenue.
Index-linked, annual recurring revenue from owned smart meter assets.
ROCE being return on capital employed and WACC being weighted average cost of capital.
CASH AND INVESTMENT MANAGEMENT
STRONGER | Close cash and capex management
STRONGER | Targeted capital allocation
Having Stronger controls and governance, and a clear focus on cash generation and risk management, provides long-term potential for shareholder value
Our focus:
5 Prompt "bill to cash" conversion of trade receivables
5 Investment into smart meter assets to drive long-term annuity income with financed facility
5 Targeted, planned investment of overheads to accelerate profitable growth
5 Robust hedging of commodity risk
5 Managing capital allocation in line with clear plan
5 Progressive dividend policy
Our position:
£106m
end of year cash balance
£2.2m
ILARR²
67p
per share total dividend for FY25
OUR CAPITAL ALLOCATION PLAN
Our capital allocation plan aims to ensure focus on those areas of opportunity to enhance shareholder value.
WORKING CAPITAL
REQUIREMENT
5 Maintain appropriate working capital levels to meet liabilities as they fall due
5 Maintain commodity
hedging arrangements
5 Accurate forecasting of
future liabilities
DIGITAL AND AI INVESTMENT
5 Investment in people and systems to deliver our Digital by Default strategy
5 Investment in AI and other assets to facilitate ongoing growth and efficiency within the Group
SHAREHOLDER RETURNS
5 Dividend increasing on a sustainable basis, broadly aligned with earnings, and to c.3x dividend cover
5 Share buy-back and/or special dividend to the extent surplus cash is available, and there are no other opportunities to provide better value enhancement
GROWTH INVESTMENT
5 Investment in sales resource and cost to accelerate profitable growth
5 Controlled working capital investment in payment terms to support key sales channels
5 Capital investment in long-term smart metering assets delivering improved customer service and billing, combined with index-linked annuity income stream
VALUE ACCRETIVE
ACQUISITION
5 Targeted M&A investments to support Digital by Default and growth strategies
5 Customer book or strategic
alliance M&A
5 Requires appropriate ROCE and cash flow returns above WACC3
Funded through cash reserves and asset backed finance.
CONTINUED GROWTH AND PERFORMANCE IMPROVEMENT
Links to strategy:
Bi Bigger (High growth)
Be Better (More profitable)
St
Fa Faster (Digital by Default) Stronger (Well managed)
Bi
Link to strategy:
2.5 TWh
EQUIVALENT VOLUME SUPPLIED
Increase of 14%
TWh £/MWh
Definition
Equivalent volume of energy supplied ("EQVS") is a measure to provide additional insight as to the volume of energy delivered to customers, based on electricity volume equivalent and measured in terawatt hours ("TWh") where 1 TWh equals one million megawatt hours ("MWh"). This is after considering that a MWh of electricity is worth approximately 4 times a MWh of gas (in revenue terms) as per Ofgem analysis. EQVS
therefore provides an indication of the value-weighted volume of energy supplied by the Group, being a significant driver of revenue recognised by the Group.
£371
£275
£313
£292
£187
Performance
2.5TWh
The Group has delivered an EQVS of 2.5 TWh during 2025, an increase of 14% on the volume supplied in 2024. Although below the prior year target, management is pleased with the increase observed in this measure despite increased competition, which is reflective of the organic growth in the Group's customer portfolio.
2.2TWh
Whilst the volume delivered in 2025 is at a lower revenue per MWh than in the previous year, at £275/MWh, this is driven by a continued reduction in commodity prices during 2025 and increased competition. This reduction is now largely already priced in the tariffs included in forward contracted revenue and in new bookings being made, which suggests a more normalised tariff, approximately 5% below the FY25 value.
Target
In line with the Group's growth strategy, the Board targets continued organic growth,
despite the lower commodity market environment.
Internal management targets note an increase in this metric of between 10% and 20% for 2026.
0.8TWh
0.9TWh
1.2TWh
21 22 23 24 25
Bi Be St
Link to strategy:
AVERAGE MONTHLY
NEW BOOKINGS
£46m
Average contract term: 27 months
£56m
£43m
Increase of 7%
Definition
Bookings represent the estimated1 annualised revenue (or contract term if less than one year) of new business signed for the supply of energy, averaged monthly. Such bookings are secured through renewal or cross-sell of additional services with existing customers or the acquisition of new customers through various sales channels.
Bookings will result in additional contracted revenue, dependent on contract start dates and excluding adjustments (for example, for contracts which do not go live as expected or where the booking is an early renewal).
Performance
£46m
Bookings were strong this year, evidenced by the significant increase in the total number of meter points on supply and under contract, with the normalising commodity pricing and consumption per meter adding headwinds to the monthly bookings.
The average contract term on new bookings in the year rose to 27 months, compared with the 25 months achieved in 2024. The increase reflected the declining energy price environment over the course of the year, which has encouraged new and renewing customers to lock in prices for a longer term with greater certainty.
Target
The Board expects to deliver strong bookings performance at least aligned to that achieved in FY25 as the Group scales its activities and takes further market share.
£14m
£25m
21 22 23 24 25
Bi Be Fa
Link to strategy:
£668m
CONTRACTED REVENUE (ONE CALENDAR YEAR FORWARD)
£520m
£566m
Increase of 18%
Definition
The estimated2 revenue value from agreed contracts with customers for the next financial year.
The KPI excludes revenue contracted beyond a year forward and any out of
contract customers.
The level of contracted revenue represents a good basis on which to calculate potential growth in revenue for the next year.
£668m
Performance
Contracted revenue at the end of 2025 for delivery in 2026 was £668m, being 18% above the £566m contracted at the end of 2024 (for delivery in 2025). The increase reflects strong underlying sales volumes but at reduced tariffs compared to the 2024 exit position, due to the reduction in commodity prices through 2023 to 2025. In addition, total contracted revenue (i.e. revenue to deliver in 2026 to 2029) grew 40% from 2024, rising from £1.0bn to £1.4bn.
This performance provides management with confidence that the Group can continue to achieve high growth in revenue in FY26 and beyond. Additional revenues from in-year sales as well as uncontracted volume are expected to further add to this amount.
Target
Management has set internal targets to increase the contracted revenue by the end
£157m
£247m
21 22 23
24 25
of 2026, for delivery in 2027, to be significantly above the £668m contracted for delivery in 2026 and for aggregate contract revenue to also increase proportionally. Internal management targets note an increase in this metric of between 20% and 40% for 2026.
Bi Be
Link to strategy:
65.6k
GROSS METER ADDS
45.3k
Increase of 45%
Definition
Gross meter adds represents the number of new customers acquired in year, exclusive of any loss or renewal of existing customers. This KPI is based on meters rather than customers, so one customer may have multiple meters. The KPI includes both organic and inorganic additions, with the only inorganic addition in 2021 when 8.2k customers were acquired via the Supplier of Last Resort ("SOLR") process.
65.6k
Performance
Gross meter adds were 65.6k in year, an increase of 45% on the 45.3k during 2024.
Management are pleased with the performance of this KPI, reflecting ongoing
over-indexation of acquisition in 2025. It is estimated that there were approximately 600k gas and electric B2B switchers in year, indicating 11% of all switchers chose to join Yü Energy through 2025.
Target
In line with the Group's growth strategy, the Board targets continued organic and inorganic growth. Internal management targets sustained meter additions for 2026.
20.7k*
7.5k
33.1k
21 22 23 24 25
* Including 8.2k inorganic via SOLR.
The actual amount of revenue recognised can typically vary by up to 10% due to the inherent estimation involved in this calculation.
The actual amount of contracted revenue to deliver can typically vary by up to 20% for contracts which do not deliver in line with the agreed contract (e.g. for contracts which do not start at the scheduled time or where consumption is lower than that contracted by the customer).
Bi Be
Link to strategy:
131k
SUPPLY METER POINTS
88k
Increase of 49%
Definition
The total meter points demonstrate the gas, electricity and water supply points served or under contract to be served by the Group at the relevant year end. They represent an approximate indicator of business growth, though each meter will have its own revenue characteristics depending on the scale of use of the utilities by the end customer.
131k
Performance
The number of meter points increased by 49% in 2025, demonstrating strong performance in the number of customer bookings and volumes of energy secured under new contracts. Management is pleased with the growth in the Group's customer portfolio, which reflects a focus on attracting and retaining customers in its core market segments.
The level of meter points supplied also provides further value opportunity for the Group in installing new smart meters or providing service and maintenance to supplied meters.
Target
32k
26k
53k
21 22 23
24 25
In line with the Group's growth strategy, the Board targets continued organic and inorganic growth. Internal management targets note an increase of 20% to 40% for 2026.
Bi Be
Link to strategy:
+16.4k
SMART METERS OWNED
43,600 assets owned by the Group, representing £2.2m annual, index-linked revenue
Definition
The Group installs and owns smart meters via its Yϋ Smart segment. Meters have a 15 year life span and migrate if the customer leaves Yü Energy.
Performance
-
-
43.6k
Yü Smart commenced activities in late 2022 and has continued to scale its operations that has driven up annual index-linked revenue year on year. After a fast 2024, installations slowed down in 2025 by 28% as the business focused on system and process automation.
With significant meter acquisition in H2 2025, Yü Smart enters 2026 with significant volume of meter installation opportunities and the Board expects an increased performance in 2026.
At 31 December 2025, these meters are expected to generate an ILARR3 of £2.2m.
Target
4.3k
21 22 23
27.2k
24 25
The Board targets a significant increase of over 30% for 2026 as the business continues
to scale. The potential to invest in such meters provides a potential significant index-linked
recurring income stream for the Group over a 15+ year asset life.
St
Link to strategy:
ACCIDENT FREQUENCY RATE
0.2
Incidents per 100,000 hours worked
-
-
0.32
Our goal is to have zero incidents
Definition
The accident frequency rate ("AFR") measures the safety performance of our operations, with particular focus on the engineering activities delivered through Yϋ Smart.
It is calculated as the number of accidents resulting in an absence of more than one day per 100,000 hours worked. This metric is used in conjunction with other key performance indicators, such as near misses, minor accidents and RIDDOR incidents, to provide a comprehensive view of our safety performance.
Performance
0.20
The Group recorded an AFR of 0.2. While the AFR has increased slightly from the prior year, the number of incidents remains low, averaging 0.21 over the last three years, and reflects the Group's prioritisation of safety matters. Despite this improvement, our commitment to the safety and well-being of our employees requires a focus on a goal of zero incidents.
Target
0.11
21 22 23
24 25
Our goal is to achieve zero lost time incidents and therefore a zero AFR. We strive to improve our AFR performance at all times, building momentum towards this target every year and ensuring we operate as one of the safest performers in the industry.
ILARR represents index-linked annualised recurring revenue from investment in smart meters.
Be Fa St
Link to strategy:
4.4%
GENERAL OVERHEADS
5.6%
5.3%
5.4%
4.9%
Decrease of 0.5% from 2024
Definition
General overheads represent, as a percentage of revenue, the overhead expenses (excluding bad debt) charged to adjusted EBITDA. They comprise the operating costs, on a normalised basis, before any exceptional or non-recurring costs.
Such general overheads are allocated by management between cost to acquire (incurred in sales, marketing and pricing new business), cost to serve (to operate and deliver core services to customers, including credit control), and general administrative (typically relatively fixed costs of the Board, functional support such as IT, HR and finance, and property costs).
4.4%
Performance
Overheads as a proportion of revenue have decreased in the year as a result of continued operational efficiencies that the Group is now able to achieve following its investment in its Digital by Default strategy.
Target
21 22 23
24 25
The Board expects this KPI to remain relatively flat this year, with ongoing operational efficiencies as a result of Digital by Default offset by investment in Cost to Acquire to drive the new three year business plan.
Be St
Link to strategy:
4 days
OVERDUE CUSTOMER RECEIVABLES
7
5
Increase of 1 day in 2025
Definition
Overdue customer receivables ("OCR") represent the amount outstanding and overdue, net of provision and deferrals, to key customer receivable balances compared with the revenue recognised. Such balances are the amounts held in relation to accrued income which is beyond the normal one month billing cycle, plus trade receivables (net of VAT and CCL) that are overdue.
Management utilises this metric as it assesses the trending of working capital tied up in customer receivable balances and demonstrates unprovided risk to the income statement on such balances.
Performance
4
OCR has increased by one day as a result of wider macroeconomic challenges facing our customers driving increased debt collection challenges. Despite this increase, the Group continues to have a robust performance in this key measure and comfortably under internal targets.
The Group maintains a cautious bad debt and credit loss provision policy, as shown by
the OCR metric.
Target
4
3
The continued improvement in this metric over recent years has shown clear focus
21 22 23
24 25
by management in this area. Based on the wider economic context, the Board targets OCR to be below five days as a reasonable performance, depending upon wider macroeconomic conditions.
Other key performance indicators
Adjusted EBITDA is one of the significant profitability measures used by the Group to benchmark against strategic aims. See notes 1, 7 and 8 of the financial statements for definitions and reconciliation of these performance measures.
In addition, the Board and Executive Management Team monitor various other financial and non-financial metrics to manage
the business and drive forward performance. Such metrics include reported dangerous occurrences and near misses, customer interaction volumes, call wait and handling performance, the Group's Trustpilot score and complaint information, total contracted revenue, average term of contract, contract renewal rate, ratio of billing to cash, customer engagement via digital channels, employee engagement, and compliance with covenants and internal risk policies.
Links to remuneration
Management bonus incentives are linked to business growth, profitability and other KPIs to deliver appropriate outcomes.
The Group has previously awarded performance shares which are linked to share price growth and operational targets. More recent awards of LTIPs under performance share awards link vesting requirements to the achievement of certain ambitious yet achievable business performance conditions, with such conditions set, and to be monitored by, the Remuneration Committee.
St
Links to strategy:
Be
Bi Bigger (High growth) Better (More profitable)
Fa Faster (Digital by Default) Stronger (Well managed)
CONSIDERING OUR KEY STAKEHOLDERS
Our stakeholders are vital to the success of our business. Our carefully managed engagement plan is aimed at benefiting our shareholders, customers, people, regulators and community.
SHAREHOLDERS
Investors seek a clear grasp of the Group's financial health, future prospects, and strategic initiatives, emphasising transparent reporting on performance, risk and dividends. Shareholders value insight into the Company's long-term vision, innovation, and ability to tackle challenges.
A proactive approach to addressing concerns and consistent communication on progress are vital for building and maintaining trust, while ensuring management remains focused on its core strategic priorities.
REGULATORS
Regulators seek compliance, reliability and adherence to industry standards. Regulators want assurance that the Company is operating ethically and in the best interests of the industry, customers, and the public. Engaging in open dialogue with regulatory bodies helps foster a co-operative relationship and ensures the Company stays ahead of evolving industry standards.
How we engage
5 Regular meetings and presentations to significant investors following key events and results announcements in the year
5 Engagement with broker (and other investor-facing advisers) to ensure appropriate stakeholder communication
5 Online presentations at key times of the year (AGM/Annual Results)
5 Full year and half year trading updates shared via regulatory
news service, website and social media
5 Ensuring appropriate dialogue via the investor relations contact
5 Investor days where we invite shareholders into our offices for an update on the Group's progress and strategic priorities and introduce key team members
5 Events with our nominated adviser and broker
Key matters and outcomes
5 Appointment of additional non-executive to the board
to utilise experience and strategic initiatives based to deliver
for shareholders
5 Engagement with shareholders over the use of capital
and dividend policy
5 Continued engagement with investors and
institutional shareholders
How we engage
5 As a responsible supplier, we engage with Ofgem and Ofwat as regulators of the industry, the Government and appropriate departments (including BEIS)
5 Implementation of various Government backed schemes
to support customer bills
5 Responsive approach to regulators' various requests
for information
5 Strong governance ensuring compliance with AIM and other market listing corporate compliance
5 Membership of Quoted Companies Alliance to promote good governance
Key matters and outcomes
5 The Group continues to have positive engagement with government departments and regulators and are actively sought out for bi-lateral discussions on policy direction as well as engaging in Group development and consultations responses.
5 The Government review of Ofgem is nearing completion and the Group expects to see streamlining of Ofgem's duties over the course of this Parliament as part of its Growth Mission to reduce the overall regulatory cost to business by 25%
5 The Group welcomes Government plans in its efforts to bring about energy reform, enhance the uptake of smart meters in the non-domestic sector, and move forward in developing a clean, flexible energy system of the future
CUSTOMERS
For our customers, the focus is on reliability, simplicity and value. They expect a seamless experience, from switching, to smart meter installation, and through to renewal.
Regular updates regarding their accounts, energy-saving advice and cost-saving initiatives are essential to keep customers engaged. Additionally, transparent communication and responsive customer support help build and maintain customer loyalty.
How we engage
5 Simple, digitally led engagement to allow self-service through channels such as online quote tool and customer portal
5 Customer surveys to gather feedback on satisfaction levels
and shape future products and service offerings
5 Customer insights gained through market research to better inform our support and customer experience
5 Website pages, FAQ pages and regular communications to support new and existing customers and to promote our range of complementary products and services
5 Free smart meter installation to help customers better manage consumption
5 Increased range of automated marketing to further support customers on energy efficiency and cost-saving initiatives
5 Multiple channels to contact customer services, as well as comprehensive range of support articles, for fast resolution of queries and issues
Key matters and outcomes
5 The Group continues to invest in its smart meter operations in order to improve accuracy, reliability and billing for our customers
5 Invested in system transformation to deliver more efficient customer journeys as part of our Digital by Default strategy
5 Dedicated programmes to ensure our people are trained to deliver customer success that is core to our operations
5 Engaged with customers and customer facilitators to identify needs, products and services to enhance their energy experience
SECTION 172
In accordance with section 172 of the Companies Act 2006, each of our directors acts in a way they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole. The directors ensure a focus on quality management, ensuring high standards of conduct and sound business ethics, including clear and well-communicated Company
values and policies. The Group's governance frameworks, as referenced in the Corporate Governance section of this annual report from page 46, provide further information on how the directors ensure appropriate consideration for such decisions. The Board's principal considerations and decisions in FY25 are documented on page 49.
"BOX POWER HAS WORKED WITH YÜ ENERGY FOR MANY YEARS, PLACING OUR RENEWAL AND NEW BUSINESS CLIENTS WHICH CONSIST OF LARGE MULTI-SITE GROUPS.
WE HAVE RETAINED AND PLACED MANY OF OUR GROUPS WITH YÜ ENERGY DUE TO THEIR ABILITY TO BE ABLE TO PRICE AND ACCOUNT MANAGE MULTI-SITE GROUPS.
AS LARGER NATIONAL ACCOUNTS NEED TO HAVE THE CONFIDENCE AND KNOWLEDGE THAT THEY WILL BE PROVIDED WITH
A DEDICATED AND NAMED ACCOUNT MANAGER, WHICH IS SOMETHING THAT YÜ ENERGY OFFER, AND WE WOULDN'T HESITATE TO RECOMMEND YÜ ENERGY AS A SUPPLIER."
Claire Owen - Head of Risk and Client Retention
Box Power CIC
COLLEAGUES
Our people are at the heart of everything we do. We are committed to creating an environment where colleagues feel informed, supported and empowered to grow. Open and transparent communication, alongside a clear sense of purpose and direction, helps our people understand how their work contributes to Yü's success and the delivery of our strategic goals.
Key matters and outcomes
5 Listening to our colleagues is central to how we continue to build a great place to work. Through our annual engagement survey, 95% of colleagues say they feel proud to work at Yü, and we actively involve our people in sharing ideas and shaping improvements that make Yü an even better place to work. Recognition, fair reward, wellbeing and development remain key priorities in sustaining a positive and inclusive culture
5 We have designed and launched our Internal Leadership Development Programme, investing in our future leaders and supporting the development of emerging high-potential talent across the organisation
5 Our strong and vibrant culture has once again been recognised externally, with Yü named in The Sunday Times Best Places to Work 2025 for the third consecutive year, reflecting the continued commitment of our people and leaders across the business
How we engage
5 Quarterly Town Hall meetings led by senior leaders to celebrate achievements, welcome new starters and provide transparent updates on business performance and strategy
5 Annual company-wide event recognising individual and team excellence, including employee/team, engineer and line manager of the year awards
5 Centralised employee knowledge base to support knowledge sharing, capability building and upskilling across teams
5 Disability Confident Employer accreditation, reinforcing our commitment to inclusion and accessibility
5 Regular employee feedback and engagement sessions, including monthly one-to-one meetings, an annual engagement survey, biannual development reviews and structured team briefings
5 Company-wide intranet and internal newsletter to strengthen communication and engagement
5 Clearly defined career pathways introduced in response to engagement survey feedback, supporting progression, capability building and long-term retention
5 Design and launch of our Internal Leadership Development Programme, investing in our future leaders and supporting the development of emerging high-potential talent across the organisation
5 Comprehensive benefits package supporting employee wellbeing, including Group life insurance and a health and wellbeing app
5 Year-round programme of staff events to encourage collaboration, connection and a positive, inclusive culture
Health and safety statement
The Group continues to be firmly committed to maintaining the highest standards of health and safety across all areas of its operations, including Yü Smart and the activities carried out by its field operatives.
Field-based work can present an increased risk of injury or illness. The Group therefore recognises its responsibility to ensure that robust and appropriate measures are in place to safeguard the health and safety of employees, customers, and members of the public.
Our approach to health and safety is holistic, taking into account the full scope of work undertaken, the risks and hazards involved, and the environments in which activities are carried out.
This approach includes:
5 conducting thorough risk assessments to identify and evaluate hazards associated with field-based activities,
and implementing appropriate precautions and controls to protect people and property;
5 maintaining a comprehensive health and safety plan that sets out clear procedures for incident and accident reporting, investigation, and resolution, supported by effective training and communication arrangements;
5 ensuring employees have access to suitable personal protective
equipment and are appropriately trained in its correct use;
5 keeping employees informed of health and safety risks and control measures through regular training, briefings, meetings, and written communications; and
5 regularly monitoring and reviewing the effectiveness of health and safety arrangements, with continual improvement through enhanced communication, training, methods, processes, and procedures where required.
480
Average number of employees in 2025
65%/35%
Male/female split
37 years
Average age
34 YÜ GROUP PLC Annual report and financial statements 2025
COMMUNITIES
Our local communities expect more from us than the energy we provide. They look to Yü to act responsibly, operate sustainably and play an active role in supporting local initiatives. By working closely with community stakeholders and creating positive local impact, we build trust and strengthen our long-term relationships with the communities we serve.
How we engage
5 Supporting career development in local communities by engaging with local educational institutions to offer student placements and apprenticeships
5 Continued community activities alongside fundraisers to help make a difference
Key matters and outcomes
5 Raised £7,683 during the year for our chosen charity, Mind, one of the leading mental health charities in England and Wales, dedicated to offering advice, resources, and helplines for people with mental health issues
5 Continued investment into supporting a low carbon future via the continued expansion of our smart meter offering (allowing customers to better manage their energy usage) and, whilst modest today, our Pure Green energy plan - offering 100% renewable electricity - plus our Carbon Neutral gas plan
OUR SUSTAINABILITY STRATEGY
PRODUCT
SUSTAINABLE ENERGY SOLUTIONS
Our ambition
To support businesses on their journey to net zero, our core smart meter offering enables customers to measure and manage their energy consumption. We also offer green energy which, whilst modest today, is scalable as demand increases.
PLANET
SOCIAL AND ENVIRONMENTAL IMPROVEMENT
Our ambition
To reduce our impact on the environment, where possible, by operating responsibly and to have a positive effect on society,
supporting charity initiatives and the communities in which we operate.
PEOPLE
POSITIVE PEOPLE CULTURE
Our ambition
To continue to develop a dynamic, engaging and inclusive work culture where ambition thrives and our employees feel valued and can fulfil their potential to deliver excellence in business utility supply.
317 GWh
OF PURE GREEN ELECTRICITY SUPPLIED TO
CUSTOMERS ON OUR 100% GREEN ELECTRICITY PLAN
OF GREEN GAS SUPPLIED TO CUSTOMERS ON CARBON NEUTRAL GAS PLAN
102 GWh
79.3%
Employee engagement score
£7,683
Raised for Mind
YÜ GROUP PLC Annual report and financial statements 2025
35
AN EFFECTIVE RISK MANAGEMENT APPROACH
Managing risk and opportunities in line with strategic goals.
APPROACH TO RISK
The Board is responsible for maintaining the Group's risk management and internal control systems and for the monitoring and mitigation of risk (and benefiting from opportunities) in line with the Group's objectives. The Audit Committee also reviews risks on behalf of the Board
and provides further oversight and risk mitigation when working with executive team members.
The key features of the Group's systems
of internal control are:
5 a risk and internal control improvement register is maintained by the Group Risk Manager and reviewed regularly
by the Board and Audit Committee. The risks are identified and discussed by executive team members and operational managers as well as in risk reviews held by Board members;
5 an organisational structure with clear segregation of duties and control and documented, Board-approved, delegated levels of authority;
5 a strengthened internal audit assurance capability, led by a newly appointed Head of Internal Audit, delivering a
risk-based internal audit programme to provide further review and support in reviewing the Group's performance and control environment;
5 a regulatory and internal compliance team to provide oversight to ensure we meet customer expectations
and comply with relevant regulation, including with the main Group regulator, Ofgem;
5 a regular risk and internal control forum takes place, chaired by the Group Risk and Internal Control Manager with
the Chairman of the Audit Committee, Chief Executive Officer and Chief Financial Officer in attendance. This gives clear visibility and accountability for risk management;
5 an annual assessment by the
Board of any climate-related risks
and opportunities, comprising a review of the potential impact on the Group achieving its strategic goals or meeting stakeholder expectations; and
5 formalised commodity hedging policies and a risk mandate that govern the Group's approach to the forward purchase of commodity contracts.
POLICIES, PROCEDURES, REPORTING AND REVIEW
Documented controls, delegated levels of authority and management review processes
COMPLIANCE AND
QUALITY TEAM
Tests key areas of internal control and compliance
AUDIT COMMITTEE
Reviews risks, mitigation actions, systems and controls. Liaises with external and internal auditors and advisers to ensure control environment is effective
BOARD
Ultimately responsible for risk management. Regularly reviews the risk (and opportunity) assurance framework
EXECUTIVE COMMITTEE
Assesses key risks in all areas of the business and promotes the necessary action and behaviours to mitigate them
OPERATIONAL RISK AND
IMPROVEMENT REVIEWS
Operational focused reviews to monitor risks, including hedging
RISK AND INTERNAL CONTROL FORUMS
Monitor the risk and
internal controls
of the Group
INTERNAL AUDIT
Delivers a risk-based internal audit programme and provides assurance reviews on key areas
THIRD-PARTY REVIEWS
Ad-hoc reviews
PRINCIPAL RISKS AND UNCERTAINTIES
MITIGATING RISK TO PROTECT SHAREHOLDER VALUE
Risk assessment, being net risk after mitigating controls and actions
1
3 4
2
5
8
7
6
High
Compared with 2024, the Board has refreshed the principal risk set and the 2025 'increase', 'no change' and 'decrease' indicators reflect the movement in risk level year on year. Where risks have reduced below our principal risk threshold, they have been removed from the principal
risk set rather than presented as a 'Decrease'. In 2025, the risks removed from the principal risk set compared with 2024 were: Trading agreement breach or removal and Disrupting the market. These risks continue to be monitored through the Group's wider risk management framework.
Impact
Medium
Trading agreement breach is no longer considered to sit above the principal risk threshold at year end, reflecting the Group's strengthened operational and governance arrangements around trading activity, including enhanced oversight of counterparties and associated controls.
Low
Disrupting the market has also reduced below the principal risk threshold. As market conditions have continued to normalise, the risk has been assessed as less acute than in the prior year, with its key elements now captured within other principal risks, including political and regulatory intervention, commodity pricing and hedging, customer credit and delayed receivables. Competitive dynamics
and customer outcomes continue to be monitored through regular
management reporting and Board oversight.
Low
Cyber and data security
Medium
Likelihood
High
Large-scale change management
Climate change
Customer credit and delayed receivables Commodity hedging and price volatilityBi
Be
Fa
St
Key for strategy:
Political and regulatory intervention and relationshipsSmart meter activity Revenue recognition
Bigger
Better
Faster
Stronger
1. CYBER AND DATA SECURITY
Strategy Be St New principal risk
Description
The Group's operations rely on technology and on the availability, integrity and confidentiality of data, including customer, meter and commercial information. This risk reflects a heightened external cyber threat environment affecting UK organisations and the increasing reliance on digital services, data and third parties to support the Group's operations and growth. The impact of a cyber incident would also be more significant as the Group scales and the volume of customer, meter and commercial data increases.
Cyber security threats are continually evolving, including risks from ransomware, phishing, denial-of-service attacks and other malicious activity. The UK National Cyber Security Centre has highlighted that pro-Russian hacktivist activity continues to target UK organisations, including attempts to disrupt operations and take services offline through distributed denial-of-service attacks.
A significant cyber incident, data breach or systems outage could disrupt operations, impact customer service, lead to financial loss, regulatory intervention and reputational damage.
Risk Mitigation
The Group maintains information security policies and controls, including user access management, monitoring, vulnerability management and an incident response framework, alongside controls designed to prevent, detect and respond to unauthorised access to, or disclosure of, personal data.
Security awareness training and communication are used to support appropriate behaviours and to reduce the risk of successful phishing or social engineering attacks.
Third-party risk management processes are in place to support appropriate oversight of suppliers and technology partners, including consideration of data protection and security requirements where personal data is processed.
The Group engages external security specialists to perform periodic penetration testing and simulated attack exercises across cyber and physical security, with recommendations tracked and acted on.
In line with good practice for denial-of-service resilience, the Group continues to review defences and response arrangements, including upstream protections with service providers, the ability to scale services during an attack, and incident response plans that support graceful degradation, retention of administrative access and timely recovery. Monitoring and testing activities are used to provide confidence in defences and to support prompt detection and response.
YÜ GROUP PLC Annual report and financial statements 2025 37
2. CUSTOMER CREDIT AND DELAYED RECEIVABLES
Strategy Bi Be St
Increase
Description
The Group has increased, and is increasing, its revenue significantly and there is a risk that this growth, along with the wider economic context, can lead to significant increases to levels of bad debt or materially delayed payment in the Group's customer collections cycle.
There is also a risk that new customers may have a more delayed payment history, or that the Group provides extended payment terms to customers to secure new business.
This can lead to a material increase of the working capital required by the Group, and/or to financial loss where trade receivables are not recoverable from customers.
In addition, the Group can be exposed to increased credit risk through broker channels and, in certain circumstances, to unrecoverable prepayment or upfront payments, which can also impact cash conversion and liquidity.
This risk is assessed as increased compared to the prior year, driven by ongoing economic uncertainty and affordability pressures on customers, alongside continued growth in the Group's revenue and customer book, increasing the absolute level of receivables exposure.
This is reflected in the Group's cautious approach to expected credit losses.
3. COMMODITY HEDGING AND PRICE VOLATILITY
Strategy Bi Be St
No change
Description
Energy commodity markets remain inherently volatile and are impacted by geopolitical, weather and other factors. There is a risk that, without operating a robust hedging policy, the Group would be significantly exposed to commodity market prices.
In addition, without suitable pricing mechanisms and controls, there is a risk that fixed-term and fixed-price tariffs are agreed with customers which are below the cost of energy and the associated industry costs.
Price volatility can also provide further (when assessed at financial value) risk or opportunity in balancing final customer demand with the traded position, where the difference between contracted and current market price is more material.
Risk Mitigation
Management mitigates risk with robust credit checks prior to and during contract terms, requiring upfront security deposits where necessary, enhancement of certain terms and conditions, agreement of payment plans to support customers, and application of appropriate credit control activities to focus on recoverability of receivables.
The Group also diversifies risk by providing services to multiple market segments and ensuring no single customer has a material contract for the Group.
Technical innovation is part of the Group's Digital by Default strategy. This includes the use of smart meters (including prepayment mode) which provide significant benefits to customers through detailed knowledge and budgeting of their usage, and access to better value tariffs, whilst also assisting the Group in managing risk through improved billing accuracy, reduced reliance on estimated bills and earlier identification of issues, helping to prevent debt build-up.
The Group continues to invest in its debt management capability, including the full implementation of a debt case management system and ongoing colleague upskilling and process improvements to support customers and deliver better outcomes.
Risk Mitigation
The Group continues to hedge demand, using detailed forward consumption analysis, to mitigate the impact of commodity market volatility. Customer demand is diversified across multiple customers and sectors, and standard terms and conditions provide protection where there are significant variances in volumes consumed.
Energy trading software and pricing information systems, supported by a strong and highly experienced team, provide a robust control environment for managing this risk. Trading processes are well established and have been proven through both bearish and bullish market cycles. The Group operates a policy of back-to-back hedging, within defined risk limits and to the extent practicable, and hedges contracted positions to lock in margins at the point contracts are signed.
Forward hedging and ongoing monitoring are governed by a detailed, Board-approved risk mandate. The Group reviews its position through Board oversight, detailed cash forecasting and scenario modelling, including to support covenant compliance. The Group also continues to strengthen pricing governance through internal and independent assurance activity, including the planned execution of a KPMG
pricing audit.