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Yu Group acquires business customer book of Midlands energy group
StockMarketWire.com
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Independent supplier of gas, electricity and water to the UK business sector, Yu Group has acquired the business customer book of a Midlands-based energy group which is divesting its mains gas supply book to focus on its core activities.
The customer book consists of gas contracts to a diverse customer base, operating within sectors including healthcare, manufacturing and retail. Yu Group will pay £0.2m in cash for the assets, which includes an element of consideration based on a discount to the customer receivables balance acquired, net of provision.
The acquired business reported around £3m of unaudited revenue for the year ended 31 March 2020. The Board expects the acquisition to be earnings enhancing from mid-November 2020.
The acquisition will add circa 400 meter points to Yu Group's current meter portfolio of circa 14,000. The customer book consists of gas contracts to small and medium sized businesses across Great Britain. The Group will hedge the book based on lower gas commodity markets, leading to attractive margins.
At 9:55am: (LON:YU.) Yu Group Plc share price was 0p at 85p
Story provided by StockMarketWire.com
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