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Yu well on target

The group has seen its revenues rise rapidly – not so margins
Yu well on target

Business utilities supplier Yu (YU.) has grown at a breakneck pace since it floated on the LSE. Prior to the 2016 IPO, it set performance targets, including revenues of £30m by the end of 2017. With the benefit of hindsight, that hurdle rate appears lacking in ambition, but the huge leap in revenues was achieved partly through a move into the higher volume half-hourly metered market, which effectively sapped the gross margin from 21.2 per cent to 17.4 per cent year on year.

IC TIP: Hold at 1325p

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