Shares in energy supplier Yu (YU.) were up more than 11 per cent on Monday after the group announced it expected revenue to be “significantly ahead” of forecasts for the year to December 2017.
Operating profit is also on course to beat expectations, although to a more modest extent due to increased investment in headcount and fixed costs. Revenue in 2018 and 2019 is also anticipated to be “substantially ahead of expectations”. Analysts at N+1 Singer warned, however, that the pace of investment in the business means increases to earnings expectations are likely to lag behind revenues.
Nonetheless, analysts upgraded forecasts on the news, with Shore Capital expecting operating profit for 2017 and 2018 to rise from £2.5m and £4.9m to £2.6m and £5.1m, respectively.
