The boss of a 海角视频 energy company says his business has been able to dodge the current gas price crisis, and said he was confident it would continue to be OK.
Bobby Kalar, the chief executive of Y眉 Group PLC, an independent supplier of gas, electricity and water to the 海角视频 corporate sector, said they had secured prices before the latest rise.
He said the Nottingham-based business, which trades as Y眉 Energy, had had a profitable first six months of the year which was continuing.
Mr Kalar said: 鈥淥ur hedging strategy is solid and in line with our risk policies.
鈥淭he recent gas price and industry turbulence have had no material impact on the group to date due to our robust hedging policy.鈥
In a trading update the business said: 鈥淓xposure to record high global commodity prices continues to be mitigated by Smartest Energy agreement and robust hedging strategy albeit with some delay in customers 'locking-in' renewals at increased prices.
鈥淭he group's current cash position remains robust and in line with management expectations.鈥
New figures show Y眉 Group revenues were almost 拢66 million in the first six months of the year, up 43 per cent on the first half of 2020, as a result of strong organic growth and recovery of customer demand post-lockdown.
The business made a profit of 拢900,000, compared to a 拢1.7 million loss a year ago.
The number of 鈥渕eter points鈥 signed up to the business has more than doubled at 20,800.
Writing in the half year trading update Mr Kalar the business was now in a 鈥減osition of strength鈥, and embarking on a 鈥渄igital by default鈥 programme, which he said would bring 鈥渄isruptive innovation鈥 to the sector.
He said: 鈥淎s part of this programme, we have successfully launched our new innovation centre in Leicester.
鈥淭his hub provides us with a new, state-of-art, centre to drive our sales, marketing and digital initiatives.
鈥淚 am convinced this new space will further enhance our growth and innovation focus - already a differentiator for the group. I look forward to updating investors on performance in due course.
鈥淚 believe this fully budgeted and defined project will enable further sales channels, offers and benefits to be unlocked for the group, which will provide the potential for significant enhancement of value.
"The group has seamlessly integrated the two book acquisitions made in H2 2020 which have delivered results.
鈥淲e continue to assess other M&A opportunities which meet our strict criteria to further enhance our strong organic growth ambition.
鈥淗igh global commodity markets have been experienced during 2021, leading to significant public comment on the position of energy suppliers.
鈥淲e note that a number of domestic energy suppliers have failed, largely a result of limited hedging of their portfolio (due to constraints on credit limits or cash) and the consequence of the domestic focussed price cap.
鈥淲hilst these issues are impacting the domestic market, the board are confident in the group's hedging strategy and positioning.
鈥淲e continue to assess the regulatory consequences in relation to certain industry mutualisation costs because of domestic supplier failures.
鈥淭he group's mature and stable hedging strategy is mitigating the impact of the high commodity prices, and its arrangements with trading counterparties have placed the group in a good position.
鈥淭he board monitors a risk mandate with the purpose of being largely 鈥'back-to-back鈥 between the contracts secured with customers and our hedge performance.
鈥淲hilst Covid-19 impacted customer demand during 2020, it has now broadly returned to 'pre-pandemic' levels and the risk position is being proactively managed.
鈥淭he high global commodity markets have also led to some increased competition on renewals of contracts as customers 鈥渟hop around鈥 for a better deal.
鈥淲hilst a risk to Yu Group's own contract renewal rate, which stood at 45 per cent for H1 2021, it does provide additional new business opportunity which is assisting in the increased bookings being achieved.
鈥淚n short, the group is well positioned to continue in its business objectives despite the increased commodity markets.鈥
