Skip to main content
News Supply

Yü Group acquires beleaguered Bristol Energy’s B2B book

Image: Bristol City Council.

Image: Bristol City Council.

Yü Group has bought Bristol Energy’s B2B customer book, adding 4000 meters to its portfolio.

The company – an independent supplier of gas, electricity and water to the UK business sector – has paid £1.24 million in cash on completion for the portfolio. It has gained £1 million of receivables, with the majority due by August 2020, the Yü Group said.

Additionally, £100,000 is payable by the company that has been deferred for three months. As part of the acquisition it has assumed liabilities totalling £580,000 payable in August 2021.

For the financial year to 31 March 2020, Bristol Energy’s B2B book had revenues of £15.2 million, and generated an operating loss of £0.48 million according to the company’s management accounts.

The acquisition will see the Yü Group’s current meter portfolio increase by around 40%, growing from c.9,800 currently, and should immediately increase its earnings.

Bristol Energy's B2B personnel will help transition operations over to the Yü Group, ensuring it is seamless for the gas and electricity customers. The portfolio includes supply contracts that are set to run for up to three years, servicing a range of public sector and business customers, including Bristol City Council.

Bobby Kalar, chief executive of Yü Group said, they were “delighted” with the purchase, which was taking place following extensive due diligence.

"The transaction allows the Group to layer in a fantastic customer base to our accelerating organic portfolio and increase value by offering additional products and services not available previously. This acquisition forms part of our strategic growth plan, leverages our disciplined controls and scalable technology platform and highlights the Group's ability and appetite to scale.

“Immediate opportunities to synergise the customer book will further our ability to extract value while keeping overheads down. Management's objective will be to transition Bristol Energy customers onto our platform quickly and seamlessly while enhancing value and creating a proven template for further value additive potential acquisitions.”

The sale follows a turbulent period for Bristol Energy, one of the few council-owned energy companies in the UK. In May it was reported that Bristol City Council was looking to cut ties with the company, and in June it confirmed that the company was up for sale as success was “impossible in such a volatile market.”

Kalar added: “I remain convinced that there is a substantial market opportunity for Yü Group. With significant organic growth potential and a strong balance sheet, we see a great opportunity to increase market share and drive sustainable, profitable growth, creating value for all our stakeholders."

Loading...

End of content

No more pages to load