Yü Group steps in to purchase Bristol Energy’s B2B portfolio

Independent utility supplier to UK business, Yü Group plc, has acquired the B2B customer portfolio of from Bristol Energy Ltd, a wholly owned subsidiary of Bristol City Council.

Yü Group has paid £1.24m in cash on completion and, as part of the acquisition, has acquired £1.0m of receivables of which the majority is due for payment to Yü Group in August 2020. A further £100,000 is payable by the group deferred for three months. In addition, the group has assumed liabilities totalling £580,000 payable in August 2021.

The B2B book, for the financial year to 31March 2020, showed revenues of £15.2m and generated an operating loss of £0.48m.

Yü Group will gain 4,000 meter points to its portfolio of 9,800, an increase of 40 per cent.

Bristol Energy’s portfolio comprises a range of gas and electricity supply contracts running for up to three years, servicing a range of public sector and business customers. However, the acquisition does not include Bristol Energy's forward commodity purchases.

Bristol Energy management will provide full support for Yü Group throughout the transition of the contracts. 

Bristol Energy was put up for sale in June, just a month after Bristol City Council announced it wanted to cut its ties with the company.

Bobby Kalar, chief executive of Yü Group, commented: “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.”

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