LONDON - Yu Group PLC (AIM:YU.) announced Wednesday an extension of its hedging facility with Shell Energy Europe Limited through 2032.
The independent gas and electricity supplier originally entered into a five-year hedging facility with Shell Energy in February 2024. The agreement has been extended by three years.
The structured trading agreement provides Yu Group access to commodity markets without requiring cash collateral to support mark-to-market movements. The extension includes increased volume capacity and flexibility in product development.
Yu Group stated the facility can support annual revenues exceeding £2 billion. The company aims to achieve a 7-9% market share by 2028 under its growth plan.
"This extension clearly demonstrates the strength of the relationship between our respective businesses, and whilst our ambitious growth plans were not precedent on getting this deal done it gives us a clear runway to continue the job of becoming the fastest growing dominant B2B supplier in the UK," said Bobby Kalar, Chief Executive Officer of Yu Group.
The company supplies gas and electricity to business customers and operates as a meter asset owner and installer of smart meters in the United Kingdom.
