Nottingham-based Yu Energy has reported rising sales and better profit margins for the first four months of the year.
The business, which supplies gas, electricity and water supplies to corporate clients, said it had seen a strong start to the year with the “good momentum” from the previous 12 months continuing.
It said: “The four months ending 30 April 2022 has seen significant revenue growth, at improved profit margins, compared to the same period in 2021. This provides management with high confidence for the remainder of FY2022.”
The trading update came a few hours before Chancellor Rishi Sunak announced a new 25 per cent levy on what he called the “extraordinary” profits that oil and gas companies are currently making, to raise revenue to help families with the cost of living.
He also said every household will get a £400 discount on energy bills with extra help for the most vulnerable following spiralling energy prices. That replaces an earlier plan for a £200 loan, with Mr Sunak scrapping the requirement to repay the money.
The Chancellor also announced how a tax on oil and gas firms – which have benefited from globally high prices driven by post-pandemic demand and the war in Ukraine – would raise around £5 billion to help meet the cost.
The idea of a windfall tax had faced resistance in Government, with Mr Sunak himself among ministers to warn about the impact it would have on future investment.
But the Chancellor said his plan for the energy profits levy would be coupled with a new incentive, almost doubling the tax relief available on investment.
Energy bills for businesses have risen just as household bills have.
Back in March Yu Energy said it had benefited from “higher tariffs as a result of commodity market prices” and said revenues for 2021 were up 50 per cent at £155 million. It made a pre-tax profit of almost £3.4 million, up from a loss of £1.5 million the previous year.
In its new trading update, chief executive Bobby Kalar said: "I am pleased to report a very strong start to the year.
“Despite commodity market volatility, we have delivered record revenues for the four months to 30th April 2022, with continued strong momentum.
“I'm delighted that the group has acquired the management capability of a smart metering business, which I truly believe to be a game-changer.
“I look forward to scaling this new capability, combined with the efficiencies from our Digital by Default strategy, to further enhance our growth and profitability."
