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Yu Group - Wallops the ball out of the park

October 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • YU.
  • Price:
  • 1140p
An astonishing set of interims from Yu. Revenues increased by 51% from £129m to £195m. Pretax profit was up six-fold from £2.2m to £13.1m and eps were up 480% to 58p, with a better EBITDA margin (up from 2.1% to 7%). Average monthly bookings in H1 23 of £51.3m are well up on last year’s average (£22.5m). The  contracted revenue has tripled to £358m in August and with bad debts falling also, CEO Bobby Kalar says investors should expect a stronger H2. In the light of results, broker Liberum raised its current year eps forecast by 90% to 139p - which compares to the forecast of 42p when I made the shares a main buy just nine months ago at 380p. Net cash has climbed from £19m to £36.6m and Kalar says he would like to buy a rival’s boo ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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