Yu Group reported group revenues in the first half of 2017 are anticipated to be in the region of £19 million which compares with £5.1 million in the first half of last year. Gross margins in the period continued to be in line with market expectations. As at 30 June 2017, the Group had £16.1 million of contracted revenue which is expected to be recognised in the remaining six months of the current financial year. The Group expects to report revenues of at least £35 million for the full year to 31 December 2017 (FY17), ahead of market expectations. Contracted revenue expected to be recognised for the year to 31 December 2018 (FY18) is already in excess of £20 million. The size of the growth opportunity for the group indicates that by investing further in the sales team and support infrastructure, it can accelerate its growth and profitability more rapidly than had previously been anticipated. While the group is likely to exceed current market expectations for revenue for FY17 and for FY18, the Board also expects EBIT for FY17 and FY18 to be marginally ahead of market expectations. This reflects the planned investment in the business along with the Board's and the market's expectation of a more competitive gross margin emerging as the group attracts a greater proportion of larger corporate clients. The group had net cash at the period end of £5.9 million (31 December 2016: £5.2 million) which is on deposit with the group's bank and is being utilised, as intended, to support letters of credit to ensure the group continues to adhere to its stated hedging policy. Cash generation in the second half of the year is expected to continue, but not at the same rate as in the first half due to the payment of certain industry levies during this period.
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