Yü Group PLC (AIM:YU.) climbed over 11% on Friday morning after the gas supplier announced a new hedging facility had been agreed with Shell Energy.
Unlike Yü’s previous agreement with SmartestEnergy, the new facility will not require the firm to deposit funds to shield against volatile energy market movements.
This has freed up £52.25 million of cash previously held as collateral as a result, the group said, with the new trading agreement between Yü and household supplier Shell Energy - which was bought by Octopus last year - set to last five years.
“The new hedging facility [...] removes a material working capital constraint to the business,” chief executive Bobby Kalar said, alongside “lifting exposure to mark to market movements from future energy market fluctuations”.
Shares climbed 11.3% to 1,291p.