Share price plunges as Nottingham energy provider launches forensic review
Listed Nottingham-based energy supplier to businesses Yü Group saw 80% wiped off its share value yesterday (24 October) after it revealed it was set to take a £10m hit due to financial irregularities.
The board said they had identified “several areas of concern” that would plunge the company from a healthy profit into the red.
Traders reacted yesterday, with shares in Yü Group falling to 128p at the close of the markets – down from an opening proce of 580p. Shares in the company are now worth less than a tenth of their peak of 1,345p in March of this year.
In a statement to the London Stock Exchange, Yü Group said: “The Board are extremely disappointed to announce this substantial reduction in profitability. The Board have committed to commissioning a forensic review of its systems to fully identify the underlying issues and implement all necessary further measures.
“The Board are confident that the Group will achieve profitability for the year ending 31 December 2019, albeit at a lower margin than previous expectations, and is in the process of preparing detailed budgets.”
Bobby Kalar, chief executive officer, said: “As founder and majority shareholder, nobody is more disappointed in this development than me. Our booked revenue from new sales remains strong and contracted revenue for 2019 is already £67 million as at the end of September 2018. We have improved internal controls around working capital management and the Board is absolutely focused on restoring the profitability of the business.”
