Energy supplier reveals further ‘distressing’ losses

Embattled Nottingham energy supplier Yü Group has said it expects its financial results for the year to be even worse than expected after finding a further black hole in its trading sheet of between £2.75m and £3.25m.

The firm undertook an accounting review after finding “areas of significant concern” in its financial performance which led to an initial reduction in its profitability of around £10m.

Yü Group says the new findings will mean it make a loss of of between £7.35m and £7.85m for the year ended 31 December 2018.

The news comes a day after the Financial Conduct Authority announced it was to investigate financial statements the company made earlier this year.

Ralph Cohen, non-Executive chairman, said “The events of recent weeks have been deeply distressing for the shareholders, directors and for all of the company’s stakeholders. The Review has confirmed serious historic failures in the systems and processes within the Group’s finance function. These are now being addressed by our new chief financial officer, who is implementing all necessary improvements. It will take time for these measures to produce their full results and for unsatisfactory sales contracts to time-expire. While the task ahead is daunting, I have every confidence that the entire Yu Group team will face it with a determination to achieve the desired results and to restore the fortunes of the company.”