Troubled energy provider confirms big losses

Yü Group, the Nottingham utilities supplier to businesses, says it will post a loss of between £7.35m and £7.85m for 2018.

Group revenue for 2018 is expected to be around £80m. The Group currently has in excess of £85 million of revenue contracted for FY 2019.

The news comes after 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.

Then, in December, the company said it expected 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.

Yü Group has also confirmed that it has changed its auditor to RSM UK.

A statement from the firm this morning said: “The Group will continue to undertake a detailed review of the 31 December 2018 balance sheet until finalisation of the FY 2018 annual accounts and audit, which is targeted to conclude in Q2 2019. The Board are particularly focussed on validating, to the extent reasonable post the balance sheet date, its detailed estimates on the level of bad debt provision, the recoverability of accrued income, and reviewing whether a prior period adjustment will be required.

“The Board remains focussed on continuing the implementation of further financial and operational controls; ensuring a managed approach to commodity risks through its hedging policy; and prioritising profitable and sustainable growth.

“In addition, the Group has maintained its focus on customer service, including via its three ring pick-up policy, and continues to attract new customers and employees, whilst developing existing teams across the business.”