Energy firm predicts losses amid ‘testing times’
Nottingham-based energy supplier to businesses Yü Group said it expects to make a loss of between £2.5m and £3m for the first six months of the year.
The news comes in the aftermath of the firm undertaking 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 for its full-year 2018 results.
Despite this, Yü Group says it expects its revenues to be in excess of £100m for the full-year 2019.
A statement from the firm said: “The Board, led by the audit committee, has conducted a thorough and extensive review of the internal control environment in operation throughout the Group, together with an assessment of the status of the previously identified improvement actions. This review has been supplemented by a second health-check report from PwC, following its independent forensic review conducted in Q4 2018. The Board is pleased to confirm that these key control and process improvements have been made and are operating routinely, providing good visibility on contracted revenues and facilitating greater financial control.”
Bobby Kalar, chief executive of Yü Group, said: “Significant progress has been made over the first half of this year and I feel my team has performed well in what can only be described as testing times. Whilst realigning and resetting business controls and processes has been absolutely necessary, investing in the future and ensuring long term growth remains a key focus of mine. The planned investment we have made in Leicester further positions us to secure new business at higher margins and to capitalise on the significant market opportunity available, whilst continuing to deliver market leading customer service.”
