Yu Group still expects to post annual loss after accounting missteps

Writer, Stock Market Wire
Wednesday, January 30, 2019 - 07:53

Struggling energy supplier to small business Yu Group reiterated that it still expected to post a deep annual loss after a tough year that saw it miscalculate its revenue.

Adjusted pre-tax losses for the year through December were still expected to be within the range of between £7.4m and £7.9m, the company said.

It added, however, that the level of loss assumed there would be no restatement to reduce the profitability of 2017 or prior financial years.

Revenue was expected to around £80m and the company said it had in excess of £85m of revenue contracted for the 2019 financial year.

Cash at 31 December was £14.6m, of which £3.5m was held in short-term deposits. Yu Group said it would continue to undertake a detailed review of its balance sheet until finalisation of annual accounts and audit, which was targeted to conclude in the second quarter of 2019.

It said its board was particularly focussed on validating its detailed estimates on the level of bad debt provision, the recoverability of accrued income, and reviewing whether a prior period adjustment would be required.

'In what has been a challenging period we remain focussed and continue to work hard to rectify the issues highlighted last year,' chief executive Bobby Kalar said.

'Some significant actions have already been implemented across the organisation.'

'Whilst we are being more selective and prudent in relation to our growth, we are securing new business at a reasonable margin.'

'With a strong balance sheet and a focussed and dedicated workforce, I remain confident in the underlying business, the significant market opportunity available to us, and the long term success of our proposition and I am absolutely driven to put us back on track.'


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