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Utility supplier to businesses Yu has announced a reduction in revenues and gross margin as customers' energy usage has been far lower than the previous pre-COVID forecast for April 2020 as a result of the lockdown, with a fall in demand of approximately 35%.
The group reported that its cash collection performance for the four months ended 30 April 2020 has been positive, despite the issues faced, with cash collected 98% of the value of invoices raised.
Chairman Robin Paynter Bryant said: 'Despite this positive performance to date, the board and executive management team will continue to remain focused on the potential for increase of customer receivables, and bad debt and expected credit losses, as the Covid-19 pandemic continues to impact the UK economy.'
He added that the group has furloughed some colleagues, suspended certain discretionary operational expenses, and deferred payment of £1.1m of VAT and PAYE liabilities by utilising HMRC's Covid-19 payment relief schemes.
Paynter Bryant reported that average monthly bookings were £5.7m in the four months to 30 April 2020 'despite the impact of Covid-19 which temporarily reduced the level of enquires in the early stages of lockdown'.
The company said its balance sheet remains strong with £13m net cash at the end of April, plus a further £4.8m in prepaid cash collateral.
At 10:04am: (LON:YU.) Yu Group Plc share price was -1.5p at 61p