Wednesday 18 September 2019 10:34 am

Yu Group leaks a year after accounting scandal

Business utility supplier Yu Group sprung a leak in the first six months of the year as the company was forced to “reset” after discovering accounting errors cost the company £10m last year.

Loss before tax more than tripled over the period to £3.25m from £895,000, even as revenues grew strongly by 70 per cent to £56.5m.

Read more: Thank Yu very much: Yu Group soars as FCA drops investigation into £10m accounting black hole

Shares fell just under 12 per cent this morning to 130p.

The company was forced to go back to the drawing board last year as the company found problems in the accounts which cost it £10m.

Shares fell as much as 80 per cent last October on the news. They have still not recovered from the shock, trading at a similar level to last year.

The Financial Conduct Authority opened an investigation into Yu Group’s accounting error, but the probe was later dropped.

Today chief executive Bobby Kalar said that the company’s plan to increase sales is “going to plan” as revenues were up.

Read more: UK energy supplier Yu Group shares plunge 80 per cent as it warns profits will vanish on bad debt and accounting concerns

Yu still has a number of low margin contracts on its books which are being “washed through our accounts,” he added.

“As founder, majority shareholder and CEO, I am more confident than ever that our group is ready and able to take advantage of the enormous market opportunity available to us,” Kalar said.