Yü Group (AIM:YU.) more accounting issues, but at least you could see this one coming!
Yü Group PLC (AIM:YU.), the rapidly growing supplier of gas and electricity to UK SMEs, has identified several areas of accounting concerns, pushing the group into a loss making situation. At least there were warning signs with this one, not least from the umlauts …
YU has announced significant areas of concern relating to the: Recognition of historic accrued income; Impairment of Trade Debtors; and Gross margins being achieved against prior expectations. The result of this is a £10m reduction in profitability when compared with current market expectations. In 2017 YU generated operating income of £2.3m and for 2018 was forecast to deliver earnings per year of 25.6p, or post tax profit of approx. £4.2m. The reduction will therefore pull the business to a loss-making position. We have never understood the desire for UK businesses to add ‘umlauts’ to the spelling of their name. To…