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Accounting woes dent outlook at Yu Group

Accounting woes dent outlook at Yu Group

The spectacular growth story at challenger energy supplier Yu Group (YU.) has come unstuck. An internal review has revealed that Yu has underestimated the amount of bills unlikely to be paid and overestimated the energy consumption of several of its customers, meaning profits will be £10m shy of previous expectations in 2018. This will push the group back into a lossmaking position. Chief executive Bobby Kalar (who is also the founder and major shareholder) said “nobody is more disappointed in this development than me”, but investors (who provided £12m of cash in March through a share placing) clearly aren’t too happy either – the share price crashed more than 80 per cent on the day of the announcement.

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