Yu Group (YU.) shares have surged over 150% to 172p after the company issued a trading update and changed its auditor, instilling confidence in some investors.
The independent supplier of gas, electricity and water to the UK corporate sector confirmed that it is to report over £7m in losses after it reported a £10 million black hole in its profit forecasts in October.
Bobby Kalar, CEO of Yu Group, told investors: "In what has been a challenging period we remain focussed and continue to work hard to rectify the issues highlighted last year. Some significant actions have already been implemented across the organisation.”
The group delivered approximately £80m in revenues in FY 2018, with £85m of revenues contracted for FY 2019. Cash balances were £14.6 million at the end of 2018, with no debt.
Mr. Kalar added: “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."
In October, after the multi-million-pound black hole was found in its accounts, it launched an accounting review revealed that it had weaknesses in its internal systems and controls from customer invoicing to cash cycle management.
Accordingly, it has appointed RSM UK Audit LLP as new external auditors after a review by the Group’s Audit Committee. The company expects a detailed review of the balance sheet and FY 2018 annual accounts to be concluded in Q2 2019.
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