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Yü Group tanks as bad debt fears grow as govt reduces energy support

Published 14/03/2023, 10:58
Yü Group tanks as bad debt fears grow as govt reduces energy support
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Proactive Investors - Utilities firm Yü Group PLC tanked almost 19% this morning as it unveiled a broadly strong set of results, but hinted its corporate customers may struggle with energy bills if government support is cut on 1 April.

“We note that current lower commodity market pricing conditions still suggest a significant, though hopefully less material, impact on our business customers' bills,” it said in a statement.

AIM-listed Yü added it was looking to reduce its bad debt exposure, including through the rollout of smart meters to help customers control usage and pay-as-you-go products.

It claimed it had a “newly cleansed” order book, having taken time to sift through non-paying customers, with the board ready to react to changes in “customer payment behaviour”.

On the plus side, Yü reported growth across the board during 2022, with revenue up 79% to £227.6mln and pre-tax profits up 72% to £5.84mln.

This was not enough to prevent investors scrambling to leave, with its share price falling to 580p, down over 26% from its recent four-year highs.

Read more on Proactive Investors UK

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