The error also attracted the attention of the Financial Conduct Authority (FCA), which began an investigation into the company’s accounts following the profit warning. While better than expected results are not rare, Yü’s figures were particularly critical after it warned in October that an accounting snafu could see £10 million wiped from its profits, causing it to lose around 80% of its market value.
With a track record like that, investors in business energy supplier Yü Group PLC ( LON:YU.) breathed a heavy sigh of relief on Wednesday after the firm reported a smaller than expected loss for last year. Matters have deteriorated so far that sector regulator Ofgem is due to implement new guidelines in June that will effectively stress test a supplier’s finances to make sure it has enough cash to meet the expectations of their customers. One of the more recent failures in January was Economy Energy, which went bust and left 235,000 of its customers (quite literally) in the dark. Over 2018 and the start of 2019, the industry has been rocked by a number of smaller providers collapsing into bankruptcy, with the sector graveyard totalling around ten companies so far. To say the last year has been a tricky one for energy retailers would perhaps be a bit of an understatement.