Yu Group bounds higher after weathering accounting error storm

(Sharecast News) - Yu Group's shares stormed higher on Wednesday after the company reported strong full-year revenue growth and a smaller than expected loss following an accounting review into previously disclosed financial issues.The energy retailer achieved revenue of £80.6m for 2018, an increase of 77% compared to the year before, though it swung from an adjusted profit before tax of £1.3m to a loss of £6.3m due to operating costs before non-recurring items, including unrealised gains on derivatives contracts.Profitability was also dealt a blow by the identification of serious accounting issues in a review by the AIM traded company's incoming chief financial officer, though chief executive Bobby Kalar said Yu has made significant progress in implementing new systems and processes and the board is confident that they have weathered the storm.The accounting issues related to recognition of historic accrued income, impairment of trade debtors and gross margins being achieved against prior expectations, leading the company to estimate around a £10m reduction in profitability when compared with market expectations.The company's interim dividend of 1.2 pence per share was the lone dividend payment, compared to the year before when Yu Group shelled out 3.0p per share in dividends.Contracted revenue for FY 2019 was £88m at the end of the year, leading the board to anticipate revenues to grow once more, though the year on year growth rate is expected to be significantly below that previously achieved as a result of a more prudent level of bookings being targeted.Analysts from Shore Capital said they believe that the businesses continued recovery and return to profitability is underpinned by its strong balance sheet position, with current cash levels of approximately £16.5m and the company remaining debt free.Yu Group's shares were up 65.95% at 153.50p at 1158 BST.