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Yü Energy shares soar after FCA drops investigation

Yü Group’s share price climbed 66 per cent in early trading on news that the Financial Conduct Authority has discontinued its investigation into the company and does not intend to take action.

The business energy and water supplier revealed a hole in accounts last October related to revenue it had booked but that was not actually recoverable from clients. As a result, Yü said would post a loss for full year 2018 and a much reduced profit for 2019. Its share price collapsed by 80 per cent.

Yü then hired PwC and DLA Piper to conduct a “forensic review” of its books, and CEO Bobby Kalar said the company would be “more selective and prudent” about customer acquisition.

Bad debt is a longstanding issue in the business energy market, particularly at SME level. Drax-owned B2B energy suppliers Opus Energy and Haven Power reported a 72 per cent increase in bad debt charges to £31m for the year ended 31 December.