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Yu got the love as FCA gives thumbs up

City watchdog says it has no intention to take action against energy supplier
electric
Yu is an independent supplier of gas and electricity to the UK corporate sector

Yü Group PLC (LON:YU.) shares have rocketed for the second day in a row after the Financial Conduct Authority (FCA) ended its investigation into the energy supplier to the UK corporate sector.

A day after the company published full-year results after it had carried out a detailed accounting review into previous accounting problems, after the appointment of new auditor RSM.

READ: Yu Group shares surge higher after accounting review

On Thursday, Yu said it had been informed by the City watchdog that it has “decided discontinue its investigation and has no present intention to take action against the company.”

In December, the FCA said it intended to conduct an investigation "to review the accuracy of the group's announcements made between 6 March 2018 and 24 October 2018 and whether these announcements accurately reflected the group's financial status".

This followed a warning from the AIM-listed outfit in October that £10mln would have to be chopped from full year profits after admitting it had estimated and invoiced for more electricity than it actually sold. This led to more than 80% being knocked off Yu's market value.

House broker Shore Capital said the company can now “move forward in the implementation of its recovery strategy”, bolstered by a strong balance sheet where there was cash of £16.5m and no debt at the end of April.

Yu shares, which started the week at 90p, were yanked up 67% to 249.40p after just over an hour's trading on Thursday, exteneded the sizeable rise a day earlier. 

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