Utilitywise warns of ‘material’ impact of overestimating client energy consumption

0

Utilitywise has warned that changes to its accounting procedures and the way it calculates the value of energy contracts may have a material impact on revenues and profits for the year to July 2018.

In a stock market update this week, the company outlined changes it is making to contract values after it was found to have overestimated energy consumption by clients across the life of their energy contracts.

The company is working through some 330,000 contracts and said it could not conclude the impact on revenue and profit for the financial year to July 2017 until that work is complete.

The firm has already delayed posting its full year results and said it hoped to report by 31 January, subject to completion of its contract reevaluations and other related accounting work.

Utilitywise’s share price fell 17% on the announcement and the firm’s market value has dropped around 80% since January last year.

 

Related stories:

Utilitywise strategy chief leaves for Electron

Utilitywise appoints former Sage boss

Utilitywise bets against Lord Redesdale on blackouts risk

Utilitywise targets SME market with Royal Bank of Scotland tie-up

Utilitywise posts strong profit, spends it on t-mac

Utilitywise and Dell sign internet of things energy management deal

Click here to see if you qualify for a free subscription to the print edition or to renew.

Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.

LEAVE A REPLY

Please enter your comment!
Please enter your name here