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


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.


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