AIM-listed Yu Group (YU.) released its half-year trading update for the six months to June 2022 yesterday morning. As ever, it made a good impression but does it mean good results are on the way, or will there be a hidden nasty?
I have been bearish on AIM-listed Yu Group (YU.) almost since the dawn of time. Well, since the company ‘fessed up that it had effectively been making up its numbers and that there was a black hole in the accounts. So is it time to reconsider, in the light of yesterday’s apparently bullish AGM trading update? Not so fast…..
It is always a Red Flag for me when a company posts a profit but is burning cash, and that brings me to yesterday’s full year results for 2021 from AIM-listed Yu Group (YU.).
AIM-listed Yu Group (YU.) has updated the market with a full year trading update for 2021, claiming a very strong performance for FY21, significantly ahead of market expectations….FY21 revenues, profitability….have all extensively exceeded management forecasts. So the coffers are burgeoning with cash, then? Er…..
My slam-dunk sells for 2021 were, at one point, looking like a barometer for how mad the market was as complete rubbish was bid up and up on the back of just hot air. But as the year drew to a close, this madness started to abate.
Having posted my five slam-dunk sells for 2021 at the start of the year and watched in amazement as the market bid up complete rubbish, it is time to take stock as the year draws to a close. My sells were Tern (TERN), Catenae Innovation (CTEA), URU Metals (URU) and Yu Group (YU.) – all roll-overs from 2020 – and Trafalgar Property (TRAF), which came in as a replacement for the defunct ShareProphets AIM-China Filthy Forty play Walcom (WALG).
AIM-listed Yu Group (YU.) has posted its interims to June 30 this morning and claims a profit of £0.9 million – a good effort. Better still, the balance sheet shows that YU was technically solvent (just) at the period end. There are, however, a few observations to make on that! Call me a pedant if you wish.
The markets are utterly bonkers. They have been all year. And that brings me to my 5 slam-dunk sells for this year, which I have previously suggested the performance of which underlines my feelings that the market is completely unhinged.
AIM-listed alternative energy supplier Yu Group (YU.) has updated the market this morning with a trading statement for the half-year to June. We are told of strong growth in bookings ad revenue with confidence in delivering profitable growth, but whilst cash balances are broadly flat (ie a little down) over the period there is again no discussion of net current assets. So is it just more of the same?
My five AIM anti-tips for the year continue to defy gravity. I suggested in my last column on this that perhaps it should perhaps be renamed the Market Madness Index. Anyway, for what it is worth, here is how things stand.
AIM-listed Yu Group (YU.) had its AGM this week. All the resolutions were passed, as one might expect, but the company talked of being profitable in the second half of last year and continued momentum from FY20 as 2021 got off to a good start. But profit – as we all know – is a matter of opinion; cash – where Yu’s dangers lie – is a matter of fact.
Perhaps I should rename this column the Market Madness Index! My five anti-tips from the AIM Casino for this year are going up but the fundamentals are as weak as ever. I may look stupid now, but I think it should be taken as a warning to all. This won’t end well.
AIM-listed Yu Group (YU.) released its Full Year numbers for 2020 this morning which show continued cashburn, a horrible lack of balance sheet support and negative net current assets. As I had suspected, the trumpeted cashpile announced in the FY Trading Update was a mirage, with payables up and receivables down. The shares may have been on a tear recently, but the company is heading for a brick wall.
It seems to me that the less substance there is to an investment on AIM or the sub-Standard List the better it is doing. If you have no cash and no revenue your shares will soar! It is so 1999-2000. All we need is for Alan Greenspan Jerome Powell to warn of irrational exuberance and we will be all set for another big crash.
AIM-listed alternative energy provider Yu Group (YU.) shares have been on a tear ever since it released a trading update on 26th January this year. The shares moved up from a previous close of 120p to close the day at 195p. Today, last seen, the stock is up to 355p having been as high as 370p but something just does not add up here.
AIM-listed alternative energy provider Yu Group (YU.) updated the market this morning with a trading update which reads extremely positively. The shares are up by a very impressive 40%, but something was missing in this morning’s release. Will investors piling in this morning come to regret it?
Tom Winnifrith ate his hat over Red Rock Resources (RRR), so it is only fair I ‘fess up – my list of five slam dunk sells for 2020 was, ahem, less than successful – mainly down to the performance of AIM-listed Catenae Innovation CTEA) which put on a whopping 140%, and AIM-listed URU Metals (URU) rubbed my nose in it further with a rise of 54%. So was I wrong?
I have been flagging up for ages that AIM-listed Yu Group (YU.) needs to raise money. After all, by its own admission it will run out of cash by the end of the year. Now, all of a sudden and with no news, the shares are off by 10%.
AIM-listed energy provider Yu Group (YU.) has this morning announced a new ‘Long-Term Incentive Plan’ for directors and senior management. The terms, from a shareholder perspective, look OK but Yu’s balance sheet suggests to me that this is more about spoofing investors than rewarding management…
Last week’s interim results for Yu Group (YU.) show net assets of £3,753,000 but this includes £4,730,000 of a deferred tax asset. Without this asset, the group would be technically insolvent as liabilities would exceed assets.
AIM-listed Yu Group (YU.) announced its Interims to June this morning – deadline day, never a good sign – and the balance sheet shows it is in a mess.
In August I noted that my list of five slam-dunk sells for 2020 was up, rather than down, by an amazing 41% – even though one is now a zero. Earlier this month the gains had been pared back to 25.5% but now, just two weeks later it seems that gravity is finally reasserting itself.
As the saying goes, these are unprecedented times. But I’m not talking so much about Covid-19 as the manic state of the markets, with special reference to the AIM Casino. And that brings me to my list of five slam-dunk sells for 2020.
My curate’s egg of slam-dunk sells for 2020 continues its strange performance. On the one hand, Walcom (WALG) has disappeared from view – a zero – and on the other we have two total POS at silly prices because the market is, in my view, just totally mad.
Yet another Red Flag was hoisted above AIM-listed Yu Group (YU.) Towers this morning as it announced its pleasure at appointing SP Angel as Nomad/Broker. Whilst I have little time for any Nomad, surely ex-appointee Shore Capital carried a little more gravitas than the Nomad to Versarian (VRS) and Eurasia Mining (EUA) not to mentiuon the MySquar )MYSQ) fraud where it turned a blind eye to crime, and SP Angel’s broker side has been hit with the scandal at Skinbiotherapeutics (SBTX). But did Shore Capital walk, or was it pushed?
AIM-listed Yu Group (YU.) has this morning updated on the investigation by AIM Regulation into the shambolic mis-reporting of profits/receivables etc which saw the company write off c. £10 million from its 2018 accounts. The result? A £300,000 fine – surely far too light – which has been waived for co-operating with the enquiry! The lesson from AIM Regulation for less than scrupulous AIM Directors is that fraud is no problem – just get on with it and we’ll do nothing at all. There is no moral hazard.
AIM-listed alternative energy supplier Yu Group (YU.) yesterday offered up a half-year trading statement ahead of interims on Wednesday 30 September (deadline day to avoid suspension – a bit of a Red Flag). Having always advertised plenty of cash but turning out to be running short in the net current assets department, is it any different this time? I fear not…..
My five slam-dunk sells for 2020 have been a wild ride in the face of the Covid-19 bandwagon, but this week saw the first casualty as ShareProphets AIM-China Filthy Forty play Walcom (WALG) suddenly found itself on AIM’s Death Row when its erstwhile Nomad Allenby suddenly upped sticks and resigned. As discussed HERE there is surely no prospect of a replacement stepping forward and thus I have marked this one down to zero. As for the remaining four plays…….
AIM-listed Yu Group (YU.) has released its AGM statement to be delivered to an empty room at 11.30 today. Of course, the empty room is because of the continuing COVID-19 restrictions, but that is not my gripe. It is the statement, which offers absolutely no insight at all.
Markets in general have had an amazing upswing since reaching the bottom of the Coronavirus sell-off. I don’t think it will last, but there is one area where the market seems to have gone utterly bonkers – and that is where a company puts out news of anything to do with Coronavirus, whether it is a test, a potential cure, tracking technology or some other spurious news and my slam-dunk sells have been at it too, with two of the five riding on the back of speculation that they will suddenly make the big time.
AIM-listed Yu Group (YU.) has delivered its FY19 results – this despite claiming it would defer them in line with the FCA’s moratorium (which did not apply to AIM companies)! CEO Bobby Kalar was pleased with the positive results so far as the company recovers from an accounting scandal but I’m not so sure that shareholders should be.
It is almost the end of March: time for a run-down of my list of five slam-dunk sells for this year. With the everything bubble well and truly popped by the pin that is Coronavirus the market backdrop has been inclement for cash-guzzling loss-making shares and the portfolio of Tern (TERN), Catenae (CTEA), Yu Group (YU.), URU Metals (URU) and Walcom (WALG) has reacted accordingly.
AIM-listed Yu Group (YU.) has offered up a Covid-19 statement and delayed its results, mindful of the recent request from the Financial Conduct Authority. Except that the FCA’s request as per its RNS released ended with This statement does not apply to AIM companies. Do I smell a rat? You bet!
It has been a truly wild period on the stock market and I fear it is going to get worse before it gets better. The coronavirus has ripped through everything and it is panic stations on the markets – as well as in the supermarkets. Some of it is logical: I’m not sure I would want to own shares in an airline right now, nor a restaurant business, and I would not be surprised to see some casualties in the fullness of time if the coronavirus plays out as seems to be expected.
Yes folks, it is time for an update on my five slam-dunk sells for 2020 – and the writing is on the wall as the anti-portfolio slides. At the end of January the score was an overall drop of 9.8% on a bid to bid basis. One month on the slippage has accelerated amongst my five picks from the AIM Casino, namely Tern (TERN), URU Metals (URU), AIM-China Filthy Forty play Walcom (WALG), Catenae Innovation (CTEA) and Yu Group (YU.)
AIM-listed energy supplier with recent accounting issues Yu Group (YU.) has released a full year trading statement. Like its half year trading statement last year, it is again full of holes: it tells us about the cash, but what about payables? And whilst losses appear to have been reduced, references to adjusted EBITDA don’t fool me: the company is still leaking cash.
This morning we were treated to an RNS Reach from AIM-listed and surely running out of cash Yu Group (YU.). We are told that it has agreed the commercials for its new purpose-built office facility in Leicester describing it at a state of the art sales and innovations office to house growing sales, marketing and product teams. Well, woopiedoo! But how will Yu pay for it?
My slam-dunk sells for 2019 came home ahead, but only 8% down on their starting prices. Of the five, Haydale (HAYD) was an early success as the rescue bailout I had long predicted it needed finally arrived…..and smashed the shares from 31.5p at the start of the year to a couple of pence.
Peter Brailey has already offered his list of sells for 2020 in the form of his Vomit List of useless oilers, so here is my 2020 list of Slam-Dunk sells. I doubt there will be much borrow available on any of them so shorting may not be possible (although two might offer up some) but the main message is stay away!
AIM-listed Yu Group (YU.) released an update this morning detailing in part a new hedging facility with SmartestEnergy Limited. On the face of it, it is good news but I rather suspect that when the dust settles it will be seen as not so good. As ever, on AIM, it is not what is said that matters: it is what is unsaid.
We are almost at year-end and my collection of sells from the start of the year looks fairly set for its second deletion. But how are the others doing, given that at the last count my notional portfolio of sells was down 13% (ie to sell had been the correct call)?...
My slam-dunk sells for 2019 are looking better and better (if you are a bear). In my last piece (in September) the average had got almost back to flat but the interim results season took its toll on one of the portfolio and I am now in profit.
I urge you to listen to today's free podcast with Lucian. The sound quality is good and the content excellent. It can be found HERE. In the bearcast I discuss my old pals at Eden Research (EDEN), Yu Group (YU.),Cenkos (CNKS) and FinnCap (FCAP).
AIM-listed utilities provider Yu Group (YU.) has offered up a trading statement for the first six months of the year. The numbers offered are full of holes, leaving more questions unanswered and we are told there will be an adjusted (ie bullshit) EBITDA (double bullshit) earnings loss of between £2.5-£3 million. Goodness knows what the actual bottom-line loss will be then. And as for the cash figures offered...
Never mind that a £10 million (or thereabouts) black hole was found in the accounts of AIM-listed Yu Group (YU.) and it raised £11.6 million in a placing last year on the back of dodgy accounts, the chocolate teapots at the FCA have discontinued their investigation, according to the company this morning...
Shares in Yu Group (YU.) have been slipping for a few days, and today they are off by 13.5% at just 75p bid, 85p offer. Of course, we already know that it was making up its numbers until the appointment of the new FD and the bean-counters have been crawling all over the company since then…..as has the FCA. A few days ago the stock was at around 120p, so why the drop?
Last month one of the five had its denouement as AIM-listed Haydale (HAYD) had an emergency bailout - as long predicted by me - at only 2p. That left just four. My suspicion was that AIM-listed member of the Filthy Forty, Walcom (WALG) would be next with its head under the guillotine and the news there was only marginally better as death has been postponed to June.
Sometimes a company issuing options can have a positive spin. Think Big Sofa (BST) under the new management of Kirsty Fuller, having ‘fessed up the uselessness of the previous regime and where options were handed out at 3.5p but only exercisable if the shares clear the 6p mark.
They say that a week is a long time in politics (attributed to Harold Wilson), and so it seems with the equity markets. A week ago my portfolio of five shares to sell was actually up by 4.6%. Now, all of a sudden we are at minus 8.6%.
It is four weeks since my last update, so it is time to take another look at my sells for 2019. The five have, as a whole, had a better month but I cannot help but think that for three of them the precipice approaches...
As Tom Winnifrith said in his Bearcast on Wednesday, Yu Group (YU.) offered numbers in its latest trading statement which are completely meaningless – and thus its net cash position could be anything. I’ve been trying to piece some of it together.
Supplier of gas, electricity and water to businesses, Yu Group (YU.) has updated on 2018, including ‘confirming’ some prior guidance and CEO Bobby Kalar emphasising “with a strong balance sheet and a focussed and dedicated workforce, I remain confident in the underlying business, the significant market opportunity available to us, and the long term success of our proposition and I am absolutely driven to put us back on track”. The shares have responded currently more than doubling, to above 150p. Hmmm…
In today's podcast I take a detailed look at Boxhill (BOX) and at Yu Group (YU.) - I believe numbers from neither. I ask questions about Staffline (STAF) and its curious statement today. And i also do some number crunching on the living dead, Phontonstar Led (PSL) and have a few thoughts on Independent Oil & Gas (IOG)
I thought I’d update on my 5 sells for 2019 as after just a couple of weeks a few cracks are beginning to show already. The five, Telit (TCM), Haydale (HAYD), Yu Group (YU.), Walcom (WALG) of the ShareProphets AIM-China Filthy Forty and First Derivatives (FDP) are not necessarily shorts – some, such as Walcom, couldn’t be shorted anyway. But they are sells.
I start with a report back on my torture of last night. Then I look at a day of woe for Neil Woodford, commenting on the Kier (KIE) debacle which has shown him at his arrogant and reckless worst. Then I ask questions about share trades announced late yesterday in BCA marketplace (BCA), I look at Sosandar (SOS), Optibiotix (OPTI), Bluebird Merchant Ventures (BMV), Yu (YU.) and at Avanti Comunications (AVN).
And so at last we have the results of the forensic accounting review which followed the confession from AIM-listed Yu Group (YU.) on 24 October 2018 that its accounts were, in effect, a work of sheer fiction and has seen the company’s £12 million placing at £10 per share being investigated by the FCA. We already knew that the bill would be around £10 million – but now it is going to be around £13 million. As ever, the ShareProphets RNS Translation Service is on hand to help us understand all this (original in bold).
I start by explaining that torture and it involves sociology lecturers. I then move onto explaining why Roland "fatty" Cornish is the utterly unacceptable face of crony capitalism. Then moving from the undeserving rich to the needy, I ask you to give a few quid to Woodlarks HERE. I then look at Frontera (FRR) where the silence is deafening, Amur (AMC), Audioboom (BUST), Angus Energy (ANGS), UK Oil & Gas (UKOG), F*ck Yu (YU.) and finally at Gulf Marine (GMS) which is about to discover that just because it is Christmas that won't stop the banksters being total bastards. There is no season of goodwill for that profession.
On Monday I wondered out loud what was happening about the forensic investigation into various accounting matters – including accrued income recognition and impairment of trade debtors at Yu Group (YU.). Then there was the small matter of a £12 million placing on the back of FY17 accounts which now appear to be somewhat questionable. Well blow me down with a feather: now the FCA has notified the company that it intends to conduct an investigation and the shares (which I called a bargepole of the highest order on the initial ‘fessing up of 24th October) have now fallen below half of the IPO price of March 2016.
Back on 24th October, AIM-listed Yu Group (YU.) issued a devastating RNS regarding accrued income recognition, impairments of trade debtors and the shares collapsed 80%. Then on 5th November the company announced that it had appointed PWC and DLA Piper to carry out independent forensic investigations and promised to update the market in due course. So how about that update?
AIM-listed Yu Group (YU.) only joined the Casino back in March 2016, via a placing at 185p. Since then it has been a one-way street for shareholders, with the stock rising to a peak of over £14 in March of this year. And then the Finance Director resigned…..