"We will look at all aspects of the business in the second half, and consider a variety of options," said Iain Dorrity, chief executive of PV Crystalox Solar. Trading conditions remain extremely challenging for the manufacturer of solar wafer and ingots, which reported a €12.2m (£9.6m) operating loss for the first half.
Industry oversupply from China continues to be the main bugbear for PV Crystalox; however, Mr Dorrity is hopeful about the progress of US and European investigations into unfair trade practices from Chinese PV companies. Spot wafer prices are now below industry production costs, having fallen 70 per cent since April last year and PV Crystalox is currently only operating at some 20 per cent of its production capacity. Mr Dorrity said the company is focusing on long-term customer contracts where it can get the best prices. The Abingdon-based company is also at various stages of negotiation with its own suppliers, as it looks for a 20 per cent reduction in direct wafer costs this year.
JPMorgan Cazenove expects full-year trading losses of €36m (€3m profit in 2011) and a year-end cash pile of €88m.
PV CRYSTALOX SOLAR (PVCS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 7.8p | MARKET VALUE: | £32.5m | |
| TOUCH: | 7.75-7.9p | 12-MONTH HIGH: | 22.25p | LOW: 3.55p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 46¢ | NET CASH: | €122m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 129.6 | 24.6 | 4.5 | nil |
| 2012 | 32.6 | -11.9 | -6.9 | nil |
| % change | -75 | - | - | - |
| £1=€1.27 | ||||
