PV Crystalox Solar PLC PVCS - Annual Report 2012 and Notice of AGM 2013 (9452C)
April 23 2013 - 7:00AM
UK Regulatory
TIDMPVCS
RNS Number : 9452C
PV Crystalox Solar PLC
23 April 2013
RELEASE OF ANNUAL REPORT AND NOTICE OF AGM
PV Crystalox Solar PLC announces that it has published its
Annual Report 2012. The following documents (as applicable) are
being mailed to shareholders today and will also be available to
view and download on the PV Crystalox Solar website at
www.pvcrystalox.com.
-- Annual Report 2012
-- Notice of Annual General Meeting 2013
In accordance with Listing Rule 9.6.1 copies of the documents
have been submitted to the UK Listing Authority and will shortly be
available for inspection from the National Storage Mechanism at
www.Hemscott.com/nsm.do
The Annual General Meeting of the Company will be held at 2.00pm
on Thursday 23 May 2013 at 3 More London Riverside, London SE1
2AQ.
COMPLIANCE WITH DTR 6.3.5 - EXTRACTS FROM THE 2012 ANNUAL
REPORT
The information below, which is extracted from the 2012 Annual
Report, is included solely for the purpose of complying with DTR
6.3.5. It should be read in conjunction with the Company's
Preliminary Announcement issued on 21 March 2013 (available at
www.pvcrystalox.com). Together these constitute the material
required by DTR 6.3.5 to be communicated to the media in unedited
full text via a Regulatory Information Service. This material is
not a substitute for reading the full 2012 Annual Report.
The information contained in this announcement and in the
Preliminary Announcement does not constitute the Group's statutory
accounts, but is derived from those accounts.
Principal Risks and Uncertainties
Principal risks Nature of risk Mitigating actions
Price of wafers on the spot market remain The Group has previously -- Limiting production to long term
below cash cost of production sold wafers under long-term contracted customer demand where the
contracts and at spot price obtainable
prices. As pricing on is above production cash costs.
the spot market decreased -- Selling at spot price to reduce
during 2011 and 2012 inventory and to release cash.
we cooperated with our -- Lowering production costs.
long-term contract customers -- We negotiate with our suppliers to
and offered lower prices achieve polysilicon prices at close to
but at a premium to spot the spot price
prices. However, during where possible.
2012 spot pricing remained -- Temporary reduction in ingot and
below our production wafer production.
costs and so selling -- Continuing cash conservation
to customers without measures.
any contractual commitment -- Restructuring Group operations.
was no longer attractive -- Maintaining a strong balance sheet
except to reduce inventory which gives the Group the strength to
levels and free up cash. weather the ongoing
price squeeze.
Contracted polysilicon feedstock The Group obtains polysilicon -- Following suspension of our internal
continues to exceed our own internal feedstock through long polysilicon production in December 2011
requirements term contracts with two we are now
polysilicon feedstock in the process of closing that facility
suppliers. Due to our at Bitterfeld.
reduced wafer production -- We look to obtain flexibility in
output the contracted terms of price, volume and timing of
feedstock and is significantly deliveries by negotiating
in excess of the Group's amendments to the terms of our
requirements.. long--term contracts with our suppliers.
-- We have and will continue to trade
excess volumes of polysilicon feedstock.
The loss of a major long--term contract Sales to a small number -- Where possible we concentrate on
customer might adversely impact the of customers represent customers that are financially strong
Group's financial a substantial portion with a clear strategic
performance of the Group's wafer vision for the PV industry and
sales revenues and the accordingly have the potential to be
loss of any major customer long-term major players
either to a competitor in the industry. However the extremely
or through its own business challenging PV market has led to many
circumstances might impact customers exiting
significantly on the the industry either voluntarily or
Group's financial condition. through insolvency.
Where a long-term contract -- We work with our customers to ensure
is in place the Group that the quality, specifications and
is able to achieve a efficiency of
higher selling price our wafers are suitable for their
than through sales at current and future needs.
spot market prices. -- As pricing on the spot market has
fallen below contract prices we
cooperate with our long-term
contract customers to offer lower prices
but at a premium to spot prices.
PV market development is reliant on The solar industry is -- We focus on supplying those major PV
Government incentives, support and dependent on the support companies which are better equipped,
legislation of individual governments therefore, to
to encourage the installation sell product into global markets.
and use of solar electricity -- We ensure that the Group operates
within their territories. internationally thus spreading risk
Without such support among several markets.
the increased uptake -- We focus on cost reduction and
of solar electricity efficiency enhancement strategies to
may reduce or be slow reduce the need for
to develop. Government support in the long term.
Over capacity in the PV industry reduces Over capacity in the -- Since H2 2011 the Group has generated
module prices and adversely impacts on PV industry has caused operating losses. With take or pay
profitability significant reductions polysilicon contracts
in module prices during and ever reducing spot wafer prices this
2011 and 2012. This reduction situation is worsening.
in module prices has -- We work with our customers to
led to a reduction in maintain contract volumes.
wafer prices. It could -- Where we have long-term contracts we
be several years before are able to obtain prices at a premium
the supply/demand capacity to spot prices.
comes into balance. The -- In the last resort we can enforce
reduction in price has contract terms through arbitration.
led to reduced profitability -- We focus on cost reduction and
across the value chain. efficiency enhancement strategies.
-- We have a strong balance sheet which
gives the Group the strength to weather
the ongoing
price squeeze.
-- Due to the expectation of continued
low prices over the coming twelve months
we are continuing
our cash conservation strategy, are
carrying out a radical organisational
restructure and
minimising production whilst maintaining
core competencies to survive into the
medium term.
Exchange rate fluctuations might create The Group reports in -- We strive for a natural hedging
earnings and balance sheet fluctuations Euros but trades internationally position at operating level by sourcing
and has operating subsidiaries raw materials and
reporting in Sterling, other direct materials and services
Euros and Yen and is (where possible) in the same currencies
therefore subject to as sales revenues
currency fluctuations are derived.
arising on transactional -- We have been working to balance
foreign currency exposures exposure to currency due to debtor
and the translation of balances by matching
subsidiaries' balance these with equivalent liabilities in the
sheets. same currencies. The Group has balances
in Japanese
Yen in respect of accounts receivable
and has taken out borrowings in Yen to
reduce the impact
of any changes in the Yen exchange rate.
Loss of a key production facility could The Group sells wafers -- We are currently producing at levels
disrupt our ability to deliver contracted and excess polysilicon considerably below capacity due to our
wafer volumes feedstock but has operations cash conservation
and to retain core production at different stages in activities.
capabilities the value chain. The -- Ingot manufacturing is carried out in
loss of a facility at the United Kingdom where the Group has
any stage would impact four separate
the Group's ability to sites available for production.
fulfil contracted wafer -- Wafering is carried out at our
or to retain core production internal facility in Germany and at
capabilities. sub-contractors in Japan.
-- We have health and safety, fire
prevention and security procedures in
place at all facilities.
-- We have comprehensive property damage
and business interruption insurance in
place.
Imposition of trade barriers and The ongoing trade disputes -- Any duties imposed on imports of
restrictions may have a significant between the United States, Chinese PV products into Europe is
impact on the PV industry China and the European expected to benefit
Union may have a significant the Group as demand for our wafers is
impact on the solar industry. likely to increase as a result.
The USA has introduced
anti--dumping duties
and countervailing duties
in relation to government
subsidies that contravene
international trade laws
against Chinese imports.
The Chinese Ministry
of Commerce and the European
Union have both initiated
similar investigations,
the results of which
will be announced and
any actions implemented
in 2013.
Directors' Responsibility Statement pursuant to DTR 4
Pursuant to the Disclosure and Transparency Rules of the
Financial Services Authority each of the directors:
-- John Sleeman (Non-executive Chairman)
-- Dr Hubert Aulich (Executive Director)
-- Dr Iain Dorrity (Chief Executive Officer)
-- Dr Peter Finnegan (Chief Financial Officer)
-- Michael Parker (Non-executive Director)
confirm that, to the best of their knowledge:
-- the Group financial statements, which have been prepared in
accordance with IFRSs as adopted by the EU, give a true and fair
view of the assets, liabilities, financial position and loss of the
Group; and
-- the Directors' Report includes a fair review of the
development and performance of the business and the position of the
group, together with a description of the principal risks and
uncertainties that it faces.
23 April 2013
Enquiries:
Matthew Wethey +44 (0) 1235 437160
Group Secretary
PV Crystalox Solar PLC
This information is provided by RNS
The company news service from the London Stock Exchange
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