TIDMPVCS
RNS Number : 2201X
PV Crystalox Solar PLC
27 August 2015
PV Crystalox Solar PLC
Interim results to 30 June 2015
PV Crystalox Solar PLC (the "Group"), a long established
supplier of photovoltaic ("PV") silicon wafers, today announces its
interim results for the six months ended 30 June 2015.
Highlights
-- Group continues to limit output to conserve cash
-- Wafer shipments were104MW (H1 2014: 99MW)
-- Request for ICC arbitration filed to resolve dispute with LT wafer contract customer
-- Major polysilicon contract expires at end of 2015
Financial Overview
-- Revenues EUR33.4m (H1 2014: EUR30.1m)
-- Loss before taxes (EBT) EUR(9.5)m (H1 2014: EUR(6.9)m)
-- Net cash EUR17.1m (31 December 2014: EUR24.6m)
-- Inventories EUR28.0m (31 December 2014: EUR28.6m)
Iain Dorrity, Chief Executive Officer, commented:
"The adverse market conditions which have existed since 2011 are
expected to continue in the short term and the recent devaluation
of the Chinese currency is likely to intensify pressure on pricing.
In view of the challenging environment and mindful of the need to
protect shareholder value, the Board plans to complete a strategic
review of the business before the end of the year."
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437160
Iain Dorrity, Chief Executive Officer
Matthew Wethey, Chief Financial Officer and Group Secretary
About PV Crystalox Solar PLC
PV Crystalox Solar is a long established supplier to the global
photovoltaic industry, producing multicrystalline silicon wafers
for use in solar electricity generation systems.
Chairman and Chief Executive's joint statement
Overview and strategic update
The global photovoltaic industry environment has deteriorated
further during 2015 with international trade disputes continuing
and industry overcapacity, primarily in China, persisting. Pricing
across the value chain has fallen sharply to historic lows during
2015 although wafer and cell prices have stabilised recently.
Profitability remains elusive for wafer and cell manufacturing
companies with market prices remaining below the cost of production
despite the benefit of lower polysilicon pricing.
Chinese companies have increased their dominant position across
the value chain according to figures released by CCID Think Tank,
which is part of China's Ministry of Industry and Information
Technology (MIIT). In 2014, China-based companies dominated global
output and produced 43% of solar-grade polysilicon (132,000MT), 76%
of solar-grade crystalline silicon wafers (38GW), 59% of
crystalline silicon solar cells (33GW) and 70% of PV modules
(35GW).
The Group shipped 104MW of wafers in H1 2015 which was similar
to the volume shipped in the same period in the previous year (H1
2014: 99MW) and broadly in line with volume produced during the
period. In view of the adverse market pricing the Group continues
to limit output to conserve cash while maintaining a production
volume consistent with its dual aims of developing a competitive
cost position and a sustainable customer base in the shrinking
accessible market which exists outside China.
In 2008 the Group secured several agreements to supply wafers to
customers at fixed prices, which were very considerably above
today's market levels, for periods of up to 7 years. No wafers have
been supplied under these long term supply contracts since 2013 as
the contracts have either expired, the customers entered insolvency
or satisfactory termination agreements have been negotiated. One
claim with the administrator of a customer in insolvency remains
outstanding and a settlement is expected before the end of
2015.
The Group's remaining long term contract customer, which is one
the world's leading PV companies, has failed to purchase wafers in
line with its obligations. Despite extensive negotiations over the
last two years it has not been possible to negotiate mutually
agreeable terms which would enable the supply of wafers to be
resumed. In view of the absence of any substantive progress a
request for arbitration was filed in March 2015 with the
International Court of Arbitration of the International Chamber of
Commerce.
In common with most PV companies, the Group is burdened with
long-term polysilicon purchase agreements which were signed in 2008
and 2010 in order to secure supply of this critical raw material
necessary to meet obligations under wafer supply agreements. The
contracted polysilicon pricing very considerably exceeds (by a
factor of three) current market levels and is incompatible with
current wafer prices. The Group has two such purchase contracts and
has received good cooperation from both suppliers which has enabled
agreement to be reached on adjustment of both pricing and volumes.
In the case of the larger contract, the terms continue to be
negotiated on a quarterly basis and the contract will expire at the
end of 2015. The terms of the smaller contract were formally
amended in 2014 and again more recently during this year to fix the
pricing at a significantly lower level over the duration of the
contract and to spread delivery of the outstanding volume over a
longer period (until 2018).
As the Group's wafer production output has been reduced in view
of the ongoing cash conservation policy which has been in operation
since 2012, the contracted polysilicon purchase volumes are
considerably in excess of requirements. Consequently it continues
to be necessary to trade the surplus polysilicon at market prices
in order to manage inventory and cash flow.
The Group's polysilicon trading activity has recovered
significantly during 2015 following the lull in the H2 2014 which
resulted in a build up in inventory at the end of 2014. Sales
volumes in the year to date already exceed those achieved in the
whole of 2014 and have enabled inventory to be stabilised.
Financial Review
In the first half of 2015 Group revenues of EUR33.4 million were
11% higher than during the same period in 2014 (EUR30.1 million)
due to a 4% increase in wafer shipments, trading larger volumes of
excess polysilicon than in H1 2014 and positive currency effects.
Average spot market prices for wafers and polysilicon in H1 2015
have reduced in US dollar terms by around 25% compared to the same
period in last year, but given the devaluation of the euro in 2015
compared to H1 2014 the average sales price reductions in euros are
around 5% for the period.
The Group's loss before interest and taxes was EUR9.2million (H1
2014: EUR5.8 million). This increased loss was driven by a
necessary adjustment to the onerous contract provision to reflect
the reduction in spot price of polysilicon since the start of the
year, a reduction in other income and increased other expenses
which were partly offset by favourable currency movements.
Other income of EUR0.7 million was EUR2.6 million less than the
EUR3.3m recognised in H1 2014 when the Group received a settlement
from a long term contract customer and also released a provision
related to supplier compensations. Other expenses were EUR0.4
million higher in the first six months of 2015 mainly due to fees
in relation to arbitration proceedings with the Group's final
long-term contract customer which has failed to purchase wafers in
line with its contractual obligations. Offsetting these negative
movements are currency gains of EUR2.1 million compared to losses
of EUR1.7 million in H1 2014.
After including finance costs, which are mainly due to the
unwinding of the discount rate used in the calculation of the
Group's onerous contract provision, the Group's loss before taxes
was EUR9.5 million (H1 2014: loss of EUR6.9 million).
The Group's net cash position at the end of the period was
EUR17.1 million, which was EUR7.5 million lower than the net
position of EUR24.6 million at the start of the year.
Risk Factors
The principal risks and uncertainties affecting the business
activities of the Group were identified under the heading "Risk
management and principal risks" in the Strategic Report on pages 10
to 11 of the 2014 Annual Report, a copy of which is available on
the Group's website, www.pvcrystalox.com. In the view of the Board
the key risks and uncertainties for the remaining six months of the
financial year continue to be those set out in the 2014 Annual
Report.
Market Drivers
Market analysts IHS are forecasting global solar installations
to grow by as much as 30% in 2015 to reach 57 GW. China is expected
to be the largest end-market for the third year running and to be
the key driver of global demand. China had 33GW of capacity already
installed at the end of 2014 and the National Energy Administration
(NEA) is targeting a further 17.8GW to be installed in 2015. Three
leading industry groups in China have recently urged the government
to double the 2020 target for installed capacity to 200GW.
Japan and USA will continue to be the other major markets and
are expected to install 10GW and 9GW respectively. The recently
announced US Clean Power plan which targets 28% of electricity to
be generated from renewable sources by 2030 should provide further
stimulus to US PV installations in future years.
Long running trade disputes between China and both the USA and
Europe continue to impact global markets.
Following an investigation into alleged unfair trade practices
and dumping by Chinese solar firms the EU Commission (EC)
introduced a minimum import price (MIP) for Chinese solar modules
in December 2013. Under this trade agreement, an MIP of EUR0.56/W
and an import quota of 7GW were imposed for two years until
December 2015. However, following widespread allegations of
circumvention of the MIP, European PV companies are expected to
request formally that the EC carry out an expiration review which
would necessitate the MIP being extended into 2016 while the review
is carried out.
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Earlier, in May 2015, following complaints that Chinese
companies were shipping re-labelled solar modules from China to
Europe via Malaysia and Taiwan, the EC had initiated an
investigation into solar imports of products exported by Chinese
suppliers, from those countries.
In July 2015 the US Department of Commerce announced the outcome
of its review of anti-dumping (AD) and anti-subsidy (AS) rates on
imported Chinese modules. The revision of the duties which were
originally imposed in December 2012 delivered mixed results for
Chinese suppliers. In most case AD duties were decreased but the
impact was largely offset by an increase in AS rates so that the
net duties for most major companies were around 30%. The review
also covers products from Taiwan in an effort to prevent Chinese
companies from circumventing duties. Previously duties were only
imposed on cells, so Chinese firms were able to avoid the 2012
duties by importing modules with Taiwanese cells.
Outlook
The adverse market conditions which have existed since 2011 are
expected to continue in the short term and the recent devaluation
of the Chinese currency is likely to intensify pressure on pricing.
In view of the challenging environment and mindful of the need to
protect shareholder value, the Board plans to complete a strategic
review of the business before the end of the year. The review will
take account of the Group's cash position and production cost
structure, industry overcapacity and the prospects for rational
pricing returning to the market.
John Sleeman
Chairman
Dr Iain Dorrity
Chief Executive Officer
26 August 2015
Consolidated statement of comprehensive income
for the six months ended 30 June 2015
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2015 2014 2014
Notes EUR'000 EUR'000 EUR'000
----------------------------------------- ----- ---------- ---------- ------------
Revenues 4 33,421 30,087 53,333
Cost of materials and services 9 (38,925) (31,337) (65,694)
Personnel expenses (3,982) (4,046) (6,620)
Depreciation and impairment of property,
plant and equipment and amortisation
of intangible assets (164) (157) (337)
Other income 652 3,274 12,132
Other expenses (2,317) (1,924) (4,163)
Currency gains/(losses) 2,135 (1,671) 9,043
----------------------------------------- ----- ---------- ---------- ------------
Loss before interest and taxes ("EBIT") (9,180) (5,774) (2,306)
Finance income 25 27 106
Finance cost (352) (1,187) (2,450)
----------------------------------------- ----- ---------- ---------- ------------
Loss before taxes ("EBT") (9,507) (6,934) (4,650)
Income taxes 6 3 (3) (2)
----------------------------------------- ----- ---------- ---------- ------------
Loss attributable to owners of the
parent (9,504) (6,937) (4,652)
----------------------------------------- ----- ---------- ---------- ------------
Other comprehensive income
Currency translation adjustment 4,257 1,960 2,498
----------------------------------------- ----- ---------- ---------- ------------
Total comprehensive loss
Attributable to owners of the parent (5,247) (4,977) (2,154)
----------------------------------------- ----- ---------- ---------- ------------
Basic and diluted loss per share in
Euro cents
From loss for the period/year 7 (6.1) (4.4) (3.0)
----------------------------------------- ----- ---------- ---------- ------------
The accompanying notes form an integral part of these financial
statements.
Consolidated balance sheet
as at 30 June 2015
As at As at As at
30 June 30 June 31 December
2015 2014 2014
Notes EUR'000 EUR'000 EUR'000
---------------------------------- ----- -------- -------- ------------
Intangible assets 34 47 38
Property, plant and equipment 8 2,354 2,385 2,355
Pension surplus - 108 -
Other long-term assets 5,730 11,246 5,425
---------------------------------- ----- -------- -------- ------------
Total non-current assets 8,118 13,786 7,818
---------------------------------- ----- -------- -------- ------------
Cash and cash equivalents 17,051 35,396 24,592
Trade accounts receivable 4,238 7,663 5,341
Inventories 27,962 16,966 28,630
Prepaid expenses and other assets 6,762 10,473 12,380
Current tax assets 8 12 16
---------------------------------- ----- -------- -------- ------------
Total current assets 56,021 70,510 70,959
---------------------------------- ----- -------- -------- ------------
Total assets 64,139 84,296 78,777
---------------------------------- ----- -------- -------- ------------
Loans payable - - -
Trade accounts payable 1,373 1,099 1,762
Deferred revenue 3,254 3,316 3,235
Accrued expenses 1,208 2,226 1,564
Provisions 9 5,542 14,699 14,577
Deferred grants and subsidies 90 135 111
Current tax liabilities - 199 156
Other current liabilities 92 44 72
---------------------------------- ----- -------- -------- ------------
Total current liabilities 11,559 21,718 21,477
---------------------------------- ----- -------- -------- ------------
Accrued expenses 123 109 111
Provisions 9 1,929 8,732 1,019
Other non-current liabilities 205 43 236
---------------------------------- ----- -------- -------- ------------
Total non-current liabilities 2,257 8,884 1,366
---------------------------------- ----- -------- -------- ------------
Share capital 12,332 12,332 12,332
Share premium 50,511 50,511 50,511
Other reserves 25,096 25,096 25,096
Shares held by the EBT 5 (679) (7,211) (679)
Share-based payment reserve 377 810 741
Reverse acquisition reserve (3,601) (3,601) (3,601)
Accumulated losses (17,135) (2,870) (7,631)
Currency translation reserve (16,578) (21,373) (20,835)
---------------------------------- ----- -------- -------- ------------
Total equity 50,323 53,694 55,934
---------------------------------- ----- -------- -------- ------------
Total liabilities and equity 64,139 84,296 78,777
---------------------------------- ----- -------- -------- ------------
The accompanying notes form an integral part of these financial
statements.
Consolidated statement of changes in equity
for the six months ended 30 June 2015
Share- Retained
Shares based Reverse earnings/ Currency
Share Share Other held by payment acquisition (accumulated translation Total
capital premium reserves the EBT reserve reserve losses) reserve equity
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
As at 1
January
2015 12,332 50,511 25,096 (679) 741 (3,601) (7,631) (20,835) 55,934
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Share-based
payment
charge - - - - 191 - - - 191
Award of
shares - - - - (555) - - - (555)
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Transactions
with
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owners - - - - (364) - - - (364)
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Loss for the
period - - - - - - (9,504) - (9,504)
Currency
translation
adjustment - - - - - - - 4,257 4,257
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Total
comprehensive
loss - - - - - - (9,504) 4,257 (5,247)
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
As at 30 June
2015 12,332 50,511 25,096 (679) 377 (3,601) (17,135) (16,578) 50,323
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
As at 1
January
2014 12,332 50,511 25,096 (7,610) 922 (3,601) 4,067 (23,333) 58,384
Share-based
payment
charge - - - - 56 - - - 56
Award of
shares - - - 399 (168) - - - 231
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Transactions
with
owners - - - 399 (112) - - - 287
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Loss for the
period - - - - - - (6,937) - (6,937)
Currency
translation
adjustment - - - - - - - 1,960 1,960
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Total
comprehensive
loss - - - - - - (6,937) 1,960 (4,977)
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
As at 30 June
2014 12,332 50,511 25,096 (7,211) 810 (3,601) (2,870) (21,373) 53,694
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Consolidated cash flow statement
for the six months ended 30 June 2015
Six months
ended Six months Year ended
30 June ended 31 December
2015 30 June 2014 2014
Notes EUR'000 EUR'000 EUR'000
-------------------------------------------- ------ ---------- ------------- ------------
Loss before taxes (9,507) (6,934) (4,650)
Adjustments for:
Net interest expense 327 1,160 2,344
Depreciation and amortisation 164 157 337
Change in pension accruals and share
based payment charge (353) 287 -
Decrease in provisions (9,847) (5,345) (14,761)
Gain from the disposal of property,
plant and equipment - (2) (2)
Losses in foreign currency exchange - - 156
Change in deferred grants and subsidies (21) (24) (48)
---------------------------------------------------- ---------- ------------- ------------
(19,237) (10,701) (16,624)
--------------------------------------------------- ---------- ------------- ------------
Changes in working capital
Decrease/(increase) in inventories 3,298 (3,370) (14,847)
Decrease in accounts receivables 2,918 6,749 9,074
Decrease in accounts payables and deferred
revenue (2,380) (2,804) (2,926)
Decrease in other assets 6,965 5,342 9,576
Decrease/(increase) in other liabilities 18 (9) 22
---------------------------------------------------- ---------- ------------- ------------
(8,418) (4,793) (15,725)
--------------------------------------------------- ---------- ------------- ------------
Income taxes (paid)/received (145) 53 7
Interest received 25 27 44
---------------------------------------------------- ---------- ------------- ------------
Net cash flows used in operating activities (8,538) (4,713) (15,674)
---------------------------------------------------- ---------- ------------- ------------
Cash flow from investing activities
Proceeds from sale of property, plant
and equipment - 2 2
Proceeds from investment grants and
subsidies - 7 7
Payments to acquire property, plant
and equipment and intangibles (11) (136) (251)
---------------------------------------------------- ---------- ------------- ------------
Net cash flows used in investing activities (11) (127) (242)
---------------------------------------------------- ---------- ------------- ------------
Cash flow from financing activities
Repayment of bank and other borrowings - (712) (712)
Interest paid - (1) (1)
---------------------------------------------------- ---------- ------------- ------------
Net cash flows used in financing activities - (713) (713)
---------------------------------------------------- ---------- ------------- ------------
Cash generated from operations (8,549) (5,553) (16,629)
---------------------------------------------------- ---------- ------------- ------------
Effects of foreign exchange rate changes
on cash and cash equivalents 1,008 1,049 1,321
---------------------------------------------------- ---------- ------------- ------------
Cash and equivalents at beginning of
the period 24,592 39,900 39,900
---------------------------------------------------- ---------- ------------- ------------
Cash and equivalents at end of the
period 17,051 35,396 24,592
---------------------------------------------------- ---------- ------------- ------------
The accompanying notes form an integral part of these financial
statements.
Notes to the consolidated interim financial statements
for the six months ended 30 June 2015
1. Basis of preparation
These condensed consolidated interim financial statements are
for the six months ended 30 June 2015. They have been prepared in
accordance with International Accounting Standard ("IAS") 34,
'Interim Financial Reporting'. They do not include all the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2014.
The statements have been prepared applying the accounting
policies and presentation that were applied in the preparation of
the financial statements for the year ended 31 December 2014.
The nature of the Group's operation means that it can vary
production levels to match market requirements. As part of the cash
conservation measures and the associated planning assumptions,
production output currently remains reduced to match expected
demand. In line with the Group's strategy of retaining flexibility
in production levels, production can be brought back on stream when
market conditions allow.
On 30 June 2015 there was a net cash balance of EUR17.1 million,
including funds held by an employee benefit trust.
As part of its normal business practice, the Group regularly
prepares both annual and longer-term plans which are based on the
directors' expectations concerning key assumptions. The assumptions
around contracted sales volumes and prices and contracted purchase
volumes and prices are based on management's expectations. As a
result of these modelling assumptions the base plans indicate that
the Group will be able to operate within its net cash reserves for
the foreseeable future.
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Therefore, whilst any consideration of future matters involves
making a judgement at a particular point in time about future
events that are inherently uncertain, the directors, after careful
consideration and after making appropriate enquiries, are of the
opinion that the Group has adequate resources to continue in
operational existence for at least twelve months from the date of
approval of the financial statements. Thus the Group continues to
adopt the going concern basis of accounting in preparing the
interim financial statements.
Were the Group not to adopt the going concern basis at any
point, all assets and liabilities would be reclassified as short
term and valued on a break-up basis.
2. Basis of consolidation
The Group financial statements consolidate those of the parent
company and its subsidiary undertakings drawn up to 30 June 2015.
Subsidiaries are entities over which the Group has the power to
control the financial and operating policies so as to obtain
benefits from its activities. The Group obtains and exercises
control through voting rights. Consolidation is conducted by
eliminating the investment in the subsidiary with the parent's
share of the net equity of the subsidiary.
The results of any subsidiary sold or acquired are included in
the Consolidated Statement of Comprehensive Income up to, or from,
the date control passes.
3. Functional and presentational currency
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates (the "functional
currency"). The functional currency of the parent company is
Sterling. The financial information has been presented in Euros,
which is the Group's presentational currency. The Euro has been
selected as the Group's presentational currency as this is the
currency used in its significant contracts. The financial
statements are presented in round thousands..
4. Segment reporting
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance, has been identified
as the executive Board. The Group is organised around the
production and supply of one product, multicrystalline silicon
wafers. Accordingly, the Board reviews the performance of the Group
as a whole and there is only one operating segment. Disclosure of
reportable segments under IFRS 8 is therefore not made.
Geographical information for the six months ended 30 June
2015
United Rest of Rest of
Japan Taiwan Canada Germany Kingdom Europe World Group
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
---------------------- -------- -------- -------- -------- -------- -------- -------- --------
Revenues
By entity's country
of domicile 185 - - 2,035 31,201 - - 33,421
By country from which
derived 185 17,146 9,760 39 - 5,423 868 33,421
---------------------- -------- -------- -------- -------- -------- -------- -------- --------
Non-current assets*
By entity's country
of domicile 231 - - 867 7,019 - - 8,117
---------------------- -------- -------- -------- -------- -------- -------- -------- --------
* Excludes financial instruments, deferred tax assets and
post-employment benefit assets.
Two customers accounted for more than 10% of Group revenue each
and sales to these customers are as follows (figures in
EUR'000):
1. 14,388 (Taiwan);
2. 9,760 (Canada).
No sales to Korea were made in the period.
Geographical information for the six months ended 30 June
2014
United Rest of Rest of
Japan Taiwan Korea Germany Kingdom Europe World Group
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
---------------------- -------- -------- -------- -------- -------- -------- -------- --------
Revenues
By entity's country
of domicile 124 - - 2,139 27,824 - - 30,087
By country from which
derived 149 18,881 4,299 62 - 6,108 588 30,087
---------------------- -------- -------- -------- -------- -------- -------- -------- --------
Non-current assets*
By entity's country
of domicile 218 - - 1,064 12,396 - - 13,678
---------------------- -------- -------- -------- -------- -------- -------- -------- --------
* Excludes financial instruments, deferred tax assets and
post-employment benefit assets.
Four customers accounted for more than 10% of Group revenue each
and sales to these customers are as follows (figures in
EUR'000):
1. 8,590 (Taiwan);
2. 5,421 (Taiwan);
3. 4,244 (Korea); and
4. 3,820 (Taiwan).
Sales to Canada of EUR352k are included in Rest of World.
5. Employee Benefit Trust
As at 30 June 2015 the Employee Benefit Trust ("EBT") held
3,853,910 shares (2.4%) of the issued share capital in the Company.
It holds these shares in trust for the benefit of employees.
In December 2014 the Directors agreed to write down the value of
the shares held by the EBT to the market value at 31 December 2014.
The share price was 13 pence per ordinary share of 5.2 pence each.
This adjustment alters the value of the shares held by the EBT and
reduces retained earnings by EUR6.868 million
6. Income tax
The average taxation rate shown in the Consolidated Statement of
Comprehensive Income is nil% (H1 2014: nil%).
The anticipated long-term average tax rate for the Group,
normalised on the basis that the Group returns to profitability, is
approximately 20%.
7. Earnings per share
Net earnings per share is computed by dividing the net
(loss)/profit for the period attributable to ordinary shareholders
of EUR9.5 million (H1 2014: loss of EUR6.9 million) by the weighted
average number of ordinary shares outstanding during the year.
Diluted net earnings per share is computed by dividing the
(loss)/profit for the year by the weighted average number of
ordinary shares outstanding and, when dilutive, adjusted for the
effect of all potentially dilutive shares, including share options.
A s the Group is currently loss making, the diluted loss per share
is equal to the basic loss per share.
The calculation of the weighted average number of ordinary
shares is set out below:
Six months
ended Six months
30 June ended
2015 30 June 2014
------------------------------------------------------- ----------- -------------
Number of shares 160,278,975 160,725,335
Average number of shares held by the EBT in the period (3,853,910) (3,990,051)
------------------------------------------------------- ----------- -------------
Weighted average number of shares for basic earnings
per share calculation 156,425,065 156,735,284
Shares granted but not vested 4,017,108 2,127,348
------------------------------------------------------- ----------- -------------
Weighted average number of shares for fully diluted
earnings per share calculation 160,442,173 158,862,632
------------------------------------------------------- ----------- -------------
8. Property, plant and equipment
Additions to property, plant and equipment in the six months
ended 30 June 2015 were less than EUR0.1 million (H1 2014: less
than EUR0.1 million).
9. Onerous contract provision
Included in provisions is an onerous contract provision of
EUR7.4 million. The onerous contract provision is an allowance for
the loss arising on the difference between raw material costs under
these contracts and the anticipated selling price of the Group's
end product. Following a review of all the latest market
information and a review of the inputs to the onerous contract
provision, the following movements are reflected in the financial
statements.
As at As at As at
30 June 30 June 31 December
2015 2014 2014
EUR'000 EUR'000 EUR'000
-------------------------------------------------- -------- -------- ------------
Onerous contract provision brought forward 15,542 26,526 26,526
Exchange differences (1,920) 1,373 (8,902)
Unwinding of discounting factor 332 1,185 2,390
Utilised (11,712) (6,412) (12,634)
Additional provision/(release) charged/(credited)
to the income statement 5,185 726 8,162
-------------------------------------------------- -------- -------- ------------
Onerous contract provision carried forward 7,427 23,398 15,542
-------------------------------------------------- -------- -------- ------------
10. Changes in contingent assets and liabilities
There were no changes in contingent assets and liabilities.
11. Related party disclosures
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