TIDMPVCS
RNS Number : 8335O
PV Crystalox Solar PLC
24 August 2017
PV Crystalox Solar PLC
Interim report 2017
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 2017.
Highlights
-- Wafer shipments were 69MW (H1 2016: 59MW)
-- Net cash of EUR27.9 million only marginally changed since 31
December 2016
-- ICC arbitration decision expected by end September 2017
Financial Overview
-- Revenues EUR12.6m (H1 2016: EUR34.7m)
-- Loss before taxes (EBT) EUR(5.4)m (H1 2016: Profit of
EUR4.7m)
-- Net cash EUR27.9m (31 December 2016: EUR28.8m)
-- Inventories EUR7.4m (31 December 2016: EUR11.2m)
Iain Dorrity, Chief Executive Officer, commented:
"The Board remains mindful of the need to protect shareholder
value and will await the judgement of the arbitral tribunal on the
Group's dispute with a customer who failed to purchase wafers in
line with its contractual obligations before completing its
strategic review."
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's and Chief Executive's joint statement
Price erosion continues across the PV value chain and prices
remain decoupled from production costs due to industry
over-capacity in China. China continues to strengthen its dominant
position in manufacturing and according to the China PV Industry
Association ("CIPA") solar cell production in China in H1 2017 had
reached around 32GW, up 28% from the same period last year and
module production reached 34GW, an increase of nearly 26% from the
prior year period. There has been a modest price recovery in recent
weeks from the low point seen in mid-April driven by a combination
of supply side issues and strong demand from markets in China and
USA. Nevertheless average multicrystalline wafer prices during H1
2017 were more than 20% lower than in the same period in 2016.
Group wafer shipments totalled 69MW in H1 2017 (59MW: H1 2016)
and were broadly in line with production volumes. A minor increase
in wafer dimensions from 156mm to 156.75mm was carried out during
Q1 2017 in line with a change in the industry standard. As in the
previous year, the majority of the Group's wafers are used in
modules for the French PV market where the low carbon footprint
obtained by wafering in Germany is beneficial. This special market
supports demand but only provides limited insulation from the
pricing pressure which is currently ravaging the PV industry.
France had a cumulative installed PV capacity of around 7.1GW in
April 2017and has set an ambitious growth target to reach 18-20GW
by the end of 2023. In August 2016, the country introduced a 3GW
large-scale solar plan, which is being enacted through auctions of
around 500MW every six months for three years. The French Energy
Regulatory Commission has required an official carbon footprint
assessment of all modules to be eligible for the auctions and the
carbon footprint is the second most important factor taken into
consideration after price. Contracts from the first tender were
awarded in March and the second in July.
The Group had advised in March 2017 that it would phase out
multicrystalline silicon ingot production in the UK during 2017 and
rely on the purchase of ingots from an external supplier. Ingots
are currently processed into blocks in the UK and wafers produced
in our German facility. In view of the continuing adverse PV market
environment and in order to better align production costs with
market prices and further reduce overheads, the Group is now
stopping block production and will instead source blocks from an
external supplier. As a result all production operations in the UK
will cease during Q3 2017 and the vast majority of jobs in the
Group's UK trading subsidiary, Crystalox Limited, will be lost.
Work is already underway to clear one of the production buildings
where the lease expires in October 2017. The other facilities are
expected to be cleared by the end of Q1 2018 and negotiations are
ongoing regarding surrender of those leases.
The Group retains its operational wafer production capabilities
in Germany and will continue its focus on the French niche low
carbon footprint wafer market where it has some competitive
advantage.
Polysilicon Contracts
The Group is no longer burdened with purchase obligations under
long term polysilicon contracts following the settlement of the
outstanding contract in September 2016 but has continued to trade
surplus polysilicon in order to reduce inventory volumes. Traded
volumes during H1 2017 were modest in comparison with the previous
year as inventory is now much reduced. It is expected that the
remaining inventory will be eliminated by the end of the year.
Wafer Supply Contracts
The Group has a significant outstanding long term sales contract
with one of the world's leading PV companies which has failed to
purchase wafers in line with its obligations since 2013. The supply
contract was signed in 2008 and related to wafer shipments over a
seven year period with prices which reflected market prices at that
time and which are considerably above current levels. Despite
extensive negotiations it has not been possible to reach a mutually
acceptable agreement and a request for arbitration was filed in
March 2015 with the International Court of Arbitration of the
International Chamber of Commerce. Subsequently in an attempt to
find an amicable solution both parties agreed to follow a mediation
process led by an external mediator during December 2016 but
without success.
The evidentiary hearing of the arbitral tribunal took place in
Frankfurt in late March 2017 and the judgement is expected before
the end of September 2017. While the outcome is uncertain, the
Group indicated in March 2016 that the value of any award if our
claim is upheld could be a multiple of the Group's market
capitalisation at that time.
As reported previously a partial resolution of the other
outstanding wafer supply contract, with a customer which entered
insolvency and where shipments stopped in 2012, has been achieved.
Claims had been registered with the administrator and an interim
settlement of EUR0.96m was received during H1 2016. A final payment
of around EUR0.375m is expected following approval from the
insolvency court although the timing remains uncertain.
Financial Review
In the first half of 2017 Group Revenues of EUR12.6 million were
64% lower than in the same period in 2016 (EUR34.7million) despite
a 17% increase in wafer shipments. This decrease was mainly due to
trading lower volumes of polysilicon than in H1 2016, when the
Group was able to sell a significant portion of the raw material
inventory it held at 31 December 2015 and to achieve a positive
gross margin on trading additional quantities of polysilicon.
The Group's gross loss for the period was EUR0.3 million (H1
2016: gross profit of EUR6.2 million). This loss was principally
due an inventory write down of EUR1.4 million. During H1 2016 the
higher margin was due to sales of excess polysilicon inventory at
prices above the 2015 year-end valuation as a result of a temporary
rebound in polysilicon spot prices during Q2 2016 and stronger
wafer sales prices during the period.
The write down in inventory of EUR1.4 million follows a review
of the net realisable value of the individual items. A slight
change to the standard size of wafers has negatively impacted the
recoverable value of finished product inventory. Many of our wafers
in inventory are of the 156mm size rather than the new 156.75mm
size. As a result of the decision to close manufacturing operations
in the UK some of our raw material stock has been written down to
its estimated recoverable value rather than its cost.
The Group's loss before taxes was EUR5.4 million (H1 2016:
profit of EUR4.7 million). This loss was mainly driven by the
decrease in gross profit, a smaller currency gain than in 2016, an
impairment charge of EUR0.5 million, a decrease in other income and
an increase in other expenses.
Other income of EUR1.2 million was EUR0.6 million lower than the
EUR1.8 million recognised in H1 2016. This income is mainly as a
result of settlements relating to long-term contracts where
customers had entered insolvency with more income received in H1
2016 than in H1 2017. Other expenses were EUR0.4 million higher in
the first six months of 2017 mainly due to higher fees in relation
to arbitration proceedings when the hearing was held in March
2017.
The Group's net cash position at the end of the period was
EUR27.9 million, which was EUR0.9 million lower than the net
position of EUR28.8 million at the start of the year. The Group's
loss after adjustment for non cash movements was EUR3.3 million
whilst the cash generated from releases in working capital was
EUR3.1 million. In addition to this EUR0.2 million outflow there
was a negative impact of EUR0.7 million due to the retranslation of
cash and cash equivalents.
On 13 July 2017 the Group announced the closure of its
manufacturing operations at Crystalox Limited in the United
Kingdom. Management are still in the process of calculating the
closure costs in relation to this announcement and as a result they
have not been reflected in the Interim results.
A review of the recoverable value of certain items in property,
plant and equipment in the UK was carried out and resulted in an
impairment charge of EUR0.5 million.
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 2016 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 2016 Annual
Report.
Market Drivers
Global PV installations are expected to exceed 80GW in 2017
according to GTM Research. This represents only modest growth of 4%
over 2016 installations rather the annual double digit growth seen
in previous years. China remains the key driver with installations
in H1 alone reaching 24.4GW as advised in a recent report from
CIPA. Cumulative installed capacity in China is now only 3GW below
the 105GW target set for 2020 under the 13(th) five year plan.
Currently the USA levies antidumping and countervailing duties
against PV cells and modules imported from China and Taiwan but now
imports are faced with potentially much higher tariffs. Following a
complaint filed in April under Section 201 of the Trade Act of 1974
by Suniva, a Georgia based manufacturer that went into bankruptcy
the US International Trade Commission ("ITC") launched a new
enquiry into imports of PV cells and modules. Suniva has argued
that it and other US manufacturers have suffered serious injury
because of a surge in imports, and is seeking a tariff of $0.40/W
on cells and a minimum price of $0.78/W for foreign modules, which
would roughly double their cost in the US. The Suniva petition goes
beyond the existing antidumping and countervailing duty orders
because the requested safeguards are not limited to imports from
specific countries. The remedies under Section 201, if granted,
would be global in scope and would affect all solar cells and
modules imported into the United States, regardless of origin. The
scope of the petition is limited to crystalline silicon cells and
modules and it expressly excludes competing thin film products.
The ITC is scheduled to give a decision on 22 September and will
propose remedies to President Donald Trump by 13 November if it
concludes that solar imports have been a "substantial cause of
serious injury" to US manufacturing. The President then has until
12 January next year to decide how to respond.
Outlook
Current market conditions continue to be particularly severe for
multicrystalline silicon products with massive over-capacity in
China depressing prices for both cells and wafers. Higher
efficiency monocrystalline silicon cells are gaining market share
and are expected to become the dominant technology by 2019. This
trend is exacerbating the pressure on multicrystalline silicon
pricing and indeed the PV manufacturing industry outside China
faces an existential crisis.
The Board remains mindful of the need to protect shareholder
value and will await the judgement of the arbitral tribunal on the
Group's dispute with a customer who failed to purchase wafers in
line with its contractual obligations before completing its
strategic review.
John Sleeman Dr Iain Dorrity
Chairman Chief Executive Officer
23 August 2017
Consolidated statement of comprehensive income
for the six months ended 30 June 2017
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Notes EUR'000 EUR'000 EUR'000
------------------------------------ ----- ---------- ---------- ------------
Revenues 4 12,587 34,705 56,732
Cost of materials and services 5 (12,845) (28,537) (48,622)
Personnel expenses (3,559) (3,872) (7,611)
Depreciation and impairment
of property, plant and equipment
and amortisation of intangible
assets (621) (119) (226)
Other income 1,161 1,792 5,376
Other expenses (2,216) (1,813) (7,870)
Currency gains 106 2,578 3,860
------------------------------------ ----- ---------- ---------- ------------
(Loss) / profit before interest
and taxes ("EBIT") (5,387) 4,734 1,639
Finance income 32 5 97
Finance cost (12) - (36)
------------------------------------ ----- ---------- ---------- ------------
(Loss) / profit before taxes
("EBT") (5,367) 4,739 1,700
Income taxes 7 - - 44
------------------------------------ ----- ---------- ---------- ------------
(Loss) / profit attributable
to owners of the parent (5,367) 4,739 1,744
------------------------------------ ----- ---------- ---------- ------------
Other comprehensive income
Release from pension liability 300 - -
Currency translation adjustment (891) (4,130) (4,887)
------------------------------------ ----- ---------- ---------- ------------
Total comprehensive loss
Attributable to owners of the
parent (5,958) 609 (3,143)
------------------------------------ ----- ---------- ---------- ------------
Basic and diluted (loss)/earnings
per share (EPS) in Euro cents
From (loss)/profit for the
period/year 8 (3.4) 3.0 1.1
------------------------------------ ----- ---------- ---------- ------------
The accompanying notes form an integral part of these financial
statements.
Consolidated balance sheet
as at 30 June 2017
As at As at As at
30 June 30 June 31 December
2017 2016 2016
Notes EUR'000 EUR'000 EUR'000
------------------------------ ----- -------- -------- ------------
Intangible assets 8 11 7
Property, plant and equipment 9 1,152 1,922 1,780
Other long-term assets - 5,625 -
------------------------------ ----- -------- -------- ------------
Total non-current assets 1,160 7,558 1,787
------------------------------ ----- -------- -------- ------------
Cash and cash equivalents 27,867 24,760 28,827
Trade accounts receivable 1,103 1,392 2,446
Inventories 5 7,363 12,702 11,217
Prepaid expenses and
other assets 1,261 4,950 1,292
Current tax assets - 1 -
------------------------------ ----- -------- -------- ------------
Total current assets 37,594 43,805 43,782
------------------------------ ----- -------- -------- ------------
Total assets 38,754 51,363 45,569
------------------------------ ----- -------- -------- ------------
Trade accounts payable 1,704 973 2,006
Deferred revenue 10 3,320 -
Accrued expenses 1,199 1,148 1,469
Deferred grants and subsidies - 54 -
Other current liabilities 32 43 55
------------------------------ ----- -------- -------- ------------
Total current liabilities 2,945 5,538 3,530
------------------------------ ----- -------- -------- ------------
Accrued expenses 30 42 31
Other long-term liabilities 10 234 281
------------------------------ ----- -------- -------- ------------
Total non-current liabilities 40 276 312
------------------------------ ----- -------- -------- ------------
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 6 (372) (339) (372)
Share-based payment reserve 260 297 260
Reverse acquisition reserve (3,601) (3,601) (3,601)
Accumulated losses (24,711) (16,649) (19,644)
Currency translation
reserve (23,746) (22,098) (22,855)
------------------------------ ----- -------- -------- ------------
Total equity 35,769 45,549 41,727
------------------------------ ----- -------- -------- ------------
Total liabilities and
equity 38,754 51,363 45,569
------------------------------ ----- -------- -------- ------------
The accompanying notes form an integral part of these financial
statements.
Consolidated statement of changes in equity
for the six months ended 30 June 2017
Shares
held Share- Retained
by based Reverse earnings/ Currency
Share Share Other the payment acquisition (accumulated translation Total
capital premium reserves 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
2017 12,332 50,511 25,096 (372) 260 (3,601) (19,644) (22,855) 41,727
Share-based - - - - - - - - -
payment charge
Award of - - - - - - - - -
shares
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Transactions - - - - - - - - -
with owners
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Loss for the
period - - - - - - (5,367) - (5,367)
Actuarial
gains /
(losses) - - - - - - 300 - 300
Currency
translation
adjustment - - - - - - - (891) (891)
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Total
comprehensive
income - - - - - - (5,067) (891) (5,958)
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
As at 30 June
2017 12,332 50,511 25,096 (372) 260 (3,601) (24,711) (23,746) 35,769
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
As at 1
January
2016 12,332 50,511 25,096 (679) 472 (3,601) (21,388) (17,968) 44,775
Share-based
payment
charge - - - - (175) - - - (175)
Award of
shares - - - 340 - - - - 340
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Transactions
with owners - - - 340 (175) - - - 165
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Profit for
the period - - - - - - 4,739 - 4,739
Currency
translation
adjustment - - - - - - - (4,130) (4,130)
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Total
comprehensive
income - - - - - - 4,739 (4,130) 609
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
As at 30 June
2016 12,332 50,511 25,096 (339) 297 (3,601) (16,649) (22,098) 45,549
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Consolidated cash flow statement
for the six months ended 30 June 2017
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
EUR'000 EUR'000 EUR'000
------------------------------------- ---------- ---------- ------------
(Loss)/Profit before taxes (5,367) 4,739 1,700
Adjustments for:
Net interest income (20) (5) (61)
Depreciation and amortisation 621 119 226
Inventory writedown 1,384 - -
Change in pension accruals and
share-based payment charge 16 176 161
Losses in foreign currency exchange 23 328 700
Change in deferred grants and
subsidies - (16) (70)
------------------------------------- ---------- ---------- ------------
(3,343) 5,341 2,656
Changes in working capital
Decrease in inventories 2,337 8,721 9,639
Decrease in accounts receivables 1,255 2,604 395
Decrease in accounts payables
and deferred revenue (483) (27) (1,181)
Decrease/(increase) in other
assets 14 (3,064) 6,490
Increase in other liabilities (24) (43) (57)
------------------------------------- ---------- ---------- ------------
(242) 13,532 17,942
Income taxes received /(paid) 1 (112) (69)
Interest received 32 6 97
------------------------------------- ---------- ---------- ------------
Net cash flows used in operating
activities (209) 13,426 17,970
------------------------------------- ---------- ---------- ------------
Cash flows from investing activities
Proceeds from sale of property, - - -
plant and equipment
Payments to acquire property,
plant and equipment and intangibles (27) (137) (131)
------------------------------------- ---------- ---------- ------------
Net cash flows used in investing
activities (27) (137) (131)
------------------------------------- ---------- ---------- ------------
Cash flows from financing activities
Interest paid - - -
------------------------------------- ---------- ---------- ------------
Net cash flows used in financing - - -
activities
------------------------------------- ---------- ---------- ------------
Cash generated from operations (236) 13,289 17,839
Effects of foreign exchange rate
changes
on cash and cash equivalents (724) (1,220) (1,703)
------------------------------------- ---------- ---------- ------------
Cash and equivalents at beginning
of the period 28,827 12,691 12,691
------------------------------------- ---------- ---------- ------------
Cash and equivalents at end of
the period 27,867 24,760 28,827
------------------------------------- ---------- ---------- ------------
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 2017
1. Basis of preparation
These condensed consolidated interim financial statements are
for the six months ended 30 June 2017. 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 2016.
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 2016.
The Group's directors continue to operate a cash conservation
strategy to enable the Group to manage its operations whilst market
conditions remain difficult. The Group has taken the decision to
stop block production in the UK during Q3 and instead to source
blocks from an external supplier. The Group retains its operational
wafer production capabilities in Germany and will continue its
focus on the niche low carbon footprint wafer market where it has
some competitive advantage. Despite the adverse market conditions
the Group's cash cost of wafer production is currently below the
market price which allows a contribution to gross margin.
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/prices and contracted purchase
volumes/prices are based on management's expectations, which are
consistent with the Group's experience in the first half of
2017.
The Group looked at the sensitivity in the model by considering
different sales volumes and prices and noted that a significant
drop in either would still leave the Group in a cash positive
position in August 2018.
The nature of the Group's operation means that it can vary
production levels to match market requirements so that expected
demand is sufficient to consume wafering output.
On 30 June 2017 there was a net cash balance of EUR27.9 million,
including funds held by an employee benefit trust. 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 interim report. Thus the Group continues to adopt
the going concern basis of accounting in preparing the annual
financial statements.
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.
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 2017.
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.
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.
Consolidation is conducted by eliminating the investment in the
subsidiary with the parent's share of the net equity of the
subsidiary.
All intra-group transactions, balances, income and expenses are
eliminated upon consolidation.
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 Group 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
2017
Rest Rest
United of 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 - - - 863 11,724 - - 12,587
By country from
which derived - 9,041 1,127 147 - 688 1,584 12,587
-------------------- -------- -------- -------- -------- -------- -------- -------- --------
Non-current assets*
By entity's country
of domicile - - - 602 558 - - 1,160
-------------------- -------- -------- -------- -------- -------- -------- -------- --------
* Excludes financial instruments, deferred tax assets and
post-employment benefit assets.
One Taiwanese customer accounted for more than 10% of Group
revenue each and sales to this customer was (figure in EUR'000):
9,041
Geographical information for the six months ended 30 June
2016
Rest Rest
United of 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 56 - - 2,216 32,433^ - - 34,705
By country
from which
derived 57 11,187 15,646 111 16 5,121 2,567 34,705
------------ -------- -------- -------- -------- -------- -------- -------- --------
Non-current
assets([)
*(])
By entity's
country of
domicile - - - 767 6,791 - - 7,558
------------ -------- -------- -------- -------- -------- -------- -------- --------
* Excludes financial instruments, deferred tax assets and
post-employment benefit assets.
^ Includees sales of surplus polysilicon feedstock.
Two customers accounted for more than 10% of Group revenue each
and sales to these customers are as follows (figures in
EUR'000:
1. 15,646 (Canada); and
2. 9,845 (Taiwan).
5. Cost of materials and services
Having reviewed anticipated selling prices In H2, ' Cost of
materials and services' includes an Inventory write-down of EUR1.4m
(H1 2016: nil).
6. Employee Benefit Trust
As at 30 June 2017 the Employee Benefit Trust ("EBT") held
1,971,910 shares (1.2%) of the issued share capital in the Company
(30 June 2016: 1,971,910 shares (1.2%)). It holds these shares in
trust for the benefit of employees.
7. Income tax
The average taxation rate shown in the Consolidated Statement of
Comprehensive Income is nil% (H1 2016: nil%).
The anticipated long-term average tax rate for the Group,
normalised on the basis that the Group returns to profitability, is
approximately 32%.
8. Earnings per share
Net earnings per share is computed by dividing the net loss for
the period attributable to ordinary shareholders of EUR3.5 million
(H1 2016: profit EUR4.7 million) by the weighted average number of
ordinary shares outstanding during the year.
Diluted net earnings per share is computed by dividing the
profit/(loss) 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.
The calculation of the weighted average number of ordinary
shares is set out below:
Six months Six months
ended ended
30 June 30 June
2017 2016
------------------------------ ----------- -----------
Number of shares 160,278,975 160,278,975
Weighted average number
of EBT shares held (1,971,910) (2,435,965)
------------------------------ ----------- -----------
Weighted average number
of shares for basic earnings
per share calculation 158,307,065 157,843,010
Dilutive share options 1,204,608 2,392,108
------------------------------ ----------- -----------
Weighted average number
of shares for fully diluted
EPS calculation 159,511,673 160,235,118
------------------------------ ----------- -----------
9. Property, plant and equipment
Additions to property, plant and equipment in the six months
ended 30 June 2017 were less than EUR0.1 million (H1 2016: less
than EUR0.2 million). Having reviewed the recoverable value of
certain assets, an impairment charge of EUR0.5million (H1 2016:
nil) is included within 'Depreciation and impairment of property,
plant and equipment and amortisation of intangible assets'.
10. Changes in contingent assets and liabilities
There were no changes in contingent assets and liabilities.
11. Related party disclosures
Related parties as defined by IAS 24 comprise the senior
executives of the Group including their close family members and
also companies that these persons could have a material influence
on as related parties as well as other Group companies. During the
reporting period, none of the shareholders had control over or a
material influence in the parent company.
Transactions between the Company and its subsidiaries have been
eliminated on consolidation.
12. Post balance sheet events
On 13 July 2017 the Group announced the closure of its
manufacturing operations at Crystalox Limited in the United
Kingdom. Closure costs as a result of this decision have not been
included in the Interim results.
13. Approval of interim financial statements
The unaudited consolidated interim financial statements for the
six months ended 30 June 2017 were approved by the Board of
Directors on 23 August 2017.
The financial information for the year ended 31 December 2016
set out in this Interim Report does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 31
December 2016 have been filed with the Registrar of Companies. The
Auditors' Report on those financial statements was unqualified and
did not contain statements under Section 498(2) or Section 498(3)
of the Companies Act 2006.
Statement of directors' responsibilities
to the members of PV Crystalox Solar PLC
The directors confirm that this condensed set of financial
statements has been prepared in accordance with IAS 34, 'Interim
Financial Reporting' as adopted by the European Union and that this
Interim Report includes a fair review of the information required
by the Disclosure and Transparency Rules of the Financial Services
Authority, paragraphs DTR 4.2.7 and DTR 4.2.8.
The directors of PV Crystalox Solar PLC are listed at the end of
this Interim Report and their biographies are included in the PV
Crystalox Solar PLC Annual Report for the year ended 31 December
2016.
By order of the Board
Matthew Wethey
Chief Financial Officer and Group Secretary
23 August 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIDTEIVFID
(END) Dow Jones Newswires
August 24, 2017 02:00 ET (06:00 GMT)
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