TIDMPVCS
RNS Number : 0807I
PV Crystalox Solar PLC
25 August 2016
PV Crystalox Solar PLC
Interim results to 30 June 2016
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
-- Favourable Industry environment in H1 2016 followed by rapid deterioration at the start of H2
-- Wafer shipments were 59MW (H1 2015: 104MW)
-- Group has traded increased volumes of excess polysilicon feedstock
-- Significant reduction in polysilicon inventory and consequent release of cash
-- Net cash has increased by EUR12.1 million since 31 December 2015 to EUR24.8 million
-- ICC arbitration evidentiary hearing postponed until November 2016
Financial Overview
-- Revenues EUR34.7m (2015: EUR33.4m)
-- Profit before taxes (EBT) EUR4.7m (H1 2015: Loss EUR(9.5)m)
-- Net cash EUR24.8m (31 December 2015: EUR12.7m)
-- Inventories EUR12.7m (31 December 2015: EUR23.2m)
Iain Dorrity, Chief Executive Officer, commented:
"The extreme pressure on pricing which has developed in recent
weeks would appear to prevent any continuation during H2 2016 of
the profitable performance seen in the first half of the year. If
adverse market pricing persists it will be necessary to reconsider
the merits of the continued extension of the review in order to
protect the interests of shareholders."
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
Market environment
PV market conditions have been very challenging for many years
but the gyrations in pricing have been particularly extreme during
the year to date. The situation has been further exacerbated in
recent weeks as a slowdown in PV installations in China has
weakened demand and caused a dramatic worsening of the market
environment with oversupply across the value chain and falling
prices.
Wafer prices, which had risen progressively from the low point
seen in July 2015, peaked in Q1 2016 and were relatively stable
during April and May. They have plunged since then to reach new
historic lows which are well below industry cash production costs.
Polysilicon pricing which had declined week on week during 2015
reached a low point during Q1 2016 and then surged rapidly to
recover to levels previously seen in mid 2015. Consequently the
relatively favourable conditions, experienced by wafer makers in Q1
2016, have changed dramatically with current wafer pricing
declining by around 15-20% while polysilicon input costs have
increased by a similar factor.
Revenues
Following the suspension of subcontract wafer production in
Japan during 2015, the Group has focused on wafering at its own
facility in Germany, where the cost structure is more favourable,
and has effectively been operating with reduced production output
in comparison with recent years. Wafer shipments during H1 2016
were 59MW (H1 2015:104MW) with an additional 8MW shipped as blocks
for wafering by our customers. The Group had significant
polysilicon inventory at the end of 2015 which was written down to
market values at that time. Due to the low polysilicon price and
favourable wafer market conditions the average wafer sales price
was above the cash cost of production (including direct labour)
during H1 2016.
The Group's wafers have previously benefited from demand for use
in the French PV market where incentives, in the form of higher
feed in tariffs, were offered to end users when two out of the
three parts of the manufacturing process (wafer/cell/module) are
carried out in the EU. In December 2015 the French government
announced the results of its CR3 tender, which will replace the
current scheme, and awarded 800MW of PV projects which must be
completed within a two year period. Under the new scheme, the
carbon footprint of the complete module becomes a critically
important factor. The Group expects to be well positioned to
benefit from this scheme as the low carbon footprint obtained by
wafering in Germany is more favourable than wafers produced in
China and Taiwan. This niche market may provide some respite from
the pricing pressure which is currently ravaging the PV
industry.
The Group has continued to be successful in trading polysilicon
in order to reduce its inventory and was able to take advantage of
the favourable polysilicon trading which occurred during Q2 when
pricing peaked.
Polysilicon contracts
The Group was previously burdened with two long term contracts
for purchase of polysilicon but its obligations under the largest
contract were concluded in December 2015. The one remaining
contract with a different supplier was originally agreed in 2008
when polysilicon prices were around four times current spot levels.
Following successful negotiations in 2014, the contract was amended
to adjust both the pricing and the volumes and to extend the
purchase period until 2018. The purchase price is above current
spot levels but to date the supplier has remained supportive and
permitted deferral of a significant proportion of scheduled
shipment volumes.
The combined effect of the polysilicon trading, the conclusion
of the Group's major polysilicon purchase contract obligation in
2015 and the deferral of a significant proportion of scheduled
shipment volumes under the remaining contract has resulted in a 60%
reduction in the polysilicon inventory and a significant
improvement in the Group's net cash position.
Wafer supply contract
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. The evidentiary hearing of the
arbitral tribunal had been scheduled to take place in Frankfurt in
July 2016 but following a request by our customer the tribunal
agreed to postpone the hearing until November 2016. The judgment of
the arbitral tribunal is now expected in early 2017 and while the
outcome is uncertain, the value of any award if our claim is upheld
could be a multiple of the Group's market capitalisation.
A partial resolution of the other outstanding wafer supply
contract, with a customer which entered insolvency and where
shipments stopped in 2012, has now been achieved. Claims had been
registered with the administrator and an interim settlement of
EUR0.96m was eventually received during H1 2016. A final payment is
expected to bring our final claim up to EUR1.5m although the timing
is uncertain.
Financial Review
In the first half of 2016 Group revenues of EUR34.7 million were
4% higher than in the same period in 2015 (EUR33.4 million) despite
a 43% decline in wafer shipments. This increase was mainly due to
the trading of larger volumes of polysilicon than in H1 2015.
The Group's gross profit at the end of the period was EUR6.2
million (H1 2015: gross loss of EUR5.5 million). Two factors
contributed to this positive margin in 2016: sales of excess
polysilicon inventory at prices above the 2015 year end valuation
as a result of the rebound in polysilicon spot prices during Q2
2016 and stronger wafer sales prices during the period. During H1
2015 the Group was purchasing polysilicon under its onerous long
term contracts and changes in polysilicon spot prices at that time
meant that an additional provision of EUR5.2 million affecting cost
of materials was required.
The Group's profit before interest, taxes and currency gains was
EUR2.2 million (H1 2015: loss of EUR11.3 million). This return to
profitability was mainly driven by the increase in gross profit and
to a lesser extent due to an increase in other income, and a
reduction in other expenses.
Other income of EUR1.8 million was EUR1.1 million higher than
the EUR0.7m recognised in H1 2015 mainly as a result of settlements
relating to long term contracts where customers had entered
insolvency. Other expenses were EUR0.4 million lower in the first
six months of 2016 due to a lower level of fees, in relation to
arbitration proceedings, and lower costs as a result of closing the
Group's Japanese subsidiary at the end of 2015.
After including currency gains the Group's profit before
interest and taxes was EUR4.7 million (H1 2015: loss of EUR9.2
million).
The Group's net cash position at the end of the period was
EUR24.8 million, which was EUR12.1 million higher than the net
position of EUR12.7 million at the start of the year. The Group was
successful in reducing its inventories by EUR10.5 million from
EUR23.2 million at the start of 2016 to EUR12.7 million at the end
of June 2016.
The Group's positive cash flow of EUR12.1 million was generated
mainly through cash inflows from adjusted profit before taxes of
EUR5.5 million and a positive inflow from changes in working
capital of EUR8.1 million partly offset by negative foreign
exchange rate changes on cash of EUR1.2 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 2015 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 2015 Annual
Report.
Market Drivers
The three major market analysts are in agreement on the forecast
level of global PV installations in 2016 although they differ on
regional market sizes. The forecast of between 66 and 68GW
represents double digit growth over installations in 2015. Growth
in Asia remains the key driver with China and Japan expected to
account for almost half of global installations and India expected
to become one of the top five markets in 2016.
There has been little change in the disputes that have plagued
the PV industry in recent years. China has maintained its
anti-dumping duties of up to 57% on polysilicon imports. The
highest duties are applied to imports from the USA while some
Korean companies receive only relatively modest duties of 2.4%. In
April the Chinese Ministry of Commerce announced that it would
extend duties on imports from the European Union for a further year
although German company Wacker Chemie was again spared duties
because of "price commitments" given by the company.
The USA maintains duties on imports of Chinese modules which
were first imposed in 2012 and subsequently adjusted in July 2015.
Most tier 1 companies received modest cuts to anti-dumping rates
which were partially offset by increases to anti-subsidy rates. The
net outcome is that combined tariffs of around 30% are now
applied.
The European Commission ("EC") has launched an expiry review of
anti-dumping measures imposed on imports of Chinese PV modules
which were introduced in 2013. The measures which included a
minimum module price ("MIP") of EUR0.56/W agreed in a negotiated
settlement were due to expire in December 2015. Following
complaints that it was likely that dumping would resume if the
price agreement was removed, it was agreed that the measures will
continue while the EC conducts an investigation, which must be
completed by March 2017. However, the effectiveness of the MIP is
now minimal as many Chinese companies have withdrawn from the
undertaking following their shift of production outside China to
other countries in Asia.
The EC has also warned China that it will reassess the future of
the MIP due to a pattern of continuing breaches of the MIP
agreement where companies were selling at prices below those
stipulated in the price undertaking. EU documents show that a
further three Chinese manufacturers have recently been removed from
the price undertaking agreement between the EU and China.
Outlook
In view of current adverse market conditions where wafer prices
are well below production costs, the Group has significantly
reduced wafer shipments but is maintaining production output. The
Board advised earlier in the year that it was extending the period
of the strategic review in view of the improved market conditions
that positively impacted the Group's competitive position at that
time. The extreme pressure on pricing which has developed in recent
weeks would appear to prevent any continuation during H2 2016 of
the profitable performance seen in the first half of the year. If
adverse market pricing persists it will be necessary to reconsider
the merits of the continued extension of the review in order to
protect the interests of shareholders.
John Sleeman Dr Iain Dorrity
Chairman Chief Executive Officer
24 August 2016
Consolidated statement of comprehensive income
for the six months ended 30 June 2016
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
Notes EUR'000 EUR'000 EUR'000
----------------------------------- ------ ----------- ----------- -------------
Revenues 4 34,705 33,421 64,464
Cost of materials and services (28,537) (38,925) (64,268)
Personnel expenses (3,872) (3,982) (8,447)
Depreciation and impairment
of property, plant and
equipment and amortisation
of intangible assets (119) (164) (382)
Other income 1,792 652 1,187
Other expenses (1,813) (2,317) (5,390)
Currency gains/(losses) 2,578 2,135 (184)
Profit/(loss) before interest
and taxes ("EBIT") 4,734 (9,180) (13,020)
Finance income 5 25 78
Finance cost - (352) (721)
----------------------------------- ------ ----------- ----------- -------------
Profit/(loss) before taxes
("EBT") 4,739 (9,507) (13,663)
Income taxes 6 - 3 (94)
----------------------------------- ------ ----------- ----------- -------------
Profit/(loss) attributable
to owners of the parent 4,739 (9,504) (13,757)
----------------------------------- ------ ----------- ----------- -------------
Other comprehensive income
Currency translation adjustment (4,130) 4,257 2,867
----------------------------------- ------ ----------- ----------- -------------
Total comprehensive income/(loss)
Attributable to owners
of the parent 609 (5,247) (10,890)
----------------------------------- ------ ----------- ----------- -------------
Basic and diluted earnings/(loss)
per share in Euro cents
From profit/(loss)for the
period/year 7 3.0 (6.1) (8.8)
----------------------------------- ------ ----------- ----------- -------------
The accompanying notes form an integral part of these financial
statements.
Consolidated balance sheet
as at 30 June 2016
As at As at As at
30 June 30 June 31 December
2016 2015 2015
Notes EUR'000 EUR'000 EUR'000
------------------------------ ----- -------- -------- ------------
Intangible assets 11 34 12
Property, plant and equipment 8 1,922 2,354 2,049
Other long-term assets 5,625 5,730 5,179
------------------------------ ----- -------- -------- ------------
Total non-current assets 7,558 8,118 7,240
------------------------------ ----- -------- -------- ------------
Cash and cash equivalents 24,760 17,051 12,691
Trade accounts receivable 1,392 4,238 5,658
Inventories 12,702 27,962 23,186
Prepaid expenses and other
assets 4,950 6,762 3,381
Current tax assets 1 8 5
------------------------------ ----- -------- -------- ------------
Total current assets 43,805 56,021 44,921
------------------------------ ----- -------- -------- ------------
Total assets 51,363 64,139 52,161
------------------------------ ----- -------- -------- ------------
Trade accounts payable 973 1,373 1,436
Deferred revenue 3,320 3,254 3,518
Accrued expenses 1,148 1,208 1,885
Provisions - 5,542 -
Deferred grants and subsidies 54 90 70
Current tax liabilities - - 117
Other current liabilities 43 92 96
------------------------------ ----- -------- -------- ------------
Total current liabilities 5,538 11,559 7,122
------------------------------ ----- -------- -------- ------------
Accrued expenses 42 123 42
Provisions - 1,929 -
Other long-term liabilities 234 205 222
------------------------------ ----- -------- -------- ------------
Total non-current liabilities 276 2,257 264
------------------------------ ----- -------- -------- ------------
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 (339) (679) (679)
Share-based payment reserve 297 377 472
Reverse acquisition reserve (3,601) (3,601) (3,601)
Accumulated losses (16,649) (17,135) (21,388)
Currency translation reserve (22,098) (16,578) (17,968)
------------------------------ ----- -------- -------- ------------
Total equity 45,549 50,323 44,775
------------------------------ ----- -------- -------- ------------
Total liabilities and equity 51,363 64,139 52,161
------------------------------ ----- -------- -------- ------------
The accompanying notes form an integral part of these financial
statements.
Consolidated statement of changes in equity
for the six months ended 30 June 2016
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
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
loss - - - - - - 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
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
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 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
-------------- -------- -------- --------- -------- -------- ------------ ------------- ------------ --------
Consolidated cash flow statement
for the six months ended 30 June 2016
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
EUR'000 EUR'000 EUR'000
------------------------------------- ---------- ---------- ------------
Profit/(loss) before taxes 4,739 (9,507) (13,663)
Adjustments for:
Net (income)/interest expense (5) 327 643
Depreciation and amortisation 119 164 382
Inventory writedown - - 5,538
Change in pension accruals
and share-based
payment charge 176 (353) (314)
Decrease in provisions - (9,847) (17,468)
Gain from the disposal of property,
plant and equipment - - (191)
Losses/(gains) in foreign currency
exchange 328 - (145)
Change in deferred grants and
subsidies (16) (21) (41)
------------------------------------- ---------- ---------- ------------
5,341 (19,237) (25,259)
Changes in working capital
Decrease in inventories 8,721 3,298 1,729
Decrease in accounts receivables 2,604 2,918 813
Decrease in accounts payables
and deferred revenue (27) (2,380) (512)
(Increase)/decrease in other
assets (3,064) 6,965 10,322
(Increase)/decrease in other
liabilities (43) 18 23
------------------------------------- ---------- ---------- ------------
13,532 (8,418) (12,884)
------------------------------------- ---------- ---------- ------------
Income taxes paid (112) (145) (121)
Interest received 6 25 78
------------------------------------- ---------- ---------- ------------
Net cash flows used in operating
activities 13,426 (8,538) (12,927)
------------------------------------- ---------- ---------- ------------
Cash flow from investing activities
Proceeds from sale of property,
plant and equipment - - 249
Payments to acquire property,
plant and equipment and intangibles (137) (11) (20)
------------------------------------- ---------- ---------- ------------
Net cash flows used in investing
activities (137) (11) 229
------------------------------------- ---------- ---------- ------------
Cash flow from financing activities
Interest paid - - (23)
------------------------------------- ---------- ---------- ------------
Net cash flows used in financing
activities - - (23)
------------------------------------- ---------- ---------- ------------
Cash generated from operations 13,289 (8,549) (12,721)
Effects of foreign exchange
rate changes on cash
and cash equivalents (1,220) 1,008 820
------------------------------------- ---------- ---------- ------------
Cash and equivalents at beginning
of the period 12,691 24,592 24,592
------------------------------------- ---------- ---------- ------------
Cash and equivalents at end
of the period 24,760 17,051 12,691
------------------------------------- ---------- ---------- ------------
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 2016
1. Basis of preparation
These condensed consolidated interim financial statements are
for the six months ended 30 June 2016. 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 2015.
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 2015.
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 2016 there was a net cash balance of EUR24.8 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.
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 2016.
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
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.
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).
Geographical information for the six months ended 30 June
2015
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 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); and
2. 9,760 (Canada).
5. Employee Benefit Trust
As at 30 June 2016 the Employee Benefit Trust ("EBT") held
1,971,910 shares (1.2%) of the issued share capital in the Company
(30 June 2016: 3,853,910 shares (2.4%)). It holds these shares in
trust for the benefit of employees.
6. Income tax
The average taxation rate shown in the Consolidated Statement of
Comprehensive Income is nil% (H1 2015: 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
profit/(loss) for the period attributable to ordinary shareholders
of EUR4.7 million (H1 2015: loss of EUR9.5 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
ended Six months
30 June ended
2016 30 June 2015
------------------------------------------ ----------- -------------
Number of shares 160,278,975 160,278,975
Average number of shares held by the
EBT in the period (2,435,965) (3,853,910)
------------------------------------------ ----------- -------------
Weighted average number of shares
for basic earnings per share calculation 157,843,010 156,425,065
Shares granted but not vested 2,392,108 4,017,108
------------------------------------------ ----------- -------------
Weighted average number of shares
for fully diluted earnings per share
calculation 160,235,118 160,442,173
------------------------------------------ ----------- -------------
8. Property, plant and equipment
Additions to property, plant and equipment in the six months
ended 30 June 2016 were less than EUR0.2 million (H1 2015: less
than EUR0.1 million).
9. Changes in contingent assets and liabilities
There were no changes in contingent assets and liabilities.
10. Related party disclosures
Related parties as defined by IAS 24 comprise the senior
executives of the Group 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.
11. Post balance sheet events
There are no significant post balance sheet events.
12. Approval of interim financial statements
The unaudited consolidated interim financial statements for the
six months ended 30 June 2016 were approved by the Board of
directors on 24 August 2016.
The financial information for the year ended 31 December 2015
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 2015 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 Annual Report for the year ended 31 December
2015.
By order of the Board
Matthew Wethey
Chief Financial Officer and Group Secretary
24 August 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
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From May 2023 to May 2024