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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Pv Crystalox Solar Plc | LSE:PVCS | London | Ordinary Share | GB00BJ0CHQ31 | ORD 3.0206P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 33.10 | 30.20 | 36.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
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
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August 24, 2017 02:00 ET (06:00 GMT)
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