30/06/2011 - 10:58

Solco flags third straight record profit

30/06/2011 - 10:58

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Perth-based renewable energy firm Solco has forecast continuing growth in all areas of the solar energy market, after releasing guidance saying it will lodge a third-consecutive record profit for the 2011 financial year.

Solco flags third straight record profit

Perth-based renewable energy firm Solco has forecast continuing growth in all areas of the solar energy market, after releasing guidance saying it will lodge a third-consecutive record profit for the 2011 financial year.

Solco forecast revenue for $52 million for FY2011, up more than 50 per cent from the $34.5 million achieved in FY2010.

The company said it expected to report a pre tax profit of $3.6 million for the 12 months to June 30.

In FY 2009, Solco achieved revenue of $27.7 million, for a $1.7 million profit. Its maiden profit was in FY2008, when it finished $119,405 in the black.

Executive chairman David Richardson said the upside in the solar industry was becoming clear.

"As the price of solar panels and components continue to fall rapidly, solar power systems are becoming increasingly affordable at the same time as the cost of electricity generated by traditional means is rising steadily around the nation," Mr Richardson said.

"This means there is potential to reach the point known as 'grid parity' faster than anticipated.

"As solar becomes increasingly competitive with traditional power, a sustainable market for residential and commercial photovoltaic solar systems is becoming a nearer-term reality."

Mr Richardson said the company's two divisions, Power and Projects, were working together to increase Solco's exposure to the commercial power generation market as grid parity is attained.

"We aim to build, own and operate grid, hybrid, mini-grid and remote solar projects, capitalising on a major growth period for the solar power generation market," he said.

"Our investment in this area is progressing well and we are receiving considerable interest from a very wide range of organisations seeking to involve Solco in their power projects in either a development role or long-term operator."

Mr Richardson said, however, the federal government's reduction of its solar stimulus packages, which will come into effect after today, would create uncertainty in the industry.

At 10:50AM (WST) Solco's stocks were up 5 per cent, at 10.5 cents.

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