Solco forecasts big rise in earnings

09/06/2009 - 11:20

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Welshpool-based sustainable water and power company Solco expects to deliver a full-year net profit of up to $1.6 million, a dramatic lift from the previous year's $119,000.

Solco forecasts big rise in earnings

Welshpool-based sustainable water and power company Solco expects to deliver a full-year net profit of up to $1.6 million, a dramatic lift from the previous year's $119,000.

 

 

The announcement is below:

 

The Board of Solco is pleased to release the following profit guidance for the financial year ended 30 June 2009, subject to final audit year end adjustments and operational performance in June.

Revenue forecast for fiscal 2009 - $26-26.5 million, up from the previous year's $16.5 million.

Net profit after tax forecast for fiscal 2009 - $1.5-$1.6 million, up from $119,000.

The Board, management and staff have spent recent years focusing on the Company's core business including operational efficiencies and revenue growth, whilst exiting unprofitable or marginal business lines. This year's continuing improvement in performance positions the Company to take better advantage of future growth opportunities within the renewable energy sector

Projected revenue represents around 60% growth compared to the previous financial year. The Company also looks forward to continued growth in 2009/2010, but the extent of demand for the Company's products remains hard to predict given the industry's dependence on Government policies initiatives, global product pricing movements, technology enhancements and currency exchange rate volatility.

Managing Director, Mark Norman, stated that "Our strong growth in sales over the last 12 months has been driven by strong focus on the Company's core business operations, along with improved geographic penetration within the Australian market, supported by favourable government rebate programs, increasing black energy costs and an awakening within the community to the benefits of solar powered systems in reducing our carbon footprint."

About Solco

Solco's main operations are in the wholesale and distribution of solar power, small wind and pumping solutions around Australia and overseas, supplying a combination of imported and locally-sourced products. We cater for corporate and government clients directly, and residential customers through our distribution network. Our brands include GridPower ™, Solco Choice Electric, Solar Energy Systems, Sun Mill ™, Remote Power, Solartech Genius ™ and Solco Manufacturing Systems.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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