Solco sells European subsidiary shares for $300k

Welshpool-based sustainable water and power company Solco Ltd has sold its remaining 19 per cent shareholding in Solco Europe Lda, based in Portugal, for around $300,000.

The company has agreed to receive payment from the sale in installments ending December 31.

It is the latest in a series of difficulties for the company, which saw its chief executive, Dermot Patterson, resign last week after only five months with the company.

Solco has announced an expected EBITDA loss for the 2005-06 financial year of $2.3 million on projected revenue of $15.8million.

The company has been suspended from trading since August 7 while directors undertook a recapitalisation process.

The company said the EBITDA loss in the second half reflected recent restructuring efforts to return Solco to a cash positive and profitable operating position.

It has since restructured its business into a power division with the national Choice Electrics solar power products distributors based in Brisbane and the water division based in Perth.