ASX ANNOUNCEMENT 6 July 2010
PROFIT GUIDANCE
Solco on track for record profit of $3.15 million
Solco Limited (ASX: SOO) is pleased to provide profit guidance for the 2010 financial year, with the
Company expecting to report a profit before tax of $3.15 million for the 12 months to 30 June 2010.
The result, which is subject to finalisation and audit, would represent a 76% increase on the previous
financial year.
Group turnover for the year is expected to be $34.5 million, a 24% increase on the previous corresponding
period.
Solco’s stronger trading performance in FY10 occurred on the back on increased demand for the company’s
solar energy products, which it wholesales and distributes nationally.
The result also demonstrates Solco’s ability to maintain a robust growth path while preserving its strong
operating margins.
It also represents the second consecutive year of profit growth since the finalisation of the restructure of
Solco’s board and senior management team in 2008.
Solco has achieved the FY2010 earnings growth despite facing significant challenges during the year,
including downward pressure on product prices, exchange rate fluctuations and stock shortages.
Solco’s stock management, tight control over overheads and foreign exchange risk management minimised
the effect on profit margins.
Outlook for FY2011
The solar renewable market in Australian has grown markedly in the past 3 years, supported by
government incentives, rapidly falling product prices, rising energy costs, and community awareness. Solco
expects this situation to continue in FY2011. However, until grid parity is reached, which puts solar on an
equal cost footing to conventional energy, unforeseen changes in government policies may have a
dampening effect on the market.
David Richardson, Chairman said “I’m extremely pleased with Solco’s continued ability to deliver profitable
growth within its core business. This places the team at Solco in a solid position to drive our next stage of
strategic expansion within the expanding renewable energy market.”
For further information, please contact
Mark Norman, CEO and Managing Director
Phone +61 (8) 9334 8100 |
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