PV Crystalox Solar PLCInterim Report 2011
Thekeytosolarpower
About PV Crystalox Solar PLCPV Crystalox Solar is a highly specialised supplier to the world’s leading solar cell manufacturers, producing multicrystalline silicon wafers for use in solar electricity generation systems.
Our customers, the world’s leading solar cell producers, incorporate these wafers into solar modules to harness the clean, silent and renewable power fromthesun.Weareplayingacentralroleinmakingsolarpowercostcompetitive with conventional hydrocarbon power generation and, as such, continuetoseektodrivedownthecostofproductionwhilstincreasingsolar cell efficiency.
The Group’s own polysilicon plant is in Bitterfeld, Germany. The Group manufactures silicon ingots in Oxfordshire, United Kingdom, and carries out wafer production for European customers at its facilities in Erfurt, Germany.WafersforcustomersinAsiaareproducedinJapan.
Visitournewwebsitewww.pvcrystalox.com
01PV Crystalox Solar PLC Interim Report 2011
Overview:
Highlights
Financial statementsOverviewOverview of results
•Wafershipmentvolumeincreasedby23%to204MW(H12010:165MW)
•Revenuesupby16%to€129.6million(H12010:€111.7million)
•EBITupby161%to€24.3million(H12010:€9.3million)
•Netcashpositionat30June2011of€41.3million(31December2010:€54.8million)
Progress against strategic objectives•IncreasinglydiversegeographicalcustomerbasewithmajorPVcompanies
•10%reductioninaveragewaferproductioncostinH12011
•BitterfeldtoachievenameplateproductioncapabilityinH22011
Outlook •Recentpricingpressuresexpectedtopersist
•Increaseddemandexpectedinanumberofsignificantmarkets,particularlyChina,JapanandtheUS
Overview IFC About PV Crystalox Solar PLC 01 Highlights 02 Chairman and Chief Executive’s
joint statement
Financial statements 05 Statement of directors’ responsibilities 06 Condensed consolidated statement
of comprehensive income 07 Condensed consolidated
balance sheet 08 Condensed consolidated statement
of changes in equity 09 Condensed consolidated
cash flow statement 10 Notes to the condensed
consolidated interim financial statements
IBC Officers
Revenues
€129.6mH1 2010: €111.7m
Net Cash (cash less external loans)
€41.3m31 December 2010: €54.8m
EBIT (earnings before interest and taxation)
€24.3mH1 2010: €9.3m
Operating cash flow
€18.1mH1 2010: €6.4m
02 PV Crystalox Solar PLC Interim Report 2011
Overview:
Chairman and Chief Executive’s joint statement
Overview and strategic update TheGroupachievedacreditableoperationalperformanceinthefirsthalfof2011,despiteadeterioratingmarketenvironmentinthelattermonths,withrevenuesup16%onthepreviousyear.DemandforourwaferscontinuedtobestrongduringthefirstfourmonthsoftheyearandalthoughdemandweakenedduringMayandJune,shipmentvolumesforthefirsthalfof2011totalled204MW,a23%increaseonthe165MWshippedinthesameperiodin2010.Ouraveragesalesprice(ASP)duringthefirsthalfyearwasapproximately6%belowthatreportedforH12010buttheimpactonmarginswasoffsetbytheacceleratedprogressinourwaferingandinternalpolysiliconproductioncostreductionprogrammes.
PVend-marketdemandduringH12011hasbeenmuchweakerthaninitialindustryforecastsparticularlyinthetwokeymarketsofGermanyandItaly.ArecentannouncementfromtheGermanEnvironmentministryconfirmedthatPVinstallationsinGermany,thelargestglobalmarket,wereonly1.1GWduringthefirstfivemonthsoftheyearwhichisapproximatelyhalfthelevelinstalledinthesameperiodin2010.Uncertaintyduetodelaysinfinalisingrevisions
tofeedintariffs(FIT)frozedemandinItalyinthefirsthalfoftheyearalthoughrecoveryofthemarketisexpectedfollowingtheannouncementinMayandsubsequentclarificationsinlateJuly.Asaresultofsluggishgrowthinthesetwokeymarkets,spotpricingofwafersandmodulesreducedfromQ12011levelsby45%and25%respectivelyduringMayandJunebuthasnowstabilised.
TheGroupcontinuestomakegoodprogressinexpandingitsgeographicalreachandbroadeningitscustomerbase.ShipmentstocustomersinAsiareached80%oftotalvolumesandarebroadlybalancedbetweenJapan,TaiwanandChina,witheachaccountingforinexcessof25%.
Operational updateTheexpansionoftheGroup’singotproductioncapacityto535MWwascompletedonscheduleandwithinbudget.ThenextphaseofexpansionwhichstartedinDecember2010isontrackforcompletionbyearly2012,withacapitalexpenditureof€10million.Withassociatedproductivityimprovementsthecapacitywillreach750MWatcompletionratherthantheoriginallyplanned670MW.Furthercapacityexpansiontoreach1GWwilldependonmarketconditions.
Left:MaartenHendersonRight:DrIainDorrity
Summary:• InH12011wehaveincreasedshipments
and delivered a strong improvement in profitability
• Achievedgoodprogressagainststrategicobjectives, including diversifying our customer base, reducing costs and expanding capacity
• Industryvolumesareexpectedtopickupin H2 2011 but the pricing pressure seen recently is persisting
03 PV Crystalox Solar PLC Interim Report 2011
OverviewFinancial statementsTheGroupcontinuestomakegood
progresswithitsinternalpolysiliconproductionfacilityinBitterfeld.ProductionhasrampedupsteadilysinceoperationstartedinJuly2009andwehaveachievedanannualisedoutputaveraging1,475MTduringthefirstfivemonthsof2011,priortothescheduledmaintenanceshutdowninJune.Followingsomeimprovementstotheplantduringtheshutdown,thefacilityisexpectedtooperateatitsnameplatecapacityof1,800MTduringthesecondhalfof2011.AtthesametimeproductioncostshavebeenfallingandsinceAugust2010thefullyloadedproductioncosthasbeenbelowtheaveragepriceofourcontractedpolysiliconfromexternalsuppliers.Increasingly,ourinternalpolysiliconwillbecomeasignificantdriverofourfutureprofitabilityasfurthercostreductionisexpectedwhenwereachfullcapacity.
Financial review and positionSalesvolumeswere23%higherinthefirsthalfthaninthesameperiodin2010althoughtheimpactwastemperedbyaveragesellingpricesbeing6.2%lower.Theneteffectwasthatsalesrevenueswere16%higherthanlastyearat€129.6million(H12010:€111.7million).Salesvolumesandpricinghadbeeninline
withexpectationsuntilMaywhentherewasafall-offindemandandsignificantpricingpressure.
TheGroupgeneratedEBITat€24.3millionwhichwasanincreaseof161%abovethatforH12010of€9.3million.Thiswasachievedinspiteofaninventorywritedownof€4.4milliontoequateinventoryvaluationswithmarketpriceexpectationforQ32011.Thiswasamelioratedbyanaccelerationofourcostreductionprogrammeinthefirsthalfof2011.TheGroup’smanagementisconfidentthatfurthercostreductionsof5%to10%willbeachievedinthesecondhalfoftheyear.
TheGrouphadanetpositivecashbalanceof€41.3millionwhichwasdownonthe€54.8millionattheendof2010.TheGrouphadinvested€14.9million(netofgrants)incapitalequipmentinH12011.Workingcapitalhadincreasedby€7.6million,mainlyduetohigherinventoriesattheendoftheperiodfollowinglowerthanexpectedsalesvolumesinJune.Inaddition,theGrouphadpaidthe2010finaldividendof€8.1millioninJune.ThiscashpositionremainsacompetitiveadvantageoftheGroupand,despitethedifficulttrading
conditionsanticipatedinthesecondhalf,theGroupexpectstoretainahealthycashpositionthroughtotheyearend.
DividendInviewofthecurrentlychallengingmarketconditions,theBoardhasdecidednottodeclareadividend.TheBoardcontinuestorecognisetheimportanceofdividendstoshareholdersandthedirectorswillreviewthepotentialtore-instatedividendsbasedonthefutureperformanceandprospectsoftheGroup.
Risk factors TheprincipalrisksanduncertaintiesaffectingthebusinessactivitiesoftheGroupwereidentifiedundertheheading‘PrincipalRisksandUncertainties’intheDirectors’Reportonpages14to15ofthe2010AnnualReport,acopyofwhichisavailableontheGroup’swebsitewww.pvcrystalox.com.IntheviewoftheBoardthekeyrisksanduncertaintiesfortheremainingsixmonthsofthefinancialyearcontinuetobethosesetoutinthe2010AnnualReportalthoughtheimpactoftheovercapacityinthePVindustryismoreseverethanhadbeenanticipated.
04 PV Crystalox Solar PLC Interim Report 2011
Overview:
Chairman and Chief Executive’s joint statement continued
Market driversTheEuropeanPhotovoltaicIndustriesAssociation(EPIA)believesthemid-termmarketdriversforthePVindustrycontinuetobepositiveandexpectsglobalPVinstallationstogrowto44GWin2015.Forthepastdecade,EuropehasplayedadominantroleinthegrowthofthePVmarketandalthoughthereisnowuncertaintyoverthepathofEuropeanincentives,industrypricingandregulatoryconstraints,theEUmaintainsitscommitmenttomeetingits2020climatechangegoalsandboostingtheshareofrenewablesinthetotalenergymixto20%.
AsiaPacificphotovoltaicmarketsaresettogrowrapidlyandareprojectedtoaccountforapproximatelyone-quarterofglobaldemandby2015,upfrom11%in2010,accordingtothelatestreportfromSolarbuzz.Thetopfivemarketsinthisregion,China,Japan,India,Australia,andSouthKorea,areexpectedtoaccountfor3.3GWofdemandin2011.
TheChinesegovernment’snewFITschemewhichwasannouncedon24July2011hasthepotentialtoincreasesolarinstallationsinthecountryby1.5GWinthenext18months.FurthermorethereisincreasingexpectationsthatChinawilldoubleits2015solargoalfrom5GWto10GWandalsoraiseits2020goalfrom20GWto50GW.
AnationalFITschemeintroducedlastyearisalsodrivingsolargrowthinJapan,withtheimpactoftheFukushimanucleardisasteraddingfurthermomentum.JapanwasthefourthlargestPVmarketintheworldin2010,doublingforasecondyearinarowandinstalling960MW,thankstothere-launchofthenationwideresidentialincentiveprogrammeandthenetFIT.FollowingtheFukushimanucleardisaster,Japansetanambitiousnewrenewableenergytargetandthecountrywillnowaimtoget10%ofitsprimaryenergysupplyfromrenewablesby2020withseveralprominentbusinessfiguresandpoliticiansbackingalargerroleforsolar.
OutlookEnd-marketdemandisexpectedtoaccelerateduringthesecondhalfoftheyearfuelledbyarecoveryinthetwobiggestmarkets,GermanyandItaly,andstronggrowthintheUSandAsia.IndustryanalystsareforecastingthatglobalPVinstallationswillmorethandoubleinthesecondhalfoftheyeartoreachafullyeartotalof19GWto21GW,representinggrowthof10%to20%.InthelongertermtheEPIApolicydrivenforecastpredictsinstallationsof44GWin2015.
Neverthelessthecurrentsupplysituationandpricingpressurewillmeanthattradingconditionsareexpectedtoremainchallenginginthecomingperiod.Asnotedinourtradingupdateon28June2011,theincreasingproductioncapacityinthePVindustryandhighinventories
haveresultedinseverepriceerosionacrossallpartsofthevaluechain,sofarwiththeexceptionofpolysilicon.Giventhesedynamics,theGroupiscurrentlyoperatingatbelowbreakevenlevelandtheGroupislikelytoincuranoperatinglossinthesecondhalf.Fullyearshipmentvolumesareexpectedtobeintherange400MWto450MW.
TheGroupistakingactiontoaddressthedifficultmarketenvironmentbyworkingtoobtainmoresustainablewaferASPsandtorealisereductionsinsupplierprices.Furthermore,theGroupisacceleratingitscostreductionprogrammestodecreasethecostofitsinternalpolysilicon,enhanceingotcrystalqualityandintroducealowercostwaferproductiontechnology.WiththeseprogrammesreachingcompletionandthepotentialforsubstantialmarketgrowththeGrouplooksforwardtoareturntomorefavourabletradingconditions.
Maarten HendersonChairman
Dr Iain DorrityChief Executive Officer17August2011
05PV Crystalox Solar PLC Interim Report 2011
OverviewFinancial statements
Financial statements:
Statement of directors’ responsibilities
ThedirectorsconfirmthatthiscondensedsetoffinancialstatementshasbeenpreparedinaccordancewithIAS34‘InterimFinancialReporting’asadoptedbytheEuropeanUnionandthatthisInterimReportincludesafairreviewoftheinformationrequiredbytheDisclosureandTransparencyRulesoftheFinancialServicesAuthority,paragraphsDTR4.2.7andDTR4.2.8.
ThedirectorsofPVCrystaloxSolarPLCarelistedattheendofthisInterimReportandtheirbiographiesareincludedinthePVCrystaloxSolarAnnualReportfortheyearended31December2010.
ByorderoftheBoard
Dr Peter FinneganChief Financial Officer17August2011
06 PV Crystalox Solar PLC Interim Report 2011
Financial statements:
Condensed consolidated statement of comprehensive incomefor the six months ended 30 June 2011
Six months Six months Year ended ended ended 30 June 30 June 31 December 2011 2010 2010 Notes €’000 €’000 €’000
Revenues 4 129,593 111,653 252,559Otherincome 2,582 1,715 3,459
Cost of material and services: Costofmaterial 5 (79,280) (73,088) (162,272)Costofservices (10,383) (9,126) (20,479)
Personnel expenses: Wagesandsalaries (7,344) (6,658) (13,660)Socialsecuritycosts (1,210) (1,004) (2,090)Pensioncosts (262) (258) (476)Employeeshareschemes 6 (311) (600) (1,047)
Depreciationonproperty,plantandequipmentandintangibleassets (7,580) (6,323) (13,096)Otherexpenses (5,181) (3,916) (8,373)
Currencygainsand(losses) 3,719 (3,083) (1,176)
Earnings before interest and taxes (EBIT) 24,343 9,312 33,349Interestincome 452 463 1,061Interestexpense (190) (320) (684)
Earnings before taxes (EBT) 24,605 9,455 33,726Incometaxes 7 (6,200) (2,803) (10,462)
Profit attributable to equity holders of the parent 18,405 6,652 23,264
Other comprehensive income Exchangedifferencesontranslatingforeignoperations (10,396) 21,347 12,551
Total comprehensive income Attributabletoequityholdersoftheparent 8,009 27,999 35,815
Earnings per share on continuing activities: BasicinEurocents 8 4.5 1.6 5.7DilutedinEurocents 8 4.5 1.6 5.7
AlloftheactivitiesoftheGroupareclassedascontinuing.
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
07PV Crystalox Solar PLC Interim Report 2011
OverviewFinancial statements
Condensed consolidated balance sheetas at 30 June 2011
As at As at As at 30 June 30 June 31 December 2011 2010 2010 Note €’000 €’000 €’000
Cashandcashequivalents 83,856 132,645 101,300Accountsreceivable 46,679 58,460 55,807Inventories 66,993 43,738 50,813Prepaidexpensesandotherassets 17,757 17,965 24,929Currenttaxassets — 1,732 —
Total current assets 215,285 254,540 232,849
Intangibleassets 593 716 668Property,plantandequipment 9 138,481 120,387 129,509Otherlong-termassets 42,322 16,428 36,757Deferredtaxasset 15,087 11,311 12,080
Total non-current assets 196,483 148,842 179,014
Total assets 411,768 403,382 411,863
Loanspayableshort-term 42,534 55,518 46,462Accountspayable 25,512 11,132 23,129Deferredrevenue 20,006 10,036 10,084Accruedexpenses 5,613 3,737 4,837Provisions 301 356 315Deferredgrantsandsubsidies 2,798 2,598 2,867Incometaxpayable 9,070 5,507 6,764Othercurrentliabilities 1,037 1,474 900
Total current liabilities 106,871 90,358 95,358
Deferredrevenue — 11,919 10,562Accruedexpenses 108 62 98Pensionbenefitobligation — 124 62Deferredgrantsandsubsidies 23,169 23,692 24,156Deferredtaxliability 640 89 825Otherlong-termliabilities 43 43 42
Total non-current liabilities 23,960 35,929 35,745
Total liabilities 130,831 126,287 131,103
Sharecapital 12,332 12,332 12,332Sharepremium 75,607 75,607 75,607Investmentinownshares (8,640) (9,482) (8,640)Share-basedpaymentreserve 550 2,890 262Reverseacquisitionreserve (3,601) (3,601) (3,601)Retainedearnings 237,392 212,860 227,107Currencytranslationadjustment (32,703) (13,511) (22,307)
Total shareholders’ equity 280,937 277,095 280,760
Total liabilities and shareholders’ equity 411,768 403,382 411,863
08 PV Crystalox Solar PLC Interim Report 2011
Financial statements:
Condensed consolidated statement of changes in equityfor the six months ended 30 June 2011
Investment Share- in own based Reverse Currency Share Share shares payment acquisition Retained translation Total capital premium (EBT) reserve reserve profit adjustment equity €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
As at 1 January 2011 12,332 75,607 (8,640) 262 (3,601) 227,107 (22,307) 280,760Dividendspaid — — — — — (8,120) — (8,120)Share-basedpaymentcharge — — — 288 — — — 288
Transactions with owners 12,332 75,607 (8,640) 550 (3,601) 218,987 (22,307) 272,928
Profit for the period — — — — — 18,405 — 18,405Currencytranslationadjustment — — — — — — (10,396) (10,396)
Total comprehensive income — — — — — 18,405 (10,396) 8,009
As at 30 June 2011 12,332 75,607 (8,640) 550 (3,601) 237,392 (32,703) 280,937
As at 1 January 2010 12,332 75,607 (5,642) 2,021 (3,601) 214,301 (34,858) 260,160
Dividendspaid — — — — — (8,093) — (8,093)Investmentinownshares — — (3,840) — — — — (3,840)Share-basedpaymentcharge — — — 869 — — — 869
Transactions with owners 12,332 75,607 (9,482) 2,890 (3,601) 206,208 (34,858) 249,096
Profit for the period — — — — — 6,652 — 6,652Currencytranslationadjustment — — — — — — 21,347 21,347
Total comprehensive income — — — — — 6,652 21,347 27,999
As at 30 June 2010 12,332 75,607 (9,482) 2,890 (3,601) 212,860 (13,511) 277,095
09PV Crystalox Solar PLC Interim Report 2011
OverviewFinancial statements
Condensed consolidated cash flow statementfor the six months ended 30 June 2011
Six months Six months Year ended ended ended 30 June 30 June 31 December 2011 2010 2010 €’000 €’000 €’000
Earnings before taxes 24,605 9,455 33,726Adjustments for: Interest (262) (143) (377)Depreciationandamortisation 7,580 6,323 13,096Changeinpensionaccruals (62) (67) (129)Changeinotheraccruals 773 (245) 849Profit/(loss)fromthedisposalofproperty,plantandequipment 3 (3) 60Unrealisedlosses/(gain)inforeigncurrencyexchange 1,170 381 (2,938)Deferredincome (1,448) (1,367) (2,755)
32,359 14,334 41,532
Changes in working capital Increaseininventories (17,804) (9,635) (12,633)Decreaseinaccountsreceivables 6,833 5,477 6,349Increase/(decrease)inaccountspayablesandadvancepayments 2,473 (5,212) 4,863Decrease/(increase)inotherassets 455 4,501 (21,846)Increase/(decrease)inotherliabilities 425 (876) (260)
24,741 8,589 18,005
Incometaxespaid (7,085) (3,012) (7,762)Interestreceived 452 463 1,061
Net cash from operating activities 18,108 6,040 11,304
Cash flow from investing activities Proceedsfromsaleofproperty,plantandequipment 58 4 24Proceedsfrominvestmentgrantsandsubsidies 1,543 2,127 3,304Paymentstoacquireproperty,plantandequipment (16,537) (4,406) (19,871)
Net cash flow used in investing activities (14,936) (2,275) (16,543)
Cash flow from financing activities (Repayment)/receiptofbankandotherborrowings (1,910) 18,559 11,141Dividendspaid (8,120) (8,093) (12,139)Interestpaid (190) (320) (684)Investmentinownshares — (3,840) (4,266)Share-basedpaymentreserve — 869 —
Net cash flows from financing activities (10,220) 7,175 (5,948)
Netchangeincashandcashequivalentsavailable (7,048) 10,940 (11,184)Effectsofforeignexchangeratechangesoncashandcashequivalents (10,396) 21,301 12,083
Cash and equivalents at beginning of period 101,300 100,404 100,404
Cash and equivalents at end of period 83,856 132,645 101,300
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
10 PV Crystalox Solar PLC Interim Report 2011
1. Basis of preparationThesecondensedconsolidatedinterimfinancialstatementsareforthesixmonthsended30June2011.TheyhavebeenpreparedinaccordancewithInternationalAccountingStandard(IAS)34‘InterimFinancialReporting’.TheydonotincludealltheinformationrequiredforfullannualfinancialstatementsandshouldbereadinconjunctionwiththeconsolidatedfinancialstatementsoftheGroupfortheyearended31December2010.
Thestatementshavebeenpreparedapplyingtheaccountingpoliciesandpresentationthatwereappliedinthepreparationofthe2010financialstatements.
2. Basis of consolidationTheGroupfinancialstatementsconsolidatethoseoftheGroupanditssubsidiaryundertakingsdrawnupto30June2011.SubsidiariesareentitiesoverwhichtheGrouphasthepowertocontrolthefinancialandoperatingpoliciessoastoobtainbenefitsfromitsactivities.TheGroupobtainsandexercisescontrolthroughvotingrights.Consolidationisconductedbyeliminatingtheinvestmentinthesubsidiarywiththeparent’sshareofthenetequityofthesubsidiary.
3. Functional and presentational currencyThefinancialinformationhasbeenpresentedinEuros,whichistheGroup’spresentationalcurrency.
4. Segment reportingThesegmentsaredefinedonthebasisoftheinternalorganisationalandmanagementstructureandontheinternalreportingtotheBoard.IFRS8requiresentity-widedisclosurestobemadeaboutthecountriesinwhichtheGroupearnsitsrevenuesandholdsitsassetswhichareshownbelow:
Segment information for the six months ended June 2011 The The rest of United rest of Japan China Taiwan Asia Germany Kingdom Europe USA Group €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
Revenues –byentity’scountryofdomicile 36,959 — — — 31,787 60,847 — — 129,593
–bycountryfromwhichderived 36,940 33,467 33,416 398 18,154 64 81 7,073 129,593
Non-current assets* –byentity’scountryofdomicile 568 — — — 118,049 62,779 — — 181,396
*Excludesfinancialinstruments,deferredtaxassetspost-employmentbenefitassetsandrightsarisingunderinsurancecontracts.
Twocustomersaccountedformorethan10%ofGrouprevenueeachandsalestothesecustomersareasfollows(figuresin€’000):
• 31,544(China);and
• 28,072(Japan).
Financial statements:
Notes to the condensed consolidated interim financial statementsfor the six months ended 30 June 2011
11PV Crystalox Solar PLC Interim Report 2011
OverviewFinancial statements
4. Segment reporting continuedSegment information for the six months ended June 2010 The The rest of United rest of Japan China Taiwan Asia Germany Kingdom Europe USA Group €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
Revenues –byentity’scountryofdomicile 43,402 — — — 34,263 33,988 — — 111,653
–bycountryfromwhichderived 43,123 32,362 2,827 18,743 12,622 28 172 1,774 111,653
Non-current assets* –byentity’scountryofdomicile 726 — — — 113,945 22,860 — — 137,531
*Excludesfinancialinstruments,deferredtaxassetspost-employmentbenefitassetsandrightsarisingunderinsurancecontracts.
Fourcustomersaccountedformorethan10%ofGrouprevenueeachandsalestothesecustomersareasfollows(figuresin€’000):
• 32,054(China);
• 24,554(Japan);
• 18,741(RestofAsia);and
• 18,338(Japan).
5. Cost of materialCostofmaterialincludesaninventorywritedownof€4.4million(H12010:nil).
ThewritedownrepresentsareductioninvalueofinventoriestotheanticipatedsalespriceinQ32011(lessfutureprocessingcostswhereapplicable)ofbothfinishedgoodsandworkinprogress.
6. Employee benefit trustTheEmployeeBenefitTrust(EBT)currentlyholds10,834,000shares(2.6%)oftheissuedsharecapitalintheCompany.Itholdsthesesharesintrustforthebenefitofemployees.
7. Income taxTheaveragetaxationrateshownintheConsolidatedStatementofComprehensiveIncomeis25.2%(H12010:29.6%).
InaccordancewithIAS12theprofitelementofmaterialheldinstockattheperiodendmustbeeliminatedatthetaxrateapplicabletothecompanyholdingthestock.Thiseliminationhadadisproportionateeffectontheaveragetaxrateintheperiodended30June2011.
Theanticipatedlong-termaveragetaxrateisapproximately28%.
12 PV Crystalox Solar PLC Interim Report 2011
Financial statements:
Notes to the condensed consolidated interim financial statements continuedfor the six months ended 30 June 2011
8. Earnings per shareThecalculationofearningspershareisbasedonaprofitaftertaxfortheperiodof€18.4million(H12010:€6.7million)andthenumberofsharesassetoutbelow: Six months Six months ended ended 30 June 30 June 2011 2010
Numberofshares 416,725,335 416,725,335AveragenumberofsharesheldbytheEBTintheperiod (10,849,345) (11,685,790)
Weightedaveragenumberofsharesforbasicearningspersharecalculation 405,875,990 405,039,545Sharesgrantedbutnotvested 27,500 2,008,000
Weightedaveragenumberofsharesforfullydilutedearningspersharecalculation 405,903,490 407,047,545
9. Property, plant and equipmentAdditionstoproperty,plantandequipmentinthesixmonthsended30June2011were€16.6million(H12010:€4.4million).
10. Dividends paid in the periodAsagreedattheAnnualGeneralMeetingheldon26May2011,theGrouppaidadividendof2.0Eurocentsperordinaryshareasshownbelow:
Ordinaryshares 416,725,335SharesheldbytheEBTwaivingdividend (10,712,907)
Sharesattractingdividend 406,012,428
Totaldividendpaidat2.0Eurocentspershare €8,120,249
11. Changes in contingent assets and liabilitiesTherewerenochangesincontingentassetsandliabilities.
12. Related party disclosuresTheGroupdefinesrelatedpartiesastheseniorexecutivesoftheGroupandalsocompaniesthatthesepersonscouldhaveamaterialinfluenceonasrelatedparties.Duringthereportingperiod,noneoftheshareholdershadcontroloveroramaterialinfluenceintheparentgroup.Allfuturetransactionswithsuchrelatedpartieswillbeconductedundernormalmarketconditions.
13. Material post balance sheet eventsTherewerenomaterialpostbalancesheetevents.
14. Approval of interim financial statementsTheunauditedinterimfinancialstatementswereapprovedbytheBoardofDirectorson17August2011.
Thefinancialinformationfortheyearended31December2010setoutinthisInterimReportdoesnotconstitutestatutoryaccountsasdefinedinSection434CompaniesAct2006.TheGroup’sstatutoryfinancialstatementsfortheyearended31December2010havebeenfiledwiththeRegistrarofCompanies.Theauditor’sreportonthosefinancialstatementswasunqualifiedanddidnotcontainstatementsunderSection498(2)orSection498(3)oftheCompaniesAct2006.
Officers
DirectorsMaartenHenderson(Chairman)DrHubertAulichDrIainDorrityDrPeterFinneganMichaelParkerJohnSleeman
Company SecretaryMatthewWethey
PV Crystalox Solar PLC BrookHouse174MiltonParkAbingdonOxfordshireOX144SE
Tel:+44(0)1235437160Fax:+44(0)1235437199
www.pvcrystalox.com