21 October 2011 – interim management statement

Difficult market conditions in the solar industry have led to the group issuing another profit warning as the anticipated recovery in demand for silicon wafers has failed to materialise.  Weak selling prices together with higher input costs mean that the group now expects to make an operating loss for the full year and it is therefore taking action to reduce costs by reducing staff numbers in the UK and introducing short time working in Germany.  The full year results are also likely to see a significant but non-cash write down of assets.  Despite the bad news the group’s cash position remains positive with a healthy cash balance expected at the year end.  The share price fall has been overdone but while the stock remains a long term buy, it is hard to see what will move it up in the short term.  The shares are therefore probably a HOLD.