EANS-Interim Report: COLEXON Energy AG
Zwischenmitteilung
-------------------------------------------------------------------------------- Intermediate report of the management pursuant to section 37x of the WpHG transmitted by euro adhoc. The issuer is responsible for the content of this announcement. -------------------------------------------------------------------------------- 3 months 2012 - continued difficult market environment - lower revenue, EBIT loss reduced significantly - strategic realignment of the company continues MARKET ENVIRONMENT The expansion of the world economy was modest in the first quarter of 2012. Considered as a whole, the economic outlook has slightly improved since the beginning of the year. The U.S. economy has gained in dynamics and the concern about a serious decline of the Chinese economy has proved unfounded. The highly indebted European countries follow a rigid path of austerity which has strained the economy. At the same time, the threat of increasing inflation rates is rising because the European Central Bank pursues an expansive monetary policy. On the whole, the European Monetary Union will probably report a decrease of the gross domestic product for the first quarter of 2012, as it did already for the last quarter of 2011. The mood in the photovoltaics (PV) industry remains very tense even though the free fall of module prices slowed down somewhat at the beginning of the year. If the already announced amendments to the Renewable Energy Sources Act (EEG) are adopted by the German Bundesrat, though, the situation will probably get worse once again. PROFIT/LOSS Compared to the corresponding prior-year quarter, COLEXON's revenue dropped EUR 19.9 million to reach EUR 5.5 million in the first quarter of 2012. For the most part, this decrease is due to the quartering of sales volumes in the reporting period (approx. 4 MWp in Q1 2012 vs. 16 MWp in Q1 2011). International revenue amounted to EUR 0.4 million. Thus the international share of the Company's total revenue came to 7.0 percent, entirely accounted for by the Wholesale business. Compared to the previous year, gross profit went down from EUR 4.4 million to EUR 2.3 million in the first quarter of 2012. The gross profit margin as a percentage of sales improved to 42.0 percent (previous year: 17.4 percent). The increase in the gross profit margin is particularly due to the Plant Operation segment, which shows a very high gross profit margin and made a much larger contribution to the entire business of COLEXON in the first three months of 2012. As of the reporting date, the Company had 42 employees (31 March 2011: 119 employees). Accordingly, staff costs went down significantly from EUR 1.8 million to EUR 0.7 million compared to the previous year. However, at 12.1 percent, the staff costs ratio is much higher than in the year before (previous year: 9.7 percent). Depreciation and amortization in the amount of EUR 1.0 million comprise depreciation of solar power plants and amortization of intangible assets (previous year: EUR 1.1 million). Other operating expenses went down considerably by EUR 1.5 million over the first three months of 2012, to EUR 0.8 million (previous year: EUR 2.3 million). Yet the ratio of other operating expenses to revenue increased from 9.2 percent to 15.3 percent. The EBIT improved by EUR 1.3 million to EUR -0.2 million in the financial year (previous year: EUR -1.5 million). The reason for this development of the EBIT is the strong cutback on personnel and other expenses, overcompensating the decline of the gross profit. The negative financial result and result from investments is accounted for almost exclusively by interest expenses of the IPP portfolio and amounted to EUR 1.1 million. The significantly lower interest expenses in comparison with the previous year are especially the result of the decrease in liabilities to banks as a consequence of the disposal of two solar farms over the course of the 2011 financial year. For the first quarter of 2012, the resulting consolidated net loss comes to EUR 1.2 million. In the previous year, the consolidated net loss still amounted to EUR 2.9 million. ASSETS, LIABILITIES AND CASH FLOWS Non-current assets Non-current assets were reduced by EUR 2.3 million over the first three months of 2012 compared to the closing date 31 December 2011, to EUR 109.3 million. This decline essentially resulted from the release of long-term cash deposits for guarantees. Current assets Current assets went down EUR 4.2 million to EUR 23.7 million (31 December 2011: EUR 27.9 million). This change results in particular from the decline of receivables (EUR -5.6 million). Contrary to that, liquid assets were increased by EUR 2.0 million. Compared to 31 December 2011, inventories were reduced by EUR 0.3 million. Solar module inventories accounted for most of the decline, going down EUR 0.3 million to EUR 0.9 million. This decline is due primarily to more flexible module procurement. Trade receivables saw a decrease by EUR 4.9 million to EUR 6.6 million (31 December 2011: EUR 11.5 million). There are no future receivables from construction contracts as of the reporting date 31 March 2012, compared to EUR 0.8 million as of 31 December 2011. Cash and cash equivalents went up to EUR 6.2 million as of 31 March 2012 compared to EUR 4.2 million at the end of the year 2011. The essential factor behind this increase is COLEXON's improved cash flow management and thus a decline of trade receivables. Non-current liabilities Coming to EUR 79.2 million, non-current liabilities were down EUR 1.0 million compared to 31 December 2011, due primarily to the scheduled repayment of financial liabilities. Deferred tax liabilities increased to EUR 2.7 million, after EUR 2.6 million as of 31 December 2011. Current liabilities Current liabilities were reduced from EUR 30.8 million as of 31 December 2011 to EUR 25.6 million. Tax provisions remained unchanged. Other provisions decreased to EUR 2.9 million (31 December 2011: EUR 4.1 million). Trade payables dropped EUR 1.8 million to amount to EUR 5.6 million. Current financial liabilities went down to EUR 10.7 million in comparison with 31 December 2011. The reason for this is scheduled and extraordinary repayment of bank loans. Advances received in the amount of EUR 2.3 million comprise advances on orders received by the reporting date 31 March 2012 (31 December 2011: EUR 2.4 million). Other liabilities were reduced to EUR 2.5 million. The working capital (= inventories including advances paid plus receivables, less advances received, less liabilities) altogether amounted to EUR 2.4 million as of 31 March 2012. Thus the working capital dropped from EUR 6.7 million at the end of the year 2011 by EUR 4.3 million. Statement of cash flows The principles and goals of COLEXON's financial management are aimed at securing funding for the Company's operating activities and safeguarding its solvency at all times. The Group has guarantee facilities at its disposal in the amount of EUR 10.2 million for financing purposes. As of the reporting date, EUR 8.1 million thereof were utilized. The cash flow from operating activities came to EUR 5.1 million in the first quarter of 2012 (previous year: EUR -19.7 million). The positive cash flow is largely based on the decrease in working capital. From investing activities, the resulting cash flow was reported at EUR 0.0 million (previous year: EUR -3.1 million). The cash flow from financing activities amounted to EUR -3.0 million (previous year: EUR 9.1 million) and is accounted for by the repayment of financial liabilities. OUTLOOK The new regulation of the promotion of solar power in Germany and the other leading European markets shows more clearly than ever that a business model based primarily on feed-in tariffs has no future in the PV industry. The downsizing measures started by COLEXON already in the year 2011 and the resulting streamlining of the Company's entire organization lead to a significant cost reduction in the current year. Contrary to that, however, considerably reduced business activities are anticipated for the Wholesale and Projects business. A positive aspect worth pointing out is that stable revenue and cash flows can be expected in the Plant Operation segment for the long term. The next months will be determined by the effort to further optimize the Company's strategy and focus. A detailed version of the interim management statement, including the key figures of COLEXON ENERGY AG as of 31 March 2012 is available on the website at the following link: www.colexon.com/content/en/_download/financial_reports/2012/interim_management_statement_first_half_2012.pdf end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: COLEXON Energy AG Große Elbstraße 45 D-22767 Hamburg phone: +49 (0) 40 2800 31 0 FAX: +49 (0) 40 2800 31 102 mail: info@colexon.de WWW: http://www.colexon.de sector: Energy ISIN: DE0005250708 indexes: CDAX stockmarkets: free trade: Berlin, München, Düsseldorf, Stuttgart, regulated dealing/general standard: Frankfurt language: English
Original content of: 7C Solarparken AG, transmitted by news aktuell