German Payom Solar returns to op profit in Q1 2012, to reduce capital

Jul 2, 2012 - German solar energy supplier Payom Solar AG (ETR:P1Y) announced today earnings before interest and tax (EBIT) of EUR 2.2 million (USD 2.8m) for the first quarter of 2012 after a loss of EUR 4.2 million a year earlier and a planned capital reduction.

Revenue soared to EUR 41 million from EUR 2.3 million.

The good results were, however, preceded by a loss before interest and tax (LBIT) of EUR 68.3 million for 2011. In 2010 the firm registered an EBIT of EUR 11.2 million.

Payom Solar attributed its 2011 operating loss to the revaluation of current projects and the price collapse of solar modules. What is more, the supervisory board and the board of directors decided on a complete reorganisation of the group and have written down the company's stakes in all its subsidiaries as a precaution.

The company’s 2011 revenue shrank by 52.7% on the year to EUR 73.1 million

For the full 2012 the group expects EBIT of EUR 4 million and revenue of EUR 85 million.

Furthermore, the 2011 loss equals more than half of Payom Solar’s equity capital and its board will therefore propose to the annual general meeting, which is to take place in August, a capital reduction via merging ten bearer shares into one. The move will decrease the firm’s share capital to EUR 1.3 million from EUR 13.2 million and will lead to an increase of its share price.

(EUR 1.0 = USD 1.262)

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