LONDON (Alliance News) - PV Crystalox Solar PLC said Friday it swung to an interim profit after gains from a recent legal settlement despite revenue halving.
For the six months ended June, the photovoltaic wafer maker swung to a EUR2.7 million profit from a EUR5.4 million loss the year prior. This was despite revenue halving to EUR6.2 million from EUR12.6 million the year prior.
The revenue decline was caused by PV Crystalox selling fewer wafers in the current year as well as the lack of polysilicon trading during the period.
Profit performance was helped by a sharp jump in other income to EUR9.1 million from EUR1.2 million the year prior. This was primarily driven by the recognition of EUR8.8 million in gains from a recent legal settlement.
During the period, PV Crystalox agreed to EUR28.8 million settlement with a customer. It received EUR14.5 million in May and expects to get a further EUR14.3 million at the end of November.
At the end of the period, PV Crystalox had EUR39.6 million net cash.
"In view of the group's substantial cash position following receipt of the arbitration settlement, the board is continuing to explore options for the future of the group in order to maximise shareholder return," PV Crystalox Chief Executive Officer Iain Dorrity said. "Options include a return of cash to the shareholders, the acquisition of an existing business or a combination of the alternatives. The board expects to make final decisions before the end of the year."
Dorrity added that: "The board is evaluating the future viability of the remaining small scale operations in Germany in order to determine whether there is realistic potential for growth and a return to profitability. A possible total shutdown cannot be excluded at this stage although very preliminary discussions have also taken place regarding a transfer of the business to the existing management team."
Shares in PV Crystalox were 2.1% higher at 24.75 pence on Friday.