(Alliance News) - Photovoltaic wafer maker PV Crystalox Solar PLC on Thursday said it swung to a full-year loss with revenue tumbling while it continues to operate in a "dire" market.
Shares in the company were 31% lower at 32.40 pence each in London on Thursday morning.
Revenue for 2019 came in at just EUR531,000, a sharp decline from EUR6.3 million in 2018. PV Crystalox reported a pretax loss of EUR2.4 million from a EUR1.6 million profit.
The company said: "As a result of the dire PV industry environment which has persisted since 2011, the group had been operating in cash conservation mode to protect shareholder value whilst preserving the group's core production capabilities. The board made the decision in 2017 to significantly reduce those capabilities and closed the group's production facilities in the United Kingdom.
"Then in the first half of 2018 the group terminated multicrystalline silicon wafer production in Germany and restructured that operation to use its existing capabilities to develop new business opportunities in the cutting of non-silicon materials."
The company said it intends to cancel its shares from trading and return another GBP2 million to shareholders via a tender offer in the third quarter of the year.
The offer is contingent on the company receiving a payment relating to the settlement of a legacy wafer supply contract. This is expected before the end of the first half of 2020.
PV Crystalox said: "During the last two years the board has explored various options to maximise any value from the listing of the group's shares on the Official List but has been unable to identify any viable opportunities. The board has thus concluded that a further return of capital would now be an appropriate course of action
"The board remains mindful of the need to protect shareholder value and believes that this will be best served by continuing the transformation of the manufacturing operation in Germany and resolving any challenge from tax authorities regarding the distribution of payments received under the arbitration settlement in 2018. A sale to a third party or a transfer of the business to the existing management team remains the ultimate objective. Meanwhile the board is implementing measures to reduce head office overheads."
Back in June 2019, the company returned GBP38.5 million, about 24 pence per share, to its shareholders.
By Eric Cunha; ericcunha@alliancenews.com
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