International sales support strong turnover growth
- Increase in turnover by 37 per cent to 154.0 million Euros in first three quarters (pro -forma Q3 2009: 112.7 million Euros)
- EBIT amounts 13.2 million Euros (pro forma Q3 2009: 14.0 million Euros)
- Goodwill write-off of 63.4 million Euros effects comparability of group earnings
COLEXON Energy AG (WKN 525070, ISIN DE0005250708) published its nine month report 2010 today. The photovoltaic company increased its turnover by 37 per cent to 154.0 million Euros compared to the previous year (pro forma 2009: 112.7 million Euros). The earnings before interest and taxes (EBIT) amounted to 13.2 million Euros excluding the extraordinary effect from the impairment of goodwill (pro forma 2009: 14.0 million Euros). With the q3 results COLEXON is on the right track to fulfill its guidance for the current financial year with 200 million Euros turnover and an EBIT of 13 to 15 million Euros (excluding the goodwill write-off).
In the course of the year, the cuts in the reduction of the German feed-in tariff have led to decreasing profit margins in Germany and drove the international diversification of the solar industry. This development supported COLEXON's strategic approach that aimed at a sustainable expansion of the international project business in the third quarter. While in the first half the business had mainly focused on the German market, in the third quarter about 80 per cent of the project turnover was generated in European export markets.
Excluding the extraordinary effect from impairment of goodwill, the EBIT of 13.2 million Euros slightly decreased by six per cent compared to last year (pro forma Q3 2009: 14.0 million Euros). Hence, due to the goodwill write-off of 63.4 million Euros, the Q3 group earnings are strongly distorted. After the impairment of the goodwill COLEXON records a loss after of 50.2 million Euros.
The historic goodwill of Renewagy A/S roots in a transaction in 2007 and has been included in the Renewagy balance sheet prior the reverse acquisition. In the context of the takeover of the Renewagy A/S in the year of 2009 the goodwill was taken on to the books of the COLEXON group. It was based on the assumption of a continuous and very long-term expansion of the solar power plant portfolio. Feed-in tariffs have been reduced earlier and more severely than expected in major European markets so that the management of COLEXON Energy AG saw itself compelled to correct the very long-term assumptions in respect of the power plant portfolio. The write-off does not affect the accounts of COLEXON Energy AG, does not have a cash impact, and consequently has no influence on the current financial status of the company.
The intrinsic value of the existing proprietary solar power plant portfolio is not affected by the regulatory changes, as it benefits from feed-in tariffs that are secured for 20 years. Management sees good opportunities to expand the solar power plant portfolio in the short to medium term and will continue to pursue this strategy.
The complete financial report is available for download on the company's website www.colexon.com.