Enterprise evaluation 26 October 2020 at 8.45 (CET)
Savosolar Plc’s enterprise evaluation for January–September 2020: Income and profitability continued to develop favourably
Key figures in July–September 2020
- Savosolar’s income in July–September amounted to EUR 1.7 million (July–September 2019: EUR 0.1 million).
- Working end result (EBIT) amounted to EUR -0.8 million (EUR -1.3 million).
- Internet end result totalled EUR -1.0 million (EUR -1.3 million).
Key figures in January–September 2020
- Savosolar’s income in January–September amounted to EUR 3.7 million (January–September 2019: EUR 1.8 million).
- Working end result (EBIT) amounted to EUR -2.6 million (EUR -3.6 million).
- Internet end result for the interval totalled EUR -3.5 million (EUR -4.6 million).
Savosolar’s CEO Jari Varjotie:
“Our enterprise continued to develop favourably throughout the third quarter regardless of the Covid-19 pandemic, which we’re very pleased with. Our turnover in January-September doubled year-on-year.
We had been in a position to proceed the continued consumer initiatives in Central Europe after the lifting of the restrictions imposed because of the Covid-19 pandemic within the early summer season. Within the third quarter, we signed an settlement on the supply of a photo voltaic thermal system to the Metropolis of Narbonne in France. System is ordered by the identical consumer, NewHeat SAS, for whom Savosolar already delivered a photo voltaic thermal system in Condat, France for the method warmth technology of a paper mill in 2019. The brand new order function proof of our capacity to ship our buyer guarantees.
Our order backlog on the finish of September stood at EUR 2.2 million (EUR 4.8 million). On the finish of the reporting interval, the order backlog was at a great degree. The order backlog of the comparability interval was elevated by the signing of the Issoudun contract, the corporate’s bigger order up to now, within the early autumn of 2019.
The worth of our initiatives within the gross sales pipeline on the finish of the reporting interval was roughly EUR 279 million, being roughly EUR 260 million on the finish of July. Of this, the overall worth of the initiatives within the tendering and starting stage amounted to roughly EUR 103 million (EUR 94 million on the finish of June). The gross sales pipeline contains all of the energetic initiatives entered within the firm’s gross sales administration system.
The demand for renewable power, and particularly for genuinely clear, emission-free power, continues to develop when the actions to curb local weather change improve. In line with the Worldwide Vitality Company (IEA), solely the manufacturing of renewable power continued to develop throughout the early a part of the yr regardless of the Covid-19 pandemic. Warmth manufacturing accounted for greater than 50% of the worldwide power manufacturing in 2019. In line with the IEA, solely 10% of this was produced with renewable power. In Savosolar’s estimate, lower than three per cent of the worldwide thermal power was produced with clear modes of power manufacturing in 2019.
To be able to additional step up its local weather actions, the European Union has determined that 30% of its multi-annual funds and assist instrument for restoration from the corona disaster for 2021-2023, totalling roughly EUR 1,800 billion, can be used for local weather actions to strengthen the EU Inexperienced Deal programme.
In our estimate, the Covid-19 pandemic has induced delays within the funding choices of sure industrial prospects. The Covid-19 scenario and potential new restrictions might additional postpone consumer funding choices and deliveries, and we search to arrange for the potential results of the pandemic scenario on our enterprise.
Our working end result for January–September was EUR -2.6 million. The online end result for the reporting interval additionally improved to EUR -1.0 million. The improved end result was because of the improve in quantity in addition to the measures taken to enhance our inner effectivity. We’ll proceed our decided efforts to extend gross sales and to enhance our inner effectivity in the direction of worthwhile enterprise.
According to our technique, we’ve continued to construct our worldwide associate community. After the reporting interval, in October, we signed an settlement with a German firm named Citrinsolar GmbH on cooperation within the sale and supply of huge photo voltaic thermal programs in Germany. In October, we additionally signed a cooperation settlement on the illustration of our merchandise with a Polish firm named Eko Ekon. Our goal is to conclude the primary photo voltaic thermal system supply contract to Poland throughout 2021.
In Asia, cooperation with the Chinese language firm Guangzhou Energy Provide Co., Ltd. superior after the Covid delay within the spring. The target is to construct a renewable thermal power system in Nansha, Guangzhou as a part of the China-Finland Vitality Programme. The venture has superior to the tendering stage, and if we win the aggressive tendering, the target is that an settlement is reached on the execution of the venture throughout 2020.
Savosolar is strongly dedicated to the battle in opposition to local weather change by offering aggressive and high-quality expertise for the manufacturing of genuinely clear thermal power on a big scale. Our strengths embody superior collector expertise, sturdy references and skill to implement programs on a turnkey foundation that exceed the consumer’s expectations. In the marketplace, we’re famend as an progressive and reliable operator, who helps its purchasers to realize their environmental targets as cost-effectively as potential.”
COMPARISON BY REPORTING PERIOD (FAS, unaudited)
|Income||1 659||96||1 624.2||3 702||1 776||108.5||3 415|
|-847||-1 252||32.3||-2 564||-3 584||28.5||-4 999|
|Revenue/loss for the interval||-969||-1 294||25.1||-3 533||-4 608||23.3||-6 760|
BUSINESS PERFORMANCE IN JANUARY–SEPTEMBER 2020
Savosolar’s income for January–September elevated by 108.5 per cent and amounted to EUR 3.7 million (January–September 2019: EUR 1.8 million). The income for July–September elevated by 1 624 per cent and amounted to EUR 1.7 (0.1) million.
The photo voltaic thermal system and warmth storage delivered to Fernwärme Ettenheim, Germany, had been commissioned in July and handed over to the consumer after the reporting interval in October. The worth of the system is EUR 0.8 million, and it was Savosolar’s first supply to Germany. The handover of the photo voltaic thermal system to Kyotherm Photo voltaic in Issoudun, France, is estimated to happen by the top of this yr. The photo voltaic thermal system in Creutzwald, France, may also be handed over to the consumer throughout 2020.
Savosolar’s working end result (EBIT) for January–September 2020 amounted to EUR -2.6 (-3.6) million. The end result for January–September was EUR -3.5 (-4.6) million. The third quarter working end result was EUR -0.8 (-1.3) million and the end result EUR -1.0 (-1.3) million.
The beneficial improvement of enterprise efficiency was because of the development in gross sales in addition to the event measured taken to enhance inner effectivity and the financial savings attained in personnel prices. Owing to the Covid pandemic, the corporate laid off on short-term foundation 22 individuals on a part-time or full-time foundation in April–June following the completion of the statutory co-operation negotiations. Moreover, in September, the corporate determined to put off 21 individuals for a most of 90 days. On the finish of September, Savosolar had 35 workers. Total, the corporate calculates that it’ll obtain roughly EUR 0.2 million in financial savings by the top of 2020 by means of the short-term layoffs and the administration wage reductions determined within the third quarter.
The French firm Sunti SAS has alleged that Savosolar has acted in opposition to the unique rights clause within the contract between the 2 corporations and claims for a complete compensation of roughly EUR 2.0 million from Savosolar. The primary oral listening to between the events earlier than the industrial courtroom of justice in Montpellier can be held on 9 November 2020. As already acknowledged earlier, Savosolar considers Sunti’s declare for alleged breach of contract and declare for compensation to be with none advantage.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
On 14 October 2020, Savosolar introduced having signed a cooperation settlement on the illustration of its merchandise with a Polish firm named Eko Ekon. On 21 October 2020, Savosolar introduced having signed a cooperation settlement with Citrinsolar GmbH on the sale and supply of huge photo voltaic thermal programs in Germany.
Board of Administrators
CEO Jari Varjotie
Cellphone: +358 400 419 734
Savosolar in short
Savosolar with its extremely environment friendly collectors and large-scale photo voltaic thermal programs has taken photo voltaic thermal expertise to the subsequent degree. The corporate’s collectors are geared up with the patented nano-coated direct stream absorbers, and with this main expertise, Savosolar helps its prospects to supply aggressive clear power. Savosolar’s imaginative and prescient is to be the first-choice provider to excessive efficiency photo voltaic installations on a worldwide scale. Focus is on large-scale functions like district heating, industrial course of heating and actual property programs – market segments with an enormous potential for speedy development. The corporate primarily delivers full programs from design to set up, utilizing the most effective native companions. Savosolar is called essentially the most progressive firm within the enterprise and goals to remain as such. Savosolar’s shares are listed on Nasdaq First North Progress Market Sweden with the ticker SAVOS and on Nasdaq First North Progress Market Finland with the ticker SAVOH. www.savosolar.com.
The Firm’s Licensed Adviser is Increase Companions AB, email@example.com, tel. +46 8 505 65 172.