UXC Limited (ASX:UXC) executive chairman Geoff Lord has stated that he is confident the company can improve its fortunes in the second half, after getting out of the renewable energy business.
The business solutions provider posted a $3.2 million profit in 1H10 – a $1.1 million improvement – but the unit which handled its environmental business – FSG – recorded a net loss of $11.9 million.
As a result of the losses and the changing regulatory situation, UXC has decided to halt activities at its Renewable Energy Certificates business and its home insulation programs, Lord said in an Open Briefing.
UXC now expects to avoid a repeat of the losses from FSG in 2H10, Lord said, but added that FSG may record some small operating losses as a result of the fixed costs of investment. The company has meanwhile lowered its revenue forecast to $750 million from $800 million.