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Solco expects record FY11 pre-tax net

Solco expects record FY11 pre-tax net

Solar technology wholesaler Solco (ASX:SOO) is forecasting a record FY11 pre-tax profit of nearly $3.6 million.

The company is also estimating revenue of $52 million, up over 50% from FY10.

Solco chairman David Richardson attributed the anticipated result to growing demand for solar products and the signing of several exclusive distribution agreements over the financial year.

These include a deal with international solar pump manufacturer Lorentz entered into in January, which resulted in the establishment of a national sales and marketing team to grow Solco's solar pumps business.

“As the price of solar panels and components continue to fall rapidly at the same time as the cost of electricity generated by traditional means is rising... a sustainable market for residential and commercial photovoltaic solar systems is becoming a nearer-term reality,” he said.

The company expects growth in demand to continue in FY12, but warned that the Government's reduction of the multiplier under the Renewable Energy Target scheme may “inject some uncertainty into the solar power sector at the start of the new financial year.”

But Solco said it is pursuing a range of opportunities expected to produce results contributing to revenue and profit for the year.

SOO shares spiked 11.11% in Wednesday's trading to $0.100.

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Tags renewable energyGuidanceSolcoDavid RichardsonLorentzASX:SOO

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