PV Crystalox Solar PVCS Interim Management Statement

  PV Crystalox Solar (PVCS) - Interim Management Statement

RNS Number : 3761R
PV Crystalox Solar PLC
19 November 2012




                            PV Crystalox Solar PLC

19 November 2012



                         Interim Management Statement



PV Crystalox Solar PLC ("the Group") announces its Interim Management
Statement, in accordance with the UK Listing Authority's Disclosure and
Transparency Rules, for the period from 30 June 2012 to the date of this
announcement.



Trading conditions remain extremely challenging  due to the vast  overcapacity 
in the PV industry.This oversupply, which originates primarily in China, has
maintained downward pressure on prices across the value chain during the  last 
eighteen months.Spot wafer  prices have continued  to fall and  are now  76% 
below the  level  of  April  2011  and  remain  significantly  below  industry 
production costs.



In response to such market conditions,  the Group adopted a cash  conservation 
strategy 12 months ago  and reduced production  volumes. Shipment volumes  for 
the full year are now expected to be in the range of 100-105MW which is at the
lower end of the 100-120MW range indicated at the time of our interim  results 
on 16 August 2012. While the  Group has maintained its average selling  prices 
significantly above spot levels, the Board continues to expect that the  Group 
will incur an operating loss in the second half of this year.



The Group  continues to  believe in  the positive  long-term outlook  for  the 
photovoltaic industry, but is mindful of the intensely competitive environment
which is likely to  persist in the  medium-term and which  has already led  to 
many  companies   leaving  the   industry,  either   voluntarily  or   through 
insolvency.



The Group  has a  strong  net cash  balance and  the  Board is  continuing  to 
reorganise the Group, to enable the return of cash to shareholders. The Board
expects to make a further announcement before the year end.





Enquiries:



PV Crystalox Solar PLC  +44 (0)
1235 437188

Iain Dorrity, Chief Executive Officer

Peter Finnegan, Chief Financial Officer

Matthew Wethey, Group Secretary



FTI Consulting 
+44 (0) 20 7831 3113

James Melville-Ross

Sophie McMillan

Tracey Bowditch

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


IMSBLBDBXXBBGDL -0- Nov/19/2012 07:00 GMT