PowerFilm, the US-based developer of thin flexible solar panels, says that its market position has improved because of the exit of a number of competitors from the market.
This is expected to enable PowerFilm, which also develops roll to roll flexible electronics, to win higher orders in the second half of 2012.
PowerFilm expects to make a net loss of just over $1 million in the six months to June 2012, which is three times the level in the first half of 2011. Revenues should be between $4 million to $4.2 million, slightly lower than the $4.5 million reported in the first halves in 2011 and 2010.
Costs are being reduced so that the loss can be reduced and these cost reductions will show through in the second half. Chief operating officer Tim Neugent is leaving the company.
PowerFilm still has net cash but the share price has fallen to a 12-month low. There was $7.18 million of cash at the end of 2011, plus an additional $6.85 million held for property construction. There was also $4.13 million of debt. There will have been a cash outflow in the first half but the balance sheet remains strong and the cost cutting should reduce the cash outflow in the second half.
Market: AIM
Symbol: PFLM
Price: 11.5p
12-month high/low: 11.5p/13.5p
Market cap: £4.09 million
