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Re: SOO - Solco Limited

SOLCO released their quarterly sales today.

Solco has continued to generate strong sales of $7.38m for the first quarter, showing a 50% increase when compared to the comparative quarter last financial year (although a decrease of 13% to the 30 June 2009 quarter due largely to government delays in releasing the remaining 50,000 pre-approvals for the now finished Solar Homes and Communities Plan's (SHCP) rebate program).
Click to expand...

A bit less than I was hoping for but the market didn't bat an eyelid. Sept seems to be a low quarter for some reason historically. Still on track to generate sales of $35m for the year and support current valuation.

A bit worrying that operating cash flow was negative at -$900K, although the company said it was due to reduction in trade creditors. Otherwise the cashflow would be +$700K. Cash at bank is $3.6m so that seems plenty.
 
Re: SOO - Solco Limited

SOO announcement made on 22 Dec said, for 6m to end of 2009, the turnover guidance is $14.5-15.5m, while NPAT is $1.5-1.7m.

The revenue figures are pretty pedestrian. First quarter sales was $7.4m, so they had a flat Q2 with sales ~$7 to 8m. The Q2 figure was similar to Dec 08 numbers ($7.8m), indicating sales growth is probably rounding out.

The NPAT number however was quite high, considering that FY08-09 the 12 month NPAT was only $1.8m. It will be interesting to see the details of the latest half year profit and see if it contains any one-offs or brought-forward income.

If there are no surprises, full year NPAT of $2.5m should be easily achieved, while $3m is not out of the question. With PE ~12 gives a valuation of ~15 to 18c.

On the technical the chart just looks like a nice little flag with pretty low volume for the last 3 months, and 11c should hold up well base on the above fundamentals.
 
Re: SOO - Solco Limited

Positive quarterly report from SOO. Shares jumped 25% as a result.

Sales in quarter ~$8.5m, but most importantly the free cash flow of almost $3m in the quarter. Compare to -$0.9m in Q1... seems like their cash flow a bit lumpy.

They now have $6m in the bank... should be an interim dividend coming. Half a cent will only cost $1m. Still leaving them with plenty to operate their business.

All earlier analysis remain valid... still eyeing 15c+
 
SOO - Solco and Solaredge announced partnership

May 31, 2010
As a result of close collaboration, Solco and SolarEdge today announced a joint partnership agreement for the supply of a distributed power harvesting solution that will maximize power generation throughout a solar photovoltaic system’s lifecycle, while dramatically reducing complexities and costs.

“Solco welcomes this strategic agreement with Solaredge, who has proven to be a reliable and committed partner,” said Mark Norman, CEO and Managing Director of Solco Ltd. “Our partnership reflects the intensive quest by both companies to create highly efficient and cost-effective PV systems. The combination of SolarEdge technology and Solco’s technical expertise will significantly enhance the energy output of solar power systems installed in Australia. We expect customer response to be immediate, demonstrating the viability and effectiveness of this collaboration, and the abilities of this new solution.”

The SolarEdge power harvesting solution includes PowerBoxes, which are PV module-integrated power optimizers, solar PV inverter, and solar monitoring software. This unique end-to-end solution enables production of up to 25% more energy from the PV installation, while reducing costs and complexities. The SolarEdge system offers significant improvements over existing solutions, especially in optimizing power output from each module, regardless of adjacent module performance. The SolarEdge solution allows installers and system owners of all system types to benefit from constraint-free design, real-time module-level monitoring, improved maintenance at reduced cost, optimal site-area utilisation, theft prevention mechanisms, enhanced safety and extraordinary reliability, which all contribute to faster return on investment.

http://www.solaredge.com/articles/solaredge_solco_20100602
 
Re: SOO - Solco Limited

SOO deserve to succeed in this genuine green sector and should get a lot more help from Rudd & Co. I would like to see the stock nearer 20c but markets are seeing red in the United States and I doubt SOO can resist this downward trend.
There are stronger companies in somewhat greener sectors who may well see the merits of the company.
Best of good fortune StockExplorer and others invested in Solco Limited - you deserve it.
 
Re: SOO - Solco Limited

New profit guidance on track for profit before tax $3.15m... wouldn't surprise me if they don't need to pay tax from all the accumulated losses, so my earlier estimates turned out to be quite reasonable.

Revenue was $35m - so quarterly turnover of $7-8m is about where they stall.

skc said:
If there are no surprises, full year NPAT of $2.5m should be easily achieved, while $3m is not out of the question. With PE ~12 gives a valuation of ~15 to 18c.
Click to expand...

What is uncertain is what PE the market would like to prescribe for this stock, given the current market conditions.

With 200m shares on issue, EPS is 1.575c. PE 10 gives 15c. Today's jump to 9.8c still only price this stock on PE of 6.2. If the directors were to declare a dividend (say 0.5c or 1/3 of earnings) that might boost the share price somewhat...
 
SOO - Solco Limited

Astronergy Enters Into Exclusive Agreement With Solco Ltd.
08/02/2010

Leading Chinese solar company, Astronergy (also known as Chint Solar), has today announced an exclusive agreement with Solco Ltd., headquartered in Perth, Western Australia. Solco will be the exclusive distributor of Astronergy solar modules for Australia, New Zealand, Papua New Guinea, Nauru, and other Oceania nations, and Astronergy will be the premier Chinese module supplier to the Australian company.

Solco will distribute Astronergy's entire line of solar products, including monocrystalline solar PV, polycrystalline solar PV, and high-efficiency thin film PV. The high quality modules will be used across the complete range of solar applications including PV systems for residences, government and schools as well as larger scale projects.

Increased demand in South West Pacific market and the addition of more sales channels in the region has already made its impact on the companies’ joint effort. It is expected that this year’s shipment volume will be double the original amount outlined in the contract.

Founded in 1989 and listed on the Australian Stock Exchange with offices and distribution centers across Australia, Solco is a well established and rapidly expanding solar systems design, supply and installation service company.

"With our quality panels reaching more customers in the Oceania Region through the trusted solar systems provider Solco, we will have greater access to the developing Oceania market," said Astronergy CEO Dr. Liyou Yang. "This is a win-win situation for both companies."

"We expect that Solco will be able to achieve even greater successes in local markets. Astronergy will work hard to foster long-term cooperation with Solco," noted Chief Sales and Marketing Officer, Mr. Alan Yuan.

Solco's Chief Executive Officer, Mark Norman, believes the partnership with Astronergy will be the cornerstone in securing a reliable supply of quality solar panels for its customers throughout Oceania.

"This agreement with Astronergy will allow us unique access to a growing supply of products from China which will undoubtedly enhance our operations and future development opportunities. We firmly believe this is the opening phase of our strong and expanding relationship with Astronergy and its global parent, the Chint Group."

"Astronergy products consistently achieve an excellent level of quality and performance," said Solco CEO Mark Norman "and we are delighted to announce this Agreement."

http://www.astronergy.com/press_detail.php?news_id=51
 
Re: SOO - Solco Limited

Well done Solco with an ASX announcement at 5.23pm to give everyone the chance to digest the information. I guess everyone invested from Germany will be staying up to watch the early trades.
 
Re: SOO - Solco Limited

Interesting article here on Lend Lease going into the solar market. Good background reading on the industry in general.

http://www.businessspectator.com.au...-life-for-solar-pd20100806-82SHT?OpenDocument

Will they be a threat to SOO? Or may be they can takeover SOO and get a great instant footprint and knowhow. SOO at market cap of $20m will be soo (sic.) easy to swallow even with takeover premium of 30-50%.

Pure speculation of course...

No change to earlier analysis... NPAT of $3m and PE of 10 => 15c per share target. Full year release in a couple of weeks. Let's see if they get some love from the market then.
 
SOO - Solco Limited - RECORD REVENUE AND PROFIT GROWTH

ASX Announcement
31 August 2010

RECORD REVENUE AND PROFIT GROWTH

Solco Limited (ASX: SOO, “Solco” or “the Company”) is pleased to announce a record profit before tax of
$3.29 million for the 2010 financial year – an increase of 84% over 2009, coupled with a record revenue of
$34.5 million. It exceeded the $3.15 million profit forecast provided in July 2010 by 4.5% and is the second
consecutive year of profit growth following the re-structure of Solco’s Board and Senior Management team
in the 2008 fiscal year.
“This outstanding result demonstrates Solco’s ability to maintain robust growth while preserving strong
operating margins in the face of significant business challenges” said Mark Norman CEO. “It is the result of
dedication and focus by our national team and underpins our strategic plan for future growth. To support this
growth, the Company’s national network continues to expand with the recent securing of office and
warehouse premise in Melbourne, which will be operational in September.”

complete report :
http://www.asx.com.au/asxpdf/20100831/pdf/31s6t0xzsb2dy1.pdf

see also :

31/08/2010 Preliminary Final Report
http://www.asx.com.au/asxpdf/20100831/pdf/31s6sl4bsfpmkk.pdf

31/08/2010 Annual Financial Report
http://www.asx.com.au/asxpdf/20100831/pdf/31s6tl2lpyq8w4.pdf
 
Re: SOO - Solco Limited

Profit as per expectation, but market not willing to give the valuation it deserves.

NPAT $4.8m actually higher than Profit before tax thanks to some tax credits.

Using the before tax figure, $3.29m at PE 10 gives market cap of $33m or 16.5c. Currently the stock trades at PE of 6.4.

It's a shame they decided not to pay any dividend, although they can afford to looking at their financials. Cash on hand > $6m. A 0.25c dividend would only cost $0.5m.
 
Re: SOO - Solco Limited

skc said:
It's a shame they decided not to pay any dividend, although they can afford to looking at their financials. Cash on hand > $6m. A 0.25c dividend would only cost $0.5m.
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I would be VERY concerned if I were a shareholder in a small company with growth aspirations, and that company began to pay out dividends - unless of course that company had more cash coming out if it's ears than it could ever possibly reinvest. Solco does not appear to fit in that category :2twocents
 
Re: SOO - Solco Limited

UBIQUITOUS said:
I would be VERY concerned if I were a shareholder in a small company with growth aspirations, and that company began to pay out dividends - unless of course that company had more cash coming out if it's ears than it could ever possibly reinvest. Solco does not appear to fit in that category :2twocents
Click to expand...

I don't disagree.

But paying out a small amount (like $0.5m from $4.8m NPAT which is only ~11%) can also signal to the market that they are confident of the business prospects and don't need to hold onto all the cash unnecessarily.
 
SOO - Solco Limited : DIVIDEND PAYMENT 0.375 CENTS/SHARE

ASX Announcement 16 November 2010

SOLCO DECLARES DIVIDEND PAYMENT
50% increase on FY2009 dividend payment

Solco Limited (ASX: SOO) is pleased to announce a dividend payment for shareholders of 0.375 cents per share relating to the financial period ending 30 June 2010, following a second consecutive year of record profit and growth.
The Company, an established and profitable solar energy wholesale supplier, will provide shareholders with a total dividend of approximately AUD$750,000, a 50% increase on its maiden dividend payment in 2009.

Dividend details
Amount: 0.375 cents ($0.00375) per share
Franked/ Unfranked: Unfranked
Record Date: 26th November 2010
Anticipated payment date: 18 January 2011

Solco’s Chief Executive Officer Mark Norman said he was pleased to continue providing strong shareholders returns.
“We believe this dividend payment reflects Solco’s growing status as profitable company - and a leading entity within Australia’s wholesale solar energy supply sector. In the last financial year we achieved a record 84% increase in profit before tax, and are pleased to reward our shareholders for
their continued support,” said Mr Norman.
“Through the continued growth of our core divisions and the expansion of our national sales network and capabilities, we are currently on track to sustain this growth in the 2011 financial year.”

ENDS

http://www.asx.com.au/asxpdf/20101116/pdf/31txj0y6c5y0kr.pdf
 
Re: SOO - Solco Limited

Looking at the (weekly) chart, it doesn't look too bad.

SOO w 08-12-10.gif

Daily turnover is a bit low; at 200M issued shares, an average 150K volume a day suggests they're "tightly held". Maybe the holders value their company higher than non-holders are prepared to pay?

If the current setup were to play out as an ascending triangle break above 13.5c, 15c resistance should come under pressure, and a target at 18c, maybe higher, might come into view by early 2011. So far, it's a little speccie, but I'll take the challenge and start building a position.

SOO n 08-12-10.gif
 
SOLCO CONFIRMS RECORD PROFIT WITH 2011 FULL YEAR RESULTS

30 August 2011

ASX ANNOUNCEMENT

SOLCO CONFIRMS RECORD PROFIT WITH 2011 FULL YEAR RESULTS

Highlights:

Record revenue of $53.7 million
Revenue growth of more than 56 per cent on the previous year
Record pre-tax profit of $3.6 million
25 year milestone for Group
Industry shift presents upside for Solco

Solco Limited (ASX: SOO) (“Solco” or “the Company”) today released its full year
results, which confirmed earlier guidance of a pre tax profit of $3.6 million for the 12
months to 30 June 2011.

The company’s 56% growth in revenue to $53.7 million was driven by the ongoing
success of the company’s Products division, which wholesales a range of solar
products, and the continued expansion of the company’s Projects and Power Divisions.

Executive Chairman David Richardson said the strong results reflected the advantages
of the Solco business including the company’s national footprint, wide range of solar
products and its strategy of growing the business well beyond the residential market
and into the development of commercial scale solar installations and projects.

“Our strategy is proving successful and it remains unchanged for the coming year. We
will continue to build our wholesale division while increasing our market share of grid-
fed power generation through larger scale commercial installations and build-own-
operate power generation projects through strategic joint venture partnerships,” said Mr
Richardson

“After 25 years in the industry our experience, scale and strategy has given us the
ability to make the most of growth and weather any challenges in the sector. As
Government Solar programs are devolved we anticipate a reduction in the products
consumed by the residential solar market, but with steadily rising power prices and
solar energy coming closer to grid-parity, the time is now right for the commercial PV
market to expand.”

“With our proven business model, the right people, the right relationships, and the right
products and experience, Solco is one of the best positioned solar energy companies
to take advantage of the shift from a domestic to a commercial PV market,” he said.

ENDS

SOLCO*LTD*
ABN*27*084*656*691*
12*Brennan*Way,*Belmont*WA*6104,***P.O.*Box*37,*Welshpool*DC,*WA*6986*
Office:*61‐8‐9334*8100***Free*call*1800*454*161***Fax:*61‐8‐9334*8199**
www.solco.com.au
 
Re: SOO - Solco Limited

http://reneweconomy.com.au/2012/solar-slump-takes-toll-as-market-looks-to-bigger-picture-78721


Solco, a WA-based company, saw its results swing from a profit to a loss of $3.8 million in the half, and it is now predicting a near 50 per cent slump in sales for the year to $27 million from $52 million. But its latest announcement shows the industry is still trying to get to grips with the scale of the slump – the latest revenue forecast is 15 per cent below its prediction of just one month ago.
 
On November 17th, 2015, Solco Limited (SOO) changed its name and ASX code to Go Energy Group Limited (GOE).
 
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