Social housing firm writes off 拢2m in investment after slash in FiT makes PV commercially unviable
Mears has cut its profit forecast following the government鈥檚 decision to half the feed-in tariff for solar photovoltaics.
The social housing business said it would cease activities in the PV market immediately after it concluded that the commercial benefits of PV no longer existed.
Real-time Share PriceChief executive David Miles slammed the government鈥檚 decision to cut the tariff in a statement to the stock exchange. He said: 鈥淭he Government鈥檚 recent proposals to reduce the PV feed-in tariff are disappointing. It is unfortunate that we have wasted both time and resource in this area over the past six months.鈥�
The firm said it would write off 拢2m already invested in its PV business. As a result Mears revealed that operating profit was now likely to fall short of previous forecasts of around 拢2.8m.
In an interim management statement the group said its order book had grown to 拢2.7bn. The group refinanced its debt in September securing a 拢120m debt facility.
No comments yet