Savo-Solar Plc
Company Announcement            10 February 2017 at 10.10 a.m. (CET)

Savo-Solar publishes preliminary information on its financial performance in 2016 – Savo-Solar is streamlining its Finnish operations and strengthening its sales forces

• Savo-Solar’s preliminary calculations on financial statements for 2016 show that full-year revenue will be approximately EUR 5.4 million, i.e. approximately 164% higher than in 2015. The EBIT margin was improved by approximately 100 percentage points year-on-year.
• Savo-Solar is streamlining its Finnish operations, and starts cooperation negotiations with its personnel due to financial and production related reasons.
• Savo-Solar is strengthening its sales force in Denmark with new recruitments.

Preliminary information on Savo-Solar Plc’s financial performance in 2016: Revenue close to upper range of estimate, operating loss somewhat bigger than estimated

Based on preliminary calculations on financial statements Savo-Solar’s full-year revenue in 2016 will be approximately EUR 5.4 million, i.e. approximately 164% higher than in 2015. The operating loss (EBIT) will be approximately EUR -4.3 million. Therefore, the operating loss as measured in euro will be bigger than in 2015 whereas the operating profit margin will be clearly better year-on-year. The result will be weaker than previously estimated mainly due to acknowledged sales costs of aggressive growth, non-recurring costs connected with the first deliveries of double-glass collectors (approximately half of the decrease) and booking warranty provisions in the P/L statement.

Savo-Solar has in 2016 implemented extensive investments and measures for increased efficiency in production, and these will reflect in the profitability more clearly in 2017.

The company estimated in its half-year report on 12 August 2016 that the company’s full-year revenue would be more than double on the year 2015, i.e. EUR 4.5-5.5 million. The full-year operating result (EBIT) was estimated to be at the same level as in 2015, when it amounted to EUR -3.7 million while the EBIT margin was estimated to be clearly better than in 2015.

Savo-Solar will publish its financial statement release for 2016 on Monday, 6 March 2017.

Savo-Solar is streamlining its Finnish operations and launches cooperation negotiations 

Savo-Solar is adapting its operations to meet with the demand and launches cooperation procedure with the personnel in Finland due to financial and production-related reasons. The negotiations concern possible temporary or permanent layoffs of approximately 35 persons. The sales personnel are excluded from negotiations. 

The order backlog of Savo-Solar has decreased primarily since delivery of the large orders has not been offset by an increase to the same extent at the company’s main market area in Denmark.  Reason for the lower demand during end of the last year was the Danish government’s delayed decision on the energy savings and emission reduction program postponing the project decisions of the energy companies. The decision on the continuation of the program was finally made in late December, subsequent to this the market has started to recover strongly.

Savo-Solar has implemented capacity-increasing investments in coating and in the manufacturing of collectors and improved the efficiency in production with several measures. Furthermore, the focus of customer projects has been shifted to turnkey deliveries including services, and in these the share of collector manufacturing out of the entire business value is relatively smaller.  

Savo-Solar strengthens the sales force in Denmark

Savo-Solar is strengthening its organisation by recruiting Mr. Lars Rossen as Sales Manager for Denmark and Mr. Morten Hofmeister as Head of Projects and System Design. Hofmeister has also been appointed as a member of the management team.

Lars Rossen has 35 years of experience in district heating in Denmark and Germany. He has worked with civil engineering projects in the field of district heating and with energy projects, and thereby he has gathered deep knowledge both in the operation of power stations, consultancy sector, pre-pipe production as well as contracting.

Morten Hofmeister has extensive experience with development and planning of district heating. He has among others worked as department manager and project manager in PlanEnergi, a well-known system design company in Demark. His strong project expertise covers the development of district heating both in Eastern Europe, Western Europe and Denmark.

SAVO-SOLAR PLC

For more information:
Managing Director Jari Varjotie
Phone: +358 400 419 734
E-mail: jari.varjotie@savosolar.fi

Savo-Solar Plc. discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 10 February 2017 at 10.10 a.m. CET.

Savo-Solar in brief
Savo-Solar with its highly efficient collectors and large-scale solar thermal systems has taken solar thermal technology to the next level. The company’s collectors are equipped with the patented nano-coated direct flow absorbers, and with this leading technology, Savo-Solar helps its customers to produce competitive clean energy. Savo-Solar’s vision is to be the first-choice supplier to high performance solar installations on a global scale. Focus is on large-scale applications like district heating, industrial process heating and real estate systems – market segments with a big potential for rapid growth. The company primarily delivers complete systems from design to installation, using the best local partners. Savo-Solar is known as the most innovative company in the business, and aims to stay as such. The company has sold and delivered its products to 17 countries on four continents. Savo-Solar’s shares are listed on Nasdaq First North Sweden with the ticker SAVOS and on Nasdaq First North Finland with the ticker SAVOH. www.savosolar.fi.

The Company’s Certified Adviser is Mangold Fondkommission AB, tel.: +46 8 5030 1550.