sales up 73% - cash at bank $3.47 million

ASX ANNOUNCEMENT 29.04.2009

SOLCO LIMITED (ASX : SOO)
ABN 27 084 656 691

Re: Solar Photovoltaic sales continue to drive growth

Strong Photovoltaic (PV) System demand resulted in sales to customers of $7.89 million during the 3rd
quarter driving total sales for the fiscal year to date of $19.33 million, a 73% uplift on the comparable
period last fiscal year.
Solco’s continued focus on its core wholesale distribution operations (Choice Electric) as well as
continuing to rationalise non-core business lines has been instrumental in profitable growth and
positive net operating cash flows of $1.04 million for the quarter.
Inventory levels of $4.82 million and cash at bank of $3.47 million allow Solco to continue to provide
and purchase in-demand products to service the needs of our customers within the growth driven
market sector of renewable energy.
Trading conditions, EBIT margin levels and product appeal to Australian consumers were assisted by:
• continuing discounting of international pricing in foreign currency terms for silicon based PV
panels due to reduced European demand;
• modest improvement of AUD$ against other currencies over the quarter, although Solco
operates on a fully hedged basis for major international purchases;
• and government sponsored renewable energy rebate initiatives.
The attractiveness of domestic and commercial solar power installations across Australia will continue
to be enhanced if PV panel prices continue to fall and black energy costs rise further. This situation
may lead to increased competition in the Australian green energy market from new domestic and
overseas entrants, especially in light of current difficulties in other sectors and markets. We believe
Solco is well positioned within the Australian market to take advantage of this expected growth and
combat competitive challenges.
With fallout from the world economic crisis continuing and cohesive long-term government energy
polices across all states yet to be delivered, performance growth can not be assured. However,
Solco’s forward order book and continued projected customer demand continues to be strong.
______________________
Darren Crawte
Company Secretary
29 April 2009

http://www.asx.com.au/asxpdf/20090429/pdf/31h9d0njnxybc0.pdf