May 27. () –
Soltec’s auditor, EY, has warned of “a material uncertainty that may cast significant doubt” on the group’s ability “to continue as a going concern.”
In the audit report prepared on the occasion of the annual report of the group’s 2023 accounts sent to the National Securities Market Commission (CNMV), EY draws attention to a credit policy with a limit of 90 million euros, arranged in almost its entirety at the end of fiscal year 2023, formalized with a syndicate of financial entities with the aim of financing their specific supply and installation projects for the industrial segment expired on February 11 and renewed until May 31.
In this sense, he points out that the group’s management is in negotiations with financial entities to reach an agreement to renew this policy before the end of this month.
Likewise, the auditor includes in his report an emphasis paragraph regarding the reformulation of its accounts that the company had to carry out due to differences with EY.
REFORMULATION OF ACCOUNTS FOR 2023.
On April 1, when the market was closed for a holiday, Soltec proceeded to reformulate its 2023 annual accounts, with respect to the results communicated to the market at the end of February, due to a difference with its auditor regarding the criteria temporary recognition of income to stop recording in the year for a total of 192 million euros for the supply of solar trackers, together with their corresponding costs in the amount of 144 million euros.
With this new formulation of its accounts, the group recognized 395 million in consolidated income, an adjusted gross operating result (Ebitda) of 10.4 million euros at a consolidated level and net losses of 23.4 million euros, compared to the 11.7 million euros of profits that it had reported at the end of February.
Soltec assured that, although it did not share the auditor’s criteria, it had chosen to accept the requested adjustments, since it understood that this was “the most beneficial option to safeguard the interest of the company and its stakeholders.”
In a conference with analysts the next day, the company’s directors stressed that the difference was only “a financial problem” and that it would have no impact on the group since its net financial debt remained in the same situation.
In addition, they estimated that sales figures in the tracker business would be higher for this year due to the recognition of those revenues for this year, although they indicated that they will provide more details of the group’s guidance “in a few months.”
The manufacturer of solar trackers had published its results for the 2023 financial year at the end of February – after approval by the board of directors, following a favorable report from the audit committee -, including the aforementioned income and expenses.
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