Social housing firm writes off £2m in investment after slash in FiT makes PV commercially unviable
Mears has cut its profit forecast following the government’s 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’s decision to cut the tariff in a statement to the stock exchange. He said: “The Government’s 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.”
The firm said it would write off £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 £2.8m.
In an interim management statement the group said its order book had grown to £2.7bn. The group refinanced its debt in September securing a £120m debt facility.