Entu to close solar energy division
The home improvement company Entu has announced it is closing its solar division because the UK market has become “increasingly difficult”.
The company issued a trading statement today (1 September), which said its solar division had faced numerous difficulties in the first half of the year.
The statement adds that the company’s board expects the “market environment for solar to become increasingly difficult” with the proposed cuts to the Feed-In-Tariff subsidies, which were announced by the Government last week.
According to the company, its solar division is set to lose more than £2m in the current year and the board “does not believe that its solar business is likely to make an acceptable return on investment in the medium term”.
The company will therefore fulfill all current obligations and wind down its solar business “in a controlled manner” with staff being retrained and deployed to other parts of the firm.
“The prospects for our solar business have deteriorated dramatically over the last six months, and we have taken a decision which I have no doubt will be seen to be correct,” said Chief Executive, Ian Blackhurst.
“However, we have disappointed our shareholders and I can only assure them that we are entirely focused on restoring earnings, dividends and shareholder value.”
Jamie Hailstone is a freelance journalist and author, specializing in local government, transport and energy issues