Solar panel star PowerFilm plans expansion into the building sector after a ninefold first-half pre-tax profits leap to £950,000.

The Iowa-based thin flexible solar panel maker, which provides equipment for home heating, tracking assets in transport, flat-screen computer monitors, Global Positioning Systems and battery-charging equipment for soldiers’ packs, increased turnover 120 per cent to £2.7 million in the six months to June. Floated on AIM last year by Nomura with a £10 million fundraising at 120p, PowerFilm raised another £7.9 million at 300p in June for accelerated expansion and plans to supply building integrated products for initial demonstration projects later this year.

Frank Jeffrey, the company’s co-founder and chief executive officer, says PowerFilm, which ended June with £6.3 million cash, will now be able to achieve ‘a leading industry position to build our metre-wide production facility to demonstrate the low-cost advantage of our thin-film technology’. Analysts at Ambrian Partners argue the company will remain cost competitive next year after the withdrawal of an element of US subsidy.

Recommended by Growth Company Investor at 120p in May last year, PowerFilm shares hit 480p in July and now stand at 410p, valuing the company at £146.3 million. Partial profit taking might be prudent, while retaining a chunk for future growth potential.

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PowerFilm (Reg S)	AIM	£12.22m	33.00p	0.00p
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