Solar Integrated Technologies

LA-based SIT designs and makes solar electric roofing products with exciting commercial/ industrial applications. Its 'photovoltaic' roofing systems are wired to buildings' electrical systems, keeping out the elements and turning the roof into an electricity-producing asset. SIT successfully boosted its European profile with a KBC Peel Hunt-handled institutional placing at 171p, and its shares raced to a healthy premium on first day's dealings. Some 7.2m shares were placed, raking in £12.3m of new money for the company, steered by 'oddball Eurocentrics' Edward Stevenson and Bruce Khouri. The duo have already demonstrated the success of SIT's model in the US, and want to replicate that progress in Europe. Among other things, the cash will beef-up capacity at the currently constrained LA site, where it can quadruple production by spending $1.5m, and also help SIT make a push into Europe, where the renewable energy market is five times the size of the US, and ten years ahead in terms of regulation. 'Our contracted order book is very strong,' claims CEO Stevenson, 'with approximately $74m (£41m) of forward contracts booked, of which $53.8m (£30.4m) is scheduled for delivery this financial year.' SIT only started manufacturing last June, and in the period to December made a $131,000 (£74,113) pre-tax profit on $8.3m (£4.7m) sales. SIT could prove a speculative way to play the renewable energy source market.

Sector: General Industrials

Companies: Solar Integrated Technologies

PE Forecast: n/a

Share price: 187.5p

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