Holaluz auditor EY now sees ‘uncertainty’ in Soltec
EY, which has already forced Soltec to submit new accounts with multimillion-dollar losses, warns in its audit of loans that are weighing on the group.
HELLO, auditor who illuminated the difficult situation Holaluz was experiencingone of the symbols of new players in the electricity and renewables sector, also warns of “uncertainty” in the audit report prepared by Sol.tec, another of the new groups emerging during the green energy boom.
This is a warning regarding “significant uncertainty associated
HELLO, auditor who illuminated the difficult situation Holaluz was experiencingone of the symbols of new players in the electricity and renewables sector, also warns of “uncertainty” in the audit report prepared by Sol.tec, another of the new groups emerging during the green energy boom.
This is a warning regarding “material uncertainty regarding going concern.” EY draws attention to the credit policy with a limit of 90 million euros, used in full and issued by a syndicate of entities to finance the company’s activities. This policy expired on February 11th. Soltec, a group specializing in photovoltaic equipment and development, has already announced that the deadline has been extended until May 31. negotiate a new agreement with the banks. So far, Soltec has not announced the conclusion of a loan novation agreement, its temporary extension or the economic volume.
EY warns that this development “may cast significant doubt on the group’s ability to continue as a going concern.”
This call for attention is added to EY’s “emphasis paragraph” regarding the new financial presentation that Soltec was due to deliver in February and April last year, following discrepancies with this auditor.
The reason for the discrepancies was the way revenue was recorded for some contracts. This new presentation meant that where Soltec said it had injected 587 million, it was in fact recorded at 395 million. Instead of EBITDA of 56.5 million they were 10.4 million. Soltec finally posted a negative net result of 23.4 million – the highest in the history of the group, which went public in 2020. The figure contrasts with a profit of 11.7 million euros announced a few weeks earlier.
Soltek, based in Murcia, plans to release first-quarter 2024 results on June 18. A meeting will be held on June 26, at which, among other things, it will be proposed to appoint Mariano Berges del Estal as executive director, a step prior to his appointment as CEO. Berges will take over the functions currently held by Raul Morales, President and Founder.