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Solco expects $1.7m NPAT for H1 2010

Solar power wholesaler and distributor Solco Ltd expects a half-year net profit after tax between $1.5 million and $1.7 million for the six months to December 31, 2009, up from $475,000 for the same period in 2008.

Turnover is expected to be between $14.5 million and $15.5 million, up from $11.4 million.

MD Mark Norman said he was very satisfied with the outcome, given the current uncertainty in the renewable energy sector.

The company expects increased demand but increased competition from cheaper products in the June 2009 half.

"We have been lucky to maintain our volumes to date this year, but there has been significant pressure on

gross profit margins which we expect to continue over the second half of the financial year," Mr Norman said.

The company said the result is part of a turnaround, following a $5.89 million loss in the 2006 financial year, that was led by executive chairman David Richardson.