Dyesol sees falling revenues, increased losses

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Dyesol released today an Appendix to its 2013 Preliminary Annual Financial Report, showing that the firm saw increased losses and decreased revenues in 2013. The loss of AUD$9.4 million (US$8.38 million), represents an increase of 6% year-on-year, while revenues decreased by 48%.

The company increased its net loss in 2013 by 6%.

Dyesol is currently attempting to commercialize organic photovoltaic dyes, to be applied to construction materials such as steel and glass. The company refers to the technology as DSC.

The Australian based company was able to attract additional capital in 2013, in the form of $4 million from existing investors and $4 million from Saudi Arabia’s Tasnee. Tasnee is the National Industrialization Company of Saudi Arabi, and its investment in Dyesol was announced in February. Dyesol has been collaborating with Cristal Global, a Tasnee subsidiary, in the UK. Tasnee now has the option to invest a further AUD$16 million (US$14.27 million) in Dyesol.

Documents released today by Dyesol remain light on explanations as to the almost halving revenue, however the company did highlight the reductions in operating costs it was able to achieve. Operating cash usage decreased from $5.8 million in 2012 to $4.3 million.

In the preliminary financial documents, Dyesol indicated that its net assets decreased by $4.1 million in the Australian financial year, largely due to an impairment provision and a goodwill write-down.

Collaborations

Dyesol is continuing to pursue a series of collaborative projects, in an attempt to commercialize its technology. These include a collaboration with Tata Steel in the UK, with Pilkington Glass in the U.S., Timo Technologies in South Korea and Sigma Aldrich in Australia. The Pilkington Glass collaboration is seeking additional funding and Dyesol says that progress has been slow.

In terms of R&D, Dyesol says that the development of its Solid State DSC product, which has been particularly helpful in its Tata Steel cooperation.

Along with the Tasnee potential funding, Dyesol is also pursuing Australian government funding. While the organic PV developer may have enjoyed the patronage of the current Labor government – with former Prime Minister Julia Gillard visiting its headquarters and facilities, in October 2011 – if a conservative government comes to power in the September election, the likelihood of attracting government funds may diminish.

Dyesol’s share price has been slipping in recent years, in March of this year it had halved since September 2011. The company has also parted way with Director and frequent spokesperson Sylvia Tulloch in 2013. Her email account, "is no longer active."

In its closing remarks, Dyesol remained upbeat: "FY 2013 marks an important turning point for Dyesol as our Dye Solar Cell technology proves itself to be an ever more attractive solution for renewable, distributed and sustainable energy generation and our business model proves to be the right approach for profiting from our IP and technological expertise."