Capital Stage posts 54% boost, forecasts sunny future

An expansion of its investor base and a move into the French market helped German solar and wind park operator Capital Stage AG increase its net profit last year by nearly 54 percent to €14 million ($19.3 million).

The Hamburg-based renewable energy investment group posted a 26.4 percent boost in revenue to €57 million while operating profit (before interest and tax) rose 54.6 percent to €31.7 million.

The company, which surpassed its earnings targets, said the past financial year was consistently positive primarily due to the successful placement of its so far largest capital increase and subsequent extensive investment.

Capital Stage CEO Felix Goedhart said the group had seen "a tremendous dynamic development" last year.

"We were able to broaden and internationalize our investor base, significantly increase our portfolio and enter into the French market. At the same time we have strengthened the second pillar of our group, the management and technical service of external solar parks. Therefore, we are very pleased with the development of Capital Stage and see a lot of potential for further growth."

Propelling the company’s dynamic expansion was the placement of a €49.3 million capital increase in October. In addition to financing its targeted growth, Capital Stage was able to broaden and internationalize its investor base and ensure the inclusion in the selective SDAX index through the transaction.

In total, Capital Stage acquired solar- and wind parks with a total output of 66 MWp in 2013, resulting in an expansion of its power generation portfolio to 241 MWp as of December.

In addition to acquisitions in Germany and Italy — markets in which Capital Stage had already been active – the company entered the French market with the purchase of two solar projects in the region of Languedoc-Roussillon in December.

The move paved the way for the purchase of further French solar parks, including the largest single investment in the company’s history in March 2014 (after the end of the reporting period) for four solar parks with a combined output of 40 MWp, which increased its portfolio to its current 288 MWp.

Along with the expansion of its solar park portfolio, the company’ Capital Stage Solar Service GmbH subsidiary acquired further service contracts for third-party solar parks, thereby increasing the management and service volume to about 165 MWp.

Looking forward, the company expects a growth in revenue to more than €80 million and a boost in earnings before interest and tax (EBIT) to €40 million and in earnings before tax (EBT) to more than €23 million.