Mears has withdrawn from the solar photovoltaic market in the wake of the government decision to halve the Feed-in Tariff from December.
The housing maintenance contractor told the Stock Exchange today that it was writing off £2 million it had spent on site set-up, system design and installation for solar panels.
It said in an interim management statement that the move to slash the income available to property owners through solar energy had removed its market for the equipment.
The statement said: “Since the decision to substantially reduce the PV FiT, and more importantly to bring forward the effective date, the board has been evaluating the business case for PV and conclude that the prudent course of action is to cease these activities immediately, as the commercial attractions that led us to explore the PV space, in the short term, no longer exist.”
It added: “As a direct result, operating profit is likely to fall short of our previous expectations in the region of £2.8m for the current year.”
Mears has a group order book of £2.7bn with 95 per cent of current consensus forecast 2011 revenues secured, along with 85 per cent for 2012 and 70 per cent for 2013.
The group bid pipeline remains in excess of £3bn.