UPDATE 1-Solar Integrated sees strong growth in '08

Mon Mar 31, 2008 8:32am EDT

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LONDON, March 31 (Reuters) - London-listed U.S. solar roofing company Solar Integrated believes it can double in size this year, after more than 100 percent growth in 2007, thanks to climate change concerns and a rise in government support.

Los Angeles-based Solar Integrated SITq.L, at whose factory Californian governor Arnold Schwarzenegger recently endorsed presidential candidate John McCain, expects to double revenue and profits in 2008.

The company, which makes roofing with built-in solar panels for larger commercial buildings such as warehouses, counts Tesco (TSCO.L), Carrefour (CARR.PA) and Audi (NSUG.DE) among its customers. It expects the average project size to grow in 2008.

"The sentiment is very strong. After a very attractive growth year with over 100 percent growth, we see another year of up to 100 percent growth," said Chief Executive Randall MacEwen by phone on Monday.

The company is better positioned for growth this year, analysts said, having reduced debt through a debt-for-equity swap and accompanying refinancing at the end of 2007.

The company expects new subsidies in Spain for building-integrated solar panels and the extension of legislation in the U.S. in 2008 to encourage growth. Italy and France will be its biggest European markets in 2008.

On Monday it reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $0.1 million in 2007, versus a loss of $15.6 million the previous year.

Revenue rose 112 percent to $81.1 million, slightly ahead of the company's top-end guidance of $80 million. It expects 2008 revenue to be in the range $140-160 million.

The company's shares were up 0.3 percent at 90.95 pence at 1144 GMT.

"The stock is one of the more attractively priced solar plays," said broker Mirabaud Securities analyst Julian Lakin in a "buy" note with a 90p price target.

The company is looking to build a factory in Europe in 2009, which will be its second plant overall, it said. (Reporting by Chris Wills and Mike Elliott, editing by Will Waterman)