These results were reformulated after discrepancies with its auditor PwC, which has demonstrated an exhaustive post-hoc accounting analysis (forensic, in financial jargon) to put in order some of the irregularities it detected and sparked a bitter debate about the accounts.
The company has also announced its intention to strengthen its Corporate Governance and internal control procedures as part of an improvement plan. EiDF has commissioned the selection of a financial director (CFO) and an operations director (COO) to reinforce the management team that will continue to be led by Fernando Romero Martínez, CEO and main shareholder.
In said board of directors that resulted in the annual accounts of EiDF, held on August 12, at a point prior to the formulation of the accounts, the executive director Mercedes Rey submitted her resignation, although she maintains her position as financial director of EIDF in functions.
However, Romero downplays the effects that the adopted changes will have on his accounts. “The considerations made in the Forensic report entail, at most, an adjustment of some two million euros that have been recorded in the Company’s accounts with due legal publicity, an amount that does not even reach 1%. of the global turnover of the Company in 2022, so its impact on the company accounts is practically nil”, he explains.
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In the process of adjusting to the recommendations of a report carried out by Deloitte, the company has taken financial measures to reach a positive working capital of 12.5 million euros to date. As part of this construction, EiDF has revised its consolidation criteria and incorporated various SPVs (photovoltaic investment financial vehicles) into its consolidated report, adopting a more conservative accounting approach by not recognizing income and margins until the sale or production of assets.
In its 2022 annual accounts, EiDF has far exceeded both the results of the previous year and the most optimistic projections of its business plan. With a turnover of 369.6 million euros at the end of the year, the company has exceeded the expectations of its business plan by 23.6% and has achieved a 91% increase in pro forma revenue compared to 2021.
A giant of 1,700 million in the stock market
The aggregate operating result of EiDF Solar stood at 33.76 million euros, which represents an increase of 1.237% with respect to the 2.53 million pro forma of the year 2021. Until the suspension of trading in April, EiDF Solar will had multiplied on the stock market, going from 4.83 euros to 29.76 euros per share. Its market capitalization has skyrocketed to 1,700 million euros, which places it above Ibex 35 values such as Meliá, Indra or Solaria.
At this point, the company began the process of switching from BME Growth (regulated by BME) to the Continuous Market, also managed by BME but regulated by the CNMV. The market change process, the company was immersed in the discrepancies of several firms involved in the scrutiny of its accounting to obtain the approval of the CNMV to list in that market of larger companies.
Deloitte completed its report on July 26, and EiDF adjusted its accounts in accordance with the recommendations. Accounting corrections were made, including an adjustment of 1.7 million euros in group billing due to differences in the degree of progress of certain works. The report also pointed out deficiencies in documentary procedures, which led to the implementation of an action plan to strengthen Corporate Governance and internal control procedures.
