EiDF and BME Growth announced a suspension that began last Friday. This means the company cannot file its 2022 accounts within the legal deadline, which expires on April 30. The situation mirrors a recent case where a company’s listing was halted because its accounts were not signed by the auditor. PwC serves as the current auditor and has confirmed that the 2022 accounts require careful consideration before they can be finalized for market release. In a public statement on Wednesday, EiDF noted that KPMG has been engaged as a financial and accounting consultant to conduct a preliminary assessment of the company’s internal controls. EiDF also acknowledged that PwC’s review of the 2022 audit revealed certain issues that may materially affect the audit report.
With this message, the renewable energy group ends a period of silence that followed the National Securities Market Commission’s (CNMV) temporary halt on its BME Growth listing earlier in the week. The suspension was imposed because PwC declined to sign the financial statements. Previously, the company had been overseen by Crowe, and it will now proceed with PwC’s engagement for the next three years.
The company’s shares of the photovoltaic self-consumption specialist traded at 29.76 euros, up 2.98 percent at the moment of suspension. Its market capitalization rose above 1.7 billion euros. EiDF has experienced substantial gains since entering the market in 2021, turning into the largest company in this index after registering significant valuation increases.
In a market-facing statement, EiDF explained that it conducts internal operations to ensure compliance across accounting, trading, governance, and organizational aspects, aligning with the requirements for listing on Spanish stock markets. The firm emphasized the need to align its consolidated financial statements with the International Financial Reporting Standards (IFRS) as adopted by European Union regulations.
As part of the IFRS adaptation process and during PwC’s audit review, the individual and consolidated 2022 financial statements revealed issues that could expand the scope of audit procedures and potentially influence the final audit report. EiDF stated it is engaging a third party to perform targeted analytical studies on the information underlying the 2022 financial data, using additional verification procedures to ensure an accurate representation of annual accounts. The Board of Directors highlighted that publishing the 2022 financials by the statutory deadline would be impossible.
EiDF also noted it will promptly inform the market about the details of the third-party contract, the results of the analysis, and the completion of the PwC audit process before the 2022 financial statements are released publicly.
meteoric uplift
EiDF Solar was established in 2008 by Fernando Romero, focusing on installing solar panels for industrial clients. Headquartered in Barro, a small town of about 3,500 residents in Pontevedra, the company rose to prominence during the 2010 national photovoltaic expansion, which accelerated its shift toward industrial self-consumption. In 2021, the company expanded its footprint by acquiring ODF Energía, a deal that brought close to 100 million in annual business volume. Through its production, marketing, and installation strategy, EiDF claimed a 19 percent market share and positioned itself as Europe’s leading integrated self-consumption firm. Ownership shows Romero controlling approximately 72.1 percent through Prosol Energía, with smaller stakes held by Alejandro Alorda of the founding Kettal family and Sergio Palmero, founder of ODF.
The company’s ascent to the BME Growth market began with a share price around €4.20 and a market capitalization of roughly €57 million on July 7, 2021. Since then, EiDF’s value surged, surpassing €1.6 billion by 2022 after a dramatic revaluation. The company has been cited alongside major players like Sacyr and Indra in terms of growth trajectory. Looking ahead, the founder envisions sustained market expansion through internal reinvestment and possible capital increases in the vicinity of €150 million, potentially reaching as high as €180 million. Romero has expressed a preference for consolidating growth within Spain before pursuing broader international expansion through at least 2030.