(MENAFN- ProactiveInvestors)Shares in clean energy and home improvement group Entu (LON:ENTU) plummeted after it ditched its loss-making solar business and issued a profit warning for 2015. Shares dropped 29% to 65.3p as the company estimated it will lose more than £2mln from its solar activities this year compared to a budgeted profit contribution of £1.6mln. Having had difficulties with its solar division in the first half of the year an upturn in the historically stronger months of July and August did not materialise the company said. Entu also said it expects the market environment for solar to become more difficult due to a possible rise in VAT for solar products from 5% to 20% and a proposal substantially to reduce feed-in tariffs from next January. Ian Blackhurst chief executive said: 'The prospects for our solar business have deteriorated dramatically over the last six months and we have taken a decision which I have no doubt will be seen to be correct. 'However we have disappointed our shareholders and I can only assure them that we are entirely focused on restoring earnings dividends and shareholder value."
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