RNS Number : 8567D
Windar Photonics PLC
12 September 2024
 

 

12 September 2024

Windar Photonics plc

 

("Windar", the "Company" or the "Group")

 

Un-audited Results for the 6 months ended 30th June 2024

 

and

 

Update on current trading and sales development activity

 

 

Windar Photonics plc (AIM: WPHO), the technology group that has developed its WindEye and WindTimizer LiDAR wind sensors and its related 'Nexus' software suite designed to efficiently and cost effectively increase the power output and reduce lifetime operating costs of electricity generating wind turbines, today announces its un-audited results for the 6 months ended 30 June 2024.  Following the successful, oversubscribed, undiscounted share placing at a premium in April to raise £4.4m (before expenses) to support growth, the Company is pleased to give an update on current trading and on its latest business development activities.

 

Highlights

 

Financial:

·      Revenue for the 6 month period of €2.3m represents 71% growth on prior year revenue of €1.3m, which with a concentration of sales following April 2024 capital raise, is in line with expectation to achieve targeted full year growth. The market will be updated as the expected significant orders are received,

·      Gross margin of 60% (H1 2023: 55%) shows continued progression as first software revenues are reflected,

·      Increase in operating costs reflects scale-up in key strategic functions,

·      H1 2024 EBITDA (before warrant / share-based payments) of €0.1m (H1 2023: €0.3m loss) represents continued progress,

·      Loss for the six month period H1 2024 reduced to €0.3m (2023: €0.4m),

·      Basic loss per share: H1 2024: €0.004ps (H1 2023: €0.006ps),

·      £4.4m (before expenses) raised in April 2024 through oversubscribed equity placing issued at a premium,

·      Cash at H1 2024 of €2.8m (H1 2023:€0.3m) after working capital increases of €2.0m directly attributable to high levels of sales shortly before and after half year.

 

Operational:

·      Successful launch of Windar Nexus software suite, adding further applications and efficiencies for our customers,

·      Significant order with a gross value of US$1.3m delivered to a new customer in the North American market in June, with Nexus software implemented and operational from August,

·      Production capacity in Taastrup manufacturing plant now at targeted levels giving significant capacity for future growth,

·      Weather delayed installations in China in the early part of the year resulted in working capital constraints that have concentrated growth into the period following the April fundraise.

 

Current Trading & Sales Development Activity

·      Orders for delivery in H2 2024 of €3.8m as at June 2024 with pipeline and production capacity in place to meet full year expectations,

·      Order pipeline is increasingly strong with significant trial and repeat orders in North American market expected in H2 2024,

·      Repeat orders predominantly on Vestas V82 turbine platform however multiple trial orders on development platforms such as Senvion and GE, are anticipated across the North American market - thereby further enhancing the Company's prospects for future growth,

·      Continued development activity across China, Japan and Australia in progress on multiple turbine platforms,

·      First installations of Windar's  'Nexus' software platform successfully completed in August 2024 which, with further value enhancing modules in development and testing, gives opportunity for increasing repeat revenue.

 

Strategic Development and Outlook

 

In the first half of 2024 Windar achieved three key milestones:

 

1.   Obtained and delivered a breakthrough $1.3m order in North America - providing a significant foothold in that market

2.   Completed testing and commenced implementation of its Nexus turbine management software - with first site implementation successfully completed in August

3.   Raised £4.4m in an oversubscribed, undiscounted share issue

 

Current sales development with both new and existing customers on Vestas and additional turbine platforms in the North American market gives increasing confidence over the medium to long term opportunity for sales and quality of earnings growth, across all markets globally.

 

The opportunity for further developments in our suite of Nexus turbine performance enhancing software not only introduces new and recurring revenue streams but also supports our accelerating sales development activity, particularly across North America.

 

Following the April fundraise Windar will not be constrained by factors impacting short-term working capital and whilst growth in 2024 will be concentrated in the final 8 months of the year, we remain confident over the full year outcome.

 

With a strong team, an increasingly robust sales pipeline, a strong balance sheet, ongoing successful product development, increased manufacturing capacity and greater supply chain resilience and increasing addressable market the Board looks to the future with confidence.

 

 

For further information, please contact:

 

Windar Photonics plc


Jørgen Korsgaard Jensen, CEO

Gavin Manson

Tel: +45 24234930

 

 

Grant Thornton UK LLP

Nominated Adviser

 

Philip Secrett / Harrison Clarke / Elliot Peters

Tel: +44 (0) 20 7383 5100



Dowgate Capital

Broker


James Serjeant / Russell Cook

Tel: +44 (0) 20 3903 7715

 

 

 


CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2024

 

With sales and orders for 2024 already at 125% of 2023 revenue when we raised £4.4m through an undiscounted capital raise in April 2024, the Company is well positioned to deliver its considerable potential. The funding provided through that capital raise has allowed the company to accelerate its previously somewhat constrained sales and production activity since April. Whilst there is much to be done in the second half of the year to achieve our targets for the year our sales pipeline and production capacity give us confidence. 

 

We are making significant progress both in attracting new customers in North America, and towards expanding new and existing customers onto additional turbine platforms. This, combined with the successful first installations of Windar's Nexus software suite in August leave the longer term opportunity for Windar increasingly exciting.

 

Strategic Development

In the first half of 2024 Windar achieved three key milestones:

 

1.   Obtained and delivered a breakthrough $1.3m order in North America - providing a significant foothold in that market

2.   Completed testing and commenced implementation of its Nexus turbine management software - with implementation successfully completed in August

3.   Raised £4.4m in an oversubscribed, undiscounted share issue

 

Current sales development with both new and existing customers on Vestas installations and in relation to expanding installations onto additional turbine platforms (including GE and Senvion) in the North American market gives increasing confidence over the medium to long term opportunity for sales and quality of earnings growth, across all markets globally.

 

Our active product development now means that the proven 3-4% turbine performance improvement from installation of our WindEye and WindTimizer products will increasingly become an entry level benefit with our Nexus software range providing the opportunity for significantly enhanced turbine performance improvement, data driven maintenance planning and turbine life extension.

 

The opportunity for further developments in our suite of Nexus turbine performance enhancing software not only introduces new and recurring revenue streams but also supports our accelerating sales development activity, particularly across North America.

 

Following the April fundraise Windar will not be constrained by factors impacting short-term working capital and whilst growth in 2024 will be concentrated in the final 8 months of the year we remain confident over the full year outcome.

 

These developments leave the Company with a very exciting opportunity to develop scale and value and the Board are committed to delivering this value, as evidenced both through participation in the recent equity raise and in existing holdings. 

 

 

Six Months to 30th June 2024

In April 2024 we were pleased to announce a $1.3m order marking a new relationship with a significant turbine operator in the North American market. This order was successfully delivered in June with Nexus software implementation completed in August. As well as providing the potential for material further orders this also marked the first revenue from sales of software related services through our Nexus platform.

 

During the six months to 30 June 2024, revenue increased by 71% from €1.3m to €2.3m. With activity prior to the April fundraise constrained by the impact of weather delayed implementations in China on working capital, growth in 2024 will be concentrated in the final 8 months of the year.

 

Goss Margin % (H1 2024: 60%, H1 2023 55%) continuing to progress illustrates the anticipated benefits of increasing volume and of increasingly geographically diverse sales.

 

An EBITDA loss of €0.1m (before share-based payments) marks continued progress from the prior first half loss of €0.3m and with the sales activity anticipated in H2 we remain confident of full year out-turn.  

 

The Group exited the half year with net cash of €1.2m, an increase of €2.7m from the last half years net debt. Working capital movements directly driven by sales activity around the half year increased working capital by €2.0m year on year. We anticipate that short term working capital movements will become less pronounced as the number of deliveries increases and phasing normalises.

 

Board & Employees

 

Recognising that there is much to do for Windar to achieve its full potential it is appropriate to recognize the contribution and dedication of our employees in achieving the key milestones noted above. In particular the development, testing and first implementations of our Nexus software suite has required particular dedication from our development team. This success of this first stage of Nexus software provides a platform for future growth - and the efforts of our team are much appreciated.

 

Outlook 

 

With a strong team, an increasingly robust sales pipeline, a strong balance sheet, ongoing successful product development, increased manufacturing capacity, greater supply chain resilience and increasing addressable market the Board looks to the future with confidence.

 

 

 

 

 

 

David George Lis

Chairman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2024


 

Six months

ended 30 June 2024

 

Six months ended 30

June 2023

 

Year ended 31 December

2023



(unaudited)

(unaudited)

(audited)


Note

Revenue


2,296,781

1,347,072

4,766,484

Cost of goods sold


(907,577)

(607,584)

(2,361,386)

Gross profit


1,389,204

739,488

2,405,098

Administrative expenses


(1,623,482)

(1,155,834)

(2,548,366)

Other operating income

Exceptional (expenses)/income


-

-

16,115

-

32,210

-

Loss from operations


(234,278)

(400,231)

(111,058)

Finance expenses


(30,528)

(87,658)

(240,033)

Loss before taxation


(264,806)

(487,889)

(351,091)

 

Taxation


 

(32,016)

 

117,818

 

168,571

Loss for the period


(296,822)

(370,071)

(182,520)

Other comprehensive income





Items that will or maybe reclassified to profit or loss:





Exchange losses arising on translation of foreign operations


 

(17,664)

 

90,240

 

7,089

 

Total comprehensive loss for the period


 

(314,569)

 

(279,831)

 

(175,431)

 

 

Loss per share for loss attributable to the ordinary equity holders of Windar Photonics plc





Basic and diluted, cents per share

2

(0.4)

(0.6)

(0.3)


CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

 



 

As at 30 June 2024

 

As at 30 June 2023

As at 31 December

2023



(unaudited)

(unaudited)

(audited)


Notes

Assets





Non-current assets





Intangible assets


1,559,198

1,182,304

1,343,361

Property, plant & equipment

Right of use asset


290,531

42,415

191,371

74,260

330,799

56,005

Deposits


40,059

38,837

38,262

Total non-current assets


1,932,203

1,486,772

1,768,427

 

 

 

Current assets





Inventory

3

1,037,619

885,751

718,983

Trade receivables

4

1,265,083

482,310

546,273

Other receivables

4

224,109

217,998

135,088

Tax credit receivables

4

118,999

337,722

151,015

  Prepayments


10,387

93,911

129,551

  Cash and cash equivalents


2,763,637

284,830

152,180

Total current assets


5,419,834

2,302,522

1,833,090






Total assets


7,352,037

3,789,294

3,601,517

 

Equity





Share capital

5

985,971

834,771

834,771

Share premium


21,203,127

16,479,150

16,479,150

Merger reserve


2,910,866

2,910,866

2,910,866

Foreign currency reserve


(76,152)

24,663

(58,488)

Accumulated loss


(20,148,553)

(20,188,163)

(19,901,376)

Total equity


4,875,259

61,287

264,923

 

Non-current liabilities





Warranty provisions

Holiday Allowance provision

Right of use liablility

 

    6

28,160

140,599

-

45,696

135,987

41,134

25,493

138,538

31,711

Loans

6

1,173,230

1,500,663

1,287,697

Total non-current liabilities


1,341,989

1,723,480

1,483,439

 

Current liabilities





Trade payables

7

56,120

358,130

572,234

Other payables and accruals

7

466,501

347,620

472,810

Contract liabilities

Right of use liability

7

7

128,270

43,783

940,956

27,422

251,678

25,648

Loans

7

440,115

330,399

530,785

Total current liabilities


1,134,789

2,004,527

1,853,155






Total liabilities


2,476,778

3,728,007

3,336,594






Total equity and liabilities


7,352,037

3,789,294

3,601,517


CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2024

 


Six months

ended 30 June 2024

Six months

ended 30 June 2023

 

Year ended 31 December 2023


(unaudited)

(unaudited)

(audited)


Loss for the period before tax

(264,806)

(487,889)

(351,091)

Adjustments for:




Finance expenses

30,528

87,658

240,033

Amortisation

48,480

89,622

179,134

Depreciation - property, plant and equipment

Depreciation - right of use assets

34,721

14,091

10,736

-

30,165

28,738

Received tax credit

-

-

237,389

Taxes paid

Foreign exchange difference

-

(17,664)

90,240

-

(1,369)

7,089

Warrants expense

49,645

30,794

99,236


(105,005)

(178,839)

469,324

Movements in working capital




Changes in inventory

(318,636)

(186,515)

(19,747)

Changes in receivables

(807,832)

(113,160)

(94,213)

Changes in prepayments

119,164

(46,051)

(81,691)

Changes in deposits

(1,796)

(9,843)

(9,268)

Changes in trade payables

(516,112)

94,047

308,149

Changes in contract liabilities

(123,408)

(264,575)

(953,853)

Changes in warranty provision

2,663

(82)

(20,285)

Changes in other payables and provision

(6,307)

(103,781)

21,402

Cash flow (used in) operations

(1,757,269)

(808,799)

(380,182)

 

Investing activities




Payments for intangible assets

Payments for tangible assets

(273,893)

-

(192,953)

(97,541)

(493,436)

(254,796)

Grants received

13,967

115,971

165,265


 



Cash flow (used in) investing activities

(259,926)

(174,523)

(582,967)

 

Financing activities




Proceeds from issue of share capital

5,394,280

-

-

Costs associated with the issue of share capital

(519,104)

-

-

Proceeds from new long-term loans

Lease payments

-

(15,534)

-

-

-

(27,348)

Repayment of loans

(203,076)

(15,260)

(52,249)

Interest (paid)/received

(29,168)

(87,658)

(208,757)

Cash flow from financing activities

4,627,398

(102,918)

(288,354)

 

 

Net (decrease)/increase in cash and cash equivalents

 

 

2,610,203

 

 

(1,086,240)

 

 

(1,251,503)

Exchange differences

1,254

(33,003)

(390)

Cash and cash equivalents at the beginning of the period

152,180

1,404,073

1,404,073

 

Cash and cash equivalents at the end of the period

 

2,763,637

 

284,830

 

152,180


INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2024

 


Share Capital

Share Premium

Merger reserve

Foreign currency reserve

Accumulated

Losses

 

Total


At 1 January 2023

 

New shares issued

  834,771

 

             -

16,479,150

 

             -

2,910,866

 

-

    (65,577)

 

-

(19,818,092)

 

-

341,118

 

            -

Share option and warrant costs

-

-

-

-

-

-

Transaction with owners

-

-

-

-

-

-

 

Comprehensive loss for the period

 

-

 

-

 

-

 

-

 

(370,071)

 

(370,071)

Other comprehensive loss

-

-

-

90,240

-

90,240

Total comprehensive income

-

-

-

90,240

(370,071)

(279,831)








At 30 June 2023

834,771

16,479,150

2,910,866

24,663

(20,188,163)

61,287

 

New shares issued

 

-

 

-

 

-

 

-

 

-

 

-

Costs associated with capital raise

-

-

-

-

-

-

Share option and warrant costs

-

-

-

-

-

-

Transaction with owners

-

-

-

-

-

-

 

Comprehensive loss for the period

 

-

 

-

 

-

 

-

 

286,787

 

286,787

Other comprehensive income

-

-

-

(83,151)

-

(83,151)

Total comprehensive income

-

-

-

(58,488)

286,787

(259,680)








At 31 December 2023

834,771

16,479,150

2,910,866

(58,488)

(19,901,376)

264,923

New shares issued

151,200

5,085,736

-

-

-

5,236,936

Share option and warrant costs

-

(361,759)

-

-

-

(361,759)

Transaction with owners

151,200

4,723,977

-

-

-

4,875,177

 

Comprehensive loss for the period

Warrant reserve

 

-

-

 

-

-

 

-

-

 

-

-

 

(296,822)

49,645

 

(296,822)

49,645

Other comprehensive Income

-

-

-

(17,664)

-

(17,664)

Total comprehensive income

-

-

-

(17,664)

(247,177)

(264,841)








At 30 June 2024

985,971

21,203,127

2,910,866

(76,152)

(20,148,553)

4,875,259

 

1. BASIS OF PREPARATION

The financial information for the six months ended 30 June 2024 and 30 June 2023 does not constitute the Groups statutory financial statements for those periods with the meaning of Section 434(3) of the Companies Act 2006 and has neither been audited or reviewed pursuant to guidance issued by the Auditing Practices Board. The annual financial statements of Windar Photonics plc are prepared in accordance with International Financial Reporting Standards. The principal accounting policies used in preparing the Interim financial statements are those that the Group expects to apply in its financial statements for the year ended 31 December 2024 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2023. The comparative financial information for the year ended 31 December 2023 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2023 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for 2023 was unqualified but included a reference to the material uncertainty related to going concern in respect of the timing of future revenues without qualifying their report and did not contain a statement under section 498(2)-498(3) of the Companies Act 2006. After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue operating for the next 12 months. Accordingly, they continue to adopt the going concern basis in preparing the half yearly condensed consolidated financial statements. This interim report was approved by the directors.


2.     Loss per share

 

The loss and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:


Six months

ended 30 June 2024

Six months

ended 30 June 2023

Year ended 31 December

2023


Loss for the period

            (296,822)  

     (370,071)       

(182,520)

Weighted average number of ordinary shares for the purpose of basic earnings per share

 

81,287,870

 

  55,963,110

 

68,361,444

Basic loss and diluted, cents per share

                    (0.4)  

   (0.6)                 

(0.3)

 

There is no dilutive effect of the warrants as the dilution would reduce the loss per share.

 

3.     Inventory


 

As at 30 June 2024

 

As at 30 June 2023

As at 31 December

2023


Raw materials

714,571

770,287

414,160

Work in progress

92,480

115,464

63,355

Finished goods

230,568

-

241,468

Inventory

1,037,619

885,751

718,983

 

 

4.     Trade and other receivables


 

As at 30 June 2024

 

As at 30 June 2023

As at 31 December

2023


Trade receivables

1,265,083

482,310

546,273

Less; provision for impairment of trade receivables

-

-

-

Trade receivables - net

1,265,083

482,310

546,273

Total financial assets other than cash and cash equivalents classified at amortized costs

 

1,265,083

 

482,310

 

546,273

Tax receivables

118,999

337,722

151,015

Other receivables

224,109

217,998

135,088

Total other receivables

343,108

555,720

286,103

 

Total trade and other receivables

 

1,608,191

 

1,038,030

 

832,376

Classified as follows: Current Portion

 

1,608,191

 

1,038,030

 

832,376

 

 

5.     Share capital

 


Number of

shares

 

Shares as 30 June 2023

55,963,110

834,771

Issue of shares for cash

12,398,334

-

 

Shares at 31 December 2023

 

68,361,444

 

834,771

 

Issue of shares for cash

 

12,926,426

 

-

 

Shares at 30 June 2024

 

81,287,870

 

834,771

 

At 30 June 2024, the share capital comprises 81,287,870 shares of 1 pence each.


6.     Borrowings

 

The carrying value and fair value of Group's borrowings are as follows:


Six months

ended 30 June 2024

Six months

ended 30 June 2023

Year ended 31 December

2023


 

Growth Fund Loans (including accrued interest)

 

1,613,345

 

1,831,062

 

1,818,482

Current portion of Growth Fund Loans

(440,115)

(330,399)

(530,785)

Holiday Accruals

140,599

135,987

138,538

Total non-current financial liabilities measured at amortised costs

 

1,313,829

 

1,636,650

 

1,426,235

 

The Growth Fund Loans include two separate loans. All conditions for the loans are unchanged to the position at the end of year 2023.

 

All loans are denominated in Danish Kroner.

 

 

 

7.     Trade and other payables

 


 

As at 30 June 2024

 

As at 30 June 2023

As at 31 December

2023



 



Trade payables

56,120

358,130

572,234

Other payables and accruals

Payables to Directors

362,823

103,678

347,620

-

368,607

104,203

Right of use liability

43,783

27,422

25,648

Current portion of loans

440,115

330,399

530,785

Total  financial  liabilities,  excluding  ´non-

current´ loans and borrowings classified as financial liabilities measured at amortized cost

 

1,006,519

 

1,063,571

 

1,601,477

Contract liabilities

 

128,270

 

940,956

 

251,678

Total trade and other payables

 

1,134,789

 

2,004,527

 

1,853,155

Classified as follows: Current Portion

 

1,134,789

 

2,004,527

 

1,853,155

 

There is no material difference between the net book value and the fair values of current trade and other payables due to their short-term nature.

 

8.     Availability of Interim Report

 

Copies of the Interim Report will not be sent to shareholders but will be available from the Group's website www.investor.windarphotonics.com.

 

 

 

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