TIDMWPHO
RNS Number : 4423N
Windar Photonics PLC
25 September 2023
25 September 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Windar Photonics plc
("Windar", the "Company" or the "Group")
Unaudited interim report for the six months ended 30 June
2023
Windar Photonics plc (AIM:WPHO), the technology group that has
developed a cost efficient and innovative LiDAR wind sensor for use
on electricity generating wind turbines, announces its unaudited
interim results for the six months ended 30 June 2023.
Financial highlights
-- revenue increased by 220% to EUR1.3 million (H1 2022: EUR0.4 million)
-- gross profit increased by 290% to EUR0.74 million (H1 2022: EUR0.19 million)
-- EBITDA loss reduced to EUR0.27 million (H1 2022: EUR0.74 million)
Operational highlights
-- overall production capacity increased to 80-100 systems per
month, despite supply chain challenges
-- new COO appointed in March to further strengthen the
Company's production and logistics functions
-- relocated its China operations to a new facility in Shanghai
-- completed the test project on a GE 1.6MW platform in North
America, demonstrating a potential increase of 3.2% in its annual
energy production
For further information, please contact:
Windar Photonics plc Tel: +45 24234930
Jørgen Korsgaard Jensen, CEO
WH Ireland Limited Tel: +44 20 7220 1666
Chris Fielding / James Bavister /
Isaac Hooper
Notes to Editors:
Windar Photonics is a technology group that develops
cost-efficient and innovative Light Detection and Ranging ("LiDAR")
optimisation systems for use on electricity generating wind
turbines. LiDAR wind sensors in general are designed to remotely
measure wind speed and direction.
http://investor.windarphotonics.com
The person responsible for arranging the release of this
announcement on behalf of the Company is Jørgen Korsgaard Jensen,
Chief Executive of the Company.
CHAIRMAN'S STATEMENT
The Board is delighted to report that revenue for the first half
year of 2023 increased by 220% to EUR1.3 million (H1 2022: EUR0.4
million).
This was achieved despite revenue in the first 3 months of the
year being negatively impacted by component shortages following the
COVID pandemic and subsequent supply chain issues.
Besides navigating these component shortages during the first
half year, the Company has been focused on increasing the overall
production capacity, both internally and within our supply chain,
and is pleased to announce that overall production capacity when
entering the second half of 2023 has been doubled, since 2022, to
approximately 80-100 systems per month.
The Gross profit for the period amounted to EUR0.74 million (H1
2022: EUR0.19 million), representing a Gross margin of 54.9%
compared to a gross margin in the first half of 2022 of 46.3%. The
increase was predominantly due to a more favorable product and
customer mix, which are expected to continue going forward.
Due to the increased activity level, operational expenses,
excluding amortisation, depreciation and warrant costs, increased
by 7.2% to EUR1.02 million (H1 2022: EUR.96 million), as a result
of which the Company reported a reduced EBITDA loss of EUR0.27
million (H1 2022: EUR0.74 million).
During the first half of 2023 the Board made some strategic
decisions affecting the operational expenses. Firstly, it hired in
March a new COO to further strengthen the performance of the
Company's production and logistics functions. Secondly, in February
the Company relocated its China operations to a new facility in
Shanghai, as a result of which, the Company is better positioned to
serve the growing demand from Chinese customers and in due course
to have the flexibility to establish local assembly facilities.
Project wise the Company completed the previously announced test
project on a GE 1.6MW platform in North America. Overall the test
demonstrated a potential increase of 3.2% in Annual Energy
Production (AEP). Part of the improvement was due to identification
of non-optimal turbine settings. This is an important result for
the Company since it demonstrates the efficacy of our product in
respect of an additional operating platform. The Board estimates
that approximately 15,000 turbines of this type are currently
installed globally.
The Company is currently discussing with this particular client
a roll-out of our Lidar as a Service (LaaS) concept, whereby the
revenue stream from this project will be more consultancy oriented.
This consultancy service does require accurate Lidar-based data, as
the existing wind turbine data was insufficiently accurate.
Financial Overview
Overall, the Group reported increased revenues of EUR1.3 million
(H1 2022: EUR0.4 million) and a reduced net loss of EUR0.37 million
for the period (H1 2022: loss of EUR0.76 million) after
depreciation, amortisation and warrant costs of EUR0.13 million (H1
2022: EUR0.09 million).
Due to primarily the depreciation of the Chinese currency of 6%
against the euro during the first half of 2023, other comprehensive
income amounted to EUR0.09 million (H1 2022: (EUR0.04 million)).
Net equity at the end of the period amounted to EUR0.06 million (H1
2022: ((EUR1.54 million)).
Cash flow from operations produced a net outflow of EUR1.1
million for the period, compared to a net inflow of EUR0.1 million
in H1 2022. Movements in working capital items amounted to a net
outflow of EUR0.6 million for the period compared to a net inflow
of EUR1.2 million in H1 2022.
Outlook
At the start of the second half, the Company had an order
backlog of EUR3.8 million for delivery during the year. However,
current customer delivery schedules for the second half now amount
to approximately EUR5.2 million, of which EUR2.2 million has
already been delivered .
In addition, at the end of August the Company had outstanding
quotations with customers amounting to approximately EUR6.0
million, the vast majority of which are expected to be rolled over
into 2024 in light of the timing of the final order and assembly
capacity.
Regarding the above-mentioned US GE 1.6MW project, this project
was initially planned for a full roll-out in 2023. However, this is
now expected to be transformed into a consultancy contract with
revenue in the order of EUR0.8-1.0 million primarily spread over
2024.
Given the above the Company expects to meet the current market
expectations for 2023 including net revenue of approximately EUR6.5
million - an increase of approximately 260% compared to 2022 (2022:
EUR1.8 million), and an EBITDA result of approximately EUR1.5-1.6
million compared to an EBITDA loss of EUR1.1 million realised in
2022. This would represent a record-breaking revenue for the
Company and its maiden profit.
As the Company expects to see continued growth in China in 2024
a main focus for the second half of 2023 is to increase production
capacity further to approximately 150 systems per month by the end
of the year.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE SIX MONTHSED 30 JUNE 2023
Six months Six months Year ended
ended 30 June ended 30 31 December
2023 June 2022 2022
(unaudited) (unaudited) (audited)
Note EUR EUR EUR
Revenue 1,347,072 420,555 1,853,249
Cost of goods sold (607,584) (225,853) (906,638)
--------------------------- --------------- -----------------
Gross profit 739,488 194,702 946,611
Administrative expenses (1,155,834) (1,047,542) (1,953,607)
Other operating income 16,115 16,129 32,260
Exceptional (expenses)/income - - (89,038)
--------------------------- --------------- -----------------
Loss from operations (400,231) (836,711) (1,063,774)
Finance expenses (87,658) (43,606) (230,734)
--------------------------- --------------- -----------------
Loss before taxation (487,889) (880,317) (1,294,508)
Taxation 117,818 124,997 218,837
--------------------------- --------------- -----------------
Loss for the period (370,071) (755,320) (1,075,671)
Other comprehensive income
Items that will or maybe reclassified
to profit or loss:
Exchange losses arising on translation
of foreign operations 90,240 (37,554) 22,817
--------------------------- --------------- -----------------
Total comprehensive loss for
the period (279,831) (792,874) (1,052,854)
=========================== =============== =================
Loss per share for loss attributable
to the ordinary equity holders
of Windar Photonics plc
Basic and diluted, cents per
share 2 (0,6) (1.4) (1,9)
--------------------------- --------------- -----------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
2023
As at 31
As at 30 As at December
June 2023 30 2022
June
2022
(unaudited) (unaudited) (audited)
Notes EUR EUR EUR
Assets
Non-current assets
Intangible assets 1,182,304 1,215,454 1,196,996
Property, plant & equipment 191,371 1,815 106,983
Right of use asset 74,260 - -
Deposits 38,837 26,601 28,994
------------------------------- --------------- --------------------- --------------------- ----------------------
Total non-current assets 1,486,772 1,243,870 1,332,973
------------------------------- --------------- --------------------- --------------------- ----------------------
Current assets
Inventory 3 885,751 858,407 699,236
Trade receivables 4 482,310 482,310 389,652
Other receivables 4 217,998 16,717 197,496
Tax credit receivables 4 337,722 373,853 218,928
Prepayments 93,911 24,785 47,860
Cash and cash equivalents 284,830 109,533 1,404,073
------------------------------- --------------- --------------------- --------------------- ----------------------
Total current assets 2,302,522 1,671,727 2,957,245
------------------------------- --------------- --------------------- --------------------- ----------------------
Total assets 3,789,294 2,915,597 4,290,218
------------------------------- --------------- --------------------- --------------------- ----------------------
Equity
Share capital 5 834,771 675,664 834,771
Share premium 16,479,150 14,502,837 16,479,150
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve 24,663 (126,248) (65,577)
Accumulated loss (20,188,163) (19,505,475) (19,818,092)
------------------------------- --------------- --------------------- --------------------- ----------------------
Total equity 61,287 (1,542,356) 341,118
------------------------------- --------------- --------------------- --------------------- ----------------------
Non-current liabilities
Warranty provisions 45,696 42,858 45,774
Holiday Allowance provision 6 135,987 131,829 134,734
Right of use liability 41,134 - -
Loans 6 1,500,663 1,318,842 1,690,462
------------------------------- --------------- --------------------- --------------------- ----------------------
Total non-current liabilities 1,723,480 1,361,700 1,870,970
------------------------------- --------------- --------------------- --------------------- ----------------------
Current liabilities
Trade payables 7 358,130 754,981 264,083
Other payables and accruals 7 347,620 758,713 451,402
Contract liabilities 7 940,956 1,048,039 1,205,531
Right of use liability 7 27,422 - -
Loans 7 330,399 534,520 157,114
------------------------------- --------------- --------------------- --------------------- ----------------------
Total current liabilities 2,004,527 3,096,252 2,078,130
------------------------------- --------------- --------------------- --------------------- ----------------------
Total liabilities 3,728,007 4,457,953 3,949,100
------------------------------- --------------- --------------------- --------------------- ----------------------
Total equity and liabilities 3,789,294 2,915,597 4,290,218
------------------------------- --------------- --------------------- --------------------- ----------------------
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHSED
30 JUNE 2023
Six months Six months
ended 30 ended 30 Year ended
June 2023 June 2022 31 December
2022
(unaudited) (unaudited) (audited)
EUR EUR EUR
Loss for the period before tax (487,889) (880,317) (1,294,508)
Adjustments for:
Finance expenses 87,658 43,606 230,734
Amortisation 89,622 83,752 174,792
Depreciation 10,736 - 2,992
Received tax credit - - 265,510
Foreign exchange difference 90,240 (37,554) 22,817
Warrants expense 30,794 8,193 15,927
----------------------------------------- ---------------------- -------------------- ----------------------
(178,839) (782,320) (581,736)
Movements in working capital
Changes in inventory (186,515) (163,439) (4,268)
Changes in receivables (113,160) 844,503 562,504
Changes in prepayments (46,051) 9,170 (13,906)
Changes in deposits (9,843) (203) (2,596)
Changes in trade payables 94,047 81,799 (280,247)
Changes in contract liabilities (264,575) 96,433 253,926
Changes in warranty provision (82) 6,708 9,620
Changes in other payables and provision (103,781) 290,916 (306,832)
----------------------------------------- ---------------------- -------------------- ----------------------
Cash flow (used in) operations (808,799) 383,567 (363,535)
----------------------------------------- ---------------------- -------------------- ----------------------
Investing activities
Payments for intangible assets (192,953) (221,298) (297,540)
Grants received 115,971 130,078 121,019
Payments for tangible assets (97,541) - (107,456)
----------------------------------------- ---------------------- -------------------- ----------------------
Cash flow (used in) investing
activities (174,523) (91,220) (283,977)
----------------------------------------- ---------------------- -------------------- ----------------------
Financing activities
Proceeds from issue of share capital - - 2,393,686
Costs associated with the issue
of share capital - - (258,266)
Proceeds from new long-term loans - 373,055
Repayment of loans (15,260) (184,111) (372,934)
Interest (paid)/received (87,658) (43,605) (124,630)
----------------------------------------- ---------------------- -------------------- ----------------------
Cash flow from financing activities (102,918) (227,716) 2,010,911
----------------------------------------- ---------------------- -------------------- ----------------------
Net (decrease)/increase in cash
and cash equivalents (1,086,240) 64,631 1,363,399
Exchange differences (33,003) 4,354 126
Cash and cash equivalents at the
beginning of the period 1,404,073 40,548 40,548
----------------------------------------- ---------------------- -------------------- ----------------------
Cash and cash equivalents at the
end of the period 284,830 109,533 1,404,073
----------------------------------------- ---------------------- -------------------- ----------------------
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX
MONTHSED 30 JUNE 2023
Share Share Merger Foreign Accumulated
Capital Premium reserve currency Losses Total
reserve
EUR EUR EUR EUR EUR EUR
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
At 1 January 2022
675,664 14,502,837 2,910,866 (88,394) (18,758,348) (757,375)
New shares
issued - - - - - -
Share option and
warrant costs - - - - 8,193 8,193
----------------- --------------- ------------ ------------ --------------- ---------------
Transaction with
owners - - - - 8,193 8,193
----------------- --------------- ------------ ------------ --------------- ---------------
Comprehensive
loss
for the period - - - - (755,320) (755,320)
Other
comprehensive
loss - - - (37,854) - (37,854)
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
Total
comprehensive
income - - - (37,854) (755,320) (793,174)
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
At 30 June 2022 675,664 14,502,837 2,910,866 (126,248) (19,505,475) (1,542,356)
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
New shares
issued 159,107 2,234,579 - - - 2,393,686
Costs associated
with capital
raise - (258,266) - - - (258,266)
Share option and
warrant costs - - - - 7,734 7,734
----------------- --------------- ------------ ------------ --------------- ---------------
Transaction with
owners 159,107 1,976,313 - - 7,734 2,143,154
----------------- --------------- ------------ ------------ --------------- ---------------
Comprehensive
loss
for the period - - - - (320,351) (320,351)
Other
comprehensive
income - - - 60,671 - 60,671
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
Total
comprehensive
income - - - 60,671 (320,351) (259,680)
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
At 31 December
2022 834,771 16,479,150 2,910,866 (65,577) (19,818,092) 341,118
New shares issued - - - - - -
Share option and - - - - - -
warrant costs
----------------- --------------- ------------ ------------ --------------- ---------------
Transaction with - - - - - -
owners
----------------- --------------- ------------ ------------ --------------- ---------------
Comprehensive
loss
for the period - - - - (370,071) (370,071)
Other
comprehensive
Income - - - 90,240 - 90,240
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
Total
comprehensive
income - - - 90,240 (370,071) (344,831)
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
At 30 June 2023 834,771 16,479,150 2,910,866 24,663 (20,188,163) 61,287
------------------ ----------------- --------------- ------------ ------------ --------------- ---------------
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2023
and 30 June 2022 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 2023 and
are unchanged from those disclosed in the Group's Annual Report for
the year ended 31 December 2022. The comparative financial
information for the year ended 31 December 2022 included within
this report does not constitute the full statutory accounts for
that period. The statutory Annual Report and Financial Statements
for 2022 have been filed with the Registrar of Companies. The
Independent Auditor's Report on the Annual Report and Financial
Statements for 2022 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 Six months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
EUR EUR EUR
Loss for the period (370,071) (755,320) (1,075,671)
Weighted average number of ordinary
shares for the purpose of basic
earnings per share 55,963,110 54,595,522 55,963,110
------------------------ -------------------- ----------------
Basic loss and diluted, cents per
share (0,6) (1.4) (1.9)
There is no dilutive effect of the warrants as the dilution
would reduce the loss per share.
3. Inventory
As at 31
As at 30 As at 30 December
June 2023 June 2022 2022
EUR EUR EUR
Raw materials 705,287 489,292 382,027
Work in progress 115,464 71,677 294,852
Finished goods - 297,438 22,357
------------------ -------------------------------------------------- ----------------------- ---------------------
Inventory 820,751 858,407 699,236
------------------ -------------------------------------------------- ----------------------- ---------------------
4. Trade and other receivables
As at 31
As at As at 30 December
30 June June 2022 2022
2023
EUR EUR EUR
---------------------------------------- ------------------- ----------------------- ---------------------
Trade receivables 482,310 1,161,721 389,652
Less; provision for impairment of
trade receivables - (873,289) -
---------------------------------------- ------------------- ----------------------- ---------------------
Trade receivables - net 482,310 288,432 389,652
---------------------------------------- ------------------- ----------------------- ---------------------
Total financial assets other than
cash and cash equivalents classified
at amortised costs 482,310 288,432 389,652
---------------------------------------- ------------------- ----------------------- ---------------------
Tax receivables 337,722 373,853 218,928
Other receivables 205,631 16,717 197,496
---------------------------------------- ------------------- ----------------------- ---------------------
Total other receivables 543,353 390,570 416,424
---------------------------------------- ------------------- ----------------------- ---------------------
Total trade and other receivables 1,025,663 679,002 806,076
---------------------------------------- ------------------- ----------------------- ---------------------
Classified as follows: Current Portion 1,025,663 679,002 806,076
---------------------------------------- ------------------- ----------------------- ---------------------
5. Share capital
Number of
shares EUR
Shares as 30 June 2022 54,595,524 675,664
Issue of shares for cash 1,367,586 159,107
------------------------------ ------------ ---------
Shares at 31 December 2022 55,963,110 834,771
------------------------------ ------------ ---------
Issue of shares for cash - -
------------------------------ ------------ ---------
Shares at 30 June 2023 55,963,110 834,771
------------------------------ ------------ ---------
At 30 June 2023, the share capital comprises 55,963,110 shares
of 1 pence each.
6. Borrowings
The carrying value and fair value of Group's borrowings are as
follows:
Six months Six months Year ended
ended ended 30 31 December
30 June June 2022 2022
2023
EUR EUR EUR
Growth Fund Loans (including accrued interest) 1,831,062 1,721,533 1,847,576
Current portion of Growth Fund Loans (330,399) (534,520) (157,114)
Holiday Accruals 135,987 131,829 134,734
Total non-current financial liabilities
measured at amortised cost 1,636,650 1,318,842 1,825,196
-------------------------------------------------- ----------- -------------------- ----------------
The Growth Fund Loans include two separate loans. All conditions
for the loans are unchanged to the position at the end of year
2022.
All loans are denominated in Danish Kroner.
7. Trade and other payables
As at 31
As at 30 As at 30 December
June June 2022 2022
2023
EUR EUR EUR
Trade payables 358,130 754,981 264,083
Other payables and accruals 347,620 758,713 410,600
Payables to Directors - - 40,802
Right of use liability 27,422 - -
Current portion of loans 330,399 534,520 157,114
---------------------------------- ---------------------------------- ----------------------- ---------------------
Total financial liabilities,
excluding 'non-
current' loans and borrowings
classified as financial
liabilities
measured at amortised cost 1,063,571 2,048,214 872,599
---------------------------------- ---------------------------------- ----------------------- ---------------------
Contract liabilities 940,956 1,048,039 1,205,531
---------------------------------- ---------------------------------- ----------------------- ---------------------
Total trade and other payables 2,004,527 3,096,253 2,078,130
---------------------------------- ---------------------------------- ----------------------- ---------------------
Classified as follows: Current
Portion 2,004,527 3,096,253 2,078,130
---------------------------------- ---------------------------------- ----------------------- ---------------------
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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