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) | ||
| | | | | | | | |
| At 30 June 2023 | 834,771 | 16,479,150 | 2,910,866 | 24,663 | (20,188,163) | ||
|
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 | ||
| | | | | | | | |
| At 31 December 2023 | 834,771 | 16,479,150 | 2,910,866 | (58,488) | (19,901,376) | ||
| 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 | - | - | - | ||
|
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) | ||
| | | | | | | | |
| At 30 June 2024 | 985,971 | 21,203,127 | 2,910,866 | (76,152) | (20,148,553) | ||
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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