REG - Windar Photonics PLC - New Order, Trading Update and Proposed Placing

Windar PhotonicsAnnouncement

08/04/2024 07:00

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RNS Number : 6486J  Windar Photonics PLC  08 April 2024

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

8 April 2024

Windar Photonics plc

 

("Windar" or the "Company")

 

Significant New Order, Trading Update and Proposed Placing

 

Significant New Order

 

Windar Photonics plc (AIM: WPHO), a technology group that has developed a
LiDAR wind sensor and software suite designed to efficiently and cost
effectively increase the power output of electricity generating wind turbines,
today announces that it has received a significant new order with a gross
value of US$1.27m for delivery to the North American market in the first half
of this year. This initial order opens up the opportunity to secure further
orders from the same customer, which operates a number of additional sites
populated by approximately five times as many V82 turbines as covered by
today's announcement. Given the prominence of this customer, this order should
significantly add to the visibility of Windar in the North American Market.

 

This new order represents the Company's third full wind farm deployment in
North America with Vestas V82 wind turbines to be equipped with the Company's
Windar WindEye / WindTimizer optimization solution. Approximately 10% of the
order value is attributable to software related income derived from the
recently launched Windar Nexus software suite which the Company believes has
been integral to winning and enabling this order. This is the Company's first
revenue from software as it seeks to expand its offering further by selling
not only upfront software licenses but also additional turbine performance
improvement software-related services.

 

Jorgen Korsgaard Jensen, CEO, commented: "I am delighted to announce this
order from a new customer and a new site of Vestas V82 wind turbines located
in the North American market. Our new customer operates additional U.S. sites
and I am optimistic that the successful execution of this installation could
lead to future orders from the same customer for our LiDAR product and
software solutions. This new order also makes history for the Company as it
records its first revenue stream from software sales.  I look forward to
continued progress as we seek to expand our offering further by selling not
only upfront software licenses but also additional performance
software-related improvement services."

FY 2023 Trading Update and Current Trading

The year ended 31 December 2023 closed (based on unaudited figures) with
revenue of c.€4.8m, reflecting growth of over 150% on the prior year's
revenue of c.€1.9m in spite of being impacted negatively by currency
fluctuations late in the year.  The 2023 EBITDA* of c.€0.4m delivered the
Company's first positive EBITDA* and a conversion of YOY incremental Revenue
to EBITDA* of over 40% from a 2022 EBITDA* loss of €0.8m.

 

67% of 2023 revenue was earned in the final 5 months of the year as sales
conversion and production capacity both showed significant improvements.

 

The Group had cash balances of c.€0.2m as at 31 December 2023, impacted by
the concentration of sales shortly before the year end.

 

The current year ending 31 December 2024 has started strongly, with sales and
orders representing estimated revenue of c.€5.9m (including the significant
new order), already exceeding full year 2023 revenue, and giving the Board
confidence that the full year will see YOY revenue growth of a similar order
to the c.150% YOY growth from 2022 to 2023.

 

(*) full year EBITDA has been adjusted for the exclusion of share-based
payment charges along with depreciation, amortisation, interest and tax from
the measure of profit.

Proposed Placing

The Company is proposing to raise up to £4m (with a minimum of £2m) by way
of a placing (the "Placing") of new ordinary shares in the capital of the
Company (the "Placing Shares") at a price of 35 pence per Placing Share (the
"Placing Price").

The Placing will be carried out by way of an accelerated book build process
and will be announced in due course.

 

The Company has received expressions of interest from certain directors and
other interested investors to participate in the Placing at the Placing Price
to raise up to £2m (before expenses).

 

The proceeds of the Placing are intended to:

•             Fund the increased working capital necessary for
the Company to fulfil recent contract wins and to meet its growth targets by
taking advantage of the opportunity afforded through potential future demand
for Windar WindEye / WindTimizer systems;

•             Continue research and development, to take
advantage of physical product and software / service related opportunities;

•             Develop the Company's sales and marketing
capability and activity in order to deliver the growth opportunity; and

•             Strengthen the Company's balance sheet, pivoting
the Company into a stronger operating position.

 

 Windar Photonics plc
 Jørgen Korsgaard Jensen, CEO
                                              Tel:  +45 24234930

 WH Ireland Limited (Nomad & Broker)
 Hugh Morgan / James Bavister / Isaac Hooper
                                              Tel:  +44 20 7220 1666

 

About Windar Photonics

 

Windar Photonics plc is a technology group that has developed 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.

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