REG - Windar Photonics PLC - Half-year Report

Windar PhotonicsAnnouncement

29/09/2021 07:00

RNS Number : 2944N
  
Windar Photonics PLC
  
29 September 2021
  
 

29 September 2021
 
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 2020
 
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 2021.
 
For further information, please contact:
 




Windar Photonics plc
Jørgen Korsgaard Jensen, CEO


Tel:  +45 24234930




 


 




Cenkos Securities plc (Nomad & Broker)
Neil McDonald / Pete Lynch


Tel:  0131 220 6939
 




 
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
 
 
 
CHAIRMAN'S STATEMENT
 
The Company's performance in 2021 showed an improvement from the corresponding prior year period with realised revenue for the first half year of 2021 of €0.31 million, equivalent to an increase of 11% compared to the first six months of 2020 (H1 2020: €0.27 million). Despite this modest growth, the revenue earned continued to be negatively impacted by the ongoing delays seen in end-user projects caused by the Covid-19 pandemic, which include the on/off travel restrictions in place, particularly in Asian markets. 
 
Despite the ongoing impact of the Covid-19 pandemic, the Company saw continued market interest for our products. This interest has been realised with the receipt of orders for a further €0.9 million, primarily customers from the Asian markets. As at 30 June 2021, the Company order backlog stood at €2.2 million, an increase from €1.6 million at the end of year 2020. In addition, further orders have been received since the 30 June 2021, putting the Company in a strong position for future delivery. The order intake is evenly split between sales to the OEM and Retro-fit market segments. 
 
The various cost cutting initiatives implemented during 2020 continued in 2021 and an additional 5% reduction of the total administrative expenses has resulted in achieving a reduced net Loss before taxation of €0.95 million when compared to the same period in the prior year (H1 2020: €1.03 million).
 
During the period, two very important customer test projects were completed with encouraging results. Both tests utilised the Plug and Play WindTimizer turbine integration module including the recently developed on/off (hourly) toggling module, facilitating the precise performance of before/after tests, eliminating any impact of environmental changes during the before/after periods. It is notable that the Windar products are the only Lidar products in the market with such Plug and Play and testing functionality. 
 
The largest of the two test projects was completed at the end of the first half of the year in Asia, where the Company completed a 12 month test project with one of the world's leading IPPs, with an installed capacity of 35GW. The project included five different turbine platforms, with an average turbine size of 2.6MW. Before considering the reduced down time of the wind turbines, the average Annual Energy Production (AEP) was increased by more than 3%, with the results being verified by the IPP technology institute. The Company has received additional minor orders during the period from this IPP but expects to see a larger roll-out as of next year. 
 
The second test project on the Vestas V82 turbine platform in North America, was completed at the end of 2020 and at the beginning of the first half year, the average AEP increase of 3% was verified also by the wind turbine manufacturer. Negotiations have been ongoing and significant orders for two Turbine Parks are expected in the near future. However, these negotiations in which the Company is not directly involved have taken longer than initially estimated and due to timing of eventual orders, these are not likely to be delivered within the current financial year. As Vestas Global Service has endorsed the Vestas/Windar solution as the preferred optimisation solution for the V82 turbine platform, we have initiated activities to address the roughly 4,000 V82 turbines installed globally. Following the successful pilot test customer inquiries have already been received for similar pilot test runs on additional wind turbine parks in North America.
 
Regarding the OEM market segments we have seen some delays in executing the previous received orders; however, during the period the Company has received larger orders from new OEM customers in Asia. The Company expected to see a continued growth in this segment, but timing of deliveries is unclear at the current stage. 
 
Regarding our Lidar as a Service (LaaS) offering, the Company completed one pilot test with a North American customer on five Vestas V90 turbines during the period. Based on our advanced yaw alignment, wind speed and turbulence technologies we were able to demonstrate a potential 3.9% AEP increase by optimizing controller set points regarding the Wind Sector Management and the Nacelle Transfer Function. The Company expects to conclude orders within this market segment in the near future.    
 
As previously announced, our One Unit system platform was successfully launched during the period. During the first half of 2021, our rain intensity detection technology was successfully completed and presented by the Company and The Danish Technology University (DTU) on the Wind Energy Science Conference (WESC 2021) in Hannover, Germany in May 2021. This technology is aimed at reducing leading-edge erosion of the wind turbine rotor blades. The functionality will be fully implemented in all our product platforms from January 2022 as a standard feature. 
 
Within our EUDP funded Licoreim development project, focused on general wind turbine load reductions based on our WindVision™ system, we have seen good progress. The main parties besides the Company in the project are DTU, SiemensGamesa and Mita Teknik. For the retro-fit implementation, we have seen fatigue load reduction potentials of 7-9% in respect of blade and tower loads and expect to implement on a test turbine in Germany within the coming months. 
 
Similarly, we have seen good progress within our Eurostar funded Lawis development project, focused on merging all major optical components into one single component. Besides targeting improved optical performances, this is a key target for further cost optimisations across our product platforms. 
 
Financial Overview
 
Overall, the Group realised revenues of €0.31 million (H1 2020: €0.27 million) and a net loss of €0.86 million for the period (H1 2020: loss of €1.01 million) after depreciation, amortisation and warrant costs of €0.17 million (H1 2020: €0.18 million). 
 
Cash flow from operations produced a net outflow of €0.54 million for the period compared to a net outflow of €0.65 million in H1 2020. 
 
Outlook
 
Due to the delays detailed above, part of the order backlog of €2.2 million as per the end of the first half year is expected to be carried forward into 2022. The Company currently estimates that recognised revenue will grow by 45% to 50% in 2021, compared to the previous year. Despite the recent delays, the Group's cash flow position is constantly being monitored with respect to eventual consequences of orders and project delays. However, management believe that there are a number of actions available to them in order to manage the cash position if needed.
 
In the event that the Company is successful in finalising the aforementioned orders from North America in the near future the order backlog to be carried forward into 2022 is expected to be further strengthened from the position outlined above. In view of the encouraging project pipeline within the LaaS and Asian market segments, the Board believes that the Group is well placed to deliver a significantly improved financial performance in 2022.
 
The above estimates assume no further restrictions in relation to the current pandemic. Any further restrictions would not significantly affect overall order intake but could alter the timing of revenue recognition.
 
 
 
 
 
 
 
 




CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2021
 
  




 


 


Six months ended
30 June 2021


Six months ended 30 June 2020


Year ended
31 December 2020




 


 


(unaudited)


(unaudited)


(audited)




 


Note


€


€


€




 


 


 


 


 




Revenue 


         


305,991


274,752


1,333,956




Cost of goods sold 


 


(147,703) 


(151,445)


(632,586)




 


 


 


 


 




Gross profit 


 


158,288


123,307


701,370       




 


 


 


 


 




Administrative expenses 


 


(1,120,163)


(1,172,592)


(2,183,141)




Other operating income


 


16,136


16,076


32,196




 


 


 


 


 




Loss from operations 


     


(945,739)   


(1,033,209)


(1,449,575)




 


 


 


 


 




Finance expenses 


         


(16,601)


(47,465)


(143,110)




 


 


 


 


 




Loss before taxation 


 


(962,340)


(1,080,674)


  (1,592,685)




 


 


 


 


 




Taxation 


         


100,850


67,194


252,517




 


 


 


 


 




Loss for the period 


 


(861,490)


(1,013,480)


(1,340,168)




 


 


 


 


 




Other comprehensive income


 


 


 


 




Items that will or maybe reclassified to profit or loss:


 


 


 


 




Exchange losses arising on translation of foreign   operations


 


(11,759)


14,932


22,584 




Total comprehensive loss for the period 


 


(873,249)


 
(998,548)


(1,317,584)




 


 


 


 


 




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


 


 


 


 




Basic and diluted, cents per share 


       2 


(1,6)


(2.1)


(2.7)




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
 




 


 


 
As at

30 June 2021


As at

30 June 2020


As at

31 December 2020




 


 


(unaudited)


(unaudited)


(audited)




 


Notes 


€


€


€




Assets 


 


 


 


 




Non-current assets 


 


 


 


 




Intangible assets 


 


1,073,665


1,223,825


1,205,243




Property, plant & equipment 


 


12,120


41,236


27,698




Deposits 


 


25,614


24,957


25,382




 Total non-current assets 


 


1,111,399


1,290,018


1,258,323




 


 


 


 


 




 
 
 
Current assets 


 


 


 


 




Inventory 


3


602,139


1,062,398


636,785




Trade receivables


4


396,752


160,284


429,241




Other receivables


4


157,914


101,863


220,047




Tax credit receivables 


4


353,993


67,303


253,030




 Prepayments 


 


4,743


15,152


14,195




 Restricted cash and cash equivalents


 


-


-


-




 Cash and cash equivalents 


 


78,077


268,174     


626,361




 Total current assets 


 


1,593,618


1,675,174


2,179,659




 


 


 


 


 




 Total assets 


 


2,705,017


2,965,192


3,437,982




 


 


 


 


 




 Equity  


 


 


 


 




 Share capital 


5


675,664


622,375


675,664




 Share premium 


 


14,502,837


14,016,576


14,502,837




 Merger reserve 


 


2,910,866


2,910,866


2,910,866




 Foreign currency reserve


 


(7,805)


(3,698)


3,955




 Accumulated loss 


 


(18,488,434)


(17,337,276)


(17,651,945)




 Total equity 


 


(406,872)


208,843


441,377




 


 


 


 


 




 Non-current liabilities 


 


 


 


 




 Warranty provisions


 


38,509


61,310


38,493




Loans 


6


1,533,259


1,164,431


1,719,825




 Total non-current liabilities 


 


1,571,768


1,225,741


1,758,318




 


 


 


 


 




Current liabilities 


 


 


 


 




Trade payables 


7


736,586


950,015


726,007




Other payables and accruals


7


503,776


188,906


274,202




Invoice discounting


7


-


42,372


-




Contract liabilities


7


110,915


220,274


215,905




Loans


7


188,844


129,041


22,173




 Total current liabilities 


 


1,540,121


1,530,608


1,238,287




 


 


 


 


 




 Total liabilities 


 


3,111,889


2,756,349


2,996,605




 


 


 


 


 




Total equity and liabilities 


 


2,705,017


2,965,192


3,437,982




 
 
 
 




 
 
 
 
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2021
 




 


 


Six months ended
30 June 2021


Six months ended 
30 June 2020


Year ended
31 December 2020




 


 


(unaudited)


(unaudited)


(audited)




 


 


€


€


€




 


 


 


 


 




 Loss for the period before tax


 


(962,340)


(1,080,674)


(1,592,685)




 


 


 


 


 




 Adjustments for:


 


 


 


 




 Finance expenses 


 


16,601


47,465


143,110




 Amortisation


 


127,173


143,254


286,903




 Depreciation


 


15,239


20,640


38,752




 Received tax credit 


 


-


212,570


212,864




 Foreign exchange difference


 


(11,759)


14,932


22,691




 Warrants expense


 


25,000


15,000


27,020




 


 


(790,086)


(626,813)


(861,345)




 


 


 


 


 




 Movements in working capital 


 


 


 


 




 Changes in inventory 


 


34,647


(42,834)


382,779




 Changes in receivables


 


94,622


(66,139)


(453,281)




 Changes in prepayments


 


9,451


29,706


30,663




 Changes in deposits


 


(233)


23


(401)




 Changes in trade payables 


 


10,580


(95,780)


(319,788)




 Changes in contract liabilities


 


(104,990)


150,320


145,951




 Changes in warranty provision


 


16


140


(22,677)




 Changes in other payables and provision


 


209,640


266


62,321




 Cash flow (used in) operations 


 


(536,353)


(651,111)


(1,035,778)




 


 


 


 


 




 Investing activities


 


 


 


 




 Payments for intangible assets 


 


(114,296)


(245,743)


(469,362)




 Grants received 


 


107,200


74,055


(4,449)




 Payments for tangible assets 


 


-


-


174,713




 Cash flow (used in) investing activities 


 


(7,096)


(171,688)


(299,098)




 


 


 


 


 




 Financing activities 


 


 


 


 




 Proceeds from issue of share capital 


 


-


375,714


975,214




 Costs associated with the issue of share capital


 


-


(37,571)


(97,521)




 Proceeds from new long term loans


 


-


-


402,447




 (Reduction) / proceeds from invoice discounting


 


-


40,380


(1,992)




 (Decrease)/ increase restricted cash balances


 


-


-


-




 Repayment of loans


 


-


-


(5,171)




 Interest (paid)/received


 


(16,601)


(47,465)


(74,357)




 Cash flow from financing activities 


 


(16,601)


331,058


1,198,620




 


 


 


 


 




Net (decrease)/increase in cash and cash equivalents 


 


(560,050)


(491,741)


(136,256)




Exchange differences


 


11,766


(3,109)


(407)




Cash and cash equivalents at the beginning of the period 


 


626,361


763,024


763,024




Cash and cash equivalents at the end of the period 


 


78,077


268,174


626,361




 


 


 


 


 




 
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS
ENDED 30 JUNE 2021




 


Share

Capital


Share

Premium


Merger reserve


Foreign currency reserve


Accumulated Losses


Total




 


€


€


€


€


€


€




At 1 January 2020
 
New shares issued


608,689
 
13,686


13,692,119
 
324,457


2,910,866
 
-


(18,630)
 
-


(16,338,796)
 
-


854,248
 
338,143




Share option and warrant costs


-


-


-


-


15,000


15,000




Transaction with owners


13,686


324,457


-


-


15,000


353,143




 


 


 


 


 


 


 




Comprehensive loss for the period


-


-


-


-


(1,013,480)


(1,013,480)




Other comprehensive loss


-


-


-


14,932


-


14,932




Total comprehensive income


-


-


-


14,932


(1,013,480)


(998,548)




 


 


 


 


 


 


 




At 30 June 2020


622,375


14,016,576


2,910,866


(3,698)


(17,337,276)


208,843




 


 


 


 


 


 


 




New shares issued


53,289  


583,782


-


-


-


637,071




Costs associated with capital raise


-


 (97,521)


-


-


-


 (97,521)




Share option and warrant costs


-


-


-


-


12,020


12,020




Transaction with owners


53,289


486,261


-


-


12,020


551,570




 


 


 


 


 


 


 




Comprehensive loss for the period


-


-


-


-


(326,688)


(326,688)




Other comprehensive income


-


-


-


7,652


-


7,652




Total comprehensive income


-


-


-


7,652


(326,688)


(319,036)




 


 


 


 


 


 


 




At 31 December 2020


675,664


14,502,837


2,910,866


3,954


(17,651,944)


441,377




 


 


 


 


 


 


 




New shares issued


-


-


-


-


-


-




Share option and warrant costs


-


-


-


-


25,000


25,000




Transaction with owners


-


-


-


-


25,000


25,000




 


 


 


 


 


 


 




Comprehensive loss for the period


-


-


-


-


(861,490)


(861,490)




Other comprehensive Income


-


-


-


(11,759)


-


(11,759)




Total comprehensive income


-


-


-


(11,759)


(861,490)


(873,249)




 


 


 


 


 


 


 




At 30 June 2021


675,664


14,502,837


2,910,866


(7,805)


(18,488,434)


(406,872)




 
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2021 and 30 June 2020 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 2021 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2020. The comparative financial information for the year ended 31 December 2020 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2020 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for 2020 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 2021


Six months ended

30 June 2020


Year ended

31 December 2020




 


€


€


€




 


 


 


 




Loss for the period


(861,490)


(1,013,480)


(1,340,168)




 


 


 


 




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


54,595,522


 
49,167,898


 
49,819,356




 


 


 


 




Basic loss and diluted, cents per share


(1,6)


(2.1)


(2.7)




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




 


 
As at

30 June 2021


As at

30 June 2020


As at

31 December 2020




 


€


€


€




Raw materials


125,256


358,827


16,145




Work in progress


284,199


337,247


181,598




Finished goods


192,684


366,324


439,042




Inventory


602,139


1,062,398


636,785




 


 


 


 




 
4.     Trade and other receivables




 


 
As at

30 June 2021


As at

30 June 2020


As at

31 December 2020




 


€


€


€




Trade receivables


908,507


672,039


1,301,858




Less; provision for impairment of trade receivables


(511,755)


(511,755)


(872,617)




Trade receivables - net 


396,752


160,284


429,241




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


396,752


160,284


429,241




Tax receivables


353,993


67,303


253,030




Other receivables


157,914


101,863


220,047




Total other receivables


511,907


169,166


473,077




Total trade and other receivables


908,659


329,450


902,318




Classified as follows:
Current Portion


908,659


329,450


902,318




 
 
5.     Share capital
                                                                                                                                                                    




 


 


Number of shares


€




 
Shares as 30 June 2020


 


49,751,078


622,375




 


 


 


 




Issue of shares for cash


 


4,844,446


53,289




 
Shares at 31 December 2020 


 


54,595,524


675,664




 
Issue of shares for cash


 


-


-




Shares at 30 June 2021


 


54,595,524


675,664




 
At 30 June 2021, the share capital comprises 54,595,524 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 2021


Six months ended

30 June 2020


Year ended

31 December 2020




 


€


€


€




 


 


 


 




Growth Fund (including accrued interest)


1,719,825


1,285,457


1,736,802




Nordea Ejendomme


2,278


8,015


5,196




Total financial assets other than cash and cash equivalents classified as loans and receivables 


1,722,103


1,293,472


1,741,998




 


 


 


 




The Growth Fund borrowing from the Danish public institution, Vækstfonden, initially bore interest at a fixed annual rate of 12 per cent with a full bullet repayment in June 2021. Terms for the borrowing were amended in June 2020, and November 2020, pursuant to which the interest rate was reduced to 7 percent p.a. and the loan is to be repaid in equal quarterly instalments over the period from 1 January 2022 until 1 January 2026. In November 2020 the Company has received an offer on an additional Covid loan of €400,000 at an annual interest rate of Cibor + 5% to be repaid over a 5 year period starting from January 2022 The cash proceeds has been received post reporting period. 
 
The loan from Nordea Ejendomme is in respect of amounts included in the fitting out of the offices in Denmark. The loan is repayable over the 6 years and matures in November 2021 and carries a fixed interest rate of 6 per cent.
 
All loans are denominated in Danish Kroner.
 
 
 
 
7.     Trade and other payables
 




 


 
As at

30 June 2021


As at

30 June 2020


As at

31 December 2020




 


€


€


€




Invoice discounting


-


42,372


-




Trade payables


736,586


950,015


726,007




Other payables and accruals


503,776


188,906


274,202




Current portion of loans


188,844


129,041


22,173




Total financial liabilities, excluding ´non-current´ loans and borrowings classified as financial liabilities measured at amortised cost 


1,429,206


 
 
1,310,334


 
1,022,382




Contract liabilities


110,915


220,274


215,905




Total trade and other payables


1,540,121


1,530,608


1,238,287




Classified as follows:
Current Portion


1,540,121


1,530,608


1,238,287




 
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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