REG - Windar Photonics PLC - Half-year Report
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RNS Number : 3016Z Windar Photonics PLC 15 September 2025
15 September 2025
("Windar", the "Company" or the "Group")
Interim Results
Demand Broadening and On Track to Deliver for FY25
Windar Photonics plc (AIM: WPHO), the technology group that has developed its
WindEye and WindTimizer LiDAR wind sensors and its related Nexus OS 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 unaudited results for the 6 months ended 30 June 2025.
H1 2025 Highlights
Financial:
· Revenue up 18% to €2.7m (H1 2024: €2.3m) which with a strong
concentration of upcoming sales in Q3 and Q4, makes the Company well placed
for FY25.
· Continued gross margin progression of +2%-points vs. H1 2024 as
first software revenues are reflected and the focus on profitability is
maintained.
· EBITDA loss (before warrant / share-based payments) of €0.2m (H1 2024
loss: €0.1m). EBITDA was impacted negatively (€0.4) by strategic
decision to increase marketing investment.
· Loss after tax of €0.7m (H1 2024: €0.3m).
· Basic loss per share of €0.01ps (H1 2024: €0.004ps).
· Strong cash position to support future investment of €6.0m as at 30
June 2025 (H1 2024: €2.8m).
· Adverse currency effects with €0.5m loss in H1 following relative
sterling weakness and the impact from main revenue generating currencies down
by 8-9% compared to end 2024.
· COGS at the end of period reduced by 15% compared to end of 2024
which offsets the negative currency impacts in coming periods.
Operational:
· Demand is broadening alongside the increased investment in marketing the
Company's expanding product range:
o Optimization solution now controls more than 20% of all installed Vestas
V82s in North America as per end of June 2025
o Increased potential sales activity in North America and Asia (outside
China) with discussions and a number of test projects underway on a broad
number of turbine platforms.
o First direct test project (no distributor in chain) started on a major
Goldwind wind farm in China.
o All of which supports additional growth in 2026 and beyond
· Significant investment in people, product development and
manufacturing capacity to scale the business to match market opportunity
· Excellent customer feedback from the Cleanpower fair in Phoenix,
with interest in both our turbine optimization solutions and upcoming launch
of the Nexus TPM module (Turbine Performance Monitoring).
· End of June the Company moved into new manufacturing facilities in
Copenhagen enabling a potential quintupling of production capacity.
· As with wider markets, the introduction of import tariffs into North
America, created initial uncertainty and slowed decision making. More recently
however, the Company has seen normal business resume, as evidenced by the
significant North American contract signed in August.
Service Offering Strategy
· In H1 2025, the Company delineated its service offerings into the
following two categories:
1. Turbine optimization solutions focused on delivering increased power
production and alleviating turbine loads primarily at high wind speeds on
existing wind turbines. This is supported by the WindEYE Lidar, the
WindTimizer software solution and the Nexus OS.
2. Turbine monitoring solutions focused on delivering a unique high
precision turbine efficiency monitoring solution. This will be supported by
the upcoming license-based Nexus TPM module and additional software modules
planned for the coming years. All future modules are planned to be add-on
software modules for clients that already have Lidars and the Nexus OS
software installed.
Trading/Operation Post H1 and Outlook
· In August, the Company won a significant US order for US$2.6m,
under the new import tariff and tax credit regime, to retrofit Vestas
V82s in Q3 2025 whereby our optimization solution will control more than 25%
of all V82 turbines in North America when installed.
· First test result from above mentioned direct test project in China
already proved substantial potential power gains with increased expectations
to convert into a major order in the near future.
· New VP of Sales for Americas hired in September with main focus on
targeting the remaining 75% V82 turbines in North America still not controlled
by our Optimization solution and further expanding our solution into new
turbine platforms.
· New VP of Sales for Europe hired in August in order to basically
initiate sales activities in the region.
· Vestas Multibrand Service (APAC region) agreed to market our
solutions broadly in the Asian region including in China.
· Despite currency headwinds and initial uncertainty caused by tariffs,
the Company is well placed, with orders for delivery in H2 2025 of
€3.6m as of August 2025 further supported by the pipeline and the above
strengthening of our sales organization, to meet full year market
expectations.
Jørgen Korsgaard Jensen, Chief Executive, commented:
"With sales and orders for 2025 already standing at 138% of 2024 revenue at
the end of August 2025 and with the current cash position, the Company is well
positioned to deliver on its considerable potential. The funding provided from
last year's two funding rounds has enabled the Company to accelerate its sales
and production activities, reflected in increased demand across multiple
markets. Whilst there is much to be done in the second half, our sales
pipeline and expanded production capacity give us confidence that we are well
placed.
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 will be further enhanced by the recent appointments of
senior VPs of Sales for Europe and the US. This, combined with the planned
launch of the TPM module in Q4 2025, makes the longer-term opportunity for
Windar increasingly exciting."
For further information, please contact:
Windar Photonics plc
Jørgen Korsgaard Jensen, CEO 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
Novella Communications
Tim Robertson / Safia Colebrook Tel: +44 (0) 20 3151 7008
CHAIRMAN'S STATEMENT
I am pleased to report on a successful period for the business. Our investment
in people, product development and manufacturing capacity has meant the
Company has established a commercial and logistical base from which we are now
able to pursue the growth opportunities currently arising from multiple
customers across multiple regions.
Strategic Development
In the first half of 2025 Windar achieved three key milestones:
1. Delivered and installed a $2.5m order in North America
2. Initiated testing on multiple new turbine platforms.
3. Moved to a new future proof manufacturing facility, quintupling
capacity and creating a platform for long-term growth
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, 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, recurring revenue
streams but also supports our accelerating sales development activity,
particularly across North America as well as our gross margin development.
Given the current cash position, Windar will not be constrained by factors
impacting short-term working capital and whilst growth in 2025 will be
concentrated in the final 6 months of the year we remain confident of the full
year outcome.
These developments leave the Company with a very exciting opportunity to
develop the scale and value of the business. The Board are committed to
delivering this value as both Directors and shareholders in the Company.
Trading and Financial Performance
In December 2024 we were pleased to announce a $2.5m order further expanding a
relationship with a significant turbine operator in the North American market.
This order was successfully delivered and installed over the course of H1
2025, reflecting increase in the period over H1 2024 of 18% from €2.3m to
€2.7m. The second half of the year is expected to be stronger with growth
from expanding existing markets and a strong pipeline in new regions. This
was against the headwind of adverse currency movements, in particular our main
revenue generating currencies, being the USD and RMB, which declined by 8-9%
over the period relative to the EUR,
Gross Margin improved by +2%-points versus H1 2024, illustrating the
anticipated benefits of the introduction of software revenues, increasing
volume and of our increasing geographically diverse sales.
To facilitate the rapid growth of the business certain strategic overheads
have been increased. These developments are closely controlled and reflect the
infrastructure and new hires necessary to deliver the anticipated profit
development, including a new upgraded facility to increase production
capacity.
An EBITDA loss of €0.3m (before share-based payments) versus the prior first
half loss of €0.1m from one-off costs related to moving to new manufacturing
facilities and marketing investment. With the sales activity anticipated in H2
in relation to the marketing investments we remain confident of full year
turnout.
Currency loss of €0.5m in the first six months, attributable in part to the
capital raise in December 2024. The proceeds from the capital raise having
been kept in GBP accounted for half of the currency loss for the period. The
USD and RMB has declined by 8-9%, which has impacted Windar operationally in
the Shanghai office and in relation to our North American customers.
The Group finished the half year with gross cash of €6.0m, an increase of
€3.3m from the last half year's gross cash. Working capital movements
directly driven by sales activity around the half year increased working
capital by €2.4m year on year. We anticipate that short-term working capital
movements will become less pronounced as the number of deliveries increases
and phasing normalizes.
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 and testing of the TPM module, which is expected to be launched in
Q4 has required particular dedication from our development team. The success
of the Nexus software launch from 2024 and the coming launch of the TPM module
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 markets,
the Board looks to the future with confidence.
David Lis
Chairman
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months Six months ended 30 Year ended 31 December
ended 30 June 2025 June 2024 2024
(unaudited) (unaudited) (audited)
Note € € €
Revenue 2,716,609 2,296,781 4,560,515
Cost of goods sold (1,033,748) (907,577) (1,990,513)
Gross profit 1,682,861 1,389,204 2,570,002
Administrative expenses (2,172,816) (1,623,482) (3,433,049)
Other operating income - - -
Exceptional (expenses)/income - - (221,557)
Loss from operations (489,955) (234,278) (1,084,604)
Finance income 132,347 - 38,225
Finance expenses (558,307) (30,528) (75,651)
Loss before taxation (915,915) (264,806) (1,122,030)
Taxation 186,586 (32,016) 215,840
Loss for the period (729,329) (296,822) (906,190)
Other comprehensive income
Items that will or maybe reclassified to profit or loss:
Exchange losses arising on translation of foreign operations
(135,956) (17,664) (35,757)
Total comprehensive loss for the period (865,285) (314,569) (941,947)
Loss per share for loss attributable to the ordinary equity holders of Windar
Photonics plc
Basic and diluted, cents per share 2 (0.8) (0.4) (1,1)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025
As at 31 December
As at 30 June 2025 As at 30 June 2024 2024
(unaudited) (unaudited) (audited)
Notes € € €
Assets
Non-current assets
Intangible assets 1,573,993 1,559,198 1,764,959
Property, plant & equipment 716,428 290,531 419,069
Right of use asset 13,090 42,415 28,839
Deposits 93,694 40,059 40,684
Total non-current assets 2,397,205 1,932,203 2,253,551
Current assets
Inventory 3 1,856,835 1,037,619 1,361,581
Trade receivables 4 1,730,514 1,265,083 4,304,399
Other receivables 4 449,579 224,109 242,011
Tax credit receivables 4 432,928 118,999 246,377
Prepayments 195,728 10,387 164,866
Cash and cash equivalents 6,030,175 2,763,637 7,066,338
Total current assets 10,695,759 5,419,834 13,385,572
Total assets 13,092,964 7,352,037 15,639,123
Equity
Share capital 5 1,167,248 985,971 1,163,251
Share premium 27,808,122 21,203,127 27,635,201
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve (230,201) (76,152) (94,245)
Accumulated loss (21,350,852) (20,148,553) (20,663,066)
Total equity 10,305,183 4,875,259 10,952,007
Non-current liabilities
Warranty provisions 36,993 28,160 36,997
Holiday Allowance provision 6 148,803 140,599 142,697
Right of use liablility - - -
Loans 6 709,305 1,173,230 804,822
Total non-current liabilities 895,101 1,341,989 984,516
Current liabilities
Trade payables 7 490,650 56,120 395,386
Other payables and accruals 7 713,740 466,501 650,248
Contract liabilities 7 204,838 128,270 1,809,370
Right of use liability 7 13,734 43,783 30,257
Provisions 7 - - 221,557
Loans 7 469,718 440,115 595,782
Total current liabilities 1,892,681 1,134,789 3,702,600
Total liabilities 2,787,782 2,476,778 4,687,116
Total equity and liabilities 13,092,964 7,352,037 15,639,123
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months Six months
ended 30 June 2025 ended 30 June 2024 Year ended 31 December 2024
(unaudited) (unaudited) (audited)
€ € €
Loss for the period before tax (915,915) (264,806) (1,122,030)
Adjustments for:
Finance expenses 425,960 30,528 37,426
Amortisation 176,234 48,480 269,578
Depreciation - property, plant and equipment 42,630 34,721 40,808
Depreciation - right of use assets 13,888 14,091 28,236
Received tax credit - - 246,413
Taxes paid - - 1,344
Foreign exchange difference (135,956) (17,664) (35,757)
Share option and warrant cost 41,543 49,645 144,500
(351,616) (105,005) (389,482)
Movements in working capital
Changes in inventory (495,255) (318,636) (642,598)
Changes in receivables 2,366,317 (807,832) (3,865,050)
Changes in prepayments (30,861) 119,164 (35,316)
Changes in deposits (53,010) (1,796) (2,422)
Changes in trade payables 95,264 (516,112) (176,846)
Changes in contract liabilities (1,604,532) (123,408) 1,557,692)
Changes in warranty provision (4) 2,663 11,504
Changes in other payables and provision (158,064) (6,307) 398,995
Cash flow (used in) operations (231,761) (1,757,269) (3,143,523)
Investing activities
Payments for intangible assets (136,310) (273,893) (573,093)
Payments for tangible assets (192,555) - (277,422)
Grants received - 13,967 29,894
Cash flow (used in) investing activities (328,865) (259,926) (820,621)
Financing activities
Proceeds from issue of share capital 176,917 5,394,280 12,340,702
Costs associated with the issue of share capital - (519,104) (856,171)
Lease payments (15,299) (15,534) (29,625)
Repayment of loans (211,409) (203,076) (530,280)
Interest (paid)/received (425,231) (29,168) (34,535)
Cash flow from financing activities (475,022) 4,627,398 10,890,091
Net (decrease)/increase in cash and cash equivalents (1,035,648) 2,610,203 6,925,947
Exchange differences (516) 1,254 (11,789)
Cash and cash equivalents at the beginning of the period 7,066,338 152,180 152,180
Cash and cash equivalents at the end of the period 6,030,174 2,763,637 7,066,338
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 2024 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 - - - - (296,822) (296,822)
Warant reserve 49,645 49,645
Other comprehensive loss - - - (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
New shares issued 177,280 6,926,486 - - - 7,103,766
Costs associated with capital raise - (494,412) - - - (494,412)
Transaction with owners 177,280 6,432,074 - - - 6,609,354
Comprehensive loss for the period - - - - (609,368) (609,368)
Warrants reserve - - - - 94,855 94,855
Other comprehensive income - - - (18,093) - (18,093)
Total comprehensive income - - - (18,093) (514,513) (532,606)
At 31 December 2024 1,163,251 27,635,201 2,910,866 (94,245) (20,663,066) 10,952,007
New shares issued 3,997 172,921 - - - 176,918
Share option and warrant costs - - - - - -
Transaction with owners 3,997 172,921 - - - 176,918
Comprehensive loss for the period - - - - (729,329) (729,329)
Warrant reserve - - - - 41,543 41,543
Other comprehensive Income - - - (135,956) - (135,956)
Total comprehensive loss - - - (135,956) (770,872) (823,742)
At 30 June 2025 1,167,248 27,808,122 2,910,866 (230,201) (21,350,852) 10,305,183
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2025 and 30 June
2024 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 2025 and are unchanged from those
disclosed in the Group's Annual Report for the year ended 31 December 2024.
The comparative financial information for the year ended 31 December 2024
included within this report does not constitute the full statutory accounts
for that period. The statutory Annual Report and Financial Statements for 2024
have been filed with the Registrar of Companies. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2024 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 31 December
ended 30 June 2025 ended 30 June 2024 2024
Loss for the period (€) (729,329) (296,822) (906,190)
Weighted average number of ordinary shares for the purpose of basic earnings
per share
96,367,826 81,287,870 78,937,487
Basic loss and diluted, cents per share (0.8) (0.4) (1.1)
There is no dilutive effect of the warrants as the dilution would reduce the
loss per share.
3. Inventory
As at 31 December
As at 30 June 2025 As at 30 June 2024 2024
€ € €
Raw materials 981,208 714,571 484,493
Work in progress 154,198 92,480 79,904
Finished goods 721,429 230,568 797,194
Inventory 1,856,8353 1,037,619 1,361,581
4. Trade and other receivables
As at 31 December
As at 30 June 2025 As at 30 June 2024 2024
€ € €
Trade receivables 1,730,514 1,265,083 4,304,399
Less; provision for impairment of trade receivables - - -
Trade receivables - net 1,730,514 1,265,083 4,304,399
Total financial assets other than cash and cash equivalents classified at
amortized costs
1,730,514 1,265,083 4,304,399
Tax receivables 432,928 118,999 246,377
Other receivables 449,579 224,109 242,011
Total other receivables 882,507 343,108 488,388
Total trade and other receivables 2,613,021 1,608,191 4,792,787
Classified as follows: Current Portion
2,613,021 1,608,191 4,792,787
5. Share capital
Number of
shares €
Shares as 30 June 2024 81,287,870 834,771
Issue of shares for cash 14,750,000 328,480
Shares at 31 December 2024 96,037,870 1,163,251
Issue of shares for cash 329,956 3,997
Shares at 30 June 2025 96,367,826 1,167,248
At 30 June 2025, the share capital comprises 96,367,826 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 31 December
ended 30 June 2025 ended 30 June 2024 2024
€ € €
Growth Fund Loans (including accrued interest) 1,179,023 1,613,345 1,400,604
Current portion of Growth Fund Loans (469,718) (440,115) (595,782)
Holiday Accruals 148,803 140,599 142,697
Total non-current financial liabilities measured at amortised costs
858,108 1,313,829 947,519
The Growth Fund Loans include two separate loans. All conditions for the loans
are unchanged to the position at the end of year 2024.
All loans are denominated in Danish Kroner.
7. Trade and other payables
As at 31 December
As at 30 June 2025 As at 30 June 2024 2024
€ € €
Trade payables 490,650 56,120 395,386
Other payables and accruals 628,063 362,823 438,042
Payables to Directors 85,677 103,678 212,206
Right of use liability 13,734 43,783 30,257
Current portion of loans 469,718 440,115 595,782
Total financial liabilities, excluding ´non-
current´ loans and borrowings classified as financial liabilities measured at 1,687,842 1,006,519 1,671,673
amortized cost
Contract liabilities
204,838 128,270 1,809,370
Total trade and other payables
1,892,680 1,134,789 3,481,043
Classified as follows: Current Portion
1,892,680 1,134,789 3,481,043
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.
(http://www.investor.windarphotonics.com/)
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