REG - Windar Photonics PLC - Interim Results
25/11/2022 18:45
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221125:nRSY6930Ha&default-theme=true
RNS Number : 6930H Windar Photonics PLC 25 November 2022
25 November 2022
Windar Photonics plc
("Windar", the "Company" or the "Group")
Unaudited interim report for the six months ended 30 June 2022
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 2022.
For further information, please contact:
Windar Photonics plc Tel: +45 24234930
Jørgen Korsgaard Jensen, CEO
Cenkos Securities plc (Nomad & Broker) Tel: 0131 220 6939
Neil McDonald / Pete Lynch
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 (http://investor.windarphotonics.com/)
CHAIRMAN'S STATEMENT
Despite having experienced severe logistical challenges during the first six
months of 2022 due to the ongoing COVID-19 pandemic, realised revenue for the
first half year of 2022 increased by 35% to €0.4 million (H1 2021: €0.3
million). The majority of revenue within the period was realized in June, when
initial deliveries to Vestas Service (North America) finally commenced.
The Company continued to see an increased interest in our product offerings
with receipt of new orders during the period for a further €1.6 million (H1
2021: €0.9 million), including important new test orders from North America
and Japan expanding our WindEye™ and WindTimizer solution to new wind
turbine platforms. Similarly, the Company received new orders from key
customers in Asia based on previously announced test results in the region
and, in total, the overall order backlog at the end of the period stood at
€3.8 million (H1 2021: €2.2 million), of which more than €1 million has
been invoiced/received, but is not recognised in the revenue figure for H1
2022 and is included as deferred revenue within the contract liabilities
figure on the balance sheet. This invoiced balance will be recognised in
future periods.
The Company further continued its efforts to reduce operational expenses
during the period and, compared to the same period of 2021, total operational
costs were reduced by 10%. This reduction, combined with the increased revenue
and gross profit during the period, resulted in the net loss before taxation
being reduced from €0.9 million in H1 2021 to €0.8 million in H1 2022.
Financial Overview
Overall, the Group realized revenues of €0.4 million (H1 2020: €0.3
million) and recorded a net loss of
€0.8 million for the period (H1 2021: loss of €0.9 million) after
depreciation, amortization and warrant costs of €0.1 million (H1 2021:
€0.2 million).
Cash flow from operations produced a net inflow of €0.1 million for the
period compared to a net outflow of €0.6 million in H1 2021.
Outlook
Despite the continued COVID related challenges experienced during the period,
which severely impacted planned production and customer shipments, the overall
market developments have been encouraging in 2022. The order backlog has
increased substantially during the period, and the Board expect additional
orders in the near future, not only substantiated by the Company's exclusive
offerings but further supported by the general worldwide increase in
electricity prices supporting our underlying business case.
As previously announced in the annual accounts for 2021, and due to the severe
COVID related challenges experienced during the period, the Board initiated
activities for a new capital raise in the second half of 2022. The Board is
pleased to announce that subject to readmission of trading on AIM, the Company
has successfully raised €2.4 million (before costs) at an issue price of 15p
per share. Board member participation in the capital raise is expected to
constitute approximately 10% of the total capital raise. Further, after end of
the accounting period the Company has renegotiated the repayment schedule of
the Growth Fund loan, whereby €0.6 million currently recognized as short
term debts at the end of the accounting period would have been deemed as
long-term debts if new terms applied. Given these actions and combined with
the continued progress of the underlying positive development of the general
business activities, the Board believes that the Company has sufficient cash
flows for operations for the coming 12 months period.
Overall, the Board recognizes the severe negative impact the general COVID-19
pandemic has had on the progress of the Company during the last couple of
years. However, noting a substantial improved development in relation to all
important key performance indicators in the second half of 2022 the Board
believes that the Company is positioned for a successful economical future.
The development is currently further enhanced by the globally increase in cost
of energy whereby the value of our value proposition increases, as the main
benefit from the product offerings is to increase power generation from new
and existing wind turbines, and at the same time, positively contributing to a
more worldwide sustainable green power generation transformation in the
future.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Six months Six months ended 30 Year ended 31 December
ended 30 June 2022 June 2021 2021
(unaudited) (unaudited) (audited)
Note € € €
Revenue 420,555 305,991 551,535
Cost of goods sold (225,853) (147,703) (105,322)
Gross profit 194,702 158,288 446,213
Administrative expenses (1,047,542) (1,120,163) (1,882,094)
Other operating income 16,129 16,136 32,271
Loss from operations (836,711) (945,739) (1,403,610)
Finance expenses (43,606) (16,601) 25,520
Loss before taxation (880,317) (962,340) (1,378,090)
Taxation 124,997 100,850 248,913
Loss for the period (755,320) (861,490) (1,129,177)
Other comprehensive income
Items that will or maybe reclassified to profit or loss:
Exchange losses arising on translation of foreign operations
(37,554) (11,759) (92,348)
Total comprehensive loss for the period (792,874) (873,249) (1,221,525)
Loss per share for loss attributable to the ordinary equity holders of Windar
Photonics plc
Basic and diluted, cents per share 2 (1.4) (1.6) (2.1)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022
As at 31 December
As at 30 June 2022 As at 30 June 2021 2021
(unaudited) (unaudited) (audited)
Notes € € €
Assets
Non-current assets
Intangible assets 1,215,454 1,073,665 1,195,267
Property, plant & equipment 1,815 12,120 2,423
Deposits 26,601 25,614 26,398
Total non-current assets 1,243,870 1,111,399 1,224,088
Current assets
Inventory 3 858,407 602,139 694,969
Trade receivables 4 288,432 396,752 991,734
Other receivables 4 16,717 157,914 157,919
Tax credit receivables 4 373,853 353,993 265,620
Prepayments 24,785 4,743 33,954
Cash and cash equivalents 109,533 78,077 40,548
Total current assets 1,671,727 1,593,618 2,184,744
Total assets 2,915,597 2,705,017 3,408,832
Equity
Share capital 5 675,664 675,664 675,664
Share premium 14,502,837 14,502,837 14,502,837
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve (126,248) (7,805) (88,394)
Accumulated loss (19,505,475) (18,488,434) (18,758,348)
Total equity (1,542,356) (406,872) (757,375)
Non-current liabilities
Warranty provisions 42,858 38,509 36,150
Holiday allowance provision 131,829 - 131,877
Loans 6 1,187,013 1,533,259 1,371,076
Total non-current liabilities 1,361,700 1,571,768 1,539,103
Current liabilities
Trade payables 7 754,981 736,586 544,330
Other payables and accruals 7 758,713 503,776 758,234
Contract liabilities 7 1,048,039 110,915 951,606
Loans 7 534,520 188,844 372,934
Total current liabilities 3,096,252 1,540,121 2,627,104
Total liabilities 4,457,953 3,111,889 4,166,207
Total equity and liabilities 2,915,597 2,705,017 3,408,832
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2022
Six months Six months
ended 30 June 2022 ended 30 June 2021 Year ended 31 December 2021
(unaudited) (unaudited) (audited)
€ € €
Loss for the period before tax (880,317) (962,340) (1,378,090)
Adjustments for:
Finance expenses 43,606 16,601 (25,520)
Amortisation 83,752 127,173 254,339
Depreciation - 15,239 25,115
Received tax credit - - 213,362
Foreign exchange difference (37,554) (11,759) (92,348)
Warrants expense 8,193 25,000 22,773
(782,320) (790,086) (980,369)
Movements in working capital
Changes in inventory (163,439) 34,647 (58,183)
Changes in receivables 844,503 94,622 (500,363)
Changes in prepayments 9,170 9,451 (19,760)
Changes in deposits (203) (233) (1,017)
Changes in trade payables 81,799 10,580 (96,569)
Changes in contract liabilities 96,433 (104,990) 735,700
Changes in warranty provisions 6,708 16 (2,343)
Changes in holiday allowance provision (48) - -
Changes in other payables and provision 129,330 209,640 528,803
Cash flow (used in) operations 221,933 (536,353) (394,101)
Investing activities
Payments for intangible assets (221,298) (114,296) (652,264)
Grants received 130,078 107,200 408,354
Payments for tangible assets - - -
Cash flow (used in) investing activities (91,220) (7,096) (243,910)
Financing activities
Proceeds from issue of share capital - - -
Costs associated with the issue of share capital - - -
Proceeds from new long-term loans -
Repayment of loans (22,477) - (22,180)
Interest (paid)/received (43,605) (16,601) 51,006
Cash flow from financing activities (66,082) (16,601) 26,826
Net (decrease)/increase in cash and cash equivalents 64,631 (560,050) (609,185)
Exchange differences 4,354 (11,766) 23,372
Cash and cash equivalents at the beginning of the period 40,548 626,361 626,361
Cash and cash equivalents at the end of the period 109,533 78,077 40,548
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
30 JUNE 2022
Share Capital Share Premium Merger reserve Foreign currency reserve Accumulated
Losses Total
€ € € € € €
At 1 January 2021 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 loss - - - (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)
New shares issued - - - - - -
Costs associated with capital raise - - - - - -
Share option and warrant costs - - - - (2,227) (2,227)
Transaction with owners - - - - (2,227) (2,227)
Comprehensive loss for the period - - - - (267,687) (267,687)
Other comprehensive income - - - (80,589) - (80,589)
Total comprehensive income - - - (80,589) (267,687) (348,276)
At 31 December 2021 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 Income - - - (37,854) - (37,554)
Total comprehensive income - - - (37,854) (755,320) (792,874)
At 30 June 2022 675,664 14,502,837 2,910,866 (126,248) (19,505,475) (1,542,356)
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2022 and 30 June
2021 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 2022 and are unchanged from those
disclosed in the Group's Annual Report for the year ended 31 December 2021.
The comparative financial information for the year ended 31 December 2021
included within this report does not constitute the full statutory accounts
for that period. The statutory Annual Report and Financial Statements for 2021
have been filed with the Registrar of Companies. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2021 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.
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 2022 ended 30 June 2021 2021
€ € €
Loss for the period (755,320) (861,490) (1,129,177)
Weighted average number of ordinary shares for the purpose of basic earnings
per share
54,595,522 54,595,522 54,595,522
Basic loss and diluted, cents per share (1.4) (1.6) (2.1)
There is no dilutive effect of the warrants as the dilution would reduce the
loss per share.
2. Inventory
As at 31 December
As at 30 June 2022 As at 30 June 2021 2021
€ € €
Raw materials 489,292 125,256 363,216
Work in progress 71,677 284,199 46,879
Finished goods 297,438 192,684 284,874
Inventory 858,407 602,139 694,969
3. Trade and other receivables
As at 31 December
As at 30 June 2022 As at 30 June 2021 2021
€ € €
Trade receivables 1,161,721 908,507 1,865,023
Less; provision for impairment of trade receivables (873,289) (511,755) (873,289)
Trade receivables - net 288,432 396,752 991,734
Total financial assets other than cash and cash equivalents classified at
amortized costs
288,432 396,752 991,734
Tax receivables 373,853 353,993 265,620
Other receivables 16,717 157,914 157,919
Total other receivables 390,570 511,907 423,539
Total trade and other receivables 679,002 908,659 1,415,273
Classified as follows: Current Portion
679,002 908,659 1,415,273
4. Share capital
Number of
shares €
Shares as 30 June 2021 54,595,524 675,664
Issue of shares for cash - -
Shares at 31 December 2021 54,595,524 675,664
Issue of shares for cash - -
Shares at 30 June 2022 54,595,524 675,664
At 30 June 2022, the share capital comprises 54,595,524 shares of 1 pence
each.
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 2022 ended 30 June 2021 2021
€ € €
Growth Fund Loans (including accrued interest) 1,721,533 1,719,825 1,744,010
Current portion of Growth Fund Loans (534,520) (188,844) (372,934)
Nordea Ejendomme - 2,278 -
Total non-current financial liabilities measured at amortised costs
1,187,013 1,533,259 1,371,076
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.
Post the accounting period the Company has renegotiated the repayment schedule
of the Growth Fund loan, whereby €0.6 million currently recognized as
current portion and other short-term debts at the end of the accounting period
would have been deemed as long-term debts if new terms applied.
All loans are denominated in Danish Kroner.
5. Trade and other payables
As at 31 December
As at 30 June 2022 As at 30 June 2021 2021
€ € €
Trade payables 754,981 736,586 673,182
Other payables and accruals 758,713 503,776 629,382
Current portion of loans 534,520 188,844 372,934
Total financial liabilities, excluding ´non-
current´ loans and borrowings classified as financial liabilities measured at 2,048,214 1,429,206 1,675,498
amortized cost
Contract liabilities
1,048,039 110,915 951,606
Total trade and other payables
3,096,253 1,540,121 2,627,104
Classified as follows: Current Portion
3,096,253 1,540,121 2,627,104
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.
6. 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/)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR VELFLLFLLFBKRecent news on Windar Photonics
See all newsREG - Windar Photonics PLC - Wind Sector Leaders Join New Advisory Board
AnnouncementREG - Windar Photonics PLC - Director/PDMR Shareholding
AnnouncementREG - Windar Photonics PLC - Director/PDMR Shareholding
AnnouncementREG - Windar Photonics PLC - Trading Update and First Discreet Software Order
AnnouncementREG - AIM - AIM Notice - 28/02/2025
Announcement