REG - Windar Photonics PLC - Interim Results
25/09/2023 07:00
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RNS Number : 4423N Windar Photonics PLC 25 September 2023
25 September 2023
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 2023
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 2023.
Financial highlights
· revenue increased by 220% to €1.3 million (H1 2022: €0.4
million)
· gross profit increased by 290% to €0.74 million (H1 2022:
€0.19 million)
· EBITDA loss reduced to €0.27 million (H1 2022: €0.74 million)
Operational highlights
· overall production capacity increased to 80-100 systems per
month, despite supply chain challenges
· new COO appointed in March to further strengthen the Company's
production and logistics functions
· relocated its China operations to a new facility in Shanghai
· completed the test project on a GE 1.6MW platform in North
America, demonstrating a potential increase of 3.2% in its annual energy
production
For further information, please contact:
Windar Photonics plc Tel: +45 24234930
Jørgen Korsgaard Jensen, CEO
WH Ireland Limited Tel: +44 20 7220 1666
Chris Fielding / James Bavister / Isaac Hooper
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/)
The person responsible for arranging the release of this announcement on
behalf of the Company is Jørgen Korsgaard Jensen, Chief Executive of the
Company.
CHAIRMAN'S STATEMENT
The Board is delighted to report that revenue for the first half year of 2023
increased by 220% to €1.3 million (H1 2022: €0.4 million).
This was achieved despite revenue in the first 3 months of the year being
negatively impacted by component shortages following the COVID pandemic and
subsequent supply chain issues.
Besides navigating these component shortages during the first half year, the
Company has been focused on increasing the overall production capacity, both
internally and within our supply chain, and is pleased to announce that
overall production capacity when entering the second half of 2023 has been
doubled, since 2022, to approximately 80-100 systems per month.
The Gross profit for the period amounted to €0.74 million (H1 2022: €0.19
million), representing a Gross margin of 54.9% compared to a gross margin in
the first half of 2022 of 46.3%. The increase was predominantly due to a more
favorable product and customer mix, which are expected to continue going
forward.
Due to the increased activity level, operational expenses, excluding
amortisation, depreciation and warrant costs, increased by 7.2% to €1.02
million (H1 2022: €.96 million), as a result of which the Company reported a
reduced EBITDA loss of €0.27 million (H1 2022: €0.74 million).
During the first half of 2023 the Board made some strategic decisions
affecting the operational expenses. Firstly, it hired in March a new COO to
further strengthen the performance of the Company's production and logistics
functions. Secondly, in February the Company relocated its China operations to
a new facility in Shanghai, as a result of which, the Company is better
positioned to serve the growing demand from Chinese customers and in due
course to have the flexibility to establish local assembly facilities.
Project wise the Company completed the previously announced test project on a
GE 1.6MW platform in North America. Overall the test demonstrated a potential
increase of 3.2% in Annual Energy Production (AEP). Part of the improvement
was due to identification of non-optimal turbine settings. This is an
important result for the Company since it demonstrates the efficacy of our
product in respect of an additional operating platform. The Board estimates
that approximately 15,000 turbines of this type are currently installed
globally.
The Company is currently discussing with this particular client a roll-out of
our Lidar as a Service (LaaS) concept, whereby the revenue stream from this
project will be more consultancy oriented. This consultancy service does
require accurate Lidar-based data, as the existing wind turbine data was
insufficiently accurate.
Financial Overview
Overall, the Group reported increased revenues of €1.3 million (H1 2022:
€0.4 million) and a reduced net loss of €0.37 million for the period (H1
2022: loss of €0.76 million) after depreciation, amortisation and warrant
costs of €0.13 million (H1 2022: €0.09 million).
Due to primarily the depreciation of the Chinese currency of 6% against the
euro during the first half of 2023, other comprehensive income amounted to
€0.09 million (H1 2022: (€0.04 million)). Net equity at the end of the
period amounted to €0.06 million (H1 2022: ((€1.54 million)).
Cash flow from operations produced a net outflow of €1.1 million for the
period, compared to a net inflow of €0.1 million in H1 2022. Movements in
working capital items amounted to a net outflow of €0.6 million for the
period compared to a net inflow of €1.2 million in H1 2022.
Outlook
At the start of the second half, the Company had an order backlog of €3.8
million for delivery during the year. However, current customer delivery
schedules for the second half now amount to approximately €5.2 million, of
which €2.2 million has already been delivered .
In addition, at the end of August the Company had outstanding quotations with
customers amounting to approximately €6.0 million, the vast majority of
which are expected to be rolled over into 2024 in light of the timing of the
final order and assembly capacity.
Regarding the above-mentioned US GE 1.6MW project, this project was initially
planned for a full roll-out in 2023. However, this is now expected to be
transformed into a consultancy contract with revenue in the order of
€0.8-1.0 million primarily spread over 2024.
Given the above the Company expects to meet the current market expectations
for 2023 including net revenue of approximately €6.5 million - an increase
of approximately 260% compared to 2022 (2022: €1.8 million), and an EBITDA
result of approximately €1.5-1.6 million compared to an EBITDA loss of
€1.1 million realised in 2022. This would represent a record-breaking
revenue for the Company and its maiden profit.
As the Company expects to see continued growth in China in 2024 a main focus
for the second half of 2023 is to increase production capacity further to
approximately 150 systems per month by the end of the year.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2023
Six months Six months ended 30 Year ended 31 December
ended 30 June 2023 June 2022 2022
(unaudited) (unaudited) (audited)
Note € € €
Revenue 1,347,072 420,555 1,853,249
Cost of goods sold (607,584) (225,853) (906,638)
Gross profit 739,488 194,702 946,611
Administrative expenses (1,155,834) (1,047,542) (1,953,607)
Other operating income 16,115 16,129 32,260
Exceptional (expenses)/income - - (89,038)
Loss from operations (400,231) (836,711) (1,063,774)
Finance expenses (87,658) (43,606) (230,734)
Loss before taxation (487,889) (880,317) (1,294,508)
Taxation 117,818 124,997 218,837
Loss for the period (370,071) (755,320) (1,075,671)
Other comprehensive income
Items that will or maybe reclassified to profit or loss:
Exchange losses arising on translation of foreign operations
90,240 (37,554) 22,817
Total comprehensive loss for the period (279,831) (792,874) (1,052,854)
Loss per share for loss attributable to the ordinary equity holders of Windar
Photonics plc
Basic and diluted, cents per share 2 (0,6) (1.4) (1,9)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023
As at 31 December
As at 30 June 2023 As at 30 June 2022 2022
(unaudited) (unaudited) (audited)
Notes € € €
Assets
Non-current assets
Intangible assets 1,182,304 1,215,454 1,196,996
Property, plant & equipment 191,371 1,815 106,983
Right of use asset 74,260 - -
Deposits 38,837 26,601 28,994
Total non-current assets 1,486,772 1,243,870 1,332,973
Current assets
Inventory 3 885,751 858,407 699,236
Trade receivables 4 482,310 482,310 389,652
Other receivables 4 217,998 16,717 197,496
Tax credit receivables 4 337,722 373,853 218,928
Prepayments 93,911 24,785 47,860
Cash and cash equivalents 284,830 109,533 1,404,073
Total current assets 2,302,522 1,671,727 2,957,245
Total assets 3,789,294 2,915,597 4,290,218
Equity
Share capital 5 834,771 675,664 834,771
Share premium 16,479,150 14,502,837 16,479,150
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve 24,663 (126,248) (65,577)
Accumulated loss (20,188,163) (19,505,475) (19,818,092)
Total equity 61,287 (1,542,356) 341,118
Non-current liabilities
Warranty provisions 45,696 42,858 45,774
Holiday Allowance provision 6 135,987 131,829 134,734
Right of use liability 41,134 - -
Loans 6 1,500,663 1,318,842 1,690,462
Total non-current liabilities 1,723,480 1,361,700 1,870,970
Current liabilities
Trade payables 7 358,130 754,981 264,083
Other payables and accruals 7 347,620 758,713 451,402
Contract liabilities 7 940,956 1,048,039 1,205,531
Right of use liability 7 27,422 - -
Loans 7 330,399 534,520 157,114
Total current liabilities 2,004,527 3,096,252 2,078,130
Total liabilities 3,728,007 4,457,953 3,949,100
Total equity and liabilities 3,789,294 2,915,597 4,290,218
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2023
Six months Six months
ended 30 June 2023 ended 30 June 2022 Year ended 31 December 2022
(unaudited) (unaudited) (audited)
€ € €
Loss for the period before tax (487,889) (880,317) (1,294,508)
Adjustments for:
Finance expenses 87,658 43,606 230,734
Amortisation 89,622 83,752 174,792
Depreciation 10,736 - 2,992
Received tax credit - - 265,510
Foreign exchange difference 90,240 (37,554) 22,817
Warrants expense 30,794 8,193 15,927
(178,839) (782,320) (581,736)
Movements in working capital
Changes in inventory (186,515) (163,439) (4,268)
Changes in receivables (113,160) 844,503 562,504
Changes in prepayments (46,051) 9,170 (13,906)
Changes in deposits (9,843) (203) (2,596)
Changes in trade payables 94,047 81,799 (280,247)
Changes in contract liabilities (264,575) 96,433 253,926
Changes in warranty provision (82) 6,708 9,620
Changes in other payables and provision (103,781) 290,916 (306,832)
Cash flow (used in) operations (808,799) 383,567 (363,535)
Investing activities
Payments for intangible assets (192,953) (221,298) (297,540)
Grants received 115,971 130,078 121,019
Payments for tangible assets (97,541) - (107,456)
Cash flow (used in) investing activities (174,523) (91,220) (283,977)
Financing activities
Proceeds from issue of share capital - - 2,393,686
Costs associated with the issue of share capital - - (258,266)
Proceeds from new long-term loans - 373,055
Repayment of loans (15,260) (184,111) (372,934)
Interest (paid)/received (87,658) (43,605) (124,630)
Cash flow from financing activities (102,918) (227,716) 2,010,911
Net (decrease)/increase in cash and cash equivalents (1,086,240) 64,631 1,363,399
Exchange differences (33,003) 4,354 126
Cash and cash equivalents at the beginning of the period 1,404,073 40,548 40,548
Cash and cash equivalents at the end of the period 284,830 109,533 1,404,073
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
30 JUNE 2023
Share Capital Share Premium Merger reserve Foreign currency reserve Accumulated
Losses Total
€ € € € € €
At 1 January 2022 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 loss - - - (37,854) - (37,854)
Total comprehensive income - - - (37,854) (755,320) (793,174)
At 30 June 2022 675,664 14,502,837 2,910,866 (126,248) (19,505,475) (1,542,356)
New shares issued 159,107 2,234,579 - - - 2,393,686
Costs associated with capital raise - (258,266) - - - (258,266)
Share option and warrant costs - - - - 7,734 7,734
Transaction with owners 159,107 1,976,313 - - 7,734 2,143,154
Comprehensive loss for the period - - - - (320,351) (320,351)
Other comprehensive income - - - 60,671 - 60,671
Total comprehensive income - - - 60,671 (320,351) (259,680)
At 31 December 2022 834,771 16,479,150 2,910,866 (65,577) (19,818,092) 341,118
New shares issued - - - - - -
Share option and warrant costs - - - - - -
Transaction with owners - - - - - -
Comprehensive loss for the period - - - - (370,071) (370,071)
Other comprehensive Income - - - 90,240 - 90,240
Total comprehensive income - - - 90,240 (370,071) (344,831)
At 30 June 2023 834,771 16,479,150 2,910,866 24,663 (20,188,163) 61,287
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2023 and 30 June
2022 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 2023 and are unchanged from those
disclosed in the Group's Annual Report for the year ended 31 December 2022.
The comparative financial information for the year ended 31 December 2022
included within this report does not constitute the full statutory accounts
for that period. The statutory Annual Report and Financial Statements for 2022
have been filed with the Registrar of Companies. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2022 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 2023 ended 30 June 2022 2022
€ € €
Loss for the period (370,071) (755,320) (1,075,671)
Weighted average number of ordinary shares for the purpose of basic earnings
per share
55,963,110 54,595,522 55,963,110
Basic loss and diluted, cents per share (0,6) (1.4) (1.9)
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 2023 As at 30 June 2022 2022
€ € €
Raw materials 705,287 489,292 382,027
Work in progress 115,464 71,677 294,852
Finished goods - 297,438 22,357
Inventory 820,751 858,407 699,236
4. Trade and other receivables
As at 31 December
As at 30 June 2023 As at 30 June 2022 2022
€ € €
Trade receivables 482,310 1,161,721 389,652
Less; provision for impairment of trade receivables - (873,289) -
Trade receivables - net 482,310 288,432 389,652
Total financial assets other than cash and cash equivalents classified at
amortised costs
482,310 288,432 389,652
Tax receivables 337,722 373,853 218,928
Other receivables 205,631 16,717 197,496
Total other receivables 543,353 390,570 416,424
Total trade and other receivables 1,025,663 679,002 806,076
Classified as follows: Current Portion
1,025,663 679,002 806,076
5. Share capital
Number of
shares €
Shares as 30 June 2022 54,595,524 675,664
Issue of shares for cash 1,367,586 159,107
Shares at 31 December 2022 55,963,110 834,771
Issue of shares for cash - -
Shares at 30 June 2023 55,963,110 834,771
At 30 June 2023, the share capital comprises 55,963,110 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 2023 ended 30 June 2022 2022
€ € €
Growth Fund Loans (including accrued interest) 1,831,062 1,721,533 1,847,576
Current portion of Growth Fund Loans (330,399) (534,520) (157,114)
Holiday Accruals 135,987 131,829 134,734
Total non-current financial liabilities measured at amortised cost
1,636,650 1,318,842 1,825,196
The Growth Fund Loans include two separate loans. All conditions for the loans
are unchanged to the position at the end of year 2022.
All loans are denominated in Danish Kroner.
7. Trade and other payables
As at 31 December
As at 30 June 2023 As at 30 June 2022 2022
€ € €
Trade payables 358,130 754,981 264,083
Other payables and accruals 347,620 758,713 410,600
Payables to Directors - - 40,802
Right of use liability 27,422 - -
Current portion of loans 330,399 534,520 157,114
Total financial liabilities, excluding ´non-
current´ loans and borrowings classified as financial liabilities measured at 1,063,571 2,048,214 872,599
amortised cost
Contract liabilities
940,956 1,048,039 1,205,531
Total trade and other payables
2,004,527 3,096,253 2,078,130
Classified as follows: Current Portion
2,004,527 3,096,253 2,078,130
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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