REG - Windar Photonics PLC - Un-audited Results for the 6 months ended 30 June
12/09/2024 07:00
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RNS Number : 8567D Windar Photonics PLC 12 September 2024
12 September 2024
Windar Photonics plc
("Windar", the "Company" or the "Group")
Un-audited Results for the 6 months ended 30(th) June 2024
and
Update on current trading and sales development activity
Windar Photonics plc (AIM: WPHO), the technology group that has developed its
WindEye and WindTimizer LiDAR wind sensors and its related 'Nexus' 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 un-audited results for the 6 months ended 30 June 2024.
Following the successful, oversubscribed, undiscounted share placing at a
premium in April to raise £4.4m (before expenses) to support growth, the
Company is pleased to give an update on current trading and on its latest
business development activities.
Highlights
Financial:
· Revenue for the 6 month period of €2.3m represents 71% growth
on prior year revenue of €1.3m, which with a concentration of sales
following April 2024 capital raise, is in line with expectation to achieve
targeted full year growth. The market will be updated as the expected
significant orders are received,
· Gross margin of 60% (H1 2023: 55%) shows continued progression as
first software revenues are reflected,
· Increase in operating costs reflects scale-up in key strategic
functions,
· H1 2024 EBITDA (before warrant / share-based payments) of €0.1m
(H1 2023: €0.3m loss) represents continued progress,
· Loss for the six month period H1 2024 reduced to €0.3m (2023:
€0.4m),
· Basic loss per share: H1 2024: €0.004ps (H1 2023: €0.006ps),
· £4.4m (before expenses) raised in April 2024 through
oversubscribed equity placing issued at a premium,
· Cash at H1 2024 of €2.8m (H1 2023:€0.3m) after working
capital increases of €2.0m directly attributable to high levels of sales
shortly before and after half year.
Operational:
· Successful launch of Windar Nexus software suite, adding further
applications and efficiencies for our customers,
· Significant order with a gross value of US$1.3m delivered to a
new customer in the North American market in June, with Nexus software
implemented and operational from August,
· Production capacity in Taastrup manufacturing plant now at
targeted levels giving significant capacity for future growth,
· Weather delayed installations in China in the early part of the
year resulted in working capital constraints that have concentrated growth
into the period following the April fundraise.
Current Trading & Sales Development Activity
· Orders for delivery in H2 2024 of €3.8m as at June 2024 with
pipeline and production capacity in place to meet full year expectations,
· Order pipeline is increasingly strong with significant trial and
repeat orders in North American market expected in H2 2024,
· Repeat orders predominantly on Vestas V82 turbine platform
however multiple trial orders on development platforms such as Senvion and GE,
are anticipated across the North American market - thereby further enhancing
the Company's prospects for future growth,
· Continued development activity across China, Japan and Australia
in progress on multiple turbine platforms,
· First installations of Windar's 'Nexus' software platform
successfully completed in August 2024 which, with further value enhancing
modules in development and testing, gives opportunity for increasing repeat
revenue.
Strategic Development and Outlook
In the first half of 2024 Windar achieved three key milestones:
1. Obtained and delivered a breakthrough $1.3m order in North America -
providing a significant foothold in that market
2. Completed testing and commenced implementation of its Nexus turbine
management software - with first site implementation successfully completed in
August
3. Raised £4.4m in an oversubscribed, undiscounted share issue
Current sales development with both new and existing customers on Vestas and
additional turbine platforms 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.
The opportunity for further developments in our suite of Nexus turbine
performance enhancing software not only introduces new and recurring revenue
streams but also supports our accelerating sales development activity,
particularly across North America.
Following the April fundraise Windar will not be constrained by factors
impacting short-term working capital and whilst growth in 2024 will be
concentrated in the final 8 months of the year, we remain confident over the
full year outcome.
With a strong team, an increasingly robust sales pipeline, a strong balance
sheet, ongoing successful product development, increased manufacturing
capacity and greater supply chain resilience and increasing addressable market
the Board looks to the future with confidence.
For further information, please contact:
Windar Photonics plc
Jørgen Korsgaard Jensen, CEO Tel: +45 24234930
Gavin Manson
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
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2024
With sales and orders for 2024 already at 125% of 2023 revenue when we raised
£4.4m through an undiscounted capital raise in April 2024, the Company is
well positioned to deliver its considerable potential. The funding provided
through that capital raise has allowed the company to accelerate its
previously somewhat constrained sales and production activity since April.
Whilst there is much to be done in the second half of the year to achieve our
targets for the year our sales pipeline and production capacity give us
confidence.
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, combined with the successful first installations of
Windar's Nexus software suite in August leave the longer term opportunity for
Windar increasingly exciting.
Strategic Development
In the first half of 2024 Windar achieved three key milestones:
1. Obtained and delivered a breakthrough $1.3m order in North America -
providing a significant foothold in that market
2. Completed testing and commenced implementation of its Nexus turbine
management software - with implementation successfully completed in August
3. Raised £4.4m in an oversubscribed, undiscounted share issue
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 improvement, 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 and recurring revenue
streams but also supports our accelerating sales development activity,
particularly across North America.
Following the April fundraise Windar will not be constrained by factors
impacting short-term working capital and whilst growth in 2024 will be
concentrated in the final 8 months of the year we remain confident over the
full year outcome.
These developments leave the Company with a very exciting opportunity to
develop scale and value and the Board are committed to delivering this value,
as evidenced both through participation in the recent equity raise and in
existing holdings.
Six Months to 30(th) June 2024
In April 2024 we were pleased to announce a $1.3m order marking a new
relationship with a significant turbine operator in the North American market.
This order was successfully delivered in June with Nexus software
implementation completed in August. As well as providing the potential for
material further orders this also marked the first revenue from sales of
software related services through our Nexus platform.
During the six months to 30 June 2024, revenue increased by 71% from €1.3m
to €2.3m. With activity prior to the April fundraise constrained by the
impact of weather delayed implementations in China on working capital, growth
in 2024 will be concentrated in the final 8 months of the year.
Goss Margin % (H1 2024: 60%, H1 2023 55%) continuing to progress illustrates
the anticipated benefits of increasing volume and of increasingly
geographically diverse sales.
An EBITDA loss of €0.1m (before share-based payments) marks continued
progress from the prior first half loss of €0.3m and with the sales activity
anticipated in H2 we remain confident of full year out-turn.
The Group exited the half year with net cash of €1.2m, an increase of
€2.7m from the last half years net debt. Working capital movements directly
driven by sales activity around the half year increased working capital by
€2.0m year on year. We anticipate that short term working capital movements
will become less pronounced as the number of deliveries increases and phasing
normalises.
Board & 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, testing and first implementations of our Nexus software suite has
required particular dedication from our development team. This success of this
first stage of Nexus software 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 market
the Board looks to the future with confidence.
David George Lis
Chairman
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Six months Six months ended 30 Year ended 31 December
ended 30 June 2024 June 2023 2023
(unaudited) (unaudited) (audited)
Note € € €
Revenue 2,296,781 1,347,072 4,766,484
Cost of goods sold (907,577) (607,584) (2,361,386)
Gross profit 1,389,204 739,488 2,405,098
Administrative expenses (1,623,482) (1,155,834) (2,548,366)
Other operating income - 16,115 32,210
Exceptional (expenses)/income - - -
Loss from operations (234,278) (400,231) (111,058)
Finance expenses (30,528) (87,658) (240,033)
Loss before taxation (264,806) (487,889) (351,091)
Taxation (32,016) 117,818 168,571
Loss for the period (296,822) (370,071) (182,520)
Other comprehensive income
Items that will or maybe reclassified to profit or loss:
Exchange losses arising on translation of foreign operations
(17,664) 90,240 7,089
Total comprehensive loss for the period (314,569) (279,831) (175,431)
Loss per share for loss attributable to the ordinary equity holders of Windar
Photonics plc
Basic and diluted, cents per share 2 (0.4) (0.6) (0.3)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024
As at 31 December
As at 30 June 2024 As at 30 June 2023 2023
(unaudited) (unaudited) (audited)
Notes € € €
Assets
Non-current assets
Intangible assets 1,559,198 1,182,304 1,343,361
Property, plant & equipment 290,531 191,371 330,799
Right of use asset 42,415 74,260 56,005
Deposits 40,059 38,837 38,262
Total non-current assets 1,932,203 1,486,772 1,768,427
Current assets
Inventory 3 1,037,619 885,751 718,983
Trade receivables 4 1,265,083 482,310 546,273
Other receivables 4 224,109 217,998 135,088
Tax credit receivables 4 118,999 337,722 151,015
Prepayments 10,387 93,911 129,551
Cash and cash equivalents 2,763,637 284,830 152,180
Total current assets 5,419,834 2,302,522 1,833,090
Total assets 7,352,037 3,789,294 3,601,517
Equity
Share capital 5 985,971 834,771 834,771
Share premium 21,203,127 16,479,150 16,479,150
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve (76,152) 24,663 (58,488)
Accumulated loss (20,148,553) (20,188,163) (19,901,376)
Total equity 4,875,259 61,287 264,923
Non-current liabilities
Warranty provisions 28,160 45,696 25,493
Holiday Allowance provision 6 140,599 135,987 138,538
Right of use liablility - 41,134 31,711
Loans 6 1,173,230 1,500,663 1,287,697
Total non-current liabilities 1,341,989 1,723,480 1,483,439
Current liabilities
Trade payables 7 56,120 358,130 572,234
Other payables and accruals 7 466,501 347,620 472,810
Contract liabilities 7 128,270 940,956 251,678
Right of use liability 7 43,783 27,422 25,648
Loans 7 440,115 330,399 530,785
Total current liabilities 1,134,789 2,004,527 1,853,155
Total liabilities 2,476,778 3,728,007 3,336,594
Total equity and liabilities 7,352,037 3,789,294 3,601,517
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2024
Six months Six months
ended 30 June 2024 ended 30 June 2023 Year ended 31 December 2023
(unaudited) (unaudited) (audited)
€ € €
Loss for the period before tax (264,806) (487,889) (351,091)
Adjustments for:
Finance expenses 30,528 87,658 240,033
Amortisation 48,480 89,622 179,134
Depreciation - property, plant and equipment 34,721 10,736 30,165
Depreciation - right of use assets 14,091 - 28,738
Received tax credit - - 237,389
Taxes paid - 90,240 (1,369)
Foreign exchange difference (17,664) - 7,089
Warrants expense 49,645 30,794 99,236
(105,005) (178,839) 469,324
Movements in working capital
Changes in inventory (318,636) (186,515) (19,747)
Changes in receivables (807,832) (113,160) (94,213)
Changes in prepayments 119,164 (46,051) (81,691)
Changes in deposits (1,796) (9,843) (9,268)
Changes in trade payables (516,112) 94,047 308,149
Changes in contract liabilities (123,408) (264,575) (953,853)
Changes in warranty provision 2,663 (82) (20,285)
Changes in other payables and provision (6,307) (103,781) 21,402
Cash flow (used in) operations (1,757,269) (808,799) (380,182)
Investing activities
Payments for intangible assets (273,893) (192,953) (493,436)
Payments for tangible assets - (97,541) (254,796)
Grants received 13,967 115,971 165,265
Cash flow (used in) investing activities (259,926) (174,523) (582,967)
Financing activities
Proceeds from issue of share capital 5,394,280 - -
Costs associated with the issue of share capital (519,104) - -
Proceeds from new long-term loans - - -
Lease payments (15,534) - (27,348)
Repayment of loans (203,076) (15,260) (52,249)
Interest (paid)/received (29,168) (87,658) (208,757)
Cash flow from financing activities 4,627,398 (102,918) (288,354)
Net (decrease)/increase in cash and cash equivalents 2,610,203 (1,086,240) (1,251,503)
Exchange differences 1,254 (33,003) (390)
Cash and cash equivalents at the beginning of the period 152,180 1,404,073 1,404,073
Cash and cash equivalents at the end of the period 2,763,637 284,830 152,180
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 2023 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 loss - - - 90,240 - 90,240
Total comprehensive income - - - 90,240 (370,071) (279,831)
At 30 June 2023 834,771 16,479,150 2,910,866 24,663 (20,188,163) 61,287
New shares issued - - - - - -
Costs associated with capital raise - - - - - -
Share option and warrant costs - - - - - -
Transaction with owners - - - - - -
Comprehensive loss for the period - - - - 286,787 286,787
Other comprehensive income - - - (83,151) - (83,151)
Total comprehensive income - - - (58,488) 286,787 (259,680)
At 31 December 2023 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)
Warrant reserve - - - - 49,645 49,645
Other comprehensive Income - - - (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
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2024 and 30 June
2023 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 2024 and are unchanged from those
disclosed in the Group's Annual Report for the year ended 31 December 2023.
The comparative financial information for the year ended 31 December 2023
included within this report does not constitute the full statutory accounts
for that period. The statutory Annual Report and Financial Statements for 2023
have been filed with the Registrar of Companies. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2023 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 2024 ended 30 June 2023 2023
€ € €
Loss for the period (296,822) (370,071) (182,520)
Weighted average number of ordinary shares for the purpose of basic earnings
per share
81,287,870 55,963,110 68,361,444
Basic loss and diluted, cents per share (0.4) (0.6) (0.3)
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 2024 As at 30 June 2023 2023
€ € €
Raw materials 714,571 770,287 414,160
Work in progress 92,480 115,464 63,355
Finished goods 230,568 - 241,468
Inventory 1,037,619 885,751 718,983
4. Trade and other receivables
As at 31 December
As at 30 June 2024 As at 30 June 2023 2023
€ € €
Trade receivables 1,265,083 482,310 546,273
Less; provision for impairment of trade receivables - - -
Trade receivables - net 1,265,083 482,310 546,273
Total financial assets other than cash and cash equivalents classified at
amortized costs
1,265,083 482,310 546,273
Tax receivables 118,999 337,722 151,015
Other receivables 224,109 217,998 135,088
Total other receivables 343,108 555,720 286,103
Total trade and other receivables 1,608,191 1,038,030 832,376
Classified as follows: Current Portion
1,608,191 1,038,030 832,376
5. Share capital
Number of
shares €
Shares as 30 June 2023 55,963,110 834,771
Issue of shares for cash 12,398,334 -
Shares at 31 December 2023 68,361,444 834,771
Issue of shares for cash 12,926,426 -
Shares at 30 June 2024 81,287,870 834,771
At 30 June 2024, the share capital comprises 81,287,870 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 2024 ended 30 June 2023 2023
€ € €
Growth Fund Loans (including accrued interest) 1,613,345 1,831,062 1,818,482
Current portion of Growth Fund Loans (440,115) (330,399) (530,785)
Holiday Accruals 140,599 135,987 138,538
Total non-current financial liabilities measured at amortised costs
1,313,829 1,636,650 1,426,235
The Growth Fund Loans include two separate loans. All conditions for the loans
are unchanged to the position at the end of year 2023.
All loans are denominated in Danish Kroner.
7. Trade and other payables
As at 31 December
As at 30 June 2024 As at 30 June 2023 2023
€ € €
Trade payables 56,120 358,130 572,234
Other payables and accruals 362,823 347,620 368,607
Payables to Directors 103,678 - 104,203
Right of use liability 43,783 27,422 25,648
Current portion of loans 440,115 330,399 530,785
Total financial liabilities, excluding ´non-
current´ loans and borrowings classified as financial liabilities measured at 1,006,519 1,063,571 1,601,477
amortized cost
Contract liabilities
128,270 940,956 251,678
Total trade and other payables
1,134,789 2,004,527 1,853,155
Classified as follows: Current Portion
1,134,789 2,004,527 1,853,155
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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