REG - Windar Photonics PLC - Update on Trading and Publication of Final Results

Windar PhotonicsAnnouncement

29/06/2022 07:00

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RNS Number : 5484Q  Windar Photonics PLC  29 June 2022

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the Market
Abuse Regulations No. 596/2014 which is part of English law by virtue of the
European (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

Windar Photonics plc

("Windar" or the "Company")

Update on Trading and Publication of Final Results

 

Windar Photonics plc (AIM:WPHO), the technology group that has developed a
cost efficient and innovative LiDAR win sensor for use on electricity
generating wind turbines, provides an update on the Company's financial
results for the year ended 31 December 2021 ("FY21") and on current outlook.

 

Publication of Results

 

The Company has been in discussions with its auditors in relation to its
annual audited accounts for FY21 ("FY21 Accounts") and it is has become clear
that the Company will not be in a position to publish its FY21 Accounts by 30
June 2022, the deadline under AIM Rule 19. Consequently, the Company's shares
will be temporarily suspended from trading on AIM as of 7.30 a.m. on 1 July
2022, pending publication of the FY21 Accounts. The Directors are endeavoring
to finalise the procedures required for the audit to be completed and will
publish the FY21 Accounts as soon as possible.

 

Notwithstanding the temporary suspension of trading in the Company's shares,
the Company will continue to make announcements as and when there are any
developments that require to be notified under the AIM Rules for Companies.

 

Unaudited Financial Results for FY21

 

Based on the unaudited financial information available to the Company, it is
expected that, when published, the FY21 Accounts will show a decrease in
reported revenues of approximately 50% from 2020, primarily due to project
delays being experienced in China. In particular, one contracted order with an
OEM customer in the Chinese market, with a minimum contract value of EUR 1.0
million, was contracted to be delivered in the fourth quarter of 2020. This
order was subsequently delayed until the end of 2021 due to the difficulties
experienced as a result of the Covid pandemic. However, the contractual
provisions to allow delivery were not met and, whilst the order has not been
formally cancelled, Windar does not reasonably believe that the order will be
progressed.

 

At the end of FY21, the Company had recognised deferred revenue amounting to
EUR 1.0 million.

 

Despite the decreased revenue year on year, the loss before tax for FY21 is
expected to reduce from EUR 1.3 million in 2020 to EUR 1.0 million, due
primarily to cost savings implemented in the second half of 2021. Management
has taken a proactive approach to preserve working capital and the Company's
cash flow position has been closely monitored.

 

At 31 December 2021, the Company's cash holdings amounted to EUR 40,000, with
debtors and short-term receivables amounting to EUR 1.2 million, of which more
than 90% was collected during the first two months of 2022.

 

Outlook

 

In the fourth quarter of FY21, the Company received the first volume orders
covered by the distribution agreement with Vestas Service. However, during
first half of 2022 ("H1 22") the Company has experienced severe supply chain
issues, primarily related to the receipt of deliveries of mechanical
components part sourced by the Company's Shanghai office which was closed from
March to June due to Covid related restrictions in China. As a result, the
Company has incurred production delays for orders due for delivery in H1 22.
In addition, the Company has experienced delays in procuring certain
electrical components.

 

As a result of these delays, delivery of contracted orders for Vestas have
experience an approximately three month delay. However, the Company is pleased
to confirm that deliveries to Vestas have recommenced in June 2022.

 

The Company has a current confirmed order book for deliveries in 2022 of more
than EUR 4.0 million of which EUR 2.5 million relates to orders secured from
jurisdictions outside of China or already delivered to China.

 

The order book includes orders from two new customers seeking to replicate the
test that was successfully completed for the Vestas V82 turbines on the
GE1.5MW platform in North America and two additional turbine platforms in
Japan. Similar negotiations are ongoing with three other North American
independent power producers ("IPPs") regarding test projects on three
additional turbine platform.

 

Within China, the order backlog includes one volume order related to the
retro-fit market and the previous mentioned successful test with the second
largest IPP in the world. The test was finalized in 2021 with an average AEP
improvement of 3% over five different turbine platforms. These results are in
line with test results generated from the tests completed in North America.

 

Whilst the Company is in the process of shifting some of the manufacturing of
mechanical parts out of China, the main challenge for delivery of products in
2022 will continue to be related to the supply and sourcing certain key
electronical components.

 

For further information:

 

 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/)

 

 

 

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