Half-year Report

Windar Photonics

15/09/2025 07:00

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
ended30 June 2025
Six months ended 30
June 2024
Year ended 31 December
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
Administrativeexpenses
(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 30 June 2025
As at 30 June 2024
As at 31 December
2024
(unaudited)
(unaudited)
(audited)
Notes
€
€
€
Assets
Non-current assets
Intangible assets
1,573,993
1,559,198
1,764,959
Property, plant & equipment
Right of use asset
716,428
13,090
290,531
42,415
419,069
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
Holiday Allowance provision
Right of use liablility
6
36,993
148,803
-
28,160
140,599
-
36,997
142,697
-
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
ended30 June 2025
Six months
ended30 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
Depreciation - right of use assets
42,630
13,888
34,721
14,091
40,808
28,236
Received tax credit
-
-
246,413
Taxes paid
Foreign exchange difference
-
(135,956)
-
(17,664)
1,344
(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
Payments for tangible assets
(136,310)
(192,555)
(273,893)
-
(573,093)
(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
Costsassociated withcapitalraise
-
(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
ended30 June 2025
Six months
ended30 June 2024
Year ended 31 December
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 30 June 2025
As at 30 June 2024
As at 31 December
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 30 June 2025
As at 30 June 2024
As at 31 December
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
ended30 June 2025
Six months
ended30 June 2024
Year ended 31 December
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 30 June 2025
As at 30 June 2024
As at 31 December
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 amortized cost
1,687,842
1,006,519
1,671,673
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.

 

 

 

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