Wind turbine sensor maker Windar flags potential accounting irregularities
Wind turbine sensor maker Windar flags potential accounting irregularities June 17 (Reuters) - Wind turbine sensor maker Windar Photonics WPHO.L said on Wednesday it has discovered potential accounting irregularities totalling about €2.8 million ($3.25 million) in revenue recognised over the past two financial years.
Here are some details:
The irregularities relate to €1.2 million in revenue recognised in 2024 and €1.6 million in 2025, involving sales to two Chinese customers where the company has questions over documentation and whether the sales were genuine.
According to the board, the issues are wholly internal rather than any misconduct by the Chinese customers.
Besides its European and American operations, Windar has sales and technical offices in China to sell and test its turbine-optimization technology with major domestic wind operators.
The company does not expect any impact on cash, but there will be negative impacts on its income statement and balance sheet impairments.
Windar said the audit for the financial year 2025 would be delayed beyond the June 30, 2026 deadline required under AIM Rules, representing a regulatory breach.
The Denmark-headquartered company also temporarily suspended trading of its shares.
As of May 31, the company had gross cash of €85,000 and will face significant working capital constraints before July-end despite its strongest-ever first quarter for new test orders, it said.
($1 = €0.8617)
(Reporting by Nithyashree R B in Bengaluru; Editing by Shilpi Majumdar)
((NithyashreeRB@thomsonreuters.com))
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