TIDMWPHO
RNS Number : 2944N
Windar Photonics PLC
29 September 2021
29 September 2021
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
2020
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 2021.
For further information, please contact:
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
CHAIRMAN'S STATEMENT
The Company's performance in 2021 showed an improvement from the
corresponding prior year period with realised revenue for the first
half year of 2021 of EUR0.31 million, equivalent to an increase of
11% compared to the first six months of 2020 (H1 2020: EUR0.27
million). Despite this modest growth, the revenue earned continued
to be negatively impacted by the ongoing delays seen in end-user
projects caused by the Covid-19 pandemic, which include the on/off
travel restrictions in place, particularly in Asian markets.
Despite the ongoing impact of the Covid-19 pandemic, the Company
saw continued market interest for our products. This interest has
been realised with the receipt of orders for a further EUR0.9
million, primarily customers from the Asian markets. As at 30 June
2021, the Company order backlog stood at EUR2.2 million, an
increase from EUR1.6 million at the end of year 2020. In addition,
further orders have been received since the 30 June 2021, putting
the Company in a strong position for future delivery. The order
intake is evenly split between sales to the OEM and Retro-fit
market segments.
The various cost cutting initiatives implemented during 2020
continued in 2021 and an additional 5% reduction of the total
administrative expenses has resulted in achieving a reduced net
Loss before taxation of EUR0.95 million when compared to the same
period in the prior year (H1 2020: EUR1.03 million).
During the period, two very important customer test projects
were completed with encouraging results. Both tests utilised the
Plug and Play WindTimizer turbine integration module including the
recently developed on/off (hourly) toggling module, facilitating
the precise performance of before/after tests, eliminating any
impact of environmental changes during the before/after periods. It
is notable that the Windar products are the only Lidar products in
the market with such Plug and Play and testing functionality.
The largest of the two test projects was completed at the end of
the first half of the year in Asia, where the Company completed a
12 month test project with one of the world's leading IPPs, with an
installed capacity of 35GW. The project included five different
turbine platforms, with an average turbine size of 2.6MW. Before
considering the reduced down time of the wind turbines, the average
Annual Energy Production (AEP) was increased by more than 3%, with
the results being verified by the IPP technology institute. The
Company has received additional minor orders during the period from
this IPP but expects to see a larger roll-out as of next year.
The second test project on the Vestas V82 turbine platform in
North America, was completed at the end of 2020 and at the
beginning of the first half year, the average AEP increase of 3%
was verified also by the wind turbine manufacturer. Negotiations
have been ongoing and significant orders for two Turbine Parks are
expected in the near future. However, these negotiations in which
the Company is not directly involved have taken longer than
initially estimated and due to timing of eventual orders, these are
not likely to be delivered within the current financial year. As
Vestas Global Service has endorsed the Vestas/Windar solution as
the preferred optimisation solution for the V82 turbine platform,
we have initiated activities to address the roughly 4,000 V82
turbines installed globally. Following the successful pilot test
customer inquiries have already been received for similar pilot
test runs on additional wind turbine parks in North America.
Regarding the OEM market segments we have seen some delays in
executing the previous received orders; however, during the period
the Company has received larger orders from new OEM customers in
Asia. The Company expected to see a continued growth in this
segment, but timing of deliveries is unclear at the current
stage.
Regarding our Lidar as a Service (LaaS) offering, the Company
completed one pilot test with a North American customer on five
Vestas V90 turbines during the period. Based on our advanced yaw
alignment, wind speed and turbulence technologies we were able to
demonstrate a potential 3.9% AEP increase by optimizing controller
set points regarding the Wind Sector Management and the Nacelle
Transfer Function. The Company expects to conclude orders within
this market segment in the near future.
As previously announced, our One Unit system platform was
successfully launched during the period. During the first half of
2021, our rain intensity detection technology was successfully
completed and presented by the Company and The Danish Technology
University (DTU) on the Wind Energy Science Conference (WESC 2021)
in Hannover, Germany in May 2021. This technology is aimed at
reducing leading-edge erosion of the wind turbine rotor blades. The
functionality will be fully implemented in all our product
platforms from January 2022 as a standard feature.
Within our EUDP funded Licoreim development project, focused on
general wind turbine load reductions based on our WindVision(TM)
system, we have seen good progress. The main parties besides the
Company in the project are DTU, SiemensGamesa and Mita Teknik. For
the retro-fit implementation, we have seen fatigue load reduction
potentials of 7-9% in respect of blade and tower loads and expect
to implement on a test turbine in Germany within the coming
months.
Similarly, we have seen good progress within our Eurostar funded
Lawis development project, focused on merging all major optical
components into one single component. Besides targeting improved
optical performances, this is a key target for further cost
optimisations across our product platforms.
Financial Overview
Overall, the Group realised revenues of EUR0.31 million (H1
2020: EUR0.27 million) and a net loss of EUR0.86 million for the
period (H1 2020: loss of EUR1.01 million) after depreciation,
amortisation and warrant costs of EUR0.17 million (H1 2020: EUR0.18
million).
Cash flow from operations produced a net outflow of EUR0.54
million for the period compared to a net outflow of EUR0.65 million
in H1 2020.
Outlook
Due to the delays detailed above, part of the order backlog of
EUR2.2 million as per the end of the first half year is expected to
be carried forward into 2022. The Company currently estimates that
recognised revenue will grow by 45% to 50% in 2021, compared to the
previous year. Despite the recent delays, the Group's cash flow
position is constantly being monitored with respect to eventual
consequences of orders and project delays. However, management
believe that there are a number of actions available to them in
order to manage the cash position if needed.
In the event that the Company is successful in finalising the
aforementioned orders from North America in the near future the
order backlog to be carried forward into 2022 is expected to be
further strengthened from the position outlined above. In view of
the encouraging project pipeline within the LaaS and Asian market
segments, the Board believes that the Group is well placed to
deliver a significantly improved financial performance in 2022.
The above estimates assume no further restrictions in relation
to the current pandemic. Any further restrictions would not
significantly affect overall order intake but could alter the
timing of revenue recognition.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE SIX MONTHSED 30 JUNE 2021
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2020
2021 2020
(unaudited) (unaudited) (audited)
Note EUR EUR EUR
Revenue 305,991 274,752 1,333,956
Cost of goods sold (147,703) (151,445) (632,586)
Gross profit 158,288 123,307 701,370
Administrative expenses (1,120,163) (1,172,592) (2,183,141)
Other operating income 16,136 16,076 32,196
Loss from operations (945,739) (1,033,209) (1,449,575)
Finance expenses (16,601) (47,465) (143,110)
Loss before taxation (962,340) (1,080,674) (1,592,685)
Taxation 100,850 67,194 252,517
Loss for the period (861,490) (1,013,480) (1,340,168)
Other comprehensive income
Items that will or maybe reclassified
to profit or loss:
Exchange losses arising on
translation of foreign operations (11,759) 14,932 22,584
Total comprehensive loss for
the period (873,249) (998,548) (1,317,584)
============ ============ =============
Loss per share for loss attributable
to the ordinary equity holders
of Windar Photonics plc
Basic and diluted, cents per
share 2 (1,6) (2.1) (2.7)
------------ ------------ -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
2021
As at As at As at
30 June 30 June 31 December
2021 2020 2020
(unaudited) (unaudited) (audited)
Notes EUR EUR EUR
Assets
Non-current assets
Intangible assets 1,073,665 1,223,825 1,205,243
Property, plant & equipment 12,120 41,236 27,698
Deposits 25,614 24,957 25,382
Total non-current assets 1,111,399 1,290,018 1,258,323
-------------------------------- ------ ------------- ------------- -------------
Current assets
Inventory 3 602,139 1,062,398 636,785
Trade receivables 4 396,752 160,284 429,241
Other receivables 4 157,914 101,863 220,047
Tax credit receivables 4 353,993 67,303 253,030
Prepayments 4,743 15,152 14,195
Restricted cash and cash -
equivalents - -
Cash and cash equivalents 78,077 268,174 626,361
Total current assets 1,593,618 1,675,174 2,179,659
-------------------------------- ------ ------------- ------------- -------------
Total assets 2,705,017 2,965,192 3,437,982
-------------------------------- ------ ------------- ------------- -------------
Equity
Share capital 5 675,664 622,375 675,664
Share premium 14,502,837 14,016,576 14,502,837
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve (7,805) (3,698) 3,955
Accumulated loss (18,488,434) (17,337,276) (17,651,945)
Total equity (406,872) 208,843 441,377
-------------------------------- ------ ------------- ------------- -------------
Non-current liabilities
Warranty provisions 38,509 61,310 38,493
Loans 6 1,533,259 1,164,431 1,719,825
-------------------------------- ------ ------------- ------------- -------------
Total non-current liabilities 1,571,768 1,225,741 1,758,318
-------------------------------- ------ ------------- ------------- -------------
Current liabilities
Trade payables 7 736,586 950,015 726,007
Other payables and accruals 7 503,776 188,906 274,202
Invoice discounting 7 - 42,372 -
Contract liabilities 7 110,915 220,274 215,905
Loans 7 188,844 129,041 22,173
-------------------------------- ------ ------------- ------------- -------------
Total current liabilities 1,540,121 1,530,608 1,238,287
-------------------------------- ------ ------------- ------------- -------------
Total liabilities 3,111,889 2,756,349 2,996,605
-------------------------------- ------ ------------- ------------- -------------
Total equity and liabilities 2,705,017 2,965,192 3,437,982
-------------------------------- ------ ------------- ------------- -------------
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHSED
30 JUNE 2021
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2021 2020 2020
(unaudited) (unaudited) (audited)
EUR EUR EUR
Loss for the period before
tax (962,340) (1,080,674) (1,592,685)
Adjustments for:
Finance expenses 16,601 47,465 143,110
Amortisation 127,173 143,254 286,903
Depreciation 15,239 20,640 38,752
Received tax credit - 212,570 212,864
Foreign exchange difference (11,759) 14,932 22,691
Warrants expense 25,000 15,000 27,020
--------------------------------------- ------------ ------------ -------------
(790,086) (626,813) (861,345)
Movements in working capital
Changes in inventory 34,647 (42,834) 382,779
Changes in receivables 94,622 (66,139) (453,281)
Changes in prepayments 9,451 29,706 30,663
Changes in deposits (233) 23 (401)
Changes in trade payables 10,580 (95,780) (319,788)
Changes in contract liabilities (104,990) 150,320 145,951
Changes in warranty provision 16 140 (22,677)
Changes in other payables
and provision 209,640 266 62,321
Cash flow (used in) operations (536,353) (651,111) (1,035,778)
--------------------------------------- ------------ ------------ -------------
Investing activities
Payments for intangible assets (114,296) (245,743) (469,362)
Grants received 107,200 74,055 (4,449)
Payments for tangible assets - - 174,713
Cash flow (used in) investing
activities (7,096) (171,688) (299,098)
--------------------------------------- ------------ ------------ -------------
Financing activities
Proceeds from issue of share
capital - 375,714 975,214
Costs associated with the
issue of share capital - (37,571) (97,521)
Proceeds from new long term
loans - - 402,447
(Reduction) / proceeds from
invoice discounting - 40,380 (1,992)
(Decrease)/ increase restricted
cash balances - - -
Repayment of loans - - (5,171)
Interest (paid)/received (16,601) (47,465) (74,357)
Cash flow from financing activities (16,601) 331,058 1,198,620
--------------------------------------- ------------ ------------ -------------
Net (decrease)/increase in
cash and cash equivalents (560,050) (491,741) (136,256)
Exchange differences 11,766 (3,109) (407)
Cash and cash equivalents at
the beginning of the period 626,361 763,024 763,024
Cash and cash equivalents at
the end of the period 78,077 268,174 626,361
--------------------------------------- ------------ ------------ -------------
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX
MONTHS
ED 30 JUNE 2021
Share Share Merger Foreign Accumulated Total
Capital Premium reserve currency Losses
reserve
EUR EUR EUR EUR EUR EUR
--------------------- --------- ----------- ---------- ---------- ------------- ------------
At 1 January 2020 608,689 13,692,119 2,910,866 (18,630) (16,338,796) 854,248
New shares issued 13,686 324,457 - - - 338,143
Share option and
warrant costs - - - - 15,000 15,000
--------- ----------- ---------- ---------- ------------- ------------
Transaction with
owners 13,686 324,457 - - 15,000 353,143
--------- ----------- ---------- ---------- ------------- ------------
Comprehensive loss
for the period - - - - (1,013,480) (1,013,480)
Other comprehensive
loss - - - 14,932 - 14,932
Total comprehensive
income - - - 14,932 (1,013,480) (998,548)
At 30 June 2020 622,375 14,016,576 2,910,866 (3,698) (17,337,276) 208,843
New shares issued 53,289 583,782 - - - 637,071
Costs associated
with capital raise - (97,521) - - - (97,521)
Share option and
warrant costs - - - - 12,020 12,020
--------- ----------- ---------- ---------- ------------- ------------
Transaction with
owners 53,289 486,261 - - 12,020 551,570
--------- ----------- ---------- ---------- ------------- ------------
Comprehensive loss
for the period - - - - (326,688) (326,688)
Other comprehensive
income - - - 7,652 - 7,652
Total comprehensive
income - - - 7,652 (326,688) (319,036)
At 31 December 2020 675,664 14,502,837 2,910,866 3,954 (17,651,944) 441,377
New shares issued - - - - - -
Share option and
warrant costs - - - - 25,000 25,000
--------- ----------- ---------- ---------- ------------- ------------
Transaction with
owners - - - - 25,000 25,000
--------- ----------- ---------- ---------- ------------- ------------
Comprehensive loss
for the period - - - - (861,490) (861,490)
Other comprehensive
Income - - - (11,759) - (11,759)
Total comprehensive
income - - - (11,759) (861,490) (873,249)
At 30 June 2021 675,664 14,502,837 2,910,866 (7,805) (18,488,434) (406,872)
--------------------- --------- ----------- ---------- ---------- ------------- ------------
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2021
and 30 June 2020 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 2021 and
are unchanged from those disclosed in the Group's Annual Report for
the year ended 31 December 2020. The comparative financial
information for the year ended 31 December 2020 included within
this report does not constitute the full statutory accounts for
that period. The statutory Annual Report and Financial Statements
for 2020 have been filed with the Registrar of Companies. The
Independent Auditor's Report on the Annual Report and Financial
Statements for 2020 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
ended ended 31 December
30 June 30 June 2020
2021 2020
EUR EUR EUR
Loss for the period (861,490) (1,013,480) (1,340,168)
----------- ------------- -------------
Weighted average number of ordinary
shares for the purpose of basic
earnings per share 54,595,522 49,167,898 49,819,356
Basic loss and diluted, cents per
share (1,6) (2.1) (2.7)
----------- ------------- -------------
There is no dilutive effect of the warrants as the dilution
would reduce the loss per share.
3. Inventory
As at
As at As at 31 December
30 June 30 June 2020
2021 2020
EUR EUR EUR
Raw materials 125,256 358,827 16,145
Work in progress 284,199 337,247 181,598
Finished goods 192,684 366,324 439,042
------------------ ---------- ---------- -------------
Inventory 602,139 1,062,398 636,785
------------------ ---------- ---------- -------------
4. Trade and other receivables
As at
As at As at 31 December
30 June 30 June 2020
2021 2020
EUR EUR EUR
--------------------------------------- ---------- ---------- -------------
Trade receivables 908,507 672,039 1,301,858
Less; provision for impairment
of trade receivables (511,755) (511,755) (872,617)
--------------------------------------- ---------- ---------- -------------
Trade receivables - net 396,752 160,284 429,241
Total financial assets other than
cash and cash equivalents classified
at amortised costs 396,752 160,284 429,241
--------------------------------------- ---------- ---------- -------------
Tax receivables 353,993 67,303 253,030
Other receivables 157,914 101,863 220,047
Total other receivables 511,907 169,166 473,077
Total trade and other receivables 908,659 329,450 902,318
--------------------------------------- ---------- ---------- -------------
Classified as follows:
Current Portion 908,659 329,450 902,318
--------------------------------------- ---------- ---------- -------------
5. Share capital
Number
of shares EUR
Shares as 30 June 2020 49,751,078 622,375
Issue of shares for cash 4,844,446 53,289
Shares at 31 December 2020 54,595,524 675,664
Issue of shares for cash - -
Shares at 30 June 2021 54,595,524 675,664
------------------------------- ----------- --------
At 30 June 2021, the share capital comprises 54,595,524 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
ended ended 31 December
30 June 30 June 2020
2021 2020
EUR EUR EUR
Growth Fund (including accrued
interest) 1,719,825 1,285,457 1,736,802
Nordea Ejendomme 2,278 8,015 5,196
Total financial assets other than
cash and cash equivalents classified
as loans and receivables 1,722,103 1,293,472 1,741,998
--------------------------------------- ----------- ----------- -------------
The Growth Fund borrowing from the Danish public institution,
Vækstfonden, initially bore interest at a fixed annual rate of 12
per cent with a full bullet repayment in June 2021. Terms for the
borrowing were amended in June 2020, and November 2020, pursuant to
which the interest rate was reduced to 7 percent p.a. and the loan
is to be repaid in equal quarterly instalments over the period from
1 January 2022 until 1 January 2026. In November 2020 the Company
has received an offer on an additional Covid loan of EUR400,000 at
an annual interest rate of Cibor + 5% to be repaid over a 5 year
period starting from January 2022 The cash proceeds has been
received post reporting period.
The loan from Nordea Ejendomme is in respect of amounts included
in the fitting out of the offices in Denmark. The loan is repayable
over the 6 years and matures in November 2021 and carries a fixed
interest rate of 6 per cent.
All loans are denominated in Danish Kroner.
7. Trade and other payables
As at As at
As at 30 June 31 December
30 June 2021 2020 2020
EUR EUR EUR
Invoice discounting - 42,372 -
Trade payables 736,586 950,015 726,007
Other payables and accruals 503,776 188,906 274,202
Current portion of loans 188,844 129,041 22,173
Total financial liabilities,
excluding 'non-current'
loans and borrowings classified
as financial liabilities
measured at amortised cost 1,429,206 1,310,334 1,022,382
---------------------------------- --------------- ------------ -------------
Contract liabilities 110,915 220,274 215,905
---------------------------------- --------------- ------------ -------------
Total trade and other payables 1,540,121 1,530,608 1,238,287
---------------------------------- --------------- ------------ -------------
Classified as follows:
Current Portion 1,540,121 1,530,608 1,238,287
---------------------------------- --------------- ------------ -------------
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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