Interim Results

RNS Number : 6930H
Windar Photonics PLC
25 November 2022
 

25 November 2022

 

 

Windar Photonics plc

 

("Windar", the "Company" or the "Group")

 

Unaudited interim report for the six months ended 30 June 2022

 

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 2022.

 

For further information, please contact:

 

Windar Photonics plc

Jørgen Korsgaard Jensen, CEO

Tel: +45 24234930

Cenkos Securities plc (Nomad & Broker)

Neil McDonald / Pete Lynch

Tel: 0131 220 6939

 

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

 

Despite having experienced severe logistical challenges during the first six months of 2022 due to the ongoing COVID-19 pandemic, realised revenue for the first half year of 2022 increased by 35% to €0.4 million (H1 2021: €0.3 million). The majority of revenue within the period was realized in June, when initial deliveries to Vestas Service (North America) finally commenced.

 

The Company continued to see an increased interest in our product offerings with receipt of new orders during the period for a further €1.6 million (H1 2021: €0.9 million), including important new test orders from North America and Japan expanding our WindEye™ and WindTimizer solution to new wind turbine platforms. Similarly, the Company received new orders from key customers in Asia based on previously announced test results in the region and, in total, the overall order backlog at the end of the period stood at €3.8 million (H1 2021: €2.2 million), of which more than €1 million has been invoiced/received, but is not recognised in the revenue figure for H1 2022 and is included as deferred revenue within the contract liabilities figure on the balance sheet. This invoiced balance will be recognised in future periods. 

 

The Company further continued its efforts to reduce operational expenses during the period and, compared to the same period of 2021, total operational costs were reduced by 10%. This reduction, combined with the increased revenue and gross profit during the period, resulted in the net loss before taxation being reduced from €0.9 million in H1 2021 to €0.8 million in H1 2022.

 

 

Financial Overview

 

Overall, the Group realized revenues of €0.4 million (H1 2020: €0.3 million) and recorded a net loss of

€0.8 million for the period (H1 2021: loss of €0.9 million) after depreciation, amortization and warrant costs of €0.1 million (H1 2021: €0.2 million).

 

Cash flow from operations produced a net inflow of €0.1 million for the period compared to a net outflow of €0.6 million in H1 2021.

 

 

 

Outlook

 

Despite the continued COVID related challenges experienced during the period, which severely impacted planned production and customer shipments, the overall market developments have been encouraging in 2022. The order backlog has increased substantially during the period, and the Board expect additional orders in the near future, not only substantiated by the Company's exclusive offerings but further supported by the general worldwide increase in electricity prices supporting our underlying business case. 

 

As previously announced in the annual accounts for 2021, and due to the severe COVID related challenges experienced during the period, the Board initiated activities for a new capital raise in the second half of 2022. The Board is pleased to announce that subject to readmission of trading on AIM, the Company has successfully raised €2.4 million (before costs) at an issue price of 15p per share. Board member participation in the capital raise is expected to constitute approximately 10% of the total capital raise. Further, after end of the accounting period the Company has renegotiated the repayment schedule of the Growth Fund loan, whereby €0.6 million currently recognized as short term debts at the end of the accounting period would have been deemed as long-term debts if new terms applied. Given these actions and combined with the continued progress of the underlying positive development of the general business activities, the Board believes that the Company has sufficient cash flows for operations for the coming 12 months period. 

 

Overall, the Board recognizes the severe negative impact the general COVID-19 pandemic has had on the progress of the Company during the last couple of years. However, noting a substantial improved development in relation to all important key performance indicators in the second half of 2022 the Board believes that the Company is positioned for a successful economical future. The development is currently further enhanced by the globally increase in cost of energy whereby the value of our value proposition increases, as the main benefit from the product offerings is to increase power generation from new and existing wind turbines, and at the same time, positively contributing to a more worldwide sustainable green power generation transformation in the future. 

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2022


 

Six months

ended 30 June 2022

 

Six months ended 30

June 2021

 

Year ended 31 December

2021



(unaudited)

(unaudited)

(audited)


Note

Revenue


420,555

305,991

551,535

Cost of goods sold


(225,853)

(147,703)

(105,322)

Gross profit


194,702

158,288

446,213

Administrative expenses


(1,047,542)

(1,120,163)

(1,882,094)

Other operating income


16,129

16,136

32,271

Loss from operations


(836,711)

(945,739)

(1,403,610)

Finance expenses


(43,606)

(16,601)

25,520

Loss before taxation


(880,317)

(962,340)

(1,378,090)

 

Taxation


 

124,997

 

100,850

 

248,913

Loss for the period


(755,320)

(861,490)

(1,129,177)

Other comprehensive income





Items that will or maybe reclassified to profit or loss:





Exchange losses arising on translation of foreign operations


 

(37,554)

 

(11,759)

 

(92,348)

 

Total comprehensive loss for the period


 

(792,874)

 

(873,249)

 

(1,221,525)

 

 

Loss per share for loss attributable to the ordinary equity holders of Windar Photonics plc





Basic and diluted, cents per share

2

(1.4)

(1.6)

(2.1)

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

 



 

As at 30 June 2022

 

As at 30 June 2021

As at 31 December

2021

 



(unaudited)

(unaudited)

(audited)

 


Notes

 

Assets





 

Non-current assets





 

Intangible assets


1,215,454

1,073,665

1,195,267

 

Property, plant & equipment


1,815

12,120

2,423

 

Deposits


26,601

25,614

26,398

 

Total non-current assets


1,243,870

1,111,399

1,224,088

 

 

 

 

Current assets





 

Inventory

3

858,407

602,139

694,969

 

Trade receivables

4

288,432

396,752

991,734

 

Other receivables

4

16,717

157,914

157,919

 

Tax credit receivables

4

373,853

353,993

265,620

 

Prepayments


24,785

4,743

33,954

 

Cash and cash equivalents


109,533

78,077

40,548

 

Total current assets


1,671,727

1,593,618

2,184,744

 






 

Total assets


2,915,597

2,705,017

3,408,832

 

 

Equity





 

Share capital

5

675,664

675,664

675,664

 

Share premium


14,502,837

14,502,837

14,502,837

 

Merger reserve


2,910,866

2,910,866

2,910,866

 

Foreign currency reserve


(126,248)

(7,805)

(88,394)

 

Accumulated loss


(19,505,475)

(18,488,434)

(18,758,348)

 

Total equity


(1,542,356)

(406,872)

(757,375)

 

 

Non-current liabilities





 

Warranty provisions


42,858

38,509

36,150

 

Holiday allowance provision


131,829

-

131,877

 

Loans

6

1,187,013

1,533,259

1,371,076

 

Total non-current liabilities


1,361,700

1,571,768

1,539,103

 

 

Current liabilities





 

Trade payables

7

754,981

736,586

544,330

 

Other payables and accruals

7

758,713

503,776

758,234

 

Contract liabilities

7

1,048,039

110,915

951,606

 

Loans

7

534,520

188,844

372,934

 

Total current liabilities


3,096,252

1,540,121

2,627,104

 






 

Total liabilities


4,457,953

3,111,889

4,166,207

 






 

Total equity and liabilities


2,915,597

2,705,017

3,408,832

 

 

 

CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2022


Six months

ended 30 June 2022

Six months

ended 30 June 2021

 

Year ended 31 December 2021


(unaudited)

(unaudited)

(audited)


Loss for the period before tax

(880,317)

(962,340)

(1,378,090)

Adjustments for:




Finance expenses

43,606

16,601

(25,520)

Amortisation

83,752

127,173

254,339

Depreciation

-

15,239

25,115

Received tax credit

-

-

213,362

Foreign exchange difference

(37,554)

(11,759)

(92,348)

Warrants expense

8,193

25,000

22,773


(782,320)

(790,086)

(980,369)

Movements in working capital




Changes in inventory

(163,439)

34,647

(58,183)

Changes in receivables

844,503

94,622

(500,363)

Changes in prepayments

9,170

9,451

(19,760)

Changes in deposits

(203)

(233)

(1,017)

Changes in trade payables

81,799

10,580

(96,569)

Changes in contract liabilities

96,433

(104,990)

735,700

Changes in warranty provisions

6,708

16

(2,343)

Changes in holiday allowance provision

(48)

-

-

Changes in other payables and provision

129,330

209,640

528,803

Cash flow (used in) operations

221,933

(536,353)

(394,101)

 

Investing activities




Payments for intangible assets

(221,298)

(114,296)

(652,264)

Grants received

130,078

107,200

408,354

Payments for tangible assets

-

-

-

Cash flow (used in) investing activities

(91,220)

(7,096)

(243,910)

 

Financing activities




Proceeds from issue of share capital

-

-

-

Costs associated with the issue of share capital

-

-

-

Proceeds from new long-termloans

 

-


Repayment of loans

(22,477)

-

(22,180)

Interest (paid)/received

(43,605)

(16,601)

51,006

Cash flow from financing activities

(66,082)

(16,601)

26,826

 

 

Net (decrease)/increase in cash and cash equivalents

 

 

64,631

 

 

(560,050)

 

 

(609,185)

Exchange differences

4,354

(11,766)

23,372

40,548

626,361

626,361

 

Cash and cash equivalents at the end of the period

 

109,533

 

78,077

 

40,548

 

 

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2022

 


Share Capital

Share Premium

Merger reserve

Foreign currency reserve

Accumulated

Losses

 

Total


At 1 January 2021

 

New shares issued

675,664

 

  -

14,502,837

 

  -

2,910,866

 

-

  3,954

 

-

(17,651,944)

 

-

441,377

 

  -

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 loss

-

-

-

(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)

 

New shares issued

 

-

 

-

 

-

 

-

 

-

 

-

Costs associated with capital raise

-

-

-

-

-

-

Share option and warrant costs

-

-

-

-

(2,227)

(2,227)

Transaction with owners

-

-

-

-

(2,227)

(2,227)

 

Comprehensive loss for the period

 

-

 

-

 

-

 

-

 

(267,687)

 

(267,687)

Other comprehensive income

-

-

-

(80,589)

-

(80,589)

Total comprehensive income

-

-

-

(80,589)

(267,687)

(348,276)








At 31 December 2021

675,664

14,502,837

2,910,866

(88,394)

(18,758,348)

(757,375)

New shares issued

-

-

-

-

-

-

Share option and warrant costs

-

-

-

-

8,193

8,193

Transaction with owners

-

-

-

-

8,193

8,193

 

Comprehensive loss for the period

 

-

 

-

 

-

 

-

 

(755,320)

 

(755,320)

Other comprehensive Income

-

-

-

(37,854)

-

(37,554)

Total comprehensive income

-

-

-

(37,854)

(755,320)

(792,874)








At 30 June 2022

675,664

14,502,837

2,910,866

(126,248)

(19,505,475)

(1,542,356)

 

 

1. BASIS OF PREPARATION

The financial information for the six months ended 30 June 2022 and 30 June 2021 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 2022 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2021. The comparative financial information for the year ended 31 December 2021 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2021 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for 2021 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.

 

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

ended 30 June 2022


Six months

ended 30 June 2021


Year ended 31 December

2021




Loss for the period

(755,320)


(861,490)


(1,129,177)

Weighted average number of ordinary shares for the purpose of basic earnings per share

 

54,595,522


 

54,595,522


 

54,595,522

Basic loss and diluted, cents per share

(1.4)


(1.6)


(2.1)

 

There is no dilutive effect of the warrants as the dilution would reduce the loss per share.

 

2.  Inventory


 

As at 30 June 2022

 

As at 30 June 2021

As at 31 December

2021


Raw materials

489,292

125,256

363,216

Work in progress

71,677

284,199

46,879

Finished goods

297,438

192,684

284,874

Inventory

858,407

602,139

694,969

 

 

3.  Trade and other receivables


 

As at 30 June 2022

 

As at 30 June 2021

As at 31 December

2021


Trade receivables

1,161,721

908,507

1,865,023

Less; provision for impairment of trade receivables

(873,289)

(511,755)

(873,289)

Trade receivables - net

288,432

396,752

991,734

Total financial assets other than cash and cash equivalents classified at amortized costs

 

288,432

 

396,752

 

991,734

Tax receivables

373,853

353,993

265,620

Other receivables

16,717

157,914

157,919

Total other receivables

390,570

511,907

423,539

 

Total trade and other receivables

 

679,002

 

908,659

 

1,415,273

Classified as follows: Current Portion

 

679,002

 

908,659

 

1,415,273

 

 

4.  Share capital

 


Number of

shares

 

Shares as 30 June 2021

54,595,524

675,664

Issue of shares for cash

-

-

 

Shares at 31 December 2021

 

54,595,524

 

675,664

 

Issue of shares for cash

 

-

 

-

 

Shares at 30 June 2022

 

54,595,524

 

675,664

 

At 30 June 2022, the share capital comprises 54,595,524 shares of 1 pence each.

 

Borrowings

 

The carrying value and fair value of Group's borrowings are as follows:


Six months

ended 30 June 2022

Six months

ended 30 June 2021

Year ended 31 December

2021


 

Growth Fund Loans (including accrued interest)

 

1,721,533

 

1,719,825

 

1,744,010

Current portion of Growth Fund Loans

(534,520)

(188,844)

(372,934)

Nordea Ejendomme

-

2,278

-

Total non-current financial liabilities measured at amortised costs

 

1,187,013

 

1,533,259

 

1,371,076

 

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 €400,000 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.

 

Post the accounting period the Company has renegotiated the repayment schedule of the Growth Fund loan, whereby €0.6 million currently recognized as current portion and other short-term debts at the end of the accounting period would have been deemed as long-term debts if new terms applied.

 

All loans are denominated in Danish Kroner.

 

 

5.  Trade and other payables

 


 

As at 30 June 2022

 

As at 30 June 2021

As at 31 December

2021



 



Trade payables

754,981

736,586

673,182

Other payables and accruals

758,713

503,776

629,382

Current portion of loans

534,520

188,844

372,934

Total  financial  liabilities,  excluding ´non-

current´ loans and borrowings classified as financial liabilities measured at amortized cost

 

2,048,214

 

1,429,206

 

1,675,498

Contract liabilities

 

1,048,039

 

110,915

 

951,606

Total trade and other payables

 

3,096,253

 

1,540,121

 

2,627,104

Classified as follows: Current Portion

 

3,096,253

 

1,540,121

 

2,627,104

 

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.

 

6.  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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