Source - RNS
RNS Number : 9530J
Windar Photonics PLC
15 September 2016
 

15 September 2016

 

 

Windar Photonics plc
("Windar Photonics" or the "Group")

 

Unaudited interim report for the six months ended 30 June 2016

 

Windar Photonics PLC (AIM:WPHO), the technology group that has developed cost efficient and innovative LiDAR wind sensors for use on electricity generating wind turbines announces its unaudited interim results for the six months ended 30 June 2016.

 

Chairman's Statement

I am pleased to report that the first half of the year has been one of further progress for Windar Photonics across a number of fields. We have continued to make good progress with a number of customer orders announced during the period, including from two large scale utilities in North America, and were able to initiate and complete a number of trials internationally with OEMs and asset owners. OEMs, which supply new turbines into the market, represent an excellent opportunity for the Group to gain significant market traction with the support of globally recognised and widely adopted turbine manufacturers. Asset owners are attracted to the operational and financial benefits of installing Windar Photonics' proprietary LiDAR technologies on their turbines. 

 

At the corporate level, we also welcomed new investors to our share register with the completion of a cash subscription raising approximately £1.0 million after costs and agreed a factoring facility with Nordea Bank Denmark AS ("Nordea") of up to €400,000 in May 2016. Together, this funding has provided the Group with additional resources to capitalise upon the traction we have witnessed in our target markets.

 

Revenue for the period amounted to €0.8 million compared to the full year revenue in 2015 of €0.9 million (€0.1 million in the first half year of 2015).  Gross profit for the period amounted to €0.4 million, which is greater than the full year result for 2015 of €0.3 million, and first half year 2015 of €0.1 million. In the period the Group incurred a loss before tax of €1.83 million (six months ended 30 June 2015: €1.56 million) including a non-cash warrant cost of €154,415 (2015: €103,107) as it invested in building the sales pipeline and technical engagement with customers.

 

Despite the strong growth in both revenue and gross profit compared to last year, the revenue growth is lower than previously expected due to delays of planned installations within the retro-fit segment in the US and Europe. A number of tests and trial orders, which have been successfully completed, have not yet resulted in the follow-on orders that would be expected and remain under negotiation.

 

The Group continues to work with selected OEMs and Wind Turbine Control Manufacturers to facilitate LiDAR integration for deployment within the retro-fit market, which resulted in the launch of a new direct turbine integration of the WindEye LiDAR post the period end. This initial product offering is focused on four specific turbine models with four OEMs and Wind Turbine Control Manufacturers and a potential installed base of around 11,000 turbines internationally. LiDAR integration is of great benefit to the retro-fit end user, taking advantage of optimised wind turbine yaw control and also the ability to utilise wind speed and gust detection with a controller software upgrade package. The OEMs and Wind Turbine Control Manufacturers choosing to integrate Windar Photonics' LiDAR data have also invested in adapting their operating software to allow the Windar Photonics devices to be retrofitted on 4 specific wind turbine models. The Board expects this offering to be a substantial driver for sales to the retro-fit market segments in the years to come, with first orders expected imminently.  

 

The Group continued to work with several major OEMs on the direct integration of its LiDAR devices into OEM wind turbines. These discussions and trials, which are in the final stages of turbine control integrations after very extensive tests of the Group's products, have already resulted in the Group being selected as the preferred LiDAR system supplier to the brand new Eleon 3.4M-118 Wind Turbine. Based on current OEM activities, the Group expects to see further traction with OEM implementation in the foreseeable future.

 

The Directors believe that orders will continue to be forthcoming as the Group progresses its detailed discussions with these commercial parties and, furthermore, believe that the Group may meet or exceed the level of orders required to meet anticipated 2016 revenues during the remainder of the current year. However, lead times and delivery schedules associated with LiDAR units mean some of the revenue associated with such orders will not be fully recognised in the current year. As such, while the Directors believe that the Group will show strong revenue growth year on year, results for the full year are likely to be below current market expectations. One of the order delays relates to a contract announced in September 2015 with an US utility company for approximately US$900k originally expected to be delivered in the second half of 2016. The controller manufacturer involved with that project has withdrawn from the market, and the US utility company is working with Windar Photonics to find an alternative solution to facilitate delivery. 

 

Despite the widening loss in the first half of the year when compared with 2015, the Group expects a substantially improved result in the second half due to both increased sales and a cost reduction programme. Having maintained inventories of completed devices and long order lead items, the Group expects to be cash flow positive in the second half of the financial year as higher sales activity converts inventory to cash, utilising the Nordea Factoring facility, and with support from the Danish Export Credit Fund. At 30 June 2016, the Group had net cash of €0.25 million, the Nordea Factoring facility of €0.4 million had still not been utilised, and the Group had current assets, excluding cash, of some €2.03 million.

 

With the groundwork already laid with the success of the trial programmes, the highest priority for the Group is to convert the potential sales into firm orders. Martin Rambusch's greatest strength lies in his sales ability. As a result the Board has asked Martin to step down as CEO and from the Board, and for him to focus full time on driving the sales effort as Chief Commercial Director. Jørgen Korsgaard Jensen, founder and currently part time CTO of the Group, has assumed the role of interim CEO with immediate effect until such time as a new CEO is identified.

 

Based upon current traction with our customers and a varied product offering, the Directors believe that that the Group is well positioned to show substantial growth and ultimately profitability over the coming years. The Board looks forward to providing further updates in due course.

 

For further information:

 

 

Windar Photonics plc

Jørgen Korsgaard Jensen, CEO

+45 2168 9476
 

Cantor Fitzgerald Europe

Nominated Adviser and Broker

 

 

Andrew Craig

Richard Salmond

+44 (0)20 7894 7000
 

 

http://investor.windarphotonics.com

 

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").  Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

 

 

 

 

 

 

 

 

 



 


CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 



Six months ended

30 June 2016

Six months ended 30 June 2015

Year ended

31 December 2015



(unaudited)

(unaudited)

(audited)


Note






Revenue

        

775,813         

145,075

945,905         

Cost of Goods Sold


        (375,946)

(11,548)

        (678,524)






Gross profit


399,867      

133,527

267,381      






Administrative expenses


(2,175,327)

(1,768,652)

(4,204,259)

Foreign exchange on change of functional currency


-

340,632

354,072

Administrative expenses - Cost in respect of the Introduction and Listing on AIM


-

 

(216,637)

(222,634)






Loss from operations

    

   (1,775,460)

(1,511,130)

   (3,805,440)






Finance expenses

        

                  (51,209)

(46,729)

          (100,211)






Loss before taxation


   (1,826,669)

(1,557,859)

   (3,905,651)






Taxation

        

                  59,223

 

51,750

                  120,524






Loss for the period


   (1,767,446)

(1,506,109)

   (3,785,127)






Other comprehensive income





Items that will or maybe reclassified to profit or loss:





Exchange losses arising on translation of foreign   operations


(3,676)

(2,197)

351 

Total comprehensive loss for the period


    (1,771,122)

 

(1,508,306)

    (3,784,776)






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





Basic, cents per share

       2

           (4.60)

(3.95c)

(9.92c)

Diluted, cents per share


(4.60)

(3.95c)

(9.92c)

 

 



 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016

 



 

As at
30 June 2016

As at
30 June 2015

As at
31 December 2015



(unaudited)

(unaudited)

(audited)


Notes

Assets





Non-current assets





Intangible assets


1,202,791

1,078,900

  1,120,209

Property, plant & equipment


131,802

130,615

  144,275

Deposits


92,182                  

74,033

98,096                  

 Total non-current assets


1,426,775

1,283,548

1,362,580






 Current assets





 Inventory

3

943,216

849,702

769,624

 Trade receivables

4

710,662

313,124

             795,766

 Other receivables

4

313,199

605,106

       397,168

 Prepayments


66,351

26,030

75,993

 Cash and cash equivalents


      254,795

2,777,947

      593,907

 Total current assets


2,288,223

4,571,909

   2,632,458






 Total assets


3,714,998

5,855,457

3,995,038






 Equity 





 Share capital

5

498,853  

487,688

487,688  

 Share premium


   7,962,366

6,994,646

   6,994,646

 Merger reserve


2,910,866

2,910,866

2,910,866

 Foreign currency reserve


   (14,217)

(13,089)

   (10,541)

 Accumulated loss


     (9,315,154)

(5,671,833)

     (7,702,123)






 Total equity


2,042,714

4,708,278

2,680,536






 Non-current liabilities





 Loans

6

            876,220

759,364

            826,705

 Total non-current liabilities


876,220

759,364

            826,705






Current liabilities





Trade and other payables

7

526,474

253,227

187,655

Other liabilities


265,142

134,588

             295,839

Loans


4,448

-

4,303

 Total current liabilities


796,064

387,815

487,797






 Total liabilities


1,672,284

1,147,179

1,314,502






Total equity and liabilities


3,714,998

5,855,457

3,995,038


CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2016

 



 

Six months ended

30 June 2016

 

Six months ended

30 June 2015

Year ended

31 December 2015



(unaudited)

(unaudited)

(audited)








 Loss for the period before tax


   (1,826,669)

(1,557,859)

   (3,905,651)






 Adjustments for:





 Finance expenses


51,209

46,729

100,211

 Provision for bad debts


115,000

-

-

 Amortisation


166,997

164,200

333,614

 Depreciation


28,331

52,434

62,758

 Tax received/(paid)


(18,629)

-

70,407

 Foreign exchange difference


-

(340,632)

(354,072)

 Warrants expense


154,415

116,766

365,494



(1,329,346)

(1,518,362)

(3,327,239)






 Movements in working capital





 Changes in inventory


(173,592)

(601,589)

(521,511)

 Changes in receivables, prepayments and    deposits


147,905

(92,336)

(442,699)

 Changes in trade payables


338,819

(660,056)

(725,629)

 Changes in other payables


(30,697)

14,338

175,589

 Cash flow (used in) operations


(1,046,911)

(2,858,005)

(4,841,489)






 Investing activities





 Payments for intangible assets


(251,888)

(97,992)

(570,087)

 Grants received


-

-

261,065

 Payments for tangible assets


(9,507)

(151,130)

(175,179)

 Cash flow (used in) investing activities


(261,395)

(249,122)

(484,201)






 Financing activities





 Proceeds from issue of share capital


1,231,664

-

-

 Costs associated with the issue of share capital


(252,779)

-

-

 Net change in long term borrowing


(814)

42,300

29,802

 Finance expenses


(880)

(46,729)

(14,367)

 Cash flow from financing activities


977,191

(4,429)

15,435






 Net (decrease)/increase in cash and cash equivalents


(331,115)

 

(3,111,556)

      (5,310,255)

 Exchange differences


(7,997)

340,907

355,566

 Cash and cash equivalents at the beginning of the period


593,907

 

5,548,596

5,548,596






 Cash and cash equivalents at the end of the period


254,795

 

2,777,947

      593,907






 

 

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS

ENDED 30 JUNE 2016

 


Share
Capital

Share
Premium

Merger reserve

Foreign currency reserve

Accumulated Losses

Total



At 1 January 2015

     487,688

6,994,646

2,910,866

(10,892)

(4,282,490)

6,099,818

Share option and warrant costs

-

-

-

-

116,766

116,766

Transaction with owners

-

-

-

-

116,766

116,766

Comprehensive loss for the period

 

-

 

-

 

-

 

-

 

(1,506,109)

 

(1,506,109)

Other comprehensive income

-

-

-

(2,197)

-

(2,197)

Total comprehensive income

-

-

-

(2,197)

(1,506,109)

(1,508,306)

At 30 June 2015

487,688

6,994,646

2,910,866

(13,089)

(5,671,833)

4,708,278

Share option and warrant costs

-

-

-

-

248,728

248,728

Transaction with owners

-

-

-

-

248,728

248,728

Comprehensive loss for the period

 

-

 

-

 

-

 

-

 

(2,279,018)

 

(2,279,018)

Other comprehensive loss

-

-

-

2,548

-

2,548

Total comprehensive income

-

-

-

2,548

(2,279,018)

(2,276,470)

At 31 December 2015

487,688

6,994,646

2,910,866

(10,541)

(7,702,123)

2,680,536

New shares issued

10,084 

1,102,654

-

-

-

1,112,738

Costs associated with capital raise

 

-

 

(252,779)

 

-

 

-

 

-

 

(252,779)

New shares issued in respect of services rendered

 

1,081

 

117,845

 

-

 

-

 

-

 

118,926

Share option and warrant costs

-

-

-

-

154,415

154,415

Transaction with owners

11,165

967,720

-

-

154,415

1,133,300

Comprehensive loss for the period

 

-

 

-

 

-

 

-

 

   (1,767,446)

 

(1,767,446)

Other comprehensive loss

-

-

-

(3,676)

-

(3,676)

Total comprehensive income

-

-

-

(3,676)

(1,767,446)

(1,771,122)

At 30 June 2016

498,853

7,962,366

2,910,866

(14,217)

(9,315,154)

2,042,714

 

 

 

1.             BASIS OF PREPARATION

 

The financial information for the six months ended 30 June 2016 and 30 June 2015 does not constitute the Group's 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 as endorsed by the European Union ("IFRS"). 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 2016 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2015.

 

The comparative financial information for the year ended 31 December 2015 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for 2015 was unqualified, did not include references to any matters which the auditors drew attention to by way of emphasis 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 ended
30 June 2016

Six months ended
30 June 2015

Year ended
31 December 2015


Loss for the period

   (1,767,446)

(1,506,109)

(3,785,127)





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

 

38,433,974

 

38,166,377

 

38,166,377





Basic loss, cents per share

(4.60c)

(3.95c)

(9.92c)

Diluted loss, cents per share

 

(4.60c)

 

(3.95c)

 

(9.92c)

 

There is no dilutive effect of the warrants as the dilution would be negative.

 

 

 

3.     Inventory


 

As at
30 June 2016

As at
30 June 2015

As at
31 December 2015


Raw material

557,277

365,226

471,877

Goods in progress

154,375

252,396

267,153

Finished goods

231,564

232,080

30,594

Inventory

 

943,216

849,702

769,624





 

 

4.     Trade and other receivables


 

As at
30 June 2016

As at
30 June 2015

As at
31 December 2015


Trade receivables

825,662

313,124

795,766





Less: provision for impairment of trade receivables

115,000

-

-

Trade receivables - net

710,662

313,124

795,766





Tax receivables

198,800

122,157

120,524

Other receivables

114,399

482,949

276,644

Total other receivables

313,199

605,949

397,168





Total trade and other receivables

 

1,023,861

918,230

1,192,934

 

 

5.     Share capital

 

On 6 May 2016 the Group issued further Ordinary Shares as follows:

 

800,002 Ordinary Shares in consideration for cash received by the Group; and

 

85,500 Ordinary Shares in consideration for the satisfaction of fees payable to West Hill Capital LLP.

 

 


Number of shares

Shares as 30 June 2015

36,166,377

487,688

Shares at 31 December 2015

38,166,377

487,688

Issue of shares for cash

800,002

10,084

Issue of shares for the satisfaction of fees

85,500

1,081

Shares at 30 June 2016

 39,051,879

 498,853




 

At 30 June 2016 the share capital comprises 39,051,879 shares of 1 pence each.

 

6.     Borrowings

 

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


Six months ended
30 June 2016

Six months ended
30 June 2015

Year ended
31 December 2015






Growth Fund (including accrued interest)

853,070

 

759,364

801,207

Nordea Ejendomme

23,160

-

25,498

Total financial assets other than cash and cash equivalents classified as loans and receivables

876,230

 

759,364

826,705





 

The Growth Fund borrowing from the Danish public institution, Vækstfonden, bears interest at a rate of 12 per cent. The borrowing is a bullet loan with maturity in June 2020. The Group may at any point in time either repay the loan in part or in full or initiate an annuity repayment scheme over four years. If an annuity repayment scheme is initiated, the interest rate will be reduced to 8 per cent in the repayment period.

 

The loan from Nordea Ejendome is in respect of amounts included in the fitting out of the offices in Denmark. The loan is repayable over the 6 years and carries a fixed interest rate of 6 per cent.

 

 

7.     Trade and other payables

 


 

As at
30 June 2016

As at
30 June 2015

As at
31 December 2015


Trade payables

526,474

253,227

187,655

Other payables

265,142

134,588

295,839

Current portion of Nordea loan

4,448

-

4,303

Total financial liabilities classified as financial liabilities measured at amortised cost

 

 

796,064

 

 

387,815

 

487,797

 

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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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