TIDMWPHO
RNS Number : 0489O
Windar Photonics PLC
30 September 2019
30 September 2019
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
2019
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, is pleased to announce its
unaudited interim results for the six months ended 30 June
2019.
Highlights for the first six months of 2019:
-- Revenue of EUR0.7 million (H1 2018: EUR1.7 million) due to
the rescheduling of customer orders from H1 to H2 and decision to
terminate the Company's relationship with a Chinese distributer,
better positioning Windar for future OEM contracts
-- OEM discussions are progressing positively and Windar
anticipates receiving first orders for LiDAR roll-out within the
strategically important OEM market in the near future
-- Gross profit of EUR0.4 million (H1 2018: EUR0.8 million)
-- Gross margin for the period was consistent with prior period at 49.2% (H1 2018: 49.1%)
-- Operating costs increased to EUR1.5 million including
depreciation, amortisation and warrant costs (H1 2018: EUR1.1
million)
-- Net loss of EUR1.0 million (H1 2018: EUR0.3 million)
-- Cash held at the end of the period amounted to EUR0.3 million
(H1 2018: 0.3 million). In addition, the Company had restricted
cash of EUR0.4 million (H1 2018: EUR0.3 million)
Jørgen Korsgaard Jensen, Chief Executive Officer of the Company,
commented: "Although our results for the period have been affected
by some customer rescheduling and a decision to position ourselves
more strongly for OEM contracts currently under negotiation, we
currently expect to achieve a revenue for the full year 2019 equal
to or better than 2018. The traction we are experiencing with
customers is pleasing and we look forward to updating the market
regarding progress being made in relation to our OEM and IPP
strategies in the coming months."
For further information:
Windar Photonics plc Jørgen Korsgaard Jensen, CEO +4524234930
Cantor Fitzgerald Europe David Foreman (Corporate Finance)
Nominated Adviser and Broker Keith Dowsing (Sales) +44 (0)20 7894 7000
Elisabeth Cowell
Newgate Communications Adam Lloyd
Financial PR Tom Carnegie +44 (0)20 7680 6550
The person responsible for arranging the release of this
announcement on behalf of Windar is Jørgen Korsgaard Jensen.
About Windar:
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 results for the first six months of 2019 were impacted by
two factors. Firstly, in relation to our retro-fit product,
WindEYE, we saw a number of contracted orders in Asia re-scheduled
for delivery in the second half of the financial year instead of
the first half of 2019. Secondly, the Company decided to terminate
one of its distributor relationships in China in order to better
position itself strategically in this world leading OEM market.
Certain provisions in the agreement with that distributer had the
potential to compromise major OEM agreements that the Group is
currently advancing.
While the results for the first half of 2019 appear
disappointing, these do not reflect the progress Windar is making
in terms of securing volume sales in the OEM market. Pleasingly,
the Company has expanded the number of OEM test projects underway
and has achieved final approvals from some major OEMs. We expect to
reach the important milestone of receiving first orders for LiDAR
roll-out within the strategically important OEM market in the near
future.
R&D remains an important part of our business and in the
first half of 2019 two major projects were completed. New
technology has been installed into our product offerings, enhancing
our value proposition for customers. Accordingly, both our future
OEM and retro-fit customers can now benefit from our wake
technology, which both detects wake scenarios and demonstrates
strategies for turbine optimisation in these scenarios. We have
also expanded our WindTimizer retro-fit plug'n'play solution for
yaw optimisation so that it handles analogue sensor interfaces.
This will significantly expand the market opportunities for our
retro-fit product in Asia and beyond.
Importantly, and whilst it has taken longer than the Board
originally envisaged, we also expect to see deliveries through our
distribution agreement with Vestas in H2 2019. These deliveries
will strengthen the Group's revenue from the IPP retrofit
market.
Financial Overview
Overall, the Group realised a net loss of EUR1.0 million for the
period (H1 2018: EUR0.3 million loss) after depreciation,
amortisation and warrant costs of EUR0.14 million (H1 2018: EUR0.17
million).
Cash flow from operations produced a net outflow of EUR1.7
million for the period compared to a net outflow of EUR0.8 million
in H1 2018. The increased outflow during the period was primarily
driven by the operational results combined with an increase in
inventory of EUR0.4 million during the period, in anticipation of
an increase in orders for our retro-fit WindEYE product.
Trade receivables (net of impairment provision) increased to
EUR788k during the period, principally due to the timing of several
deliveries in the second quarter.
Outlook
Based upon current traction with our customers and our increased
product offering, the Directors believe the Group is well
positioned for substantial growth in the future. With our knowledge
at present, we expect to recoup the ground lost in the first half
and generate revenue for the full year 2019 equal to or better than
2018. Consequently, the net result in the second half of 2019 is
expected to show a substantial improvement to our H1 performance
and combined with an anticipated reduction of the inventory as at
30 June 2019, the Board are expect the Group will generate positive
operating cash flows in the second half of 2019 and an increase in
net cash available at the full financial year end.
Johan Blach Petersen
Chairman
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE SIX MONTHSED 30 JUNE 2019
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2018
2019 2018
(unaudited) (unaudited) (audited)
Note EUR EUR EUR
Revenue 730,597 1,671,587 3,499,867
Cost of goods sold (371,218) (850,433) (1,744,571)
Gross profit 359,379 821,155 1,755,296
Administrative expenses (1,451,745) (1,102,849) (2,391,798)
Impairment loss - - (39,182)
Other operating income 16,075 34,326 32,201
Loss from operations (1,076,291) (247,367) (643,483)
Finance expenses (53,081) (59,894) (269,925)
Loss before taxation (1,129,372) (307,261) (913,408)
Taxation 90,437 12,763 120,436
Loss for the period (1,038,935) (294,498) (792,972)
Other comprehensive income
Items that will or maybe reclassified
to profit or loss:
Exchange losses arising on
translation of foreign operations 5,094 (6,207) (2,125)
Total comprehensive loss for
the period (1,033,841) (300,705) (795,097)
============ ============ =========================
Loss per share for loss attributable
to the ordinary equity holders
of Windar Photonics plc
Basic and diluted, cents per
share 2 (2.3) (0.70) (1.8)
------------ ------------ -------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
2019
As at As at As at
30 June 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
Notes EUR EUR EUR
Assets
Non-current assets
Intangible assets 976,133 847,300 982,888
Property, plant & equipment 89,692 99,491 110,788
Deposits 43,796 47,448 46,285
Total non-current assets 1,109,621 994,238 1,139,961
-------------------------------- ------ ------------- -------------------- --------------------
Current assets
Inventory 3 1,088,878 654,500 726,999
Trade receivables 4 787,696 951,793 638,138
Other receivables 4 378,062 275,366 286,473
Prepayments 65,412 55,971 83,763
Restricted cash and cash
equivalents 368,000 312,864 518,138
Cash and cash equivalents 268,581 260,606 1,721,803
Total current assets 2,956,629 2,511,100 3,975,314
-------------------------------- ------ ------------- -------------------- --------------------
Total assets 4,066,250 3,505,338 5,115,275
-------------------------------- ------ ------------- -------------------- --------------------
Equity
Share capital 5 560,859 530,543 560,859
Share premium 12,558,434 10,281,073 12,558,434
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve (15,319) (25,797) (21,715)
Accumulated loss (14,297,994) (12,765,726) (13,287,757)
Total equity 1,716,846 930,959 2,720,687
-------------------------------- ------ ------------- -------------------- --------------------
Non-current liabilities
Warranty provisions 78,461 74,659 78,422
Loans 6 1,193,867 1,080,485 1,135,744
-------------------------------- ------ ------------- -------------------- --------------------
Total non-current liabilities 1,272,328 1,155,144 1,214,166
-------------------------------- ------ ------------- -------------------- --------------------
Current liabilities
Trade and other payables 7 523,745 815,532 492,822
Other liabilities 7 376,930 386,477 588,456
Invoice discounting 7 143,532 205,717 10,735
Deferred revenue 7 27,473 6,709 83,169
Loans 7 5,396 4,800 5,240
-------------------------------- ------ ------------- -------------------- --------------------
Total current liabilities 1,077,076 1,419,235 1,180,422
-------------------------------- ------ ------------- -------------------- --------------------
Total liabilities 2,349,404 2,574,379 2,394,588
-------------------------------- ------ ------------- -------------------- --------------------
Total equity and liabilities 4,066,250 3,505,338 5,115,275
-------------------------------- ------ ------------- -------------------- --------------------
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHSED
30 JUNE 2019
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2019 2018 2018
(unaudited) (unaudited) (audited)
EUR EUR EUR
Loss for the period before
tax (1,129,372) (307,261) (913,408)
Adjustments for:
Finance expenses 53,081 59,894 269,925
Amortisation 89,417 104,061 189,557
Depreciation 21,164 20,141 64,078
Received tax credit - - 66,095
Foreign exchange difference 5,094 (6,207) (84,759)
Warrants expense 30,000 50,000 26,443
---------------------------------------- -------------- -------------- ---------------
(930,616) (79,372) (382,069)
Movements in working capital
Changes in inventory (361,880) 85,110 12,611
Changes in receivables (150,633) (616,459) (285,731)
Changes in trade payables 30,376 (229,984) (552,147)
Changes in deferred revenue (55,696) (7) 76,453
Changes in warranty provision 39 (74) 6,218
Changes in other payables
and provision (190,529) 77,017 263,442
Cash flow (used in) operations (1,658,939) (763,769) (861,223)
---------------------------------------- -------------- -------------- ---------------
Investing activities
Payments for intangible assets (79,497) (170,084) (415,456)
Grants received - 78,172 108,779
Payments for tangible assets - - (68,125)
Cash flow (used in) investing
activities (79,497) (91,912) (374,802)
---------------------------------------- -------------- -------------- ---------------
Financing activities
Proceeds from issue of share
capital - - 2,500,877
Costs associated with the
issue of share capital - - (193,199)
(Reduction) / proceeds from
invoice discounting (2,158) 84,508 (110,474)
(Decrease)/ increase restricted
cash balances 282,935 (78,172) (283,446)
Repayment of loans (2,732) (3,727) (4,579)
Foreign exchange rate gains/(losses) - 22,886 -
Interest (paid) 7,200 (22,377) (66,537)
Cash flow from financing activities 285,245 3,118 1,842,642
---------------------------------------- -------------- -------------- ---------------
Net (decrease)/increase in
cash and cash equivalents (1,453,191) (852,563) 606,617
Exchange differences (31) (3,334) (1,317)
Cash and cash equivalents at
the beginning of the period 1,721,803 1,116,503 1,116,503
Cash and cash equivalents at
the end of the period 268,581 260,606 1,721,803
---------------------------------------- -------------- -------------- ---------------
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX
MONTHS
ED 30 JUNE 2019
Share Share Merger Foreign Accumulated Total
Capital Premium reserve currency Losses
reserve
EUR EUR EUR EUR EUR EUR
--------------------- --------- ------------------- ---------- ---------- ------------- ------------
At 1 January 2018 530,543 10,281,073 2,910,866 (19,590) (12,521,228) 1,181,664
Share option and
warrant costs - - - - 50,000 50,000
--------- ------------------- ---------- ---------- ------------- ------------
Transaction with
owners - - - - 50,000 50,000
--------- ------------------- ---------- ---------- ------------- ------------
Comprehensive loss
for the period - - - - (294,498) (294,498)
Other comprehensive
loss - - - (6,207) - (6,207)
Total comprehensive
income - - - (6,207) (294,498) (300,705)
At 30 June 2018 530,543 10,281,073 2,910,866 (25,797) (12,765,726) 930,959
New shares issued 30,316 2,470,560 - - - 2,500,876
Costs associated
with capital raise - (193,199) - - - (193,199)
Share option and
warrant costs - - - - 26,443 26,443
--------- ------------------- ---------- ---------- ------------- ------------
Transaction with
owners 30,316 2,277,361 - - 26,443 2,334,120
--------- ------------------- ---------- ---------- ------------- ------------
Comprehensive loss
for the period - - - - (548,474 (548,474)
Other comprehensive
income - - - 4,082 - 4,082
Total comprehensive
income - - - 4,082 (548,474) (544,392)
At 31 December 2018 560,859 12,558,434 2,910,866 (21,715) (13,287,757) 2,720,687
Share option and
warrant costs - - - - 30,000 30,000
--------- ------------------- ---------- ---------- ------------- ------------
Transaction with
owners - - - - 30,000 30,000
--------- ------------------- ---------- ---------- ------------- ------------
Comprehensive loss
for the period - - - - (1,038,935) (1,038,935)
Other comprehensive
Income - - - 5,094 - 5,094
Total comprehensive
income - - - 5,094 (1,038,935) (1,033,841)
At 30 June 2019 560,859 12,558,434 2,910,866 (16,621) (14,296,692) 1,716,846
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2019
and 30 June 2018 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 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 2019 and are unchanged from those
disclosed in the Group's Annual Report for the year ended 31
December 2018, except for the adoption of IFRS 16. The comparative
financial information for the year ended 31 December 2018 included
within this report does not constitute the full statutory accounts
for that period. The statutory Annual Report and Financial
Statements for 2018 have been filed with the Registrar of
Companies. The Independent Auditor's Report on the Annual Report
and Financial Statements for 2018 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 2018
2019 2018
EUR EUR EUR
Loss for the period (1,038,935) (294,498) (792,972)
------------- ------------ -------------
Weighted average number of ordinary
shares for the purpose of basic
earnings per share 44,508,369 41,808,369 43,002,600
Basic loss and diluted, cents per
share (2.3) (0.70) (1.8)
------------- ------------ -------------
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 2018
2019 2018
EUR EUR EUR
Raw materials 544,439 297,347 364,090
Work in progress 446,440 333,004 311,420
Finished goods 97,999 24,149 51,489
Inventory 1,088,878 654,500 726,999
------------------ ------------ ---------- -------------
4. Trade and other receivables
As at
As at As at 31 December
30 June 30 June 2018
2019 2018
EUR EUR EUR
--------------------------------------- ---------- ------------ -------------
Trade receivables 835,2606 (999,428)3 685,679
Less; provision for impairment
of trade receivables (47,564) (47,635) (47,541)
--------------------------------------- ---------- ------------ -------------
Trade receivables - net 787,696 951,793 638,138
Total financial assets other than
cash and cash equivalents classified
at amortised costs 787,696 951,793 638,138
--------------------------------------- ---------- ------------ -------------
Tax receivables 210,723 78,932 120,209
Other receivables 167,339 196,502 166,264
Total other receivables 378,062 275,434 286,473
Total trade and other receivables 1,165,758 1,227,227 924,611
--------------------------------------- ---------- ------------ -------------
Classified as follows:
Current Portion 1,165,758 1,227,227 924,611
--------------------------------------- ---------- ------------ -------------
5. Share capital
Number of shares EUR
Shares as 30 June 2018 41,808,369 530,543
Issue of shares for cash 2,700,000 30,316
Shares at 31 December 2017 and
31 December 2018 44,508,369 560,859
Shares at 30 June 2019 44,508,369 560,859
----------------------------------- ----------- --------
At 30 June 2019, the share capital comprises 44,508,369 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 2018
2019 2018
EUR EUR EUR
Growth Fund (including accrued
interest) 1,185,764 1,066,765 1,124,914
Nordea Ejendomme 8,103 13,720 10,830
Total financial assets other than
cash and cash equivalents classified
as loans and receivables 1,193,867 1,080,485 1,135,744
--------------------------------------- ----------- ----------- -------------
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 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 I November 2021 and carries a fixed
interest rate of 6 per cent.
Both loans are denominated in Danish Kroner.
7. Trade and other payables
As at As at
As at 30 June 31 December
30 June 2019 2018 2018
EUR EUR EUR
Invoice discounting 143,532 205,717 10,735
Trade payables 523,746 815,532 492,822
Other payables and accruals 376,930 386,477 588,456
Current portion of Nordea
Ejendomme loan 5,396 4,800 5,240
Total financial liabilities,
excluding 'non-current'
loans and borrowings classified
as financial liabilities
measured at amortised cost 1,049,604 1,412,526 1,097,253
---------------------------------- --------------- ------------ -------------
Deferred revenue 27,473 6,709 83,169
---------------------------------- --------------- ------------ -------------
Total trade and other payables 1,077,076 1,419,235 1,182,422
---------------------------------- --------------- ------------ -------------
Classified as follows:
Current Portion 1,077,076 1,419,235 1,182,422
---------------------------------- --------------- ------------ -------------
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 news service of the
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END
IR BCGDCRUDBGCC
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