TIDMWPHO
RNS Number : 5026F
Windar Photonics PLC
17 November 2020
17 November 2020
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 2020.
Jørgen Korsgaard Jensen, CEO of Windar, commented:
"Firstly, I would like to personally apologize for the delays to
the publication of our Annual Report & Accounts for 2019 and
the release of our interims accounts for the six months to 30 June
2020.
This year has been an extraordinary and challenging year for our
Company. After having enjoyed a very positive start to the year
with the first ever larger scale orders from the OEM market
segment, the subsequent period has been impacted by delays,
postponement and other restrictions due to Covid-19 pandemic.
However, despite these challenges and the consequent reduction
in revenue during the first half compared to last year, I am very
pleased that the Company has, against that backdrop, managed to
reduce the EBITDA loss and substantially improve on operating cash
flow performance.
More importantly, our order intake in 2020 has now reached our
net revenue break-even level of c.EUR3 million. Whilst we expect to
be able to only execute approximately 40% of these orders in 2020
due to the ongoing Covid pandemic, the Board still expects to see
an improvement in our overall financial results for 2020 compared
to last year."
For further information, please contact:
Windar Photonics plc Tel: +45 21689476
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 year 2020 started very positively for the Company, achieving
the first large volume orders from the OEM market. Moreover, we
received the first orders under our Vestas distribution agreement
and, in total, the Company received orders with a total value of
EUR1.9 million of which EUR1.2 million were planned for delivery in
the first half of 2020.
However, the Covid-19 pandemic has had a severe and negative
impact on the timing of execution and delivery of these orders and
consequently we were only able to realise revenue of EUR0.3
million, a decrease of 62% compared to the first six months of 2019
(H1 2019: EUR0.7 million).
The Company implemented various cost cutting initiatives in
response to the pandemic and, despite the revenue decrease, this
resulted in the EBITDA loss reducing slightly to EUR0.85 million
compared to the same period last year (H1 2019: EUR0.94 million).
Despite the gradual uptick in activity levels in the second half of
2020 due to the progressive lifting of the pandemic restrictions,
the cost cutting initiatives have been further intensified in the
second half of 2020.
However, it has been very encouraging that, after many years of
focus on the OEM wind turbine market, we have now started to
generate larger volume orders from OEM customers and have an
expanded pipeline of additional OEMs who are undertaking turbine
integration tests. Similarly, the Company is very pleased that,
after significant delays, it has managed to deliver the first test
installations to Vestas customers in Asia and North America. In
North America, there is particular focus on V82 and MN82 wind
turbines where initial test results are showing very encouraging
results.
Despite the various challenges the Company is facing, our
R&D activities remain an important part of our business and the
next generation of both the WindVision(TM) and WindEye(TM) products
are expected to be released at the end of 2020. In addition to many
new advanced functionalities, an important feature of the new
models is the reduction in unit costs by approximately 25% compared
to current systems.
Regarding the Covid-19 pandemic in general, one of our initial
reactions was to maintain our assembly line throughout the period
given the positive order situation. Seen retrospectively, and given
the prolonged effects of the pandemic, this decision has proven to
further challenge the cash flow constraints the Company has
experienced. As mentioned, the Company has seen an uptick in
activity levels in the second half of 2020 with revenue in the
third quarter surpassing the total revenue earned in the first half
of 2020, but it is of course reliant on punctual payments from
customers and other parties. Until now the Company has received
only limited financial help from the various Government Covid
support schemes. However, as stated in the recently released annual
accounts, the Company has received a long-term Covid-loan of EUR0.4
million from Vaekstfonden, the Danish Business Growth fund, and an
extension to repayment of instalments (totalling EUR0.15 million)
due in 2021 on the existing Vaekstfonden loan.
Financial Overview
Overall, the Group realised revenues of EUR0.3 million (H1 2019:
EUR0.7 million) and a net loss of EUR1.0 million for the period (H1
2019: loss of EUR1.0 million) after depreciation, amortisation and
warrant costs of EUR0.18 million (H1 2019: EUR0.14 million).
Cash flow from operations produced a net outflow of EUR0.7
million for the period compared to a net outflow of EUR1.7 million
in H1 2019. The Company's current cash position, which has been
assisted by the receipt of the new long-term Covid loan from
Vaekstfonden and the receipt of certain outstanding customers
payments, was EUR0.43 million as at 13 November 2020.
Outlook
As at the date of this announcement, the total order inflow in
2020 has been encouraging, standing at EUR3.0 million contractually
to be delivered in 2020. However, due to the ongoing Covid-19
pandemic and the impact on timing of execution and delivery of
these orders, the Board expects to convert only approximately
EUR1.3 million of these orders into realised revenue in 2020 with
the remaining EUR1.7 million of the order back-log to be carried
into 2021. Despite the only marginally higher revenue expectation
compared to 2019 and the general Covid implications in 2020, the
Board expects the financial performance in 2020 to be substantially
improved compared to 2019.
Moving into 2021 the level of uncertainty is, of course, high
due to the Covid-19 pandemic. However, in view of the
recently-announced new distribution agreements in Asia, the launch
of our Lidar as a Service (LaaS) concept, which has already
attracted very positive feedback from the market, and our Vestas
distribution agreement, the Board believes the Group is
well-positioned to pursue additional revenue streams in 2021.
Further, the cost reductions implemented during the current year,
which have been focussed on both operational expenses and
manufacturing costs, have reduced the estimated revenue break-even
level in the Company to approximately EUR3 million.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE SIX MONTHSED 30 JUNE 2020
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2019
2020 2019
(unaudited) (unaudited) (audited)
Note EUR EUR EUR
Revenue 274,752 730,597 1,177,897
Cost of goods sold (151,445) (371,218) (629,560)
Gross profit 123,307 359,379 548,337
Administrative expenses (1,172,592) (1,451,745) (3,680,990)
Other operating income 16,076 16,075 32,145
Loss from operations (1,033,209) (1,076,291) (3,100,508)
Finance expenses (47,465) (53,081) (190,889)
Loss before taxation (1,080,674) (1,129,372) (3,291,397)
Taxation 67,194 90,437 212,488
Loss for the period (1,013,480) (1,038,935) (3,078,909)
Other comprehensive income
Items that will or maybe reclassified
to profit or loss:
Exchange losses arising on
translation of foreign operations 14,932 5,094 3,085
Total comprehensive loss for
the period (998,548) (1,033,841) (3,075,824)
============ ============== =============
Loss per share for loss attributable
to the ordinary equity holders
of Windar Photonics plc
Basic and diluted, cents per
share 2 (2.1) (2.3) (6.7)
------------ -------------- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
2020
As at As at As at
30 June 30 June 31 December
2020 2019 2019
(unaudited) (unaudited) (audited)
Notes EUR EUR EUR
Assets
Non-current assets
Intangible assets 1,223,825 976,133 1,192,607
Property, plant & equipment 41,236 89,692 61,800
Deposits 24,957 43,796 24,980
Total non-current assets 1,290,018 1,109,621 1,279,387
-------------------------------- ------ ------------- ------------- -------------
Current assets
Inventory 3 1,062,398 1,088,878 1,019,564
Trade receivables 4 160,284 787,696 111,703
Other receivables 4 101,863 167,339 84,305
Tax credit receivables 4 67,303 210,723 212,428
Prepayments 15,152 65,412 44,857
Restricted cash and cash - 368,000 -
equivalents
Cash and cash equivalents 268,174 268,581 763,024
Total current assets 1,675,174 2,956,629 2,235,881
-------------------------------- ------ ------------- ------------- -------------
Total assets 2,965,192 4,066,250 3,515,268
-------------------------------- ------ ------------- ------------- -------------
Equity
Share capital 5 622,375 560,859 608,689
Share premium 14,016,576 12,558,434 13,692,119
Merger reserve 2,910,866 2,910,866 2,910,866
Foreign currency reserve (3,698) (16,621) (18,630)
Accumulated loss (17,352,276) (14,296,692) (16,338,796)
Total equity 208,843 1,716,846 854,248
-------------------------------- ------ ------------- ------------- -------------
Non-current liabilities
Warranty provisions 61,310 78,461 61,170
Loans 6 1,164,431 1,193,867 5,174
-------------------------------- ------ ------------- ------------- -------------
Total non-current liabilities 1,225,741 1,272,328 66,344
-------------------------------- ------ ------------- ------------- -------------
Current liabilities
Trade payables 7 950,015 523,745 1,045,792
Other payables and accruals 7 188,906 376,930 211,879
Invoice discounting 7 42,372 143,532 1,992
Contract liabilities 7 220,274 27,473 69,954
Loans 7 129,041 5,396 1,265,059
-------------------------------- ------ ------------- ------------- -------------
Total current liabilities 1,530,608 1,077,076 2,594,676
-------------------------------- ------ ------------- ------------- -------------
Total liabilities 2,756,349 2,349,404 2,661,020
-------------------------------- ------ ------------- ------------- -------------
Total equity and liabilities 2,965,192 4,066,250 3,515,268
-------------------------------- ------ ------------- ------------- -------------
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHSED
30 JUNE 2020
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2020 2019 2019
(unaudited) (unaudited) (audited)
EUR EUR EUR
Loss for the period before
tax (1,080,674) (1,129,372) (3,291,397)
Adjustments for:
Finance expenses 47,465 53,081 190,889
Amortisation 143,254 89,417 267,317
Depreciation 20,640 21,164 52,411
Received tax credit 212,570 - 120,186
Foreign exchange difference 14,932 5,094 3,085
Warrants expense 15,000 30,000 27,868
--------------------------------------- ------------ ------------ -------------
(626,813) (930,616) (2,629,641)
Movements in working capital
Changes in inventory (42,834) (361,880) (292,565)
Changes in receivables (66,139) (150,633) 144,164
Changes in prepayments 29,706 - 38,905
Changes in deposits 23 - 21,305
Changes in trade payables (95,780) 30,376 552,426
Changes in contract liabilities 150,320 (55,696) (13,214)
Changes in warranty provision 140 39 (17,252)
Changes in other payables
and provision 266 (190,529) 447,972
Cash flow (used in) operations (651,111) (1,658,939) (1,747,900)
--------------------------------------- ------------ ------------ -------------
Investing activities
Payments for intangible assets (245,743) (79,497) (528,278)
Grants received 74,055 - 50,824
Payments for tangible assets - - (3,427)
Cash flow (used in) investing
activities (171,688) (79,497) (480,881)
--------------------------------------- ------------ ------------ -------------
Financing activities
Proceeds from issue of share
capital 375,714 - 1,315,342
Costs associated with the
issue of share capital (37,571) - (133,827)
(Reduction) / proceeds from
invoice discounting 40,380 (2,158) (8,743)
(Decrease)/ increase restricted
cash balances - 282,935 158,138
Repayment of loans - (2,732) (5,240)
Interest (paid)/received (47,465) 7,200 (55,878)
Cash flow from financing activities 331,058 285,245 1,269,792
--------------------------------------- ------------ ------------ -------------
Net (decrease)/increase in
cash and cash equivalents (491,741) (1,453,191) (958,989)
Exchange differences (3,109) (31) 210
Cash and cash equivalents at
the beginning of the period 763,024 1,721,803 1,721,803
Cash and cash equivalents at
the end of the period 268,174 268,581 763,024
--------------------------------------- ------------ ------------ -------------
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX
MONTHS
ED 30 JUNE 2020
Share Share Merger Foreign Accumulated Total
Capital Premium reserve currency Losses
reserve
EUR EUR EUR EUR EUR EUR
--------------------- --------- ----------- ---------- ---------- ------------- ------------
At 1 January 2019 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
loss - - - 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
New shares issued 47,830 1,267,512 - - - 1,315,342
Costs associated
with capital raise - (133,827) - - - (133,827)
Share option and
warrant costs - - - - (2,130) (2,130)
--------- ----------- ---------- ---------- ------------- ------------
Transaction with
owners 47,830 1,133,685 - - (2,130) 1,179,385
--------- ----------- ---------- ---------- ------------- ------------
Comprehensive loss
for the period - - - - (2,039,974) (2,039,974)
Other comprehensive
income - - - (2,009) - (2,009)
Total comprehensive
income - - - (2,009) (2,039,974) (2,041,983)
At 31 December 2019 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
Income - - - 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) (17,352,276) 208,843
--------------------- --------- ----------- ---------- ---------- ------------- ------------
1. BASIS OF PREPARATION
The financial information for the six months ended 30 June 2020
and 30 June 2019 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 2020 and are unchanged from those
disclosed in the Group's Annual Report for the year ended 31
December 2019. The comparative financial information for the year
ended 31 December 2019 included within this report does not
constitute the full statutory accounts for that period. The
statutory Annual Report and Financial Statements for 2019 have been
filed with the Registrar of Companies. The Independent Auditor's
Report on the Annual Report and Financial Statements for 2019 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 2019
2020 2019
EUR EUR EUR
Loss for the period (1,013,480) (1,038,935) (3,078,909)
------------ ------------- -------------
Weighted average number of ordinary
shares for the purpose of basic
earnings per share 49,167,898 44,508,369 45,639,729
Basic loss and diluted, cents per
share (2.1) (2.3) (6.7)
------------ ------------- -------------
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 2019
2020 2019
EUR EUR EUR
Raw materials 358,827 544,439 417,481
Work in progress 337,247 446,440 392,374
Finished goods 366,324 97,999 209,709
------------------ ---------- ---------- -------------
Inventory 1,062,398 1,088,878 1,019,564
------------------ ---------- ---------- -------------
4. Trade and other receivables
As at
As at As at 31 December
30 June 30 June 2019
2020 2019
EUR EUR EUR
--------------------------------------- ---------- ---------- -------------
Trade receivables 672,039 835,2606 623,458
Less; provision for impairment
of trade receivables (511,755) (47,564) (511,755)
--------------------------------------- ---------- ---------- -------------
Trade receivables - net 160,284 787,696 111,703
Total financial assets other than
cash and cash equivalents classified
at amortised costs 160,284 787,696 111,703
--------------------------------------- ---------- ---------- -------------
Tax receivables 67,303 210,723 212,428
Other receivables 101,863 167,339 84,305
Total other receivables 169,166 378,062 296,733
Total trade and other receivables 329,450 1,165,758 408,436
--------------------------------------- ---------- ---------- -------------
Classified as follows:
Current Portion 329,450 1,165,758 408,436
--------------------------------------- ---------- ---------- -------------
5. Share capital
Number
of shares EUR
Shares as 30 June 2019 44,508,369 560,859
Issue of shares for cash 4,076,348 47,830
Shares at 31 December 2019 48,584,717 608,689
Issue of shares for cash 1,166,361 13,686
Shares at 30 June 2020 49,751,078 622,375
------------------------------- ----------- --------
At 30 June 2020, the share capital comprises 49,751,078 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 2019
2020 2019
EUR EUR EUR
Growth Fund (including accrued
interest) 1,285,457 1,185,764 1,259,499
Nordea Ejendomme 8,015 8,103 10,734
Total financial assets other than
cash and cash equivalents classified
as loans and receivables 1,293,472 1,193,867 1,270,233
--------------------------------------- ----------- ----------- -------------
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 2020. 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.
Both loans are denominated in Danish Kroner.
7. Trade and other payables
As at As at
As at 30 June 31 December
30 June 2020 2019 2019
EUR EUR EUR
Invoice discounting 42,372 143,532 1,992
Trade payables 950,015 523,746 1,045,792
Other payables and accruals 188,906 376,930 211,879
Current portion of loans 129,041 5,396 1,265,059
Total financial liabilities,
excluding 'non-current'
loans and borrowings classified
as financial liabilities
measured at amortised cost 1,310,334 1,049,604 2,524,722
---------------------------------- --------------- ------------ -------------
Contract liabilities 220,274 27,473 69,954
---------------------------------- --------------- ------------ -------------
Total trade and other payables 1,530,608 1,077,076 2,594,676
---------------------------------- --------------- ------------ -------------
Classified as follows:
Current Portion 1,530,608 1,077,076 2,594,676
---------------------------------- --------------- ------------ -------------
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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