Windar makes solid progress in full-year results

LiDAR wind sensor technology company Windar Photonics published its final results for the year to 31 December 2016 on Friday, reporting revenue growth in 2016 of 26% to €1.2m, after deferring €0.2m of revenue due to the timing of deliveries.

The AIM-traded firm said actual despatches in 2016 amounted to €1.4m, an increase on 2015 of 48%.

Gross profit increased by 113%to €0.6m, and the group held cash balances at the end of the year of €783,166, up from €593,907 year-on-year.

Current cash and debtors, net of factoring, remained in excess of €600,000 according to the board.

The board reported “good” progress, with several of its original equipment manufacturer (OEM) test programmes edging closer to turbine platform design contracts, with a potential to have a “significant impact” on the company's prospects and activity level.

It expanded its product features to include the detection of turbulence intensity, wind shear intensity and wake intensity, adding additional “wind turbine optimisation” opportunities.

Windar also implemented a new strategic approach to the IPP market segment by appointing seven new non-exclusive distributors to increase its market presence and at the same time reduce operating expenditure during the year.

There was a reduction of the loss from operations in 2016 due to cost reduction in the second half of 2016, the board said, adding that there was also further equity support received during the year of £1.9m.

Since year-end, Windar said there had been an “acceleration” of revenue growth from 2016 with revenue and new orders as per the end of April 2017 already exceeding the full year revenue in 2016.

The company further increased its non-exclusive distribution network to include 15 distributors worldwide at the end of May 2017, and reportedly continued the reduction of the loss from operation in 2017 due to increased revenue and further reductions at the operating expenditure level.

“2016 was a year with many challenges but at the same time many opportunities,” said Windar chief executive Jørgen Korsgaard Jensen.

“We added important new capabilities to our product range opening up even further wind turbine optimisation opportunities using our products, and even though not contributing to our overall revenue growth in 2016, we made significant progress within several OEM test programmes in the year.”

Jensen said those programmes were “essential” to supporting Windar’s long-term revenue targets.

“Within the IPP market segment we also made important progress in 2016 which has continued into 2017 where we have seen strong growth especially in Asia.

“In the second half of 2016 we reviewed our overall operating expenses in the group, which is the primary reason for the improved operational performance in the second half of 2016 which improvements have continued in 2017.”

The company was now looking to build upon its “proven technology” and pipeline of opportunities, Jensen said, and was pleased with the progress made already in 2017.

“The board remains confident for 2017 and for the future.”