Deep diveEnergy
Windar Photonics PLC

Everything blowing in the right direction for Windar


Shares are up 13% this year, despite the negative effect of Brexit

wind turbine in the sea

Quick facts: Windar Photonics PLC

Price: £0.45

Market: AIM
Market Cap: £20.03 m

Excuse the pun, but everything seems to be blowing in the right direction for Windar Photonics PLC (LON:WPHO). Not even Brexit can keep it down.

Positive news flow over the past couple of months has helped it to bounce back from the shock referendum result which hit its share price and that of many other UK-listed firms.

The most recent piece of news that it had secured a repeat order for its WindEye LiDAR wind sensors from a large US utility company confirmed what followers of the stock have known for a while: Windar has a good, useful product.

The wind farm owner and operator placed its second order for five new units after being impressed the first time around

This is in addition to other orders that have been placed with the company in the second half this year.

Even the directors are confident, having recently ploughed another £100,000 into the company between them.

LiDAR technology helps optimise wind power generation

Windar’s technology analyses the wind ahead of a turbine so it can be optimised to fit conditions.

In other words, short term variations in wind speed can be measured before they reach the wind turbine which can then be adjusted to deal with these changes.

The principle of LiDAR was developed in the 1970s but Windar has enhanced and fine-tuned it using lasers.

According to the company, the WindEYE units increase annual energy production from each wind turbine by 1-4%, and at the same time it reduces costs associated with maintenance and repair.

Depending on the price of power, the sensor could pay for itself within 12 - 36 months. And overall, in terms of asset value, the sensor systems typically add 4-7% to turbine’s worth.

Windar uses lasers and there are no moving parts so it is much cheaper than competing products in the market. The product is over 60% cheaper and almost 50% lighter than the best competing products.

The AIM quoted company already acts as supplier to six of the top ten global utilities and four of the top ten global wind turbine manufacturers and is in talks with many more.

With ‘clean’ energy continuing to gain traction and the number of wind turbines set to rise as a result, Windar is well set to exploit the potential of the industry.

What the brokers are saying

Cantor Fitzgerald is upbeat on Windar, with the repeat order from the US customer confirming that WindEye technology is highly-regarded in the industry.

“A repeat order for Windar units in the USA is welcome and demonstrates the effectiveness of the product in our view.

“The integration into control systems in the retro-fit market adds further dimension to the offering.

“We reiterate our BUY recommendation and target price of 118p.”

The share price

Like a lot of UK stocks, Windar shares slumped in the weeks following the EU referendum results at the end of June.

Despite this, the stock is still up 13% in the year-to-date after a rally in recent weeks.

It’s currently trading just above the pound mark, giving Windar a market capitalisation of just shy of £40mln.


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