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Windar Photonics PLC

Windar seeing increased interest from OEMs and independent power producers

2016 revenue is expected to be anywhere between 60% and 100% higher than in 2015

Wind turbine
Existing and new customers are showing interest in joining Windar's wake optimisation project

Wind turbine technology group Windar Photonics PLC (LON:WPHO) expects to show a sharp year-on-year increase in revenue for the whole of 2016.

Annual revenue is expected to be somewhere in the range of €1.5mln to €2.0mln, up 60% (lower end of the range) or 100% (upper end) on 2015.

The guidance is a bit below market expectations because some orders expected to complete this year have been delayed.

The delays were ascribed to “timing, logistics and in some cases the need for customisation of deliveries”.

The company said it continues to experience increased interest in its product offerings.

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

The trading update saw the company speak of substantial progress in targeting original equipment manufacturers (OEMs) for direct supply on turbines and independent power producers (IPPs) using specific turbines.

Windar is still in negotiations with a number of these sales targets.

Additionally, a number of trials are in progress.

As such, the company is confident next year will be one of further progress.

"As previously announced on 12 October, the company has launched a new wake detection and turbine optimisation project in partnership with DTU. The launch of this project is the single most important new project/development in 2016 and we are currently experiencing outstanding interest from both existing and new customers to join the project,” said Jørgen Korsgaard Jensen, interim chief executive officer of Windar.

“This is expected to support our high growth expectations going forward. We look forward to drawing negotiations for multi-unit new sales to a number of OEMs and IPPs to a positive conclusion, while also fulfilling re-orders from our international customer base," he added.

Meanwhile, the company is to raise £490,757 through a share subscription at 94p a share.

Windar’s shares closed at 96p on Friday.

The funds will be used to support the company's strategy to capitalise on the demand for its WindEYE and WindVision light detection and ranging (LiDAR) technologies.

Cantor House broker moves to 'hold' from 'buy' on the shares.

Adam Forsyth said: "Windar’s warning that sales will be below our expectations for FY 2016 reflects the fact that the company is at an early stage and timing of initial project delivery will always be variable in our view.

"However, following as it does the scaling back of expectations at the interims in September, we think the company will need to reassure shareholders with progress in FY 2017 and until then we move to a HOLD."

Quick facts: Windar Photonics PLC

Price: £0.45

Market: AIM
Market Cap: £20.03 m
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