WindarPhotonics AnnualReport 2018 All - Flipbook - Page 17
OEM DEVELOPMENTS WindVISIONTM
WindVISION™ was specifically
developed to be integrated into
the design of a wind turbine and
is therefore our tailored solution
to the OEM market. We have been
campaigning for OEMs to adopt
our LiDAR technology for
optimisation of new turbine
designs since WindVISION™ was
launched in the market in 2016.
The accreditation work required
to get such a new technology
added to the turbine designs
of many of these very large
manufacturers and to become
embedded within their planning
procedures has been time
consuming and has taken longer
than we originally expected.
However, I am delighted to advise
that we have made great progress
and are starting to see signs that
the fruits of our labour are paying off. Firstly, we ended the year
with a record number of ongoing
OEM turbine integration projects,
some of which are in the advanced
stages of being certified by world
leading verification bodies.
Secondly, we were very excited
to see that a recent successful
tender for the world’s largest new
wind farm in China stipulates that
LiDAR technology, with the specific
scope of capabilities available from
WindVISION™ was included in the
tender specification. The tender
was won by a range of OEMs,
including several existing Windar
customers where discussions are
already taking place regarding the
supply of LiDARs for this project.
While the number of LiDARs to be
deployed within the tender is not
yet confirmed, we are optimistic
this will represent a significant
development and opportunity for
our Company. We will update the
market as appropriate, in due
course.
Our progress has been supported
by the additional features like
wake detection etc. which today
is included as standard in our
WindVISION™ products, as
described earlier in my statement.
There is no doubt that this has
created increasing interest within
this market segment and
and reinforces our continuing
commitment to invest in our
various R&D programmes. With
this in mind, we remain confident
that we are ideally positioned to
diversify our revenue composition
in the future.
FINANCIAL OVERVIEW
Revenue during the year increased
59% to €3.5 million (2017: €2.2
million). Gross profit was up 92%
to €1.8 million (2017: €0.9 million),
supported by cost reductions
generated through the full year
effect of the second-generation
LiDAR.
Net loss for the year before taxes
reduced to €0.9 million from
€2.3 million, which included
depreciation, amortisation and
warrant costs of €0.3 million (2017:
€0.8 million).
The Group held cash balances
at the end of the year of €1.7
million (2017: €1.1 million)
excluding restricted cash balances
of €0.5 million (2017: €0.2 million).
Trade receivables were €0.6 million
(2017: €0.4 million) reflecting the
increased revenue during the
period. The Group continues to
use invoice discounting and export
credit to finance receivables,
although invoice discounting in
the period falling €0.1 million from
€0.1 million in 2017. The Group
closely monitors the outstanding
trade receivables against their
credit terms.
The Group has capitalised its
continued cost of investment in
technology during the year. This
amounts to 2018 €0.4 million
(2017: €0.3 million) before grants
of €0.1 million (2017: €0.2 million).
During the year, the Group raised
€2.5 million before expenses
through the issue of share capital.
As well as using the factoring
facility established in 2016 for
financing of working capital, the
Group is also pleased to have
financed sales in 2018 of €2.4
million (2017: €1.3 million) with
Denmark’s export credit agency,
Eksport Kredit Fonden (“EKF”).
This facility has enabled the Group
to limit the increase of outstanding trade receivables at the end
of the year to €0.6 million (2017:
€0.4 million) despite the revenue
growth.
OUTLOOK
Going into 2019 the Group has
a strong product platform with
the WindEYE™ and WindVISION™
product lines and a strengthened
distribution network for our retrofit solution, thanks to our Vestas
agreement. We are in advanced
negotiations with a number of
IPPs in North America and Asia
Pacific on the back of this and
will announce updates on these
when completed.
We are pleased to have entered
the year with the best OEM projects
we have had in our history and
look forward to these delivering
recurring revenues in the future.
During 2019, our R&D will continue
unchanged, with an emphasis
on additional new features,
turbine optimisation solutions and
additional cost saving programmes
included in our ongoing third
generation LiDAR project.
Going into 2019, the Group
has further strengthened the
organisation, with a focus to
optimise the existing supply chain
and to scale up for our future
growth. Overall, the Group remains
confident for 2019 and the future,
and I would like to take the
opportunity to thank the
management and staff for their
efforts in 2018.
Johan Blach Petersen
Non-Executive Chairman, June 2019
Windar Photonics - Annual Report and Accounts 2018
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