Windar Photonics (WPHO), a developer of LiDAR equipment for wind turbines, saw its 2022 revenues increase of 236% year-on-year to €1.9m. €1.5m of this was generated in H2 as Covid-related supply chain issues hindered performance in H1. The overall EBITDA loss for the year was reduced to €0.8m in FY22 compared to a loss of €1.1m in FY21, and the company advanced toward an EBITDA breakeven in the second half with a loss of only €0.04m.
Gross profit in FY22 increased by 112% to €0.9m, corresponding to a gross margin of 51% despite substantial cost increases, although the gross margin in FY21 was impacted by exceptional items. The company held cash balances at year-end of €1.4m, up from €0.04m a year ago after raising €2.4m through the issue of share capital.
Windar's prior R&D yielded benefits in FY22 that boosted its financial performance. The combined WindEye and WindTimizer products provide a unique "plug and play" turbine integration solution, focused on increasing generation from existing installed wind turbines.
These became more valuable as energy prices soared in 2022 and the industry redoubled efforts to move toward renewables. Further product development was related to Windar's WindTimizer products, which now also cover an analog interface for turbine integrations, expanding the potential total market for the plug-and-play solution within the retrofit market segment.
Due partially to these developments, Windar's order backlog increased by year-end to €4.3m, compared to €2.6m in FY21, and the company's product mix continues to be favourable compared to its order backlog at the start of FY22.
Post-period performance has maintained strong momentum. Windar entered FY23 with a robust order backlog of €4.3m scheduled for delivery in 2023, with momentum in orders gaining during the half. At the start of H1 23, the company's production capacity was fully booked for deliveries in the period. As a result, Windar has focused on doubling its production capacity, to be implemented in mid-FY23, with a view to further doubling capacity in FY24.
Given its R&D investments, the easing supply chain environment, and current industry trends, we expect Windar to build on its 2022 performance in FY22 and deliver further substantial revenue growth in FY23, with a modest forecast gross margin increase supported by ongoing cost reduction measures.
WPHO shares jumped over 4% on the news, and are now up 68% in the past 12 months.
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