CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2024

With sales and orders for 2024 already at 125% of 2023 revenue when we raised £4.4m through an undiscounted capital raise in April 2024, the Company is well positioned to deliver its considerable potential. The funding provided through that capital raise has allowed the company to accelerate its previously somewhat constrained sales and production activity since April. Whilst there is much to be done in the second half of the year to achieve our targets for the year our sales pipeline and production capacity give us confidence. 

We are making significant progress both in attracting new customers in North America, and towards expanding new and existing customers onto additional turbine platforms. This, combined with the successful first installations of Windar's Nexus software suite in August leave the longer term opportunity for Windar increasingly exciting.

Strategic Development

In the first half of 2024 Windar achieved three key milestones:

1.   Obtained and delivered a breakthrough $1.3m order in North America - providing a significant foothold in that market

2.   Completed testing and commenced implementation of its Nexus turbine management software - with implementation successfully completed in August

3.   Raised £4.4m in an oversubscribed, undiscounted share issue

Current sales development with both new and existing customers on Vestas installations and in relation to expanding installations onto additional turbine platforms (including GE and Senvion) in the North American market gives increasing confidence over the medium to long term opportunity for sales and quality of earnings growth, across all markets globally.

Our active product development now means that the proven 3-4% turbine performance improvement from installation of our WindEye and WindTimizer products will increasingly become an entry level benefit with our Nexus software range providing the opportunity for significantly enhanced turbine performance improvement, data driven maintenance planning and turbine life extension.

The opportunity for further developments in our suite of Nexus turbine performance enhancing software not only introduces new and recurring revenue streams but also supports our accelerating sales development activity, particularly across North America.

Following the April fundraise Windar will not be constrained by factors impacting short-term working capital and whilst growth in 2024 will be concentrated in the final 8 months of the year we remain confident over the full year outcome.

These developments leave the Company with a very exciting opportunity to develop scale and value and the Board are committed to delivering this value, as evidenced both through participation in the recent equity raise and in existing holdings. 

Six Months to 30^th June 2024

In April 2024 we were pleased to announce a $1.3m order marking a new relationship with a significant turbine operator in the North American market. This order was successfully delivered in June with Nexus software implementation completed in August. As well as providing the potential for material further orders this also marked the first revenue from sales of software related services through our Nexus platform.

During the six months to 30 June 2024, revenue increased by 71% from €1.3m to €2.3m. With activity prior to the April fundraise constrained by the impact of weather delayed implementations in China on working capital, growth in 2024 will be concentrated in the final 8 months of the year.

Goss Margin % (H1 2024: 60%, H1 2023 55%) continuing to progress illustrates the anticipated benefits of increasing volume and of increasingly geographically diverse sales.

An EBITDA loss of €0.1m (before share-based payments) marks continued progress from the prior first half loss of €0.3m and with the sales activity anticipated in H2 we remain confident of full year out-turn.  

The Group exited the half year with net cash of €1.2m, an increase of €2.7m from the last half years net debt. Working capital movements directly driven by sales activity around the half year increased working capital by €2.0m year on year. We anticipate that short term working capital movements will become less pronounced as the number of deliveries increases and phasing normalises.

Board & Employees

Recognising that there is much to do for Windar to achieve its full potential it is appropriate to recognize the contribution and dedication of our employees in achieving the key milestones noted above. In particular the development, testing and first implementations of our Nexus software suite has required particular dedication from our development team. This success of this first stage of Nexus software provides a platform for future growth - and the efforts of our team are much appreciated.

Outlook 

With a strong team, an increasingly robust sales pipeline, a strong balance sheet, ongoing successful product development, increased manufacturing capacity, greater supply chain resilience and increasing addressable market the Board looks to the future with confidence.

David George Lis

Chairman