CHAIRMAN'S STATEMENT

I am pleased to report on a successful period for the business. Our investment in people, product development and manufacturing capacity has meant the Company has established a commercial and logistical base from which we are now able to pursue the growth opportunities currently arising from multiple customers across multiple regions.

Strategic Development

In the first half of 2025 Windar achieved three key milestones:

1.   Delivered and installed a $2.5m order in North America

2.   Initiated testing on multiple new turbine platforms.

3.   Moved to a new future proof manufacturing facility, quintupling capacity and creating a platform for long-term growth

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, 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, recurring revenue streams but also supports our accelerating sales development activity, particularly across North America as well as our gross margin development.

Given the current cash position, Windar will not be constrained by factors impacting short-term working capital and whilst growth in 2025 will be concentrated in the final 6 months of the year we remain confident of the full year outcome.

These developments leave the Company with a very exciting opportunity to develop the scale and value of the business. The Board are committed to delivering this value as both Directors and shareholders in the Company.

Trading and Financial Performance

In December 2024 we were pleased to announce a $2.5m order further expanding a relationship with a significant turbine operator in the North American market. This order was successfully delivered and installed over the course of H1 2025, reflecting increase in the period over H1 2024 of 18% from €2.3m to €2.7m. The second half of the year is expected to be stronger with growth from expanding existing markets and a strong pipeline in new regions.  This was against the headwind of adverse currency movements, in particular our main revenue generating currencies, being the USD and RMB, which declined by 8-9% over the period relative to the EUR,

Gross Margin improved by +2%-points versus H1 2024, illustrating the anticipated benefits of the introduction of software revenues, increasing volume and of our increasing geographically diverse sales.

To facilitate the rapid growth of the business certain strategic overheads have been increased. These developments are closely controlled and reflect the infrastructure and new hires necessary to deliver the anticipated profit development, including a new upgraded facility to increase production capacity.

An EBITDA loss of €0.3m (before share-based payments) versus the prior first half loss of €0.1m from one-off costs related to moving to new manufacturing facilities and marketing investment. With the sales activity anticipated in H2 in relation to the marketing investments we remain confident of full year turnout.

Currency loss of €0.5m in the first six months, attributable in part to the capital raise in December 2024. The proceeds from the capital raise having been kept in GBP accounted for half of the currency loss for the period. The USD and RMB has declined by 8-9%, which has impacted Windar operationally in the Shanghai office and in relation to our North American customers.

The Group finished the half year with gross cash of €6.0m, an increase of €3.3m from the last half year's gross cash. Working capital movements directly driven by sales activity around the half year increased working capital by €2.4m year on year. We anticipate that short-term working capital movements will become less pronounced as the number of deliveries increases and phasing normalizes.

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 and testing of the TPM module, which is expected to be launched in Q4 has required particular dedication from our development team. The success of the Nexus software launch from 2024 and the coming launch of the TPM module 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 markets, the Board looks to the future with confidence.

David Lis

Chairman