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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Windar Photonics Plc | LSE:WPHO | London | Ordinary Share | GB00BTFR4F17 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 3.00 | 6.82% | 47.00 | 44.00 | 46.00 | 45.00 | 43.50 | 44.00 | 101,603 | 16:35:13 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Meas & Controlling Dev, Nec | 1.85M | -1.08M | -0.0192 | -23.44 | 25.18M |
From Apr 2019 to Apr 2024
TIDMWPHO
RNS Number : 1062P
Windar Photonics PLC
24 May 2018
24 May 2018
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Windar Photonics plc
("Windar", the "Company" or the "Group")
Final Results and Notice of Annual General Meeting
Windar Photonics plc (AIM:WPHO), the technology group that has developed a cost efficient and innovative LiDAR wind sensor for use on electricity generating wind turbines, is pleased to announce its final results for the year ended 31 December 2017.
FY2017 highlights
-- Revenue increased 85% to EUR2.2 million (2016: EUR1.2 million) -- Gross Profit increased to EUR0.9 million (2016: EUR0.6 million) -- Order intake increased four-fold to EUR5.9 million (2016: EUR1.4 million)
-- Order backlog at the end of 2017 for deliveries in 2018 increased to EUR3.9 million (2016: EUR0.2 million)
-- Reduced net loss for the year to EUR2.2 million (2016: EUR3.2 million) which included depreciation, amortisation and warrant costs of EUR0.8 million (2016: EUR0.7 million), as a result of higher gross profit and a continued reduction of operational costs
-- Cash at the end of 2017 of EUR1.1 million (2016: EUR0.8 million) excluding restricted cash holdings of EUR0.2 million (2016: EUR0.03 million)
-- Successfully completed further cost optimisations of our product lines and in parallel continued to add new innovative features like turbulence and wake detection
-- Ongoing OEM integration projects are at a record level going into 2018 and management expect Windar's LiDAR technology will to be awarded one or more design-in contracts in the near future
-- Successful equity fundraising during the year of GBP1.25 million
Post period highlights
-- Current trading is significantly ahead of the comparative period last year and in line with management expectations
Jørgen Korsgaard Jensen, CEO of Windar, said:
"Even though not fully reflected in our annual results for 2017, 2017 saw a record order intake level which, if delivered within one year, would have exceeded our financial breakeven point, and I am very pleased with the significant order backlog carried into 2018. Having reached this point without including any major OEM design-in wins/orders is very encouraging, and we expect to be awarded further by design-in wins in the near future.
With this market traction combined within our successful optimisation of our core product cost base and our operational cost levels, we have laid the foundation for further progress in 2018."
Notice of Annual General Meeting
Windar also today gives notice that its Annual General Meeting ("AGM") will be held at the offices of Cantor Fitzgerald Europe, One Churchill Place, Canary Wharf, London E14 5RB at 1.00 p.m. on 25 June 2018.
The Annual Report and Accounts and Notice of AGM will be posted to shareholders today and will be available shortly from the Company's website, www.windarphotonics.com.
For further information:
Windar Photonics plc Jørgen Korsgaard Jensen, CEO +4524344930 Cantor Fitzgerald Europe David Foreman Nominated Adviser and Broker Richard Salmond +44 20 7894 7000
CHAIRMAN'S STATEMENT
Dear Shareholders,
For the year ended 31 December 2017, the Group achieved revenue of EUR2.2 million (2016: EUR1.2 million) an increase of 85% on 2016. The total order intake in 2017 amounted to EUR5.9 million (2016: EUR1.4 million) leaving the Group with a record order backlog of EUR3.9 million (2016: EUR1.4 million) at the end of the year.
We also achieved a reduction in our net loss for the year to EUR2.2 million (2016: EUR3.2 million) which included depreciation, amortisation and warrant costs of EUR0.8 million (2016: EUR0.7 million). The reduction in the net loss was achieved through a combination of increased revenue and a further reduction of the operational expenses due to the new sales and marketing approach toward the Independent Power Producers and wind farm owners ("IPPs") markets as discussed below.
The Group had cash at the end of the year of EUR1.1 million (2016: EUR0.8 million) excluding restricted cash balances of EUR0.2 million (2016: EUR0.03 million).
During the year the Group raised GBP1.25 million before expenses through the issue of new share capital. Besides using the factoring facility established in 2016 for financing of working capital, the Group is also pleased to have financed sales in 2017 of EUR1.3 million (2016: EUR0.3 million) with Denmark's export credit agency, Eksport Kredit Fonden ("EKF"). This enabled the Group to reduce trade receivables at the end of the year to EUR0.4 million (2016: EUR0.6 million) despite the revenue growth of 85%.
In 2017, the Group continued to refocus research and development resources towards developing new innovative features, like turbulence and wake detection, and not least cost optimisation programmes. The new and ongoing development of our wake detection functionality combined with our general features has created increasing interest within the Original Equipment Manufacturer for turbines ("OEMs") market with several new and important OEM projects started in 2017. With the cost reduction programmes successfully completed in 2017, we were once again able to reduce our product cost base in 2017 enabling the Group to win some of the higher volume orders at the end of 2017 at satisfactory margin levels.
Going into 2018, the Group has a strong product platform with the WindEye(TM) and WindVision(TM) product lines, and our refocused research and development focus will continue unchanged in 2018 on additional new features, turbine optimisation solutions and additional cost saving programmes.
The Group has capitalised its continued cost of investment in technology during the year. This amounts to approximately EUR333,000 (2016: EUR474,000) before grants of EUR152,000 (2016: EUR48,000).
Given our strong LiDAR product platforms, we believe we are well placed to further progress in both the OEM market and also within the IPP markets. Despite the often very long design-in cycle times within the OEM market, the Board expects to obtain one or more design-in wins of Windar's LiDAR technology in the near future. As discussions move to a stage of regular supply, the Board expect this will significantly increase the Group's revenue and profits.
In 2017, the Group successfully refocused its sales and marketing approach towards the IPP markets whereby these markets will primarily be served by an external distribution network. Consequently, the Group has closed down our sales and representation offices in Denmark, Spain and Canada during 2017, and at the end of 2017 the Group now only has two facilities - our headquarters in Copenhagen, Denmark and our sales and service office in Shanghai, China. Besides reducing the Group's total operation expenses, the change has driven positive revenue and order intake realised in 2017. The Board expects to see the further positive results of this strategic change with increased IPP market penetration in 2018.
2018 has started well with total revenue level during the first four months of the year showing an accelerated growth over 2017.
Overall, the Group remains confident for 2018 and the future, and I would like to take the opportunity to thank the management, staff and my predecessor John Weston for their efforts in 2017.
Johan Blach Petersen
Chairman
Date May 24, 2018
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Hot Features
Premium
Year Year
ended ended
31 December 31 December
2017 2016
EUR EUR
Note
Revenue 4,5 2,213,664 1,196,037
Cost of goods sold (1,301,047) (627,255)
Gross profit 912,617 568,782
Administrative expenses (2,996,457) (3,804,798)
Other operating income 78,067 69,074
---------------------------------- ------
Loss from operations (2,005,773) (3,166,942)
Finance expenses 6 (286,348) (106,882)
Loss before taxation (2,292,121) (3,273,824)
Taxation 7 66,246 128,109
Loss for the year attributable
to the ordinary equity holders
of Windar Photonics plc (2,225,875) (3,145,715)
Other comprehensive income
Items that will or may
be reclassified to profit
or loss:
Exchange gains/(losses)
arising on translation of
foreign operations 13,038 (22,087)
---------------------------------- ------
Total comprehensive loss
for the year attributable
to the ordinary equity holders
of Windar Photonics plc (2,212,837) (3,167,802)
======================== =========================
Loss per share attributable
to the ordinary equity holders
of Windar Photonics plc Basic and diluted, cents per share 8 (5.4) (8.1) ================================== ====== ======================== =========================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017
31 December 31 December
2017 2016
EUR EUR
Note
Assets
Non-current assets
Intangible assets 10 868,594 1,183,675
Property, plant & equipment 11 107,084 119,421
Deposits 38,505 54,072
Total non-current assets 1,014,183 1,357,168
-------------------------------- ------ ------------- -------------
Current assets
Inventory 12 739,610 993,657
Trade receivables 13 381,295 557,721
Other receivables 13 216,710 258,900
Prepayments 78,379 81,237
Restricted cash and cash
equivalents 234,692 30,609
Cash and cash equivalents 14 1,116,503 783,166
Total current assets 2,767,189 2,705,290
-------------------------------- ------ ------------- -------------
Total assets 3,781,372 4,062,458
-------------------------------- ------ ------------- -------------
Equity
Share capital 18 530,543 513,327
Share premium 18 10,281,073 8,964,224
Merger reserve 18 2,910,866 2,910,866
Foreign currency reserve 18 (19,590) (32,628)
Retained earnings 18 (12,521,228) (10,530,769)
Total equity 1,181,664 1,825,020
-------------------------------- ------ ------------- -------------
Non-current liabilities
Warranty provisions 20 72,205 39,643
Loans 17 1,023,809 921,751
-------------------------------- ------ ------------- -------------
Total non-current liabilities 1,096,014 961,394
Current liabilities
Trade payables 16 1,045,516 603,950
Other payables and provisions 16 325,674 201,038
Deferred revenue 16 6,716 226,942
Invoice discounting 16 121,209 239,528
Loans 16 4,579 4,586
------------- -------------
Total current liabilities 1,503,694 1,276,044
Total liabilities 2,599,708 2,237,438
-------------------------------- ------ ------------- -------------
Total equity and liabilities 3,781,372 4,062,458
-------------------------------- ------ ------------- -------------
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARED 31 DECEMBER 2017
Year ended Year ended
31 December 31 December
2017 2016
Notes EUR EUR
Loss for the period
before taxation (2,292,121) (3,273,824)
Adjustments for:
Finance expenses 6 286,349 106,882
Amortisation 10 494,709 366,784
Depreciation 11 56,409 61,034
Received tax credit 149,603 120,305
Tax paid - (22,008)
Foreign exchange differences 13,037 (25,898)
Share option and warrant
costs 235,416 317,069
------------------------------- ------ ------------- -------------
(1,056,598) (2,349,656)
Movements in working
capital
Changes in inventory 12 254,047 (224,033)
Changes in receivables 13 152,687 444,905
Changes in trade payables 16 441,566 416,295
Changes in deferred
revenue 16 (220,226) 226,942
Changes in warranty
provisions 20 32,562 15,230
Changes in other payables
and provisions 16 124,628 (70,388)
Cash flow from operations (271,334) (1,540,708)
------------------------------- ------ ------------- -------------
Investing activities
Payments for intangible
assets 10 (333,480) (474,435)
Payments for tangible
assets 11 (44,312) (35,635)
Grants received 10 152,447 48,420
------------------------------- ------ ------------- -------------
Cash flow from investing
activities (225,345) (461,650)
------------------------------- ------ ------------- -------------
Financing activities
Proceeds from issue
of share capital 18 1,443,605 2,252,920
Costs associated with
the issue of share capital 18 (109,540) (257,703)
Proceeds/(reduction)
from invoice discounting 16 (118,319) 239,528
Increase restricted
cash balances 14 (204,083) (30,609)
Repayment of loans 16 (4,580) (4,303)
Foreign exchange rate
losses 6 (142,331) (3,737)
Interest paid 6 (36,080) (6,502)
Cash flow from financing
activities 828,672 2,189,594
------------------------------- ------ ------------- -------------
Net increase in cash
and cash equivalents 331,993 187,239
Exchange differences 1,344 2,020
Cash and cash equivalents
at the beginning of the
year 783,166 593,907
Cash and cash equivalents
at the end of the year 14 1,116,503 783,166
------------------------------- ------ ------------- -------------
CONSOLIDATED AND COMPANY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARED 31 DECEMBER 2017
Share Share Merger Foreign Accumulated Total
Capital Premium reserve currency Losses
reserve
EUR EUR EUR EUR EUR EUR
--------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Group
At 1 January
2016 487,688 6,994,646 2,910,866 (10,541) (7,702,123) 2,680,536
New shares
issued 24,558 2,228,362 - - - 2,252,920
Costs
associated
with capital
raise - (376,629) - - - (376,629)
New shares
issued
in respect of
services
rendered 1,081 117,845 - - - 118,926
Share option
and warrant
costs - - - - 317,069 317,069
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Transaction
with owners 25,639 1,969,578 - - 317,069 2,312,286
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Comprehensive
loss for the
year - - - - (3,145,715) (3,145,715)
Other
comprehensive
losses - - - (22,087) - (22,087)
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Total
comprehensive
loss - - - (22,087) (3,145,715) 3,167,802
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
At 31 December
2016 513,327 8,964,224 2,910,866 (32,628) (10,530,769) 1,825,020
New shares
issued 17,216 1,426,389 - - - 1,443,605
Costs
associated
with capital
raise - (109,540) - - - (109,540)
Share option
and warrant
costs - - - - 235,416 235,416
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Transaction
with owners 17,216 1,316,849 - - 235,416 1,569,481
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Comprehensive
loss for the
year - - - - (2,225,875) (2,225,875)
Other
comprehensive
gains - - - 13,038 - 13,038
Total
comprehensive
income - - - 13,038 (2,225,875) (2,212,837)
At 31 December
2017 530,543 10,281,073 2,910,866 (19,590) (12,521,228) 1,181,664
Company
At 1 January
2016 487,688 6,994,646 658,279 (7,746) (787,034) 7,345,833
New shares
issued 24,558 2,228,362 - - - 2,252,920
Costs
associated
with capital
raise - (376,629) - - - (376,629)
New shares
issued
in respect of
services
rendered 1,081 117,845 - - - 118,926
Share option
and warrant
costs - - - - 317,069 317,069
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Transaction
with owners 25,639 1,969,578 - - 317,069 2,312,286
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Comprehensive
loss for the
year - - - - (984,082) (984,082)
Total
comprehensive
loss - - - - (984,082) (984,082)
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
At 31 December
2016 513,327 8,964,224 658,279 (7,746) (1,454,047) 8,674,037
New shares
issued 17,216 1,426,389 - - - 1,443,605
Costs
associated
with capital
raise - (109,540) - - - (109,540)
Share option
and warrant
costs - - - - 235,416 235,416
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Transaction
with owners 17,216 1,316,849 - - 235,416 1,569,481
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Comprehensive
loss for the
year - - - - (414,017) (414,017)
Total
comprehensive
income - - - - (414,017) (414,017)
At 31
December
2017 530,543 10,281,073 658,279 (7,746) (1,632,648) 9,829,501
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER 2017
1. General information
The Company is a public limited company domiciled in the United Kingdom and incorporated under registered number 09024532 in England and Wales. The Company's registered office is 3 More London Riverside, London, SE1 2AQ.
The Group was formed when the Company acquired on 29 August 2014 the entire share capital of Windar Photonics A/S, a company registered in Denmark though the issue of Ordinary Shares.
The financial information set out below does not constitute the company's statutory accounts for 2017 or 2016. Statutory accounts for the years ended 31 December 2017 and 31 December 2016 have been reported on by the Independent Auditors. The Independent Auditors' Reports on the Annual Report and Financial Statements for the years ended 31 December 2017 and 31 December 2016 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2016 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2017 will be delivered to the Registrar in due course.
2. Going Concern
The consolidated financial statements have been prepared assuming the Group will continue as a going concern. Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws or regulations. Based on the Group's latest trading expectations and associated cash flow forecasts, the directors have considered the cash requirements of the Group. The directors are confident that based on the Group's forecasts and projections, taking account of possible changes in trading performance, no further funding will be required and are satisfied that the Group has adequate resources to continue in operation for the review period, namely 12 months from the date of approval of these financial statements. It is on that basis they continue to adopt the going concern basis of accounting in preparing these financial statements.
3. Basis of preparation
The consolidated financial statements comprises the consolidated financial information of the Group as at 31 December 2017 and are prepared under the historic cost convention, except for the following:
-- share based payments and share option and warrant costs
The principal accounting policies adopted in the preparation of the financial information are set out below. The policies have been consistently applied to all the periods presented.
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRSs") issued by the International Accounting Standards Board (IASB) as adopted by the European Union ("adopted IFRSs").
The acquisition of the subsidiary in 2014 was deemed to be a business combination under common control as the ultimate control before and after the acquisition was the same. As a result, the transaction is outside the scope of IFRS 3 and has been included under the principles of merger accounting by reference to UK GAAP.
4. Revenue
Revenue arises from:
Year ended Year ended
31 December 31 December
2017 2016
EUR EUR
Sale of product 2,171,647 1,136,840
Sale of services 42,017 59,197
------------- -------------
2,213,664 1,196,037
============= =============
5. Segment information
Operation segments are reported as reported to the chief operation decision maker.
The Group has one reportable segment being the sale of LiDAR Wind Measurement and therefore segmental results and assets are disclosed in the consolidated income statement and consolidated statement of financial position.
In 2017, three customers accounted for more than 10 per cent of the revenue (2016: two customers). The total amount of revenue from these customers amounted to EUR1,552,221, 70.5 per cent of total revenue (2016: EUR459,740 or 31 per cent of total revenue)
Revenue by geographical location of customer:
Year Year
ended ended
31 December 31 December
2017 2016
EUR EUR
Europe 129,751 133,968
Americas 147,065 376,161
China 1,784,614 566,725
Asia (excluding China) 152,234 119,183
Revenue 2,213,664 1,196,037
------------------------ ------------- --------------------------
Geographical information
The parent company is based in the United Kingdom. The information for the geographical area of non-current assets is presented for the most significant area where the group has operations being Denmark.
As at As at
31 December 31 December
2017 2016
EUR EUR
Denmark 972,148 1,303,096
972,148 1,303,096
------------- -------------
Non-current assets for this purpose consist of property, plant and equipment and intangible assets.
6. Finance income and expense
Finance expense
Year Year
ended ended
31 December 31 December
2017 2016
EUR EUR
Foreign exchange
gain/(losses) (142,331) 3,737
Interest expense on financial
liabilities measured at amortised
cost (144,007) (103,145)
Finance expense (286,338) (106,882)
-------------------------------------- -------------- ----------------
7. Income tax
Year ended Year ended
31 December 31 December
2017 2016
EUR EUR
(a) The tax credit for the year:
Corporation tax (66,246) (128,109)
------------- -------------
(b) Tax reconciliation
Loss on ordinary activities
before tax (2,292,121) (3,273,824)
============ ============
Loss on ordinary activities
at the UK standard rate of
corporation tax 19.25% (2016:
20%) (441,943) (654,765)
Effects of:
Expenses non-deductible for
tax purposes 51,467 168,233
Depreciation for the year
in excess of capital allowances 71,158 (9,920)
Unrecognised tax losses 390,352 434,825
Different tax rates applied
in overseas jurisdictions (71,034) 83,822
Tax credit on research and
development (66,246) (150,304)
---------------------------------- ------------ ------------
Tax credit for the year (66,246) (128,109)
---------------------------------- ------------ ------------
The tax credit is recognised as 22 per cent. (2016: 22 per cent) of the company's deficit that relates to research and development costs. Companies in Denmark, who conduct research and development and accordingly experience deficits can apply to the Danish tax authorities for a payment equal to 22 per cent. (2016: 22 per cent) of deficits relating to research and development costs up to DKK 25 million.
(c) Deferred tax - Group
In view of the tax losses carried forward there is a deferred tax on losses of approximately EUR2,106,853 (2016: EUR1,867,938) which has not been recognised in these Financial Statements. This contingent asset will be realised when the Group makes sufficient taxable profits in the relevant Company.
(d) Deferred tax - Company
In view of the tax losses carried forward there is a deferred tax on losses of approximately EUR190,485 (2016: EUR164,790) which has not been recognised in these Financial Statements. This contingent asset will be realised when the company can demonstrate future profit against which the losses will be able to be used.
8. Loss per share
The loss and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:
Year ended Year ended
31 December 31 December
2017 2016
EUR EUR
Loss for the year (2,225,875) (3,145,347)
------------- -------------
Weighted average number of
ordinary shares for the purpose
of basic earnings per share 41,050,362 38,950,108
Basic loss and diluted, cents
per share (5.4) (8.1)
------------- -------------
There is no dilutive effect of the warrants as the dilution would reduce the loss per share.
9. Dividends
No dividends were proposed by the Group during the period under review (2016: EURNil).
10. Intangible assets
Development
projects
Group EUR
Cost
-------------------------- ------------
At 1 January 2016 2,079,857
---------------------------- ------------
Additions - internally
developed 474,435
Grants received (48,420)
Exchange differences 7,862
At 31 December 2016 2,513,734
---------------------------- ------------
Additions - internally
developed 333,480
Grants received (152,447)
Exchange differences (3,698)
---------------------------- ------------
At 31 December 2017 2,691,069
---------------------------- ------------
Accumulated amortisation
At 1 January 2016 959,648
---------------------------- ------------
Charge for the year 366,784
Exchange differences 3,627
---------------------------- ------------
At 31 December 2016 1,330,059
---------------------------- ------------
Charge for the year 494,709
Exchange differences (2,293)
---------------------------- ------------
At 31 December 2017 1,822,475
---------------------------- ------------
Net carrying value
-------------------------- ------------
At 1 January 2016 1,120,209
---------------------------- ------------
At 31 December 2016 1,183,675
---------------------------- ------------
At 31 December 2017 868,594
---------------------------- ------------
The Group received Research and Development Grants from Energiteknologisk Udvikling og Demonstration Projekt of EUR152,447 (2016: EUR48,420) in respect of the capitalised research and development. The Group has the ability to claim a further EUR174,342 (2016: EUR388,393) of grants in future years in respect of on-going Research and Development.
11. Property, plant & equipment
Plant and
equipment
Group EUR
Cost
-------------------------- -----------
At 1 January 2016 226,428
---------------------------- -----------
Additions 35,635
Exchange differences 870
At 31 December 2016 262,933
Additions 44,312
Disposed (12,703)
Exchange differences (494)
---------------------------- -----------
At 31 December 2017 294,048
---------------------------- -----------
Accumulated depreciation
At 1 January 2016 82,153
---------------------------- -----------
Charge for the year 61,034
Exchange differences 325
At 31 December 2016 143,512
Charge for the year 56,409
Disposed (12,703)
Exchange differences (254)
---------------------------- -----------
At 31 December 2017 186,964
---------------------------- -----------
Net carrying value
-------------------------- -----------
At 1 January 2016 144,275
---------------------------- -----------
At 31 December 2016 119,421
---------------------------- -----------
At 31 December 2017 107,084
---------------------------- -----------
12. Inventory
Group
As at As at
31 December 31 December
2017 2016
EUR EUR
Raw material 335,653 496,442
Work in progress 340,535 110,654
Finished goods 63,421 386,561
------------------ ------------- -------------
Inventory 739,609 993,657
------------------ ------------- -------------
The cost of inventory sold and recognised as an expense during the year was EUR1,301,047, (2016: EUR627,255).
13. Trade and other receivables
Group Company
As at As at As at As at
31 December 31 December 31 December 31 December
2017 2016 2017 2016
EUR EUR EUR EUR
Trade receivables 428,979 585,257 - -
------------------------------ ------------- ------------- ------------- -------------
Impairment allowance (27,536) - - -
beginning of period
Provision utilised - - - -
during the year
Provision charge during
the year (20,148) (27,536) - -
------------------------------ ------------- ------------- ------------- -------------
Impairment allowance
end of period (47,684) (27,536) - -
------------------------------ ------------- ------------- ------------- -------------
Trade receivables -
net 381,295 557,721 - -
Intragroup receivables - - 276,299 813,237
------------------------------ ------------- ------------- ------------- -------------
Total financial assets
other than cash and
cash equivalents classified
as loans and receivables 381,295 557,721 276,299 813,237
------------------------------ ------------- ------------- ------------- -------------
Tax receivables 66,169 150,336 - -
Other receivables 150,541 108,564 12,180 20,922
Total other receivables 216,710 258,900 12,180 20,922
Total trade and other
receivables 598,005 816,621 288,479 834,159
------------------------------ ------------- ------------- ------------- -------------
Classified as follows:
Current Portion 598,005 816,621 288,479 834,159
------------------------------ ------------- ------------- ------------- -------------
The ageing of the trade receivables as at 31 December 2017 is detailed below:
Group
2017 2016
EUR EUR
Neither past due nor impaired: 216,591 407,616
Past due but not impaired:
0 to 30 days - 21,261
30 to 60 days 1,306 8,601
60 to 90 days 13,453 -
Over 90 days 149,943 120,243
-------- --------
381,295 557,721
======== ========
There is no material difference between the net book value and the fair values of trade and other receivables due to their short-term nature.
Other classes of financial assets included within trade and other receivables do not contain impaired assets.
Of the net trade receivables EUR152,407 (2016: EUR521,226) was pledged as security for the invoice discounting facility.
Maturity analysis of the financial assets, including trade debtors, restricted cash and other receivables, classified as financial assets measured at amortised cost, is as follows (the amounts shown are undiscounted and represent the contractual cash-flows):
Group Company
As at As at As at As at
31 December 31 December 31 December 31 December
2017 2016 2017 2016
EUR EUR EUR EUR
Up to 3 months 381,295 557,721 12,180 -
Within 12 months 216,710 258,900 276,299 834,159
------------------ ------------- ------------- ------------- -------------
598,005 816,621 288,479 834,159
------------------ ------------- ------------- ------------- -------------
14. Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances with original maturity less than 90 days:
Group Company
As at As at As at As at
31 December 31 31 31 December
2017 December December 2016
EUR 2016 2017 EUR
EUR EUR
------------- ---------- ---------- -------------
Cash at bank 1,116,503 783,166 180,727 251,310
------------- ---------- ---------- -------------
The Group has restricted cash balances of EUR234,692 (2016: EUR30,609) which are not part of cash balances for the cash flow statement. The restricted cash balances relate to transactions entered into between the Group and external financial parties. When EKF has credit approved a customer EKF issues a non-recourse payment guaranties to an external financial party typically of 80% to 90% of the face value of the transaction. Upon shipment of the products the Group then sells the invoice to the external financial party at face value subject to depositing and pledging a cash amount equal to the difference between the face value of the invoice and the EKF guaranties. When the customer typically one year later pays the full invoice amount to the financial party, the deposit is paid in full to the Group.
15. Notes supporting statement of cash flows
Non-current Current
loans and loans Total
borrowings and borrowings EUR
EUR EUR
As at Beginning of
period 921,751 4,586 926,337
Repayment of loans - (4,580) (4,580)
Accrued interests on
non-current loans 107,937 - 107,937
Loans and borrowings
classified as non-current
in previous period
becoming current in
this period (4,579) 4,579 -
Foreign exchange rate
differences (1,300) (6) (1,306)
As at End of period 1,023,809 4,579 1,028,388
---------------------------- ------------ ------------------------------------- ------------
16. Trade and other payables
Group Company
As at As at As at As at
31 December 31 31 31
2017 December December December
EUR 2016 2017 2016
EUR EUR EUR
Invoice discounting 121,209 239,528 - -
Trade payables 1,045,516 603,950 38,720 98,210
Other payables and
provisions 325,675 201,038 20,000 -
Current portion of
Nordea loan 4,579 4,586 - -
Total financial liabilities,
excluding non-current 1,049,102
loans and borrowings 1,496,979 58,720 98,210
classified as financial
liabilities measured
at amortised cost
------------------------------ ------------- ----------------------------------------- ---------- ----------
Deferred revenue 6,716 226,942 - -
------------------------------ ------------- ----------------------------------------- ---------- ----------
Total trade and other
payables 1,503,695 1,276,044 58,720 98,210
------------------------------ ------------- ----------------------------------------- ---------- ----------
Classified as follows:
Current Portion 1,503,695 1,276,044 58,720 98,210
------------------------------ ------------- ----------------------------------------- ---------- ----------
16.Trade and other
payables (continued)
The invoice discounting arrangement is secured upon the trade debtors to which the arrangement relates.
There is no material difference between the net book value and the fair values of current trade and other payables due to their short-term nature.
Maturity analysis of the financial liabilities, classified as financial liabilities measured at amortised cost, is as follows (the amounts shown are undiscounted and represent the contractual cash-flows):
Group Company
As at As at As at As at
31 December 31 December 31 December 31
2017 2016 2017 December
EUR EUR EUR 2016
EUR
Up to 3 months 1,174,653 1,143,039 38,720 98,210
Within 12 months 329,042 172,648 20,000 -
------------------ ------------- ------------- ------------- ----------
1,503,695 1,315,687 58,720 98,210
------------------ ------------- ------------- ------------- ----------
17. Borrowings
The carrying value and fair value of the Group's borrowings are as follows:
Group
Book and fair
value
As at As at
31 December 31 December
2017 2016
Loans EUR EUR
Growth Fund 1,007,410 900,743
Nordea Ejendomme 20,978 25,594
Current portion of Nordea Loan (4,579) (4,586)
----------------------------------------- ------------- -------------
Total non-current financial liabilities
measured at amortised costs 1,023,809 921,751
----------------------------------------- ------------- -------------
The Growth Fund borrowing from the Danish public institution, Vækstfonden, bears interest at a fixed annual rate of 12 per cent. The borrowing is a bullet loan with maturity in June 2020. The Group may at any point in time either repay the loan in part or in full or initiate an annuity repayment scheme over four years. If an annuity repayment scheme is initiated, the interest rate will be reduced to a fixed annual rate of 8 per cent in the repayment period.
The loan from Nordea Ejendomme is in respect of amounts included in the fitting out of the offices in Denmark. The loan is repayable over the 6 years and matures in November 2021 and carries a fixed interest rate of 6 per cent.
Both Loans are denominated in Danish Kroner.
The Company had no borrowings.
18. Share capital
On 12 July 2017, the Company issued 1,524,390 ordinary shares of 1 pence each for cash consideration at GBP0.82 per share. On 26 September 2016, the Company issued 710,018 ordinary shares of 1 pence for cash consideration at 67.5 pence per share. On 19 December 2016, the Company issued 522,082 ordinary shares of 1 pence for cash consideration at 94 pence per share.
18. Share capital
Authorised EUR Authorised EUR
2017 2017 2016 2016
Shares at beginning
of reporting period 40,283,979 513,327 38,166,377 487,688
---------------------- ------------ --------- ------------ ---------
Issue of share
capital on 2 July
2018 1,524,979 17,216 2,032,102 24,558
---------------------- ------------ --------- ------------ ---------
Shares at end
of reporting period 41,808,369 530,543 40,283,979 513,327
---------------------- ------------ --------- ------------ ---------
Number Number
of shares of shares
issued issued
and fully and fully
paid EUR paid EUR
2017 2017 2016 2016
Shares at 1 January
2017 40,283,979 513,327 38,166,377 487,688
---------------------------- ------------ --------- ------------ ---------
Issue of shares for
cash 1,524,390 17,216 2,032,102 24,558
Issue of shares for
cash for the satisfaction
of fees - - 85,500 1,081
Shares at 31 December
2017 41,808,369 530,543 40,283,979 513,327
---------------------------- ------------ --------- ------------ ---------
At 31 December 2017, the share capital comprises 41,808,369 shares of 1 pence each.
Warrants and share options
Warrants are granted to Directors and employees.
A total of 75,000 warrants issued in 2014 lapsed on 31 December 2017. A further 1,520,956 warrants issued in 2014 were extended until 31 December 2019 on unchanged terms except for the strike price being increased by 5% if exercised in 2018 and by 10% if exercised in 2019.
On 16 November 2017, 420,000 options were issued to certain employees at a strike price of GBP1.
The 2014 warrants are valued using the Black-Scholes pricing model and no performance conditions are included in the fair value calculations. The risk free rate was 1.15%. The expected volatility is based on historical volatility of the AIM market over the last two years and is estimated to be 40%.
The 2017 options are valued using the Black-Scholes pricing model and no performance conditions are included in the fair value calculations. The options were issued at a strike price of GBP1 a third vesting on each anniversary for the first three years. The option have a 10 year life. The price of the share at the time of issue was GBP0.87. The risk free rate was 1.15%. The expected volatility is based on historical volatility of the AIM market over the last two years and is estimated to be 40%.
The average share price during the year was 89.8 pence (2016:100 pence). At the year end the Company had the following warrants and options outstanding:
Number of warrants
and options
------------------------------------
At At
31 December 31 December Exercise
price
2016 Granted Lapsed 2017 (GBP Exercise
pence) date
29/08/14
Warrants 1,520,956 - - 1,520,956 39.07 to 31/12/19
Warrants 75,000 - (75,000) - 100.00 Expired
16/11/18
Options - 420,000 - 420,000 100.00 to 16/11/27
1,595,956 420,000 (75,000) 1,940,956
========== ============= ========= ========== =============
19. Operating Leases
The total future value of the minimum lease payment is due as follows:
2017 2016
EUR EUR
Not later than one
year 102,744 11,743
Later than one year
and not later than
five years 50,721 245,494
Later than five years - -
-------- --------
153,465 257,237
-------- --------
All leasing commitments are in respect of property and cars leased by the Group. The terms of property leases vary from country to country, although they all tend to be tenant repairing with rent reviews every 2 to 5 years and many have break clauses.
20. Warranty provision
2017 2016
EUR EUR
Provision at the beginning
of reporting period 39,643 24,413
Provision charged to
the profit and loss
account 49,068 30,421
Utilised in year (16,181) (15,425)
Foreign exchange rate
movements (325) 234
--------- ---------
72,205 39,643
--------- ---------
The Group typically provides a two-year warranty period to customers on products sold. Actual booked warranty expenses charged to the Statement of Profit or Loss and Other Comprehensive Income amounted to EUR16,181 (2016: EUR15,425) corresponding to a warranty cost percentage of 0.6% (2016: 0.8%) relative to the prior two years revenue. However, due to the early business stage of the Group and the uncertainty following this the Group has adopted a policy to accrue a 2% warranty provision based on the prior two years revenue.
21. Related Party Transactions
Jørgen Korsgaard Jensen and Johan Blach Petersen are directors and shareholders of O-Net Wavetouch Denmark A/S (Wavetouch). Wavetouch has during the year rented office space from Windar Photonics A/S, the amount payable during the year to Windar was EUR36,512 (2016: EUR22,565). There were no amounts outstanding at the year end from Wavetouch (2016:EUR Nil).
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
FR AJMBTMBITTLP
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May 24, 2018 02:19 ET (06:19 GMT)
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