Windar’s (LON:WPHO) FY15 results were in line with our forecasts, but lower than the expectations at the time of the IPO in March 2015 because of issues with the distributor in China, which is a key market. These issues appear to have been resolved and we expect renewed activity in China to lead to a ramp-up in sales, beginning in H216. The subscription and factoring arrangement announced in May 2016 remove the funding gap identified in our previous note.
FY15 performance in line with revised estimates
FY15 revenues (€0.95m) were slightly below FY14 (€1.04m), but in line with our estimates. FY15 sales were broadly evenly distributed between North America, Europe and Asia, with a significant increase in activity in the European and North American markets. The distributor in China failed to achieve the required sales levels and has been given termination notice. Importantly, Windar received its first volume order to retrofit a wind park. This order, worth c US$0.9m, is from a US utility and is scheduled for delivery in FY16. EBITDA losses widened, reflecting increased sales and engineering activity and were in line with our estimates (€2.8m).
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