Windar's (LON:WPHO) H117 results show €1.3m revenues for the six-month period ahead of those achieved in the whole of FY16, while the cost base realignment during H216 resulted in a 71% reduction in EBITDA losses to €0.4m. Our estimates and valuation remain suspended until there is more clarity on test programmes with independent power providers (IPPs) and wind turbine OEMs converting to volume sales.
The strong revenue growth (62% y-o-y) during H117 was driven by demand from IPPs, including operators in Canada, China, France, India and Mexico. Growth was particularly strong in Asia. Engagement with IPPs has intensified following management’s decision a year ago to develop its global network of distributors rather than invest in the direct salesforce. Windar now has 14 distributors addressing the IPP retrofit market. The OEM segment accounted for only a small proportion of total revenue, but presents a significant opportunity for growth as Windar currently has ongoing projects with 13 wind turbine OEMs, including the majority of the top 10 players globally.
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