Windar Photonics – the AGM Statement confirms bullish views for group sales and profits, shares now 57p, brokers TP 100p

04.08.2025

Last Friday saw Windar Photonics (LON:WPHO), the technology group that has developed a LiDAR assisted Monitoring and Optimisation solution across multiple wind turbine platforms, issue a Trading Update ahead of its AGM.

It reflected continuing upwards momentum, making its shares at 57p a good gamble.

The Business

This company is a technology group that has developed LiDAR wind sensors and a related software suite designed to efficiently and cost effectively increase the power output and reduce the lifetime operating costs of electricity generating wind turbines.

LiDAR wind sensors in general are designed to remotely measure wind speed and direction.

The group's key physical products are the WindEYE™ and WindVISION™ sensors which measure the wind speed at different measuring points by scanning a laser beam ahead of the wind turbine.

By measuring the wind speed a variety of wind information is derived such as wind direction, turbulence, wind shear, wind gust and wake detection.

The products and various algorithms are designed for the general optimisation of wind turbines both in respect of increasing the Annual Energy Production and general load reduction options.

The group has recently developed and implemented the first phase of its Nexus software platform to support the data driven management of the improvement of performance of individual wind turbines and in future turbine farms.

AGM Trading Update

Chairman David Lis stated that:

"As recently stated in our FY results announcement in July, Windar is in a strong position, supported by a solid forward orderbook and a growing pipeline of opportunities and as a result is well placed to deliver a significant increase in revenues during 2025 compared to 2024.

Furthermore, utilising our strong cash position, we are investing in developing our team, our manufacturing footprint and technologies so we can best deliver on our growth potential.

In North America, the outlook is positive, backed by an increased number of customer interactions which were further enhanced by our successful Cleanpower exhibition in May 2025.

We are targeting closing 1-3 major contracts in the second half of 2025.

In Asia (outside China), we have seen increased activity especially in Japan and Australia.

Beside several test projects - some already in progress - our target is to close 1 full farm rollout in the region in the second half of 2025.

In China, the operating environment has been challenging, nevertheless we have made direct sales approaches to specific IPPs, and we are expecting to see some uptake in activity in the second half of 2025.

As part of scaling the business we have completed the relocation of our main production and R&D facilities to a new larger site in Ishoj, Denmark, which will enable a quintupling of production capacity.

In addition, we are close to signing a senior sales Director in both North America and Europe."

The Equity

There are some 96.4m shares in issue.

The larger holders include Aldbridge Services (23.70%), Pasinika SARL for Jorgen Jensen, CEO, (5.86%), Paul Hodges, Dir, (4.4%), Octopus Investments (4.05%), Janus Henderson (2.90%), Unicorn Asset Management (3.04%), Technical University of Denmark (2.44%), Amati Global Investors (2.40%), Milton Holding Horsens (2.20%), David Lis, Dir, (2.10%), Johan Petersen (1.95%), and Gavin Manson, Dir, (0.44%).

Broker’s Views

At Dowgate Capital, after the AGM Update, its analysts Lorne Daniel and Paul Richards continued to rate the group’s shares as a Buy, with a 100p Target Price.

The brokers noted that:

“Although there were no numbers in the AGM statement, 1H25 should be strong, with the record €2.4m order received in December and the €1.25m delivery shipped just before YE falling into the half.

The update notes that whilst the economic environment in China remains challenging, Windar expects to see new orders in 2H after making direct approaches to targeted IPPs.”

For the current year to end-December 2025 they estimate that the group will double its sales to €9.1m (€4.6m), taking it from an adjusted pre-tax loss of €0.8m up to a €2.0m profit, leaping its earnings up to 1.8c (loss 0.7c) per share.

The 2026 year could see €14.1m revenues, €4.5m profits, and 3.7c per share in earnings.

Progressing further ahead, the analysts reckon that 2027 could create €23.4m in turnover, some €10.5m in profits, with 8.8c earnings per share.

Over those three years they estimate that end-year net cash balances could be – 2025 €6.9m (2024: €5.7m), 2026 - €8.0m, and in 2027 - €12.6m.

At Zeus Capital, analysts Nick Spoliar and Charlie Cullen maintained their 75p Target Price on the group’s shares.

“Coming four weeks after an inline set of final results, WPHO’s AGM update this morning reflects continuing momentum, in a year which is set to demonstrate significant progress YoY.

With c.10% of US electrical energy supplied by wind turbines, we see significant further retrofit opportunities for WPHO, as well as potential in Europe, Asia and elsewhere, adding up to the €60m-plus current prospective pipeline which has previously been flagged.”

The analysts are looking for current year sales of €10.0m. with €2.1m of adjusted pre-tax profits, and earnings of 2.2c per share.

For next year to end-December 2026 they estimate €15.0m of sales, €5.0m profits and 5.1c per share in earnings.

My View

Just two weeks ago, this group’s shares were up to 61p, before easing back to 55p a week later.

Now trading at 57p, valuing the group at £55m, I remain confident that close to the broker’s estimates will be achieved within the next year or so, which could well strengthen the view that the group has turned its corner and is determined to progress smartly.

I believe that my Target Price of 66p will soon be achieved.