Windar Photonics – this group uses laser light as a detection system – after years of development it is on the cusp of significant profitability, shares 53p, TP 100p

16.06.2025

Windar Photonics develops light detection and ranging wind sensors, and a related software suite for use on electricity-generating wind turbines in Europe, China, Australia, the United States, and the rest of Asia. 

It is a technology group that develops cost-efficient and innovative Light Detection and Ranging optimisation systems for use on electricity-generating wind turbines.

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

This £51m-capitalised business could well be close to its inflection point as it scoops more orders, its shares are now just 53p and could easily double as it begins to score.

The Business

The origin of the WindEyeTM Sensor lies in the development of a LiDAR wind sensor which accurately measures wind speed and direction at a lower cost than competing LiDAR wind Sensors.

In 2002, Jørgen Korsgaard Jensen, the present Chief Operating Officer, founded OPDI Technologies to work in conjunction with the Technical University of Denmark to commercially exploit certain optical technologies.

This progressed in 2006 with the start of a LiDAR wind sensor development project, the technology of which is now owned by the Group.

OPDI Technologies and the DTU conducted extensive testing and proof-of-concept work on this LiDAR technology.

Windar Photonics (LON:WPHO) was founded in 2008 as a spin-off company from DTU-Risø, the Technical University of Denmark.

In 2011, Windar Photonics A/S acquired DTU's intellectual property rights relating to the LiDAR wind sensor development project in consideration of ordinary shares issued by Windar Photonics A/S to DTU.

At that time, Windar Photonics A/S raised further funds from seed investors and its shareholders, since then a team of experienced staff has been working to develop and commercialise the LiDAR wind sensor.

The company, which floated in 2015, has offices in London but is operated through its base in Denmark.

It is a leading manufacturer of cost-efficient LiDAR-based optimisation solutions to the global wind energy industry, providing OEMs and IPPs the opportunity to enhance the lifespan and increase the energy production of their wind turbine assets.

LiDAR, which stands for Light Detection and Ranging, is a remote sensing method that uses light in the form of a pulsed laser to measure ranges (variable distances) to the Earth.

The Windar LiDARs are designed to be cost-efficient, allowing Windar Photonics to offer LiDAR sensors at about 80% lower prices than other LiDAR manufacturers.

The company offers WindEYE and WindVISION sensors, which measure wind speed at different points by scanning a laser beam ahead of the wind turbines.

The WindEYE™ 2-beam LiDAR

The Windar Photonics WindEYE™ is a nacelle-mounted LiDAR that can increase the annual energy production (AEP) by 1-4% by correcting yaw misalignment, and substantially reduce loads associated with yaw misalignment.

The WindEYE™ LiDAR, which is designed to endure the harsh environment of wind turbines, is mainly intended as a retrofit solution for wind turbine assets already in operation, it can be integrated with the wind turbine control system via the WindTIMIZER integration solution.

The WindVISION™ 4-beam LiDAR

The WindVISION™ LiDAR is Windar’s 4-beam flagship LiDAR, which is intended for direct integration with the wind turbine control system from the design stage of the wind turbine.

Due to the 4-beams, The WindVISION™ is able to measure in both the vertical and the horizontal planes, enabling it to detect wakes, gusts, turbulence, and wind shear.

The Equity

There are some 96.4m shares in issue.

The larger holders include Pasinika SARL for Jorgen Jensen, CEO, (5.86%), Amati Global Investors (4.25%), Octopus Investments (4.05%), Paul Hodges, Dir, (3.68%), Unicorn Asset Management (3.04%), Technical University of Denmark (2.44%), Milton Holding Horsens (2.20%), David Lis, Dir, (2.10%), Johan Petersen (1.95%), and Gavin Manson, Dir, (0.44%).

Broker’s Views

Analysts Lorne Daniel and Paul Richards, at Dowgate Capital, rate the group’s shares as a Buy, with a 100p Target Price.

For the current year to end-December 2025 they estimate that the group will more than treble its sales to €16.2m (€4.6m), taking it from an adjusted pre-tax loss of €0.7m up to a €5.5m profit, leaping its earnings up to 5.1c (loss 0.9c) per share.

The 2026 year could see €26.9m revenues, €11.2m profits, and 9.3c per share in earnings.

Progressing further ahead, the analysts reckon that 2027 could create €39.8m in turnover, some €18.9m in profits, with 15.8c earnings per share.

Over those three years they estimate that end-year net cash could be – 2025 €8.4m (2024: €3.7m), 2026 - €8.7m, and 2027 - €11.0m.

However, over at Zeus Capital, its analysts Nick Spoliar and Charlie Cullen have not quite such bullish views and have recently downgraded their estimates.

For the current year they see sales of €13.8m, with an adjusted pre-tax profit of €4.1m, generating 4.3c per share of earnings, with just €8.0m of year-end net cash.

My View

Within the next couple of weeks or so we will see this little company declare its results for 2024, thereafter I would expect that corporate statements will enable the broker’s analysts to adjust their estimates for the current year and those following.

It is still very early days in the group’s commercial development and as the order book builds up, so too will expectations of future profitability.

At the current 53p, I feel that this group’s shares are priming themselves for a useful uplift in price, hopefully very soon.

I now set a new easily achieved Target Price of 66p on the shares.

(Profile 09.06.21 @ 29.5p set a Target Price of 38p*)

(Profile 16.06.25 @ 53p set a Target Price of 66p)

Asterisk * denotes that the previous Target Price has been achieved since Profile publication.