Final Results

RNS Number : 6057H
Windar Photonics PLC
09 June 2017
 



9 June 2017

 

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" or the "Company")

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 2016.

 

 

FY2016 Highlights 

·      Revenue growth in 2016 of 26 per cent to €1.2 million (2015: €0.9 million), after deferring €0.2m of revenue due to the timing of deliveries. Actual despatches in 2016 amounted to €1.4m, an increase on 2015 of 48%

·      Gross profit increased by 113 per cent to €0.6 million (2015: €0.3 million)

·      The Group held cash balances at the end of the year of €783,166 (2015: €593,907)

      Current cash and debtors, net of factoring, is in excess of €600,000

·      Good progress with several of our OEM test programmes edging closer to turbine platform design contracts with a potential to have a significant impact on the Company's prospects and activity level

·      Expanded product features to include detection of Turbulence Intensity, Wind Shear Intensity and Wake Intensity, adding additional wind turbine optimisation opportunities

·      Implemented a new strategic approach to the IPP market segment by appointing seven new non-exclusive distributors to increase our market presence and at the same time reduce operating expenditure

·      Reduction of the loss from operations in 2016 due to cost reduction in the second half of 2016

·      Further equity support received during the year of  £1.9 million

 

Post period highlights 

·      Acceleration of revenue growth from 2016 with revenue and new orders as per the end of April 2017 already exceeding the full year revenue in 2016

·      Further increased our non-exclusive distribution network to include 15 distributors worldwide at the end of May 2017

·      Continued reduction of the loss from operation in 2017 due to increased revenue and further reductions at the operating expenditure level

 

Jørgen Korsgaard Jensen, CEO of Windar, commented:

 

"2016 was a year with many challenges but at the same time many opportunities. We added important new capabilities to our product range opening up even further wind turbine optimisation opportunities using our products, and even though not contributing to our overall revenue growth in 2016, we made significant progress within several OEM test programmes in the year. These programmes are essential to supporting our long term revenue targets. Within the IPP market segment we also made important progress in 2016 which has continued into 2017 where we have seen strong growth especially in Asia. In the second half of 2016 we reviewed our overall operating expenses in the Group, which is the primary reason for the improved operational performance in the second half of 2016 which improvements have continued in 2017.  

 

The Company is now looking to build upon its proven technology and pipeline of opportunities and is pleased with the progress made already in 2017. The Board remains confident for 2017 and for the future."

 

 

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 10.00 a.m. on 5 July 2017.

 

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

+45 24344930
 

Cantor Fitzgerald Europe

Nominated Adviser and Broker

Andrew Craig

Richard Salmond

+44 20 7894 7000

 

 

 

Chairman's statement

 

Dear Shareholders,

 

For the full year ending 31 December 2016, the Group achieved revenue of €1.2 million (2015 €0.9 million) after deferring €0.2m of revenue due to the timing of deliveries. Actual despatches in 2016 amounted to €1.4m, an increase on 2015 of 48%.

 

We also achieved a reduction in our net loss for the year to €3.2 million (2015 €3.8 million) which included depreciation, amortisation and warrant costs of €0.7 million (2015 €0.7 million). The net loss for the second half of 2016 was reduced sharply compared to the same period in 2015 to a net loss of €1.3 million (2015 €2.3 million).

 

The Group held cash balances at the end of the year of €783,166 (2015: €593,907).

 

During the year the Group raised £1.9 million before expenses in three tranches. In addition to the capital raising during the year the Group put in place a factoring facility with an initial facility of up to €400,000 with an intention to increase the facility up to €1.5 million, as the Group made further progress with orders. At the year end the Group had drawn down €239,528 from this facility. The Group is also pleased to have financed the sale of 20 LiDAR units in China with Denmark's export credit agency, Eksport Kredit Fonden ("EKF").

 

In 2015 the Group successfully completed the development of its WindVision™ systems (four beam LiDAR system), to sit alongside the proven two beam WindEye™ LiDAR system. This development work included the introduction of new electronic and beam switching technology platforms. In 2016 we successfully completed the migration of that same technology platform into our existing WindEye™ product line, which has aligned and simplified all of Windar's products.

 

In the second half of 2016 the Group concentrated its development resources towards wind turbine integration and turbine optimisation solutions. By far the most important development in 2016 was the start of our new wake detection and turbine optimisation programme launched in conjunction with several International Research Institutes. This has already led to new orders and test programmes initiated with both existing and new OEM and IPP customers for both our WindEye™ and WindVision™ systems. The Wake detection and turbine optimisation programme is financially supported by an Energy Technology Development and Demonstration Program ("EUDP") in conjunction with the project partner Danish Technological University, Department of Wind Energy and includes a combined cash grant of €1.0 million over the coming 24 months that is to be split equally between the project partners.

 

Having initially focused on measuring Wind Direction for optimising Turbine Yaw misalignment, today our product range includes detection of Wind Speed, Wind Gust, Turbulence Intensity, Wind Shear intensity and the above-mentioned Wake Intensity bringing additional opportunities for various turbine optimisation. These additional capabilities (obtained without increasing the cost base of our products) have positioned us favourably with both the OEM and IPP market segments and is expected to support our future growth expectations.

The Group has capitalised its continued cost of investment in technology during the year. This amounts to €474,435 (2015: €570,087) before grants of €48,420 (2015: €261,065).

Given our stable and strong LiDAR product platforms, which are increasingly being integrated directly into turbine operating systems, we believe we are well placed to further our progress in both the Original Equipment Turbine Manufacturer ("OEMs") market and also with Independent Power Producers and Wind Farm Owners ("IPPs") with validation and support from the turbine manufacturers.

 

During 2016 the Group made very important progress in respect of test projects with several major OEMs. Some of these projects have now been ongoing for more than two years, and based on some of these test projects the Board do expect to realise turbine design wins with Windar's LiDAR technology included in the near future.  The development of these discussions to the follow-on contract stage are likely to have a significant effect on the Group's prospects and activity levels.

 

During the second half of 2016 the Group changed its general sales and marketing approach to focus primarily on the IPP market. A key part of the strategic change has been to establish an external non-exclusive regional, distribution network for the Group's LiDAR based products. At the end of 2016 we had entered into seven regional distribution agreements globally and the network has since been expanded to fifteen at the end of May 2017. This strategic approach is intended to increase our global market presence while reducing our overall operating expenses. We have already seen positive signs that this approach is working, with initial orders being received from certain of our partners and their clients, and the Board expects to see the further positive results of this strategic change with increased IPP market penetration in 2017.

 

2017 has started well with total order intake during the first four months of the year showing an accelerated growth over 2016.

 

Overall, the Group remains very confident for 2017 and the future, and I would like to take the opportunity to thank the management and staff for their efforts in 2016.

 

John Weston

Chairman

 

Date 8 June 2017

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2016





.


Year ended

31 December 2016

Year ended

31 December 2015




 Note



 Revenue

4

1,196,037

945,905

Cost of goods sold


(627,255)

(678,524)

 Gross profit


568,782

267,381





Administrative expenses


(3,804,798)

(3,850,187)

Administrative expenses - Costs in respect of the Introduction and Listing on AIM


-

(222,634)

Other operating income


69,074

-

 Loss from operations


(3,166,942)

(3,850,440)





Finance expenses

6

(106,882)

(100,211)

 Loss before taxation


(3,273,824)

(3,905,651)





 Taxation

7

                  128,109

                  120,524

 Loss for the year


(3,145,715)

(3,785,127)





 Other comprehensive income




 Items that will or may be reclassified to profit or loss:




 Exchange (losses)/gains arising on translation of foreign operations


(22,087) 

351 

Total comprehensive loss for the year attributable to the ordinary equity holders of Windar Photonics plc


(3,167,802)

(3,784,776)





Loss per share attributable to the ordinary equity holders of Windar Photonics plc 




 Basic and diluted, cents per share

8

(0.08)

(0.10)

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016

 







31 December 2016

31 December 2015



 €

 €


 Note



Assets




Non-current assets




Intangible assets

10

1,183,675

1,120,209

Property, plant & equipment

11

119,421

144,275

Deposits


54,072

98,096

Total non-current assets


1,357,168

1,362,580





 Current assets




 Inventory

12

993,657

769,624

 Trade receivables

13

557,721

795,766

 Other receivables

13

289,509

397,168

 Prepayments


81,237

75,993

 Cash and cash equivalents

14

783,166

593,907

 Total current assets


2,705,290

2,632,458





 Total assets


4,062,458

3,995,038









 Equity 




 Share capital

17

513,327

487,688

 Share premium

17

8,964,224

6,994,646

 Merger reserve


2,910,866

2,910,866

 Foreign currency reserve


(32,628)

(10,541)

 Retained earnings


(10,530,769)

(7,702,123)

 Total equity


1,825,020

2,680,536





 Non-current liabilities




 Loans

16

921,751

826,705

 Total non-current liabilities


921,751

826,705





 Current liabilities




 Trade payables

15

603,950

187,655

 Other payables

15

240,681

295,839

Deferred revenue

15

226,942

-

 Invoice discounting

15

239,528

-

 Loans

15

4,586

4,303

 Total current liabilities


1,315,687

487,797





 Total liabilities


2,237,438

1,314,502





 Total equity and liabilities


4,062,458

3,995,038





 

 

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2016








Year ended

31 December 2016

Year ended

31 December 2015


Notes

 €

 €





 Loss for the period before taxation


(3,273,824)

(3,905,651)





 Adjustments for:




 Finance expenses

6

106,882

100,211

 Amortisation

10

366,784

333,614

 Depreciation

11

61,034

62,758

 Received tax credit


120,305

70,407

 Tax paid


(22,008)

-

 Foreign exchange differences


(25,898)

(354,072)

 Warrants expense


317,069

365,494



(2,349,656)

(3,327,239)





 Movements in working capital




 Changes in inventory


(224,033)

(521,511)

 Changes in receivables


414,296

(442,699)

 Changes in trade payables


416,295

(725,629)

 Changes in deferred revenue


226,942

-

 Changes in other payables


(55,158)

175,589

 Cash flow from operations


(1,571,314)

(4,841,489)





 Investing activities




 Payments for intangible assets

10

(474,435)

(570,087)

 Payments for tangible assets

11

(35,635)

(175,179)

 Grants received

10

48,420

261,065

  Cash flow from investing activities


(461,650)

(484,201)





 Financing activities




 Proceeds from issue of share capital


2,252,920

-

 Costs associated with the issue of share capital


(257,703)

-

 Proceeds from invoice discounting


239,528

-

 Repayment of loans


(4,303)

-

 Proceeds from new loan


-

29,802

 Interest paid


(10,239)

(14,367)

 Cash flow from financing activities


2,220,203

15,435





 Net increase/(decrease) in cash and cash equivalents


187,239

(5,310,255)

 Exchange differences


2,020

355,566

Cash and cash equivalents at the beginning of the year


 

593,907

5,548,596





 Cash and cash equivalents at the end of the year

 

14

783,166

593,907





 

CONSOLIDATED AND COMPANY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2016

 

 

 

.


 


 

Notes

Share
Capital

Share
Premium

Merger reserve

Foreign currency reserve

Retained earnings

Total



Group








At 1 January 2015


487,688

6,994,646

2,910,866

(10,892)

(4,282,490)

6,099,818









Share option and warrant costs


-

-

-

-

365,494

365,494

Transaction with owners


-

-

-

-

365,494

365,494

Comprehensive loss for the year


-

-

-

-

(3,785,127)

(3,785,127)

Other comprehensive loss


-

-

-

351

-

351

Total comprehensive income


-

-

-

351

(3,785,127)

(3,784,776)

At 31 December 2015


487,688

6,994,646

2,910,866

(10,541)

(7,702,123)

2,680,536









New shares issued

 

17

 

24,558

 

2,228,362

 

-

 

-

 

-

 

2,252,920

New shares issued in respect of services rendered

 

17

 

1,081

 

117,845

 

-

 

-

 

-

 

118,926

Costs associated with capital raise


 

-

 

(376,629)




 

(376,629)

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 loss


-

-

-

(22,087)

-

(22,087)

Total comprehensive income


-

-

-

(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

















Company


   






At 1 January 2015


487,688

6,994,646

658,279

(7,746)

(681,160)

7,451,707









Share option and warrant costs


-

-

-

-

365,494

365,494

Transaction with owners


-

-

-

-

365,494

365,494

Comprehensive loss for the year


-

-

-

-

(471,368)

(471,368)

Total comprehensive income


-

-

-

-

(471,368)

(471,368)

At 31 December 2015


487,688

6,994,646

658,279

(7,746)

(787,034)

7,345,833









New shares issued

 

17

 

24,558

 

2,228,362

 

-

 

-

 

-

 

2,252,920

New shares issued in respect of services rendered

 

17

 

1,081

 

117,845

 

-

 

-

 

-

 

118,926

Costs associated with capital raise


 

-

 

(376,629)




 

(376,629)

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)

Other comprehensive loss


-

-

-

-

-

-

Total comprehensive income


-

-

-

-

(984,082)

(984,082)

At 31 December 2016


513,327

8,964,224

658,279

(7,746)

(1,454,047)

8,674,037









 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016


 

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 2016 or 2015. Statutory accounts for the years ended 31 December 2016 and 31 December 2015 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 2016 and 31 December 2015 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 2015 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2016 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 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 2016 and are prepared under the historic cost convention, except for the following:

·      share based payments and warrant cost

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 has 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
31 December 2016

Year ended
31 December 2015


Sale of product

1,136,840

646,691

Sale of services

59,197

299,214





1,196,037

945,905

 

 

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 statement of profit or loss and other comprehensive income and consolidated statement of financial position.

 

In 2016, two customers accounted for more than 10 per cent of the revenue (2015: one customer). The total amount of revenue from these customers amounted to €305,639, 20.8% of revenue and €154,101, 10.5% of revenue (2015: €213,519 or 23 per cent of the revenue)

 

Revenue by geographical location of customer:


Year
ended
31 December 2016

Year
ended
31 December 2015

Europe

133,968

                   304,775

Americas

376,161

283,787

Asia

685,908

357,343

Revenue

1,196,037

945,905

 

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 31 December 2016

As at 31 December 2015







Denmark


1,303,096

1,264,484



1,303,096

1,264,484





Non-current assets for this purpose consist of property, plant and equipment and intangible assets.

 

6.   Finance income and expense







Finance expense




 Year
ended
31 December 2016

 Year
ended
31 December 2015

Interest expense on financial liabilities measured at amortised cost

(106,882)

(100,211)

Finance expense

(106,882)

(100,211)




 

7.   Income tax

 



Year ended

31 December 2016

Year ended

31 December 2015



 €

 €





(a)

The tax credit for the year:




Corporation tax

(128,109)

(120,524)





(b)

Tax reconciliation




Loss on ordinary activities before tax

(3,273,824)

(3,905,651)






Loss on ordinary activities at the UK standard rate of corporation tax 20%

(654,765)

(781,130)






Effects of:




Expenses non-deductible for tax purposes

168,233

114,976


Deferred tax not recognised

-

(9,408)


Depreciation for the period in excess of capital allowances

(9,920)

-


Unrecognised tax losses

434,825

817,856


Different tax rates applied in overseas jurisdictions

83,822

(142,294)


Tax credit on research and development

(150,304)

(120,524)


Tax credit for the year

(128,109)

(120,524)

The tax credit is recognised as 22 per cent. (2015: 23.5 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. (2015 23.5 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 deferred tax available on losses of approximately €2,174,230 (2015: €1,572,060) 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 of approximately €252,441 (2015: €223,051) 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
31 December
2016

Year ended
31 December
2015


Loss for the year

(3,145,347)

(3,785,127)




Weighted average number of ordinary shares for the purpose of basic earnings per share

38,950,108

38,166,377




Basic loss and diluted, cents per share

(0.08)

(0.10)

 

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 (2015: €Nil).

 

 

 

10.  Intangible assets

Group



Development projects

Cost




At 1 January 2015



1,775,208

Additions - internally developed



570,087

Grants received



(261,065)

Exchange differences



(4,373)

At 31 December 2015



2,079,857

Additions - internally developed



474,435

Grants received



(48,420)

Exchange differences



7,862

At 31 December 2016



2,513,734

Accumulated amortisation




At 1 January 2015



627,698

Charge for the year



333,614

Exchange differences



(1,664)

At 31 December 2015



959,648

Charge for the year



366,784

Exchange differences



3,627

At 31 December 2016



1,330,059

Net carrying value




At 1 January 2015



1,147,510

At 31 December 2015



1,120,209

At 31 December 2016



1,183,675

 

The Group has received Research and Development Grants from Energiteknologisk Udvikling og Demonstration Projekt of €48,420 (2015: €261,065) in respect of the capitalised research and development. The Group has the ability to claim a further €388,393 (2015: €5,000) of grants in future years in respect of on-going Research and Development.

 

 

11.  Property, plant & equipment

 

Group



Plant and equipment

Cost




At 1 January 2015



51,463

Additions



175,179

Exchange differences



(214)

At 31 December 2015



226,428

Additions



35,635

Exchange differences



870

At 31 December 2016



262,933

Accumulated depreciation




At 1 January 2015



19,474 

Charge for the year



62,758

Exchange differences



(79)

At 31 December 2015



82,153

Charge for the year



61,034

Exchange differences



325

At 31 December 2016



143,512

Net carrying value




At 1 January 2015



31,989

At 31 December 2015



144,275

At 31 December 2016



119,421

 

 

12.  Inventory


Group


As at
31 December 2016

As at
31 December 2015


Raw material

496,442

471,877

Work in progress

110,654

267,153

Finished goods

386,561

30,594

Inventory

993,657

769,624




 

The cost of inventory sold and recognised as an expense during the year was €627,255 (2015: €678,524).

 

13.  Trade and other receivables







Group

Company


As at
31 December
2016

As at
31 December
2015

As at
31 December
2016

As at
31 December
2015

Trade receivables

557,721

795,766

-

-






Less: provision for impairment of trade receivables

-

-

-

-

Trade receivables - net

557,721

795,766

-

-

Intragroup receivables

-

-

813,237

2,582,968






Total financial assets other than cash and cash equivalents classified as loans and receivables

557,721

795,766

813,237

2,582,968











Tax receivables

150,336

120,524

-

-

Restricted cash

30,609

-

-

-

Other receivables

108,564

276,644

20,922

16,163

Total other receivables

289,509

397,168

20,922

16,163   

Total trade and other receivables

847,230

1,192,934

834,159

2,599,131






Classified as follows:





Current Portion

847,230

1,192,934

834,159

  2,599,131






 

Restricted cash represents 10% on the amounts due from debtors and financed under the terms of export credit agreement and is held by Danske Bank until such time as the customer has paid in full. Once payment is made the cash will be transferred into the group's unrestricted cash.

The ageing of the trade receivables as at 31 December 2016 is detailed below:

 


Group


2016

2015





Neither past due nor impaired:

407,616

683,792




Past due but not impaired:



0 to 30 days

21,261

48,293

30 to 60 days

8,601

2,294

60 to 90 days

-

-

Over 90 days

120,243

61,387


557,721

795,766




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.

 

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

31 December
2016

As at

31 December
2015

As at

31 December
2016

As at

31 December
2015






Up to 3 months

557,721

795,766

-

-

Within 12 months

139,173

276,644

834,159

2,599,131


696,894

1,072,410

834,159

2,599,131

 

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
31 December
2016

As at
31 December
2015

As at
31 December
2016

As at
31 December
2015






Cash at bank

783,166

593,907

251,310

470,185






 

15.  Trade and other payables

 


Group

Company

 


As at
31 December
2016

As at
31 December
2015

As at
31 December
2016

As at
31 December
2015

Invoice discounting

239,528

-

-

-

Trade payables

603,950

187,655

98,210

551

Other payables

240,681

295,839

-

26,860

Current portion of Nordea loan

4,586

4,303

-

-

Total financial liabilities, excluding non-current loans and borrowings classified as financial liabilities measured at amortised cost

 

 

1,088,745

 

487,797

 

 

98,210

 

 

27,411






Deferred revenue

226,942

-

-

-

Total trade and other payables

1,315,687

487,797

98,210

27,411





Classified as follows:





Current Portion

1,315,687

487,797

98,210

27,411






 

 

The amounts included within bank overdrafts represents an invoice discounting arrangement and 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

31 December
2016

As at

31 December
2015

As at

31 December
2016

As at

31 December
2015

 






 

Up to 3 months

1,143,039

484,546

98,210

27,412

 

Within 12 months

172,648

3,251

-

-

 


1,315,687

487,797

98,210

27,412

 

 

 

 

16.  Borrowings

 

The carrying value and fair value of the Group's borrowings are as follows:


Group

Book and fair value

Loans

As at
31 December
2016

As at
31 December
2015

Growth Fund

900,743

801,207

Nordea Ejendomme

25,594

29,801

Current portion of Nordea Loan

(4,586)

(4,303)




Total non-current financial liabilities measured at amortised costs

921,751

826,705

 

The Growth Fund borrowing from the Danish public institution, Vækstfonden, bears interest at a fixed 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 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.

 

 

17.  Share capital

 

On 6 May 2016 the Company issued 800,002 ordinary shares of 1 pence each for cash consideration at £1.10 per share and 85,500 ordinary shares of 1 pence each at £1.10 for the satisfaction of fees.

 

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.

 


Authorised




Shares at 1 January 2016

 38,166,377

 487,688




Shares at 31 December 2016

40,283,979

513,327

 

 


Number of shares issued and fully paid




Shares at 1 January 2016

 38,166,377

 487,688




Issue of shares for cash

2,032,102

24,558

Issue of shares for the satisfaction of fees

85,500

1,081




Shares at 31 December 2016

40,283,979

513,327

 

At 31 December 2016 the share capital comprises 40,283,979 shares of 1 pence each.

 

Warrants

Warrants are granted to Directors and employees. In 2014, warrants were issued to Martin Rambusch, John Weston and Simon Barrell, all Directors in the Company. The Group has no legal or constructive obligation to repurchase or settle the warrants in cash. The warrants are exercisable immediately from time of grant and lapse at 31 December 2017 but the directors have to remain employed to be able to exercise the warrants so on that basis the charge is being recognised over the periods ending 31 December 2017.

 

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 average share price during the year was 89.8 pence (2015:100 pence). At the year end the Company had the following warrants outstanding:

 

 


Number of warrants



At
 31 December


At
 31 December


Exercise price


2015

Granted

2016

(£ pence)

Exercise date

1,520,956

-

1,520,956

35.44

29/08/14 to 31/12/17

75,000

-

75,000

100

08/12/14 to 31/12/17

1,595,956

-

1,595,956








 

 

 

18.  Contingencies and Commitments

 

The total future value of the minimum lease payment is due as follows:

 




2016

2015




Not later than one year



11,743

11,743

Later than one year and not later than five years



245,494

345,917

Later than five years



-

-




257,237

357,660






 

All leasing commitments are in respect of property 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.

 

19.  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 €22,565 (2015: €Nil). There were no amounts outstanding at the year end from Wavetouch (2015:€ Nil).


This information is provided by RNS
The company news service from the London Stock Exchange
 
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