Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in WPHO?
Windar Photonics PLC: THE INVESTMENT CASE

Everything blowing in the right direction for Windar

Shares are up 13% this year, despite the negative effect of Brexit
wind turbine in the sea
INVESTMENT OVERVIEW: WPHO The Big Picture
Windar's technology gathers wind data to help optimise the performance of wind turbines

Excuse the pun, but everything seems to be blowing in the right direction for Windar Photonics PLC (LON:WPHO). Not even Brexit can keep it down.

Positive news flow over the past couple of months has helped it to bounce back from the shock referendum result which hit its share price and that of many other UK-listed firms.

The most recent piece of news that it had secured a repeat order for its WindEye LiDAR wind sensors from a large US utility company confirmed what followers of the stock have known for a while: Windar has a good, useful product.

The wind farm owner and operator placed its second order for five new units after being impressed the first time around

This is in addition to other orders that have been placed with the company in the second half this year.

Even the directors are confident, having recently ploughed another £100,000 into the company between them.

LiDAR technology helps optimise wind power generation

Windar’s technology analyses the wind ahead of a turbine so it can be optimised to fit conditions.

In other words, short term variations in wind speed can be measured before they reach the wind turbine which can then be adjusted to deal with these changes.

The principle of LiDAR was developed in the 1970s but Windar has enhanced and fine-tuned it using lasers.

According to the company, the WindEYE units increase annual energy production from each wind turbine by 1-4%, and at the same time it reduces costs associated with maintenance and repair.

Depending on the price of power, the sensor could pay for itself within 12 - 36 months. And overall, in terms of asset value, the sensor systems typically add 4-7% to turbine’s worth.

Windar uses lasers and there are no moving parts so it is much cheaper than competing products in the market. The product is over 60% cheaper and almost 50% lighter than the best competing products.

The AIM quoted company already acts as supplier to six of the top ten global utilities and four of the top ten global wind turbine manufacturers and is in talks with many more.

With ‘clean’ energy continuing to gain traction and the number of wind turbines set to rise as a result, Windar is well set to exploit the potential of the industry.

What the brokers are saying

Cantor Fitzgerald is upbeat on Windar, with the repeat order from the US customer confirming that WindEye technology is highly-regarded in the industry.

“A repeat order for Windar units in the USA is welcome and demonstrates the effectiveness of the product in our view.

“The integration into control systems in the retro-fit market adds further dimension to the offering.

“We reiterate our BUY recommendation and target price of 118p.”

The share price

Like a lot of UK stocks, Windar shares slumped in the weeks following the EU referendum results at the end of June.

Despite this, the stock is still up 13% in the year-to-date after a rally in recent weeks.

It’s currently trading just above the pound mark, giving Windar a market capitalisation of just shy of £40mln.



Register here to be notified of future WPHO Company articles
View full WPHO profile View Profile

Windar Photonics PLC Timeline

Article
December 29 2016

Related Articles

Solar and conventional energy
January 30 2017
The model for energy services supplier Premier Holding is coming together with the addition of a power supplier to its list of subsididiaries
drillrigarty.jpg
October 18 2016
Drilling will begin late this quarter and is expected to take between 45 and 60 days.
Offshore oil operations, North Sea
August 18 2016
Premier Oil told investors it now expects to produce between 68,000 to 73,000 barrels oil equivalent per day in 2016.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use