Wind turbine technology group Windar Photonics (LON:WPHO) blamed order delays for lower-than-expected revenue, although it said it was unlikely to have a long-term impact.
Windar made a pre-tax loss of €1.56mln in the six months to June 30, up from €1mln a year ago, due to a delay in developing its Asian market. Revenue was €145,000 versus €432,000 last time.
The delay came as a result of installation issues on the initial deployment of its systems in China, which have now been resolved.
But it said the delay would materially affect 2015 sales in the region and it did not expect to hit a sales target within its exclusive distribution agreement for the Chinese market which depends on achieving certain sales levels in 2015.
"As the directors expect the necessary sales level target will not be achieved, the directors are considering the company’s options for capitalising on the high levels of interest from Chinese wind park operators and original equipment manufacturers (OEMs)," it said.
The group also said orders from the rest of the world were likely to be in line with its 2015 expectations, but some had come in later than planned and as a result some of those deliveries would now happen in 2016.
But it said it had won its first volume order for retrofitting an entire wind park with the company's Wind Eye Lidar and its new turbine control system from a US utility company. The contract is worth about US$900,000 with delivery in 2016. "This is an important milestone for the company," it said.
Chairman John Weston said: "The directors believe the delayed build-up in sales will not have a long term impact, but it will however mean that expected revenue for 2015 will be of the order of that achieved in 2014.
"The directors are confident that the significant interest shown by current customers, including both utility companies and OEMs, will enable the company to increase revenue substantially in 2016, although given the delays encountered in 2015, not to the levels previously expected.
"The directors remain confident that the group has an attractive range of innovative products with strong market interest which bodes well."
Shares in Windar fell 12.5p to 110p in early London trading.