Trading Update

Further to the announcement on 17 June 2026, revealing accounting irregularities, a delay to the FY25 audit and a temporary suspension from trading of the Company's shares, the Board of Windar (AIM: WPHO) provides the following update on trading for the 5 months ended 31 May 2026 and expected performance for the 12 months to 31 December 2026 ('FY26').

Trading update for the 5 months ended 31 May 2026

As set out in the Company's announcement on 15 April 2026, the Company had its strongest ever first quarter in terms of new test order activity, and is pleased to update that the Company has now been engaged in nine of the ten tests, which are running simultaneously across Asia, Europe, Australia and North America (referred to in that announcement), and one additional test in India. The Company has historically, and continues to, encounter protracted timelines to convert pipeline opportunities. Revenue (unaudited) in this 5 month period approximated just €162k.

Gross cash as at 31 May 2026 was €85k (31 December 2025: €4.0m) whilst inventory available for sale was €3.7m (31 December 2025: €4.0m). At the end of 2025, in anticipation of increased orders, the Company invested in holding significantly higher inventory. Due to the issues in China and delays to other expected orders as noted above, these inventory levels are excessive and will reduce as new orders are received.

However, the fall in inventory year-to-date has primarily been to address quality control issues identified for a number of Lidar's located in China and Canada that had experienced extreme weather conditions affecting the external housing of the Lidar. The solution was a relatively simple improvement to the housing and seals and no further failures have been observed on the improved hardware.

As a result of the above described excess inventory, alongside delayed sales, the Company requires a funding injection both for investment and development purposes but also for general working capital.

Expected financial performance for FY26

Having undertaken a thorough review of the Company's pipeline of potential orders for FY26, the Board has identified two major customer orders worth €6m, which were expected to be delivered in H2 2026, which are now on hold but there is a fair possibility will not be awarded to Windar. Accordingly, the Board now expects the Company to generate revenues of circa €1.8m for FY26 (compared with previous guidance of €7.8m).

The Board also wishes to emphasise that in its opinion, there is no change in the strength of Windar's technologies and product range, or their appeal to owners and operators of wind farms. There are currently more ongoing test orders involving major Independent Power Producers ('IPPs') of Windar's products than at any time in the Company's history. These are expected to result in new orders, but the timing is difficult to accurately predict.

Andreas Berg Nielsen, appointed CEO on 1 June 2026, a long-term industry professional with significant commercial experience, has quickly taken up his role and identified key areas to improve and professionalise the operational performance of the Company under a clear three-step strategic plan which will be set out in detail alongside the annual report for the year ended 31 December 2025.

Andreas Berg Nielson, CEO of Windar, commented: "Whilst recognising the current challenges facing Windar, in my opinion these are outweighed by the significant commercial opportunities available to the Company. Based on customer feedback, I have every confidence in Windar's technology offering and its ability to provide tangible value for our customers. Moreover, the team and I are committed to commercialising these opportunities."