Windar Photonics (AIM:WPHO) announced plans to raise at least £4 million through a placing and direct subscription, alongside a retail offer of up to £200,000, as the AIM-listed wind-sensor technology maker moves toward restoring its suspended shares to trading.
It comes as the company's shares are suspended - they have been since 17 June after announcing potential accounting irregularities tied to revenue recognised in 2024 and 2025 from two Chinese distributors - and, law firm Faegre Drinker's investigation into those irregularities is now said to be substantially complete.
The company has now restated prior-year revenues: FY24 revenue rises from €4.5 million to €5.1 million, while FY25 revenue is cut from €5.0 million to €4.7 million, after concluding that Chinese trade receivables had been recorded before contractual performance obligations were met under IFRS15.
Inventory worth €0.5 million tied to unverified Chinese orders remains in a bonded warehouse in China, available for future use.
As it seeks to raise new funds, Zeus Capital is running the placing as sole bookrunner, unwritten, with directors intending to invest approximately £0.9 million, once the current closed period ends following publication of the audited FY25 accounts.
Proceeds will fund general working capital, sales and marketing investment, and improvements to processes and controls.
The company also pointed to fresh momentum in its trial pipeline, agreeing two further product trials with wind farm operators in Europe and the US, and said trial and turbine numbers are at record levels.
Windar expects its FY25 accounts to be published around 25 August, with the suspension lifted and dealings resuming at 8.00 am on 26 August.
News Intelligence what this means for the company
Windar Photonics is raising at least £4 million to restore trading after a two-month AIM suspension triggered by accounting irregularities at two Chinese distributors. The company has restated FY24 revenue upward (€4.5m to €5.1m) but cut FY25 revenue (€5.0m to €4.7m) after an external investigation found trade receivables were recorded before contractual performance obligations were met under IFRS 15. Shares are expected to resume trading on 26 August, with directors committing £0.9 million to the raise once the closed period ends.
The raise size—at least £4 million—provides working capital and process improvements, though the company's ability to convert two newly agreed Europe and US product trials into revenue remains the core commercial test; trial readouts are expected over the next 3–6 months.
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