Windar Photonics Revises Down 2024 Guidance Due to Accounting Adjustment
Why we think this is bad
The RNS indicates that Windar Photonics has revised down its expectations for 2024 revenue and EBITDA due to a single order worth €1.25m that was not recognized in the 2024 financial year. This represents a significant negative impact on the company's financial performance, with revenue expectations reduced by €1.1m and EBITDA expectations changing from a profit to a loss. While the issue is purely an accounting adjustment with no financial impact on the business, the downgrade in guidance is likely to be viewed negatively by the market.
Key Points
- Revenue expectations revised down from €5.7m to €4.6m
- EBITDA expectations changed from a profit of €0.4m to a loss of €0.4m
- Single order worth €1.25m not recognized in 2024 due to accounting requirements
Summary
Windar Photonics PLC has announced an update to its expectations for the year ending 31 December 2024. Revenue expectations have been revised down from €5.7m to €4.6m, and EBITDA expectations have changed from a profit of €0.4m to a loss of €0.4m. This is due to a single delivery of product worth €1.25m that was shipped to a customer in late December 2024 and received payment in early January 2025, but did not meet the requirements under IAS to be recognized within 2024. The company states that this change purely relates to accounting years and has no financial impact on the business.