ITM Power PLC on Wednesday upped its full-year forecasts following a ‘robust financial performance’, with the group also announcing the successful completion of its 12-month plan.
ITM Power is a Sheffield, England-based designer and manufacturer of electrolysers for green hydrogen production. Shares in the company were up 22% at 58.44 pence each in London on Wednesday morning.
ITM generated £8.9 million in revenue for the six months ended October 31, up from £2.0 million a year prior.
Pretax loss narrowed significantly to £18.2 million from £56.5 million, while adjusted loss before interest, tax, depreciation and amortisation more than halved to £21.0 million from £54.1 million.
As of October 31, ITM had £253.7 million in cash, down from £317.7 million in October 2022.
ITM said it had achieved the goals set out last January in its 12-month plan, having narrowed its product portfolio for standardisation and volume manufacturing. The company reduced the number of product variants by 75%, allowing it to focus on its ‘world leading’ Trident stack platform, 2-megawatt Neptune plug-and-play containerised unit, and 20-megawatt Poseidon core electrolysis process module.
ITM also said it had improved its capital discipline and progressed its cost reduction efforts in line with the plan, while increasing automation in manufacturing and assembly. The latter has ‘debottlenecked’ production, according to the company, allowing for ‘enhanced build quality and consistency, along with shortened build times and reduced manufacturing costs’.
Looking ahead, ITM said it is committed to evolving its existing products, scaling up operations, conserving cash and expanding its global footprint by ensuring regional product compliance in ‘attractive offtake regions’.
This ‘robust financial performance’ has increased ITM’s optimism for the full financial year ending April 30. The company gave unchanged revenue guidance of between £10 million and £18 million. The company generated £5.2 million last year. However, ITM said that its adjusted loss will be between £45 million and £50 million, narrowed from £45 million to £55 million in previous guidance.
ITM also expects a ‘material improvement’ in year-end net cash to between £200 million and £220 million, up from previous forecasts of between £175 million and £200 million.
Chief Executive Officer Dennis Schultz said: ‘We have accomplished what we set out to do in the last 12 months. Our plan successfully addressed the most pressing issues to right the ship. It has made ITM a stronger, more focussed, and more capable company. We have achieved a shift in culture, and the transformation of the company has tangibly improved our project delivery performance. We now have a strong foundation for growth.’
Schultz added: ‘The long-term trajectory for green hydrogen remains an unparalleled opportunity. As I reflect on the more near-term market ahead, we will be operating in a complex environment. This ranges from a massive long-term opportunity just waiting to be captured, to dynamically developing markets emerging at different speeds, and short-term macroeconomics currently slowing down market acceleration. With the unchanged need to decarbonise, demand is not reduced but simply piling up, and will cause exponential growth thereafter.
‘The most important attributes for ITM will be readiness and flexibility, and to maintain a strong balance sheet which necessitates continued spending discipline.’
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