ITM Power PLC on Thursday said it was moving closer to achieving profit with the company reporting notable revenue growth while also cutting costs in financial 2024.

The Sheffield, England-based company is a designer and manufacturer of electrolyser systems for green hydrogen production.

Pretax loss narrowed to £27.1 million in the year that ended April 30 from £101.2 million the previous year.

Revenue tripled to £16.5 million from £5.2 million, as cost of sales fell 61% to £33.2 million from £84.3 million.

Administrative expenses were reduced by 14% to £22.6 million from £26.2 million.

Capital expenditure, which focused on improvements at ITM’s factory in Sheffield, stood at £14.0 million, 7.3% lower than £15.1 million a year prior.

ITM ended the year with net cash of £230 million, ahead of guidance of £200 million to £220 million.

Chief Executive Officer Dennis Schulz said: ‘We completed our 12-month plan and transformed ITM into a credible delivery organisation. Today, we have a focussed and highly competitive portfolio of products, all utilising the same market-leading stack technology which we can deploy into projects of any size and into almost every region of the world...Our path to profitability is no longer a question of capability, but now a question of volume of customer orders.

The 12-month plan implemented by ITM focused on reducing the product portfolio to focus on standardisation and volume manufacturing.

Additionally, the company engaged in greater cost and capital discipline, while also working to de-bottleneck manufacturing.

Looking ahead, revenue in financial 2025 is expected between £18 million and £22 million, reflecting a 9.1% increase year-on-year at the lower end of the range.

Adjusted earnings before interest, taxes, depreciation, and amortisation loss is forecast to be between £35 million £40 million, worsening from £30.4 million in financial 2024.

Net cash at the end of financial 2025 is expected to be in the range of £160 million to £175 million. Capital expenditure for the year is anticipated to be in the range of £15 million to £20 million with ITM planning to invest in research & development, product development, and manufacturing capabilities.

ITM Power shares were down 3.4% to 56.20 pence each in London on Thursday afternoon.

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