ITM Power shares up 13% as it cuts 100 jobs

Shares of ITM Power, the Sheffield-based green hydrogen and energy storage firm, rose about 13% after it published results for the six months to October 31, 2022, and a strategic update.

The company said the strategic update includes a “rigorous approach to capital allocation and cost management, including a headcount reduction equating to a 30% (£9m) annualised saving on personnel cost, professionalising engineering and manufacturing, and increasing control over spend.”

ITM Power announced an anticipated 25% headcount reduction in full-time equivalents (FTEs) — about 100 staff.

Shares of ITM Power are down more than 60% for the past 2 months.

The company reported first-half revenue of £2.million (H122: £4.2m) and an adjusted EBITDA loss £54.1 million (H122: £12.9m). Net cash at the end of the first half was £317.7m (H122: £164.2m).

ITM Power said the the strategic update also includes concentrating its portfolio on a core product suite “with robust product validation, and preparing for manufacturing at scale.”

ITM Power chair Roger Bone said: “We raised capital to pursue an expansion strategy and in doing so underestimated the competencies and capabilities required to scale up and to transition from an R&D company to a volume manufacturer.

“As a consequence, we set unrealistic targets for project completion. This has produced an unacceptable financial performance.

“We have acted swiftly by appointing Dennis (Schulz) as our new CEO. During his 2 months at ITM, Dennis has developed a 12-month plan which lays out the underlying challenges of the business as well as the solutions which we will put into place.

“I have no doubt that the immediate actions being taken will provide strong foundations for the future which will enable ITM to move into its next phase of development and to play a leading role in the journey to net zero.”