Shares of ITM Power, the Sheffield-based green hydrogen and energy storage firm, rose more than 20% after it published results for the six months to October 31, 2023, showing its revenue soaring from £2 million to £8.9 million and an improved financial guidance for the full year.
ITM Power designs and manufactures electrolysers based on proton exchange membrane (PEM) technology to produce green hydrogen, the only net zero energy gas, using renewable electricity and water.
“Revenue for the period was £8.9m … driven predominantly by product and service revenue from cube deliveries to Germany together, with a number of NEPTUNE units,” said ITM.
“Further income was recognised from consulting contracts. This constitutes an increase compared to the trading update value of £7.5m as we concluded a commercial discussion with a customer which was still ongoing in December.
“The gross loss was £8.2m (H123: £45.6m), a significant reduction as a result of improved management of projects in execution …”
On its full-year guidance, ITM said: “The financial performance of ITM in the first half of the year was pleasing, bringing us one step closer to becoming a profitable company in the future.
“Full-year revenue guidance of £10m to £18m remains unchanged. Further deployments of NEPTUNE plug & play containers are expected in the second half of the year.
“Adjusted EBITDA loss guidance range has narrowed, and is now expected to be between £45m and £50m, an improvement on the £45m to £55m previously guided.
“Net cash at year end expected to be in the range of £200m to £220m, a material improvement compared to our original guidance of £175m to £200m, and in line with our priorities.
“Capital discipline and rigour will remain at the heart of every spending decision that we take. Whilst realising savings on original estimates, we expect to fulfil our capacity increase as planned.
“Our residual CAPEX plans are unaffected. As such, we now expect CAPEX for the full year to be in the range of £15m to £25m, lower than our original £35m to £45m expectations.”
ITM Power CEO Dennis Schulz said: “I am pleased to report that we have completed the implementation of our 12-month plan on time.
“The first half of the financial year already paints the early picture of a new ITM, which starts to be reflected in our improved financial results.
“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.
“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.
“We will remain at the forefront of technology developments and continue to establish ourselves as the most credible OEM for commercial and especially large-scale projects.”