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ITM Power PLC on Monday said it has become clear that the outcome for the year ending April 30 will be ‘materially different’ from current guidance, with lower revenue and a higher earnings before interest, taxation, depreciation and amortisation loss.
Shares were down 13% at 90.02 pence each on Monday morning in London.
The hydrogen-generating electrolyser system manufacturer said this conclusion came following a review of its operations after the appointment of Dennis Schulz as chief executive. Schulz joined in December last year from Linde Engineering, part of Linde PLC, where he was managing director since 2020.
In September, ITM Power had said guided for an adjusted loss in Ebitda between £45 million to £50 million. At that time, it reported its pretax loss widened substantially to £46.7 million in the financial year that ended April 30 from £27.6 million, as revenue rose 32% to £5.6 million from £4.3 million. Adjusted loss in Ebitda was £39.8 million.
The main factors hurting its outcome for the full-year are losses on customer contracts, legacy commitments for earlier product generations causing on-site support costs, warranty provisions, and inventory write-downs originating from iterations of product designs during manufacturing.
ITM Power outlined a 12-month priorities plan, which will be presented in full on January 31, which aims to make ITM Power a ‘more focused’ company. It covers three main areas: its core product portfolio, plans for future testing and automation and its approach to capital allocation and costs.
Chief Executive Officer Dennis Schulz said: ‘This is the challenge I was expecting when I joined ITM. For the company to develop from an research & development and prototyping entity, to a mature delivery organisation, we require firmer foundations. Our 12-month plan will make ITM a stronger, more focused and highly capable company. The large-scale opportunities in the market are yet to come, and by putting these foundations in place ITM will be ready for the significant market demand ahead of us.’
Net cash amounts to £318 million as at October 30.
By Xindi Wei, Alliance News reporter
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