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ITM Power PLC on Tuesday reported a fall in interim revenue and a widened loss due to‘increased losses on inventory and customer contracts’. The hydrogen-generating electrolyser system manufacturer reported revenue of £2.0 million in the six months to October 31, down 52% from £4.2 million a year earlier. The majority of Leuna project revenue was deferred ‘due to delays and changed delivery model,’ it explained. ITM’s pretax loss widened to £56.5 million from £15.3 million, as cost of sales surged to £47.6 million from £6.8 million in the first half of 2021. Its adjusted loss before interest, tax, depreciation and amortisation amounted to £54.1 million, widened from £12.9 million a year prior. 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 [a research & development] company to a volume manufacturer. As a consequence, we set unrealistic targets for project completion. This has produced an unacceptable financial performance.’ ITM particularly highlighted certain factors that hurt its half-year results. Firstly, it said its cost discipline had not been rigorous enough as constant design changes led to ‘unwelcomed inventory write-downs. Secondly, it said excessive consumption of working hours was caused by project deliveries, and finally, the company noted organisational overcapacity due to an ’overly-optimistic recruitment programme‘. Looking ahead, ITM said it expects full-year product revenue to be around £2.0 million and its adjusted Ebitda loss to be in the range of £85 million to £95 million. In September, ITM Power had 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. Revenue rose 32% to £5.6 million from £4.3 million. Adjusted loss in Ebitda was £39.8 million. Shares were up 4.4% at 93.28 pence each on Tuesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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