Green hydrogen specialist ITM Power expects to halve losses amid threefold revenue rise
Green hydrogen firm ITM Power has said it expects a threefold increase in revenue and to cut losses by half in its full-year results.
Losses, measured using adjusted earnings before interest, taxation, depreciation and amortization (EBITDA), are forecast at between £39m and £44m, better than prior guidance of between £45m and £50m and a year-on-year reduction of more than 50 per cent.
Revenue is expected to fall in the range of £16m and £16.5m.
It comes after the AIM-listed group announced plans to shift towards the US market, enticed by the vast subsidies offered under Biden’s Inflation Reduction Act. It is hoping the US will become one of its largest markets and confirmed in October an intention to start bidding for American projects.
ITM Power has performed strongly since it completed a 12-month transformation plan following the departure of former boss Graham Cooley in 2022. Shares are up over seven per cent in the last year and demand has been rising consistently for its green technologies.
Chief executive Dennis Schulz said: “During the year, we completed our 12-month plan, transforming ITM into a credible delivery organisation, and we have attained a positive operating rhythm of deploying products to our customers.
“We grew revenue more than threefold and halved our losses, and in line with our strategic priorities, we managed our cash carefully.
“I am pleased with our progress, and look forward to providing further details, including guidance for the current year, at the time of our preliminary results announcement in August.”
Net cash at the year-end sat at £230m, ahead of a guidance range of between £200m and £220m, which the firm said reflected the “stringent cost and capital disciplines now embedded in the DNA of the company.”
Headquartered in Sheffield, ITM Power was founded in 2000 and first listed on London’s junior AIM market in 2004.
The group designs and manufacturers electrolysers based on so-called proton exchange membrane technology to produce green hydrogen, which is the only net zero energy gas.