ITM Power sees bigger revenues, smaller losses in first half

Revenues were up significantly at ITM Power in the first half of the year, though the company still had work to do to reduce 'cash- burn' and achieve profitability, it revealed in its half-year report on Friday.

The AIM-traded energy storage and clean fuel company reported total revenues and grant funding of £3.45m during the six months to 31 October 2015 - a 157% increase on the same period a year earlier.

The amount consisted of £0.66m revenues, a 27% increase, as well as £1.37m in grant income and £1.42m in grants received for capital projects.

Its loss from operations improved by 14%, to £3.17m, though its cash burn did increase by 29% to £3.98m.

The company had total cash of £2.6m at period end, down from £6.67m a year earlier.

ITM Power said that at the time of the report on Friday, it had £9.01m of projects under contract, and a further £8.66m of contracts in the final stages of negotiation, making for a total pipeline of £17.67m - up from £11.37m a year earlier.

During the period, ITM Power agreed a strategic siting partnership with Shell to locate three hydrogen refuelling stations on Shell forecourts in the UK. It also launched its first hydrogen refuelling station at the Advanced Manufacturing Park, Rotherham, close to the M1.

ITM Power managed to secure full planning permission for two refuelling sites in London as part of the HyFive project, and submitted planning applications for four more refuelling station locations.

"ITM Power continues to push contracts into final negotiation, which demonstrates the demand for our technology", said CEO Graham Cooley.

"This has been a productive six months for ITM Power, and we have continued to develop our technology, infrastructure and order book", he added.

The company also announced it had raised £2.14m before expenses by way of a firm placing with institutional investors for 14,283,722 new ordinary shares, subject to shareholder approval, at an issue price of 15p per share.

ITM Power was also set to offer up to 24,934,135 new ordinary shares for qualifying shareholders at the issue price, potentially raising a further £3.74m, subject to shareholder approval as part of an open offer.

"The total fundraising from the placing and the open offer will be £5m, and could rise to £5.88m subject to take up under the open offer", the company's board said in a statement.

At 1345 GMT, shares in ITM Power were down 20.51%, trading at 15.5p.