ITM Power warns FY results will be 'materialy different' to current guidance

Energy storage firm ITM Power warned on Monday that its full-year results would now be "materially different" to current guidance, with both lower revenues and a larger underlying loss.

ITM stated that the main factors impacting its full-year outcome related to losses on customer contracts, legacy commitments for earlier product generations causing onsite support costs, warranty provisions, and inventory write-downs originating from iterations of product designs during manufacturing.

In terms of warranty provisions, ITM said uncertainty arose from the absence of long-duration field data for first-of-a-kind technology.

The AIM-listed group also highlighted that projects that were nearing contract closing were impacted as costs were underestimated when prices were originally negotiated and committed to.

However, ITM added that all of the aforementioned issues were "surmountable", but admitted that changes will require "focus, time, and diligence".

Chief executive Dennis Schulz said: "This is the challenge I was expecting when I joined ITM. For the Company to develop from an R&D 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."

As of 0830 GMT, ITM shares had slumped 13.64% to 89.64p.

Reporting by Iain Gilbert at Sharecast.com