Shares in Plug Power hit by accounting errors

US firm Plug Power saw its shares tumble in morning trading on Wednesday, after the fuel-cell maker confirmed a series of accounting errors.

The Nasdaq-listed company said it found accounting errors in financial results in 2018, 2019 and the first three quarters of 2020, and that the results would need to be restated as a result.

The errors relate primarily to the impairment of assets and loss accruals for certain service contracts. The firm, which has seen its shares soar recently on the back of growing demand for alternative energy sources, insisted no misconduct had been found.

"There is no expected impact to our cash position, business operations or economics of commercial arrangements," it said in a statement issued on Tuesday evening.

But that did not stop the shares falling heavily when markets opened on Wednesday, and by 1430 GMT they were 15% lower. Rivals Ballard Power Systems and FuelCell Energy were also weaker, off 2% and 3% respectively.

Shares in Plug Power, which floated in 1999, rose more than 970% last year.