ITM Power narrows losses, maintains full-year guidance

Energy storage and clean fuel company ITM Power reported first-half revenue of £4.1m in a trading update on Thursday, up from £0.2m year-on-year, as its gross loss narrowed to £2.4m from £2.8m.

The AIM-traded firm recorded an adjusted EBITDA loss of £13m for the six months ended 31 October, widening from a loss of £10.4m a year ago, while net cash at period end totalled £166.6m, before the £242m net it raised in November.

Cash burn in the first half was £12m, down from £14m in the first six months of 2020.

On the operational front, ITM Power reported a “record” backlog of 499 MW as at 1 December, up 61% since September.

Of that, 62 MW was contracted compared to 43 MW in September, 339 MW was in negotiation compared to 169 MW in September, and it was classified as ‘preferred supplier’ on 98 MW, unchanged from September.

The company said the tender pipeline of 909 MW was down from 1,011 MW in September, as tenders moved to the negotiation stage.

Looking ahead. ITM Power maintained its full-year guidance of 33 to 50 MW, with revenue still expected to be “heavily weighted” to the second half.

The board said it was expecting continued growth in the tender pipeline and backlog, as the company planned for an acceleration in manufacturing capacity expansion, including work on identifying the location for its first overseas factory.

“Today's update provides a compelling endorsement of how fast our markets are growing and our decision to raise further funds to increase capacity domestically and internationally to take full advantage of this growth,” said chief executive officer Graham Cooley.

“Together with our partners, we believe we can gain a material market share as a result of our experience, expertise and capacity to help industry to decarbonise using green hydrogen.”

At 0945 GMT, shares in ITM Power were ip 3.31% at 387.4p.