ITM Power sees 1H operating loss widen sharply, announces strategy changes

For the six months ending on 31 October, the energy storage and clean fuel company posted an adjusted loss before interest, taxes depreciation and amortisation of £54.1, versus £12.9m of red ink during the year earlier period.

Sales meanwhile fell from £4.2m over the comparable 2022 period to £2.0m.

Company chairman, Sir Roger Bone, was clear, explaining that ITM had "underestimated the competencies and capabilities required to scale up and to transition from an R&D company to a volume manufacturer.

"As a consequence, we set unrealistic targets for project completion. This has produced an unacceptable financial performance."

However, the company's recently appointed chief executive officer, Dennis Schulz, expressed confidence in the company's cutting-edge electrolyser technology and balance sheet strength.

Schulz also believed that the company still had a window of opportunity to solve its growing pains.

The company ended the half with £317m of net cash on its books, thanks to a successful capital raise during the period, which was up from £164.2m one year before.

It also announced new strategic measures, including a focus on a core product suite, a 30% headcount reduction that would save it an annualised £9m in personnel costs and the potential disposal or closure of its Motive Fuels joint-venture with Vitol.

The latter was expected to result in approximately £28m of savings that would be channeled into its core business.

Nonetheless, ITM now anticipated that its full 2023 financial year sales would only reach £2m with additional sales deferred into the following financial year.

That would see the company's adjusted EBITDA loss reach £85-95m with net cash at period end put at £245-270m.

The company also announced that Dr. Rachel Smith was to step down from the board.

As of 0902 GMT, shares of ITM Power were trading 5.65% higher to 94.37p.