7th Oct 2014 08:41
LONDON (Alliance News) - ITM Power PLC Tuesday said it now has GBP6.8 million of projects under contract, an increase since the end of July, and a further GBP1.2 million of new projects subject to final contract negotiation.
ITM Power had GBP6.6 million of project under contract at the end of July and GBP5.1 million under contract at the end of April.
In a statement, the energy storage and clean fuel company said the figures reflect the conclusion of a number of negotiations and the receipt of revenue for existing projects.
ITM said that recognition of revenue against contracts depends on the level of their completion, as it continues to diversify its income streams.
The company also said income in its current financial year will be weighted towards the second half, with delivery of the Hydrogen For Innovative Vehicles (HyFive) and Island Hydrogen projects nearing completion.
"The nature of some of the projects are that costs, and in particular non-recurring engineering costs, are subsidised through project income that ultimately culminates in ITM Power retaining ownership and operation of completed units. This means the assets in build will be of value to ITM Power in the future, as demonstration projects, a source of metrics and information for continually improving the performance of plant and as sales tools," ITM said in a statement.
The company said it recognised GBP600,000 of sales revenue and GBP700,000 of project income in the five months to the end of September.
"These figures represent the continuation of existing, and the commencement of new, contracts," ITM said.
The company also noted that it needs to be vigilant in controlling cash, adding that existing cash resources exceed what is required to execute its plans over the next 12 months - even before any new business is generated.
"This update reflects a very busy time for the company. Customer engagement has been significantly increased while the project and quotation pipeline has been steadily growing. We look forward to sharing more of the results of our efforts with shareholders over the coming months," Chief Executive Graham Cooley said in a statement.
ITM Power shares were Tuesday quoted up 6.8% at 21.50 pence.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Itm Power