17th Aug 2023 11:36
(Alliance News) - ITM Power PLC published its "highly anticipated" annual results on Thursday, posting a widened loss in line with expectations outlined in its end-of-year trading update in June.
The Sheffield, England-based maker of electrolysers to produce green hydrogen said its pretax loss in the financial year that ended on April 30 was GBP101.2 million, widened from GBP46.7 million a year before.
Revenue fell 7.1% to GBP5.2 million from GBP5.6 million. Cost of sales ballooned to GBP84.3 million from GBP29.1 million.
Andrew Keen, head of content - industrials, energy & resources at Edison Group, said while the results were in line with previous guidance, the widened loss showed the firm continues to "suffer" amid productions challenges.
"With the government's goal of 10 [gigawatts] of hydrogen generation by the end of the decade, ITM Power was hoping to ride that wave of demand, developing its first-of-a-kind technology to play a fundamental part in green hydrogen generation and thus, the country's energy transition. With reported losses followed by a more than 80% slide in its share prices since last October, from 420 [pence] per share in October 2022 to 67p per share last month, it's clear the company, like other new technology groups, is struggling on its journey to provide green energy," Keen said.
Shares in the firm rose 4.6% at 91.10p on Thursday morning in London. Over the last 12 months, the stock is down 62%.
Looking ahead, the company said it expects big demand for green hydrogen, as it aims to expand with "vastly increased confidence with regards to our capability to deliver products at volume."
It emphasised that it is currently building up a new global business development function in its new Linden facilities of ITM Power Germany in its core market, the EU.
It added: "In its latest world energy transition outlook, the International Renewables Energy Agency, stated that clean hydrogen production needs to rise to 518 million tonnes per annum by 2050 from the current level of 0.7 million tonnes per annum."
Further, the company said it starts financial 2024 with a strong financial position, expecting revenue of GBP10 million to GBP14 million and an adjusted loss before interest, tax, depreciation and amortisation of GBP45 million to GBP55 million, narrowing from GBP94.2 million in financial 2022.
By Heather Rydings, Alliance News senior economics reporter
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