ITM plans headcount reduction after recording an 'unacceptable financial performance'

The chairman of ITM Power said the company had recorded an “unacceptable financial performance” as it delivered its latest interim results.
By Greg Wright
Published 31st Jan 2023, 09:15 BST
Updated 31st Jan 2023, 09:16 BST

Sir Roger Bone made the comments as ITM revealed it had recorded an adjusted EBITDA (earnings before interest taxation, depreciation and amorisation) loss of £54.1m in the six months to October 31 2022.

Headquartered in Sheffield, ITM Power designs and manufactures electrolysers based on proton exchange membrane (PEM) technology to produce green hydrogen.

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In a statement, Sir Roger said: "We raised capital to pursue an expansion strategy and in doing so underestimated the competencies and capabilities required to scale up and to transition from an R&D (research and development) company to a volume manufacturer. As a consequence, we set unrealistic targets for project completion. This has produced an unacceptable financial performance.”

In a trading update, Sir Roger Bone, ITM Power's chairman, said: "We raised capital to pursue an expansion strategy and in doing so 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."In a trading update, Sir Roger Bone, ITM Power's chairman, said: "We raised capital to pursue an expansion strategy and in doing so 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."
In a trading update, Sir Roger Bone, ITM Power's chairman, said: "We raised capital to pursue an expansion strategy and in doing so 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."

Sir Roger said the company had acted swiftly by appointing Dennis Schulz as its new chief executive. ITM now plans to concentrate its portfolio on a core product suite, with “robust product validation”, and prepare for manufacturing at scale.

ITM also plans to take a “rigorous approach” to capital allocation and cost management, including a headcount reduction and increasing controls over spending.

Sir Roger added: “Dennis has developed a 12-month plan which lays out the underlying challenges of the business as well as the solutions which we will put into place.

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"I have no doubt that the immediate actions being taken will provide strong foundations for the future which will enable ITM to move into its next phase of development and to play a leading role in the journey to net zero.”

Mr Schulz said: “The market for green hydrogen is real, driven by climate change, and decarbonisation imperatives.

"Our detailed 12-month plan will make ITM a stronger, more focused and more capable company. The large-scale opportunities in the market are yet to come, and by putting these foundations in place ITM will be ready for the significant market demand ahead of us."

ITM Power PLC was admitted to the AIM market of the London Stock Exchange in 2004.

Related topics:Sheffield