Sheffield green hydrogen firm ITM Power making 'substantial progress' despite expected £23.5m loss

ITM Power said its unaudited results for the period show revenue of £7.5m, which is “well on track” for full year guidance of between £10m and £18m.

An adjusted EBITDA loss of between £22m and £23.5m is expected, which is at the lower end of full year guidance of between £45m to £55m.

Net cash is a stronger position than had been anticipated – standing at £253.7m against full year guidance of £175m to £200m.

It follows the company saying in August it had recorded an “unacceptable” £94.2m loss for 2022/23 which it attributed in part to “unrealistic targets” for its expansion plan from being a research and development company to becoming a volume manufacturer.

However the company said at the time it was “well-positioned” to take advantage of global governments pursuing the use of hydrogen as part of decarbonisation efforts.

It said: “We are confident that we can grow our business and make a significant contribution to the global effort to decarbonise the economy.”

Dennis Schulz, who was brought in as CEO of ITM in December 2022, said of the latest results: "We have been making substantial progress against our 12-month plan, which aimed at providing ITM a strong foundation to build on.

"The first six months of the financial year from May to October already paint the early picture of a new ITM, surpassing the full year revenue of each of the last two years by about 50 per cent in just the first half of this year.

"We are pleased with the improvements achieved across all areas of the company, many of which have a positive effect on how we manage cash and scrutinise capital spend.

"We look forward to providing a detailed update on our 12-month plan which is nearing successful on-time completion in January, and to giving insight into our longer term strategic priorities at the time of our interim results."

Shares in ITM Power went up 12 per cent on Monday morning following the update.

In October, the company announced plans to bid for American projects in the wake of the introduction of major US legislation designed to accelerate carbon emission reductions.

The firm told the London Stock Exchange that it will pursue “an accelerated, asset-light entry into the US market” building on existing relationships with North American companies.

The decision follows the introduction of the US National Clean Hydrogen Strategy and Roadmap, which is supported by the $370 billion Inflation Reduction Act programme which seeks to boost eco-friendly investments in the States.