Green hydrogen firm ITM Power’s revenue tripled from £5.2m last year to £16.5m, but the group’s stock price was hit by a downgrade in forward guidance.
The power company made an adjusted operating loss of £30.4m over the last year, it reported in its preliminary results, down from a whopping £94.2m in the previous year.
Notably, net cash came in at £230m, ahead of its £200-220m guidance issued in June.
ITM Power’s 12-month plan has also been successfully completed, with its product portfolio narrowed, greater capital discipline, and manufacturing, supply chain and testing all debottlenecked.
However, it was not all positive for the company. Issuing new financial guidance for the next year, it said it expected to make only £18-22m in revenue, compared to a £33m expected consensus.
Next year, adjusted operating loss is expected to be £35-40m, above consensus of £33m, while net cash is expected to finish at £160-175m, in line with expectations.
The group’s revenue next year is expected to be underpinned by its RWE, Leuna and Yara projects, where there have been some delays.
ITM Power’s stock price fell 8.4 per cent this morning as a result.
“My first full financial year at ITM has seen the company make significant progress,” said ITM Power CEO Dennis Schulz.
“We completed our 12-month plan and transformed ITM into a credible delivery organisation. Today, we have a focused and highly competitive portfolio of products, all utilising the same market-leading stack technology which we can deploy into projects of any size and into almost every region of the world.
“We also have achieved a shift in culture of doing things right the first time, and prioritising quality over quantity, which is becoming increasingly evident in our day-to-day operations. As a result, EBITDA losses in the financial year decreased to one third of the previous year, whilst we were able to grow revenues threefold. We now have a disciplined approach to the use of our capital, which is reflected in our year-end net cash position.
“On the technology side, we are at the forefront globally, and we are deploying our electrolysers into some of the largest and most prestigious green hydrogen plants under construction worldwide. Our growing base of reference plants and operational field data helps us to convince new customers of our capabilities, as will the large-scale projects we are currently executing.
“Today, ITM is significantly more capable than the company has ever been. We have gained control over what we can control. Our path to profitability is no longer a question of capability, but now a question of volume of customer orders. The foundations we have laid will enable ITM to build long-term value, allowing us to invest for growth and drive attractive returns for our shareholders.
“In the meantime, our sales pipeline has been growing strongly, also backed by an increasingly positive regulatory landscape, which makes me optimistic about what lies ahead for ITM and our industry.
“We are ready. Now we need more customers to take FIDs.”