Hydrogen energy storage company ITM Power has quadrupled revenues and cut losses one year on from the adoption of a company-wide transformation plan.
The hydrogen energy storage company reported that revenues for the six months period ending October 2023 came up to £8.9m from £2m year-on-year while adjusted EBITDA loss was slashed from £54.1m to £21m.
Legacy project round-ups and inflation drove gross costs to £8.9m for the period, marking a reduction of 80 per cent, while company cash dropped from £317.7m to £253.7m,
The FTSE AIM UK 50 company’s strategy to focus on a narrowed, targeted product portfolio showed out in its new product development spending, coming in at just over one million (£1.3m) against £3.7m this time last year.
Capital spending for the period was down slightly year-on-year to £7m from £7.2m but more money (£5.7m against £3.5m for the previous period) was put towards upgrading factories and machines.
Revenue guidance of £10m to £18m remains unchanged.
The results mark a positive sea-change for the firm which posted widening losses last year in the wake of former chief executive Graham Cooley’s departure at the end of 2022.
“We have accomplished what we set out to do in the last 12 months, our plan successfully addressed the most pressing issues to right the ship,” said company chief executive Dennis Schulz.
“It has made ITM a stronger, more focused, and more capable company and we now have a strong foundation for growth.”
Schulz recognised that one of the company’s primary future revenue drivers, hydrogen electrolysers, is still in its nascence but sees the potential for ITM to grow alongside the technology.
“In the short term, the electrolyser market is still immature, with significant ‘noise’ but only few OEMs and technologies credible commercially,” he said
“Market consolidation has now started and as a consequence, customers continue to require assurance and certainty around product readiness, technology and delivery performance, all of which are areas in which ITM Power is regarded an industry leader today.”
The market ITM is looking to capture is the U.S.
On the back of the opportunities afforded by the country’s Inflation Reduction Act, the Sheffield-based firm told City A.M. in October that it was preparing to target the market across the pond.
The decision is a blow to the UK — which has adopted its own 10GW target of hydrogen generation over the current decade.
ITM’s shares are up 5.53 per cent over the last five days but down 19 per cent over the month.