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ITM Power Releases Half Year Results for the Period ended 31 October 2020

By January 28, 2021 5   min read  (881 words)

January 28, 2021 |

ITM Power Results

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces half year results for the six-month period ended 31 October 2020. Comparable figures, where stated, refer to the corresponding period in 2019 unless otherwise indicated.

Commercial:

  • Transformative £172m fundraise post period end
  • Fundraise proceeds to accelerate the Company’s technology and manufacturing strategies
  • Partnership with Snam to develop projects with preferred supplier status for the first 100MW
  • First major ILE project of 24MW in Leuna Germany (world’s largest contracted PEM electrolyser)
  • Collaboration with Orsted and Siemens Gamesa on the €5m EU funded OYSTER project

Backlog and Pipeline:

  • £124m (£42m) backlog comprising £36m (£16m) contracted and £88m (£26m) in advanced stages of negotiation or subject to preferred supplier status
  • £434m+ (October 2020 fundraise: £325m) total tender pipeline; a 34% uplift in three months
    • Total pipeline attributable to ITM Power: £284m, being 65% of total contracts quoted

Operational:

  • Practical completion of the ITM Gigafactory at Bessemer Park in January 2021
  • Production has commenced in the new factory
  • ITM Motive division has agreed a fuel contract with National Express for 20 buses in Birmingham
  • ITM Support division has developed its first partnership with Optimal in Australia
  • ITM Academy formed for training apprentices, staff and partners

Financial:

  • Total income of £4.4m (£3.8m), up 16%, comprising:
    • Revenue of £0.2m (£2.4m), down 92% due to delays in final installation of projects required for revenue recognition arising from Covid-19 issues
    • Grant income plus grants receivable for capital projects of £4.2m (£1.4m), up 200%
  • Loss from operations £12.0m (£9.8m), increased by 22%
  • Adjusted EBITDA Loss of £10.4m, (£8.1m), increased by 28%
  • Cash balance (excluding restricted balances) of £25.9m (£56.9m) at period end
  • Current cash of £187m after fund raise proceeds of £172m received in November.
  • Cash burn* of £14.0m (£6.1m), including £5.7m on Bessemer Park and £1.7m on inventory

*Cash burn is a non-statutory measure. Please see the cash flow statement

Corporate:

  • Katherine Roe appointed as independent non-executive director in May 2020
  • Tom Rae appointed non-executive director in December 2020 representing JCB
  • Formation of Environmental, Social & Governance (ESG) and Strategy sub-committees, both chaired by independent ITM Power NEDs
  • CEO, Dr Graham Cooley joins the UK Government’s Hydrogen Advisory Council

Graham Cooley, CEO, commented: “The collaboration agreement with Snam and the strategic investment that accompanied it, as part of the £172m funding round, is another transformative deal for ITM Power. Alongside the Linde partnership and formation of ILE, ITM Power can concentrate on its core competence of developing and manufacturing electrolysis equipment. The Company is now able to offer a full turnkey solution at industrial scale with the EPC (Engineering, Procurement and Construction) competence of a world leader in the hydrogen industry. The rapidly developing backlog and tender pipeline demonstrates that ITM Power and our partners Linde, Snam and Shell have a world class offering. The completed move into the new 1GW per annum electrolyser factory at Bessemer Park gives the Company a powerful cost reduction trajectory and world beating manufacturing capacity for our record order book and pipeline.”

 Roger Bone, Chairman, added: “I was delighted to welcome Katherine and Tom to the ITM Power board in 2020 and to see such strong progress with the Snam agreement, the rapidly developing Linde partnership and the factory move. Despite all the difficulties Covid has caused we are well poised to accelerate our manufacturing programme and to sustain the significant growth in shareholder value we have seen over the last twelve months. We are also proud of the skills and dedication of our workforce and have rolled out an important incentives programme for all staff. As ever, I will continue my focus on governance, including the development of the Company’s ESG reporting, which will be a key task in 2021 and beyond.”

There will be a call for analysts and investors on the Investor Meet Company platform today at 1400h GMT. To register for the call, please go to:

https://www.investormeetcompany.com/itm-power-plc/register-investor

The full Half Year Report can be viewed here

For further information, please visit www.itm-power.com or contact:

ITM Power plc +44 (0)114 263 7646
James Collins (IR)  
   
Investec Bank plc (Nominated Adviser and Broker) +44 (0)20 7597 5970
Jeremy Ellis / Chris Sim / Ben Griffiths / Will Fenby  
   
Tavistock (Financial PR and IR) +44 (0)20 7920 3150
Simon Hudson / Edward Lee / Tim Pearson  

 

About ITM Power plc

ITM Power plc manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of renewable hydrogen for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004.  In October 2019, the Company announced the completion of a £58.8 million fundraising, including an investment by Linde of £38 million, together with the formation of a joint venture with Linde to focus on delivering renewable hydrogen to large-scale industrial projects worldwide.  ITM Power signed a deal to deploy a 10MW electrolyser at Shell’s Rhineland refinery. In November 2020, ITM Power completed a £172m fundraising, including a £30m investment by Snam, one of the world’s leading energy infrastructure operators. ITM Power operates from the world’s largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum. ITM Power received an order for the world’s largest PEM electrolyser of 24MW from Linde in January 2021. Other customers and partners include Sumitomo, Ørsted, Phillips 66, Scottish Power, Siemens Gamesa, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, GNVert, National Express, Toyota, Hyundai and Anglo American among others.

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