ITM Power prepares for £5m cash loss
Sheffield-based energy storage and clean fuel company ITM Power is expecting to make a cash loss of £5m in its latest financial year due to “higher the expected costs” across one-off factors but says it has a strong pipeline.
The listed company this morning issued a trading update ahead of releasing its annual results for the year ended 30 April 2018. ITM Power said it had focused on delivering its contracted pipeline of orders, which will result in total income of around £14m.
Its cash loss for the year is expected to be approximately £5m, which the firm said reflected the “higher than expected costs” due to the following three largely one-off factors. This included the “first-of-a-kind” plant that has been delivered in the year, fees related to the recruitment of additional project delivery personnel and higher factory testing costs for larger scale equipment.
The firm is due to move premises to in the first half of 2019. ITM Power said it retained a strong balance sheet with a year-end cash position of around £22m and a positive working capital position of £8m.
Its new orders in the last 12 months totaled £21.9m and the company has an overall deal pipeline today of £39m, of which £33.5m is under contract and £5.5m is in the final stages of negotiation. ITM POwer said this was an increase of 42% since June 2017, after recognising £10.4m as income in the period.
ITM Power added: “The tender opportunity pipeline has grown strongly since the previously reported level of over £200m in January 2018. It now stands well in excess of £250m with a breakdown evenly spread across the three sectors of fuel, power to gas and renewable chemistry.”
