Clean fuel firm confident for the future despite £29m loss

ITM Power factory, Bessemer Park, Sheffield

Energy storage and clean fuel firm, ITM Power has announced its preliminary results for the year to 30 April 2020, recording a loss from operations of £29.4m and the results of its recent fundraising.

The Sheffield-based business saw total revenue and project grant funding fall by over two thirds (69%) to £5.4m this year, which it attributes to the adverse effects of Covid-19, Brexit and the adoption of IFRS.

However despite this the firm is confident that it is well positioned for the future having signed a strategic partnership with Line in October 19, forming the ITM Line Electrolysis joint venture and is near completion on the worlds’ first Gigafactory at Bessemer Park, Sheffield, which is expected to reach annual production capacity of 1,000MW per annum by end 2023.

The business has also today confirmed the results of its recent fundraising, which has generated gross proceeds of £165m. £135m is the result of the placing of 57,446,808 new shares at a price of 235p, with the additional £30m from the Share Subscription by Snam. These additional fund will be used to “further accelerate the maximisation of manufacturing capacity and to invest in the Group’s operational capabilities”.

Dr Graham Cooley, CEO, ITM Power

Commenting on the results Dr Graham Cooley, CEO at ITM Power, said: “2020 has been a transformational year for ITM Power. We attracted a strategic investor and joint-venture partner in Linde, the world’s largest speciality gases company, we strengthened our balance sheet so that we can take full advantage of the rapidly expanding green hydrogen market and we put the finishing touches to the world’s largest electrolyser factory in Sheffield.”

Sir Roger Bone, Chairman, said: “One of the long-term impacts of Covid-19 will be to accelerate green strategies as part of a recovery package for individual economies. As such, I see ITM Power, with the capabilities it has developed, the new factory in Bessemer park, and its strategically-aligned partnerships with global companies very well placed to offer solutions to the demand seen in the global market. Our staff are our greatest asset and I am consequently delighted that we have been able to establish a new incentive scheme for all our employees ”

Cooley added that: “I believe we have the right products at the right time and the capacity to produce them at scale. As a result of this successful fundraise, ITM Power is well positioned to build on its existing leadership and capitalise on this rapidly developing market. We are delighted with the results of the fundraise and thank our existing shareholders for their support and welcome our new investors.”