Energy business needs firmer foundations amidst difficult transition

Energy storage and clean fuel company, ITM Power, has warned its outcome for the financial year ending 30 April 2023 will be “materially different from the current guidance,” with lower revenue and a higher EBITDA loss.

The Sheffield-based business adds its balance sheet remains in a strong position with net cash as at 30 October 2022 of £318m.

ITM has been going through a rapid transition phase towards volume manufacturing and is now conducting a detailed review of its operations.

It says the main factors which will impact the outcome for the financial year relate to losses on customer contracts, legacy commitments for earlier product generations causing on-site support costs, warranty provisions, and inventory write-downs originating from iterations of product designs during manufacturing.

But the business says all the issues it has encountered are surmountable, while noting that the changes will require “focus, time and diligence.”

Dennis Schulz, who was appointed as the company’s new CEO on 1 December, said: “This is the challenge I was expecting when I joined ITM. For the company to develop from an R&D and prototyping entity, to a mature delivery organisation, we require firmer foundations.

“Our 12-month plan will make ITM a stronger, more focused and highly capable company.

“The large-scale opportunities in the market are yet to come, and by putting these foundations in place ITM will be ready for the significant market demand ahead of us.”

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