Boss says plan to ‘right the ship’ at energy firm is working as results improve

Energy storage and clean fuel company, ITM Power, which cut its headcount by over 30% at the end of FY23, says its plan to transform its operations is paying off as it publishes its interim results for the six months to 31 October 2023.

The Sheffield-headquartered business, which warned one year ago that its financial performance was “unacceptable” has posted revenues of £8.9m (H1 23: £2m) and an adjusted EBITDA loss of £21m (H1 23: £54.1m). Pre-tax loss was £18.2m (H1 23: £56.5m loss).

The firm’s 12-month plan has included narrowing its product portfolio to allow for standardisation and volume manufacturing, greater capital discipline and cost reduction and an increase in automation.

Dennis Schulz, CEO, said: “The first half of the financial year already paints the early picture of a new ITM, which starts to be reflected in our improved financial results.

“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. It has made ITM a stronger, more focused, and more capable company.

“The long-term trajectory for green hydrogen remains an unparalleled opportunity. As I reflect on the more near-term market ahead, we will be operating in a complex environment.

“With the unchanged need to decarbonise, demand is not reduced but simply piling up, and will cause exponential growth thereafter. The most important attributes for ITM will be readiness and flexibility, and to maintain a strong balance sheet which necessitates continued spending discipline.” 

For FY 24, the business has forecast full year revenues of £10m to £18m. Adjusted EBITDA loss guidance range has narrowed, and is now expected to be between £45m and £50m, an improvement on the £45m to £55m previously guided.

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