ITM Power Plc (LON:ITM), the UK electrolyser maker that is moving towards volume manufacturing, warned today that its results for the financial year through April will differ materially from its guidance, with lower revenue and a higher EBITDA loss.
The company is due to announce interim results on January 31, when it will also present a strategic 12-month priorities plan.
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"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,” said Dennis Schulz, who stepped in as chief executive on December 1, 2022. He added that the 12-month plan will make ITM stronger and that the large-scale opportunities in the market are yet to come.
The difficulties for the business stem from 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.
The company views these issues as being surmountable and says its balance sheet remains strong with net cash of GBP 318 million (USD 387m/EUR 358m) as at October 30, 2022.
ITM Power listed three main points for its strategic update: concentrating the company’s portfolio on a core product suite, with robust product validation, and preparing for manufacturing at scale; plans for future testing capabilities and automation; and a rigorous approach to capital allocation and costs.
The firm already said in October 2022 that manufacturing issues would likely affect its top line.
The latest guidance provided by the company in September 2022 includes: product revenue in the range of GBP 23 million to GBP 28 million; deliveries in the range 48 MW-65 MW and adjusted loss on earnings before interest, taxes, depreciation and amortisation (EBITDA) of GBP 45 million-50 million.
According to today's announcement, ITM Power’s core electrochemical technology works well. The company is currently testing the latest iteration of its MEP 30 bar stack which it is set to deploy into existing projects.
(GBP 1 = USD 1.218/EUR 1.126)
ITM Power Gigafactory. Image by ITM Power (www.itm-power.com)
