ITM Power makes progress on 'transformation journey' after challenging period

electrolysers based on proton exchange membrane (PEM) technology to produce green hydrogen.

In the year ended April 30 2023, ITM recorded revenue of £5.2m,which was below the £5.6m recorded the year earlier, but significantly ahead of the previous guidance of £2m.

In a statement, ITM said: “Against a backdrop of an unacceptable operational and financial performance for the year as a whole, our

results are above or in line with the guidance provided in January 2023 with a net cash position at the year end of £283m and our balance sheet in a healthy position.

“Previously, we raised capital to pursue an expansion strategy and in doing so underestimated the competencies and capabilities required to scale up and to transition from an R&D (research and development) company to a volume manufacturer. As a consequence, we had set unrealistic targets for project completion.

"As a board, we acted swiftly by appointing Dennis Schulz as our new CEO and he promptly developed a 12-month plan to address the underlying challenges of the group.”

This plan included a three-step strategy to simplify the company’s product portfolio, reduce its expenditure and “debottleneck” its manufacturing facilities.

"As part of this we completed a restructuring of our organisation including reducing our headcount. The re- sizing of our business was difficult, but necessary from an operational and financial perspective and the changes will support the long-term success of our business.”

Commenting on the results, Mr Schulz said: “I have been at ITM for just over half a year, joining the company at a time of challenging operational and financial performance, and it is encouraging to see the amount of progress we have been making against our 12-month plan laid out in January 2023.

"The implementation, which is moving at pace, will strengthen our operational and commercial capabilities, and steer a successful path to becoming a highly efficient and reliable volume manufacturing company.

“Whilst some revenues related to product deployments have yet to be recognised at customer site acceptance testing, I am very proud that more products have left the ITM factory over the past six months than in the previous 22 years of its history. This is a testament to tangible progress on our transformation journey.

“Our technology is state of the art and globally leading. We are deploying our electrolysers for some of the largest and most prominent green hydrogen projects under execution worldwide today. These projects will serve as important reference plants and play a crucial role in building confidence with customers for even larger deployments in the future. The big demand for green hydrogen lies yet ahead, and ITM will be ready.”