Sheffield hydrogen storage firm ITM slashes losses following transformation plan

The company reduced adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortisation) loss from £54.1m to £21m.

The results mark the beginning of a turnaround for the firm, which posted widening losses last year following the departure of former chief executive Graham Cooley at the end of 2022.

Previously, ITM Power raised capital to pursue an expansion strategy but later said it underestimated the competencies and capabilities required to scale up and to transition from a research and development company to a volume manufacturer.

As a consequence, it admitted it had set unrealistic targets for project completion.

The board appointed Dennis Schulz as its new chief executive who 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.

In a statement Mr Schulz said: "I am pleased to report that we have completed the implementation of our 12-month plan on time. 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 focussed, and more capable company.”

He added: “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.”