ITM Power sinks as first half losses widen

Energy storage and clean fuel outfit ITM Power made "significant progress" in the first half of its trading year but widening losses saw the group's shares tumble on Tuesday.

In a period of "major transition", ITM power continued its pivot from a research-focused company to an equipment manufacturer, saw total income rise 13.64% to £5m as its average project size shot up 71.43% year-on-year to £6m.

However, losses widened 82.76% to £5.3m due to cost overruns on four "first-of-a-kind" projects and significant investments made in staffing, resources and capacity during the period.

Revenues slid 29.41% to £1.2m but ITM assured investors that, as in previous years, revenue was expected to be weighted towards the second half.

Chairman Roger Putnam said: "The board is pleased with the significant progress that has been achieved over the last six months."

"Deploying increasing numbers of MW scale equipment in challenging industrial environments has certainly proved the company's credentials to many industrial partners and we look forward to a very busy second half."

By lunchtime on Tuesday, ITM shares had sunk 17% to 24.4p.