ITM Power improves guidance after solid first half

Shares in ITM Power surged on Wednesday after the energy storage and clean fuel company impressed with its interim results and improved its full-year guidance.

ITM said that its performance over the six months to 31 October brings it "one step closer to becoming a profitable company in the future".

Revenues jumped to £8.9m, from £2.0m the year before, driven mainly by product and service revenue from cube deliveries to Germany, and a number of units of NEPTUNE, ITM's fully autonomous, plug and play electrolyser system.

The result was also ahead of the £7.5m guided to in a trading update last month after the company concluded a commercial discussion with a customer earlier than expected.

Meanwhile the adjusted EBITDA loss shrunk to £21.0m from £54.1m.

ITM also announced it has successfully completed its 12-month restructuring plan which has "made ITM a stronger, more focussed, and more capable company".

The plan was based on the following three targets: narrowing the product portfolio for standardisation and volume manufacturing; having greater capital discipline, cost reduction, and improved processes; and "debottlenecking" manufacturing and testing, and increasing automation.

"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," said chief executive Dennis Schulz.

Looking ahead, ITM held on to its full-year revenue guidance of £10-18m, but has positively narrowed its adjusted EBITDA loss forecasts to £45-50m, from £45-55m previously, while net cash at year end is expected to be in the range of £200-220m, up from an earlier target of £175-200m.

The stock was up nearly 11% at 53.05p by 0854 GMT.