Half Year Results for the Period ended 31 October 2015

29th January 2016
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ITM Power (AIM: ITM), the energy storage and clean fuel company, announces its interim results for the six month period ended 31 October 2015. The company has recognised a total revenue and grant funding of £3.45m in the period. The company currently has £9.01m of projects under contract and a further £8.66m of contracts in final stages of negotiation, making a total pipeline of £17.67m (2014; £11.37m), an increase of 55%.

ITM Power is also pleased to announce that the Company has raised £2.14 million before expenses, by way of a firm placing with institutional investors for 14,283,722 new ordinary shares, subject to shareholder approval (“the Placing”) at an issue price of 15 pence per share (“the Issue Price”). In addition, the Company will offer up to 24,934,135 new ordinary shares (the “Offer Shares”) for qualifying shareholders at the Issue Price potentially raising up to a further £3.74 million, subject to shareholder approval (the “Open Offer”).

Furthermore, the Company has secured irrevocable undertakings from JCB Research, Peter Hargreaves, Graham Cooley and certain other investors to take up their Basic Entitlement under the Open Offer and to apply for Excess Shares under the Excess Application Facility to an aggregate value of £2.86 million (see Placing and Open Offer announcement for defined terms).

The total fundraising from the Placing and the Open Offer will be £5.00 million and could rise to £5.88 million subject to take up under the Open Offer.

Commercial Progress
-Strategic siting partnership agreed with Shell to locate three hydrogen refuelling stations on Shell forecourts in the UK.
-Launch of ITM Power’s first hydrogen refuelling station at the Advanced Manufacturing Park,  Rotherham, close to the M1 motorway.
-Full planning permission secured on National Physical Laboratory (NPL) & The Centre for Engineering and Manufacturing Excellence (CEME) refuelling sites in London as part of the HyFive project.
– Planning applications submitted for four more refuelling station locations.
-Delivery of electrolyser to Hydrogen Refuelling Station site at NPL as part of the HyFive project.
-Thüga group announce efficiency as high as 77%.
-RWE utilise heat recovery to achieve efficiency of 86%.
-Partnership agreed with Symbio FCell and Arcola Energy to provide an integrated package of zero emission vehicles, on-site fuel and after sales support for UK fleet operators.
– Signed a fuel supply contract with Toyota.

Post period end
-A further £0.74m (2014: £3.17m) of products under contract secured making a current total of £9.01m (2014: £8.76m) under contract
– A further £3.56m (2014:£2.61m) of contracts in final stages of negotiation
-Raised £5m in working capital, subject to authority at EGM

Key Financial Results for the six months ended 31 October 2015
-Total revenue and grant funding of £3.45m (2014: £1.34m), up 157%, comprising:
o Revenue – £0.66m (2014: £0.52m), up 27%
o Grant income – £1.37m (2014: £0.82m), up 71%
o Grants receivable for Capital Projects – £1.42m (2014: £0.2m), up 610%
-Increase in fixed assets to £3.13m (2014: £1.51m), up 107%
-Loss from operations £3.17m (2014: £3.69m) , improved by 14%
-Cash burn* of £3.98m (2014: £3.09m), increased by 29%
-Cash balance of £2.60m at period end (2014: £6.67m)
-Debtors balances of £5.14m (2014: £1.23m), up 318%
-Debtors balance comprises substantially of balances from the California energy commission, UK government, and the EU Joint undertaking
*Cash burn is a non-statutory measure and is defined underneath the Cash Flow Statement

Corporate Development
-Bob Pendlebury joined the board as a Non-Executive Director and heads up the Manufacturing and Engineering committee
-Rachel Smith joined the board as an Executive director

Graham Cooley, CEO, commented: ITM Power continues to push contracts into final negotiation which  demonstrates the demand for our technology. This has been a productive six months for ITM Power and we have continued to develop our technology, infrastructure and order book. This success highlights that ITM Power continues to lead the world wide deployment of PEM electrolysis”

Roger Putnam, Chairman, added: “The last six months have seen significant reports of customer satisfaction, meeting and exceeding initial expectations of ITM Power products which we now have operating in the field. This provides a good endorsement for the technology and a positive step for the industry. The success of the launch of the M1 wind hydrogen station in September was supported by all the major fuel cell car manufacturers and is testament of the need for these stations to be deployed to enable the roll out of fuel cell vehicles, which of course is good timing with the further stations ITM Power is deploying this year.”

Rebecca Markillie
Marketing & Communications
E: rlm@itm-power.com
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