ITM Power (AIM: ITM), the energy storage and clean fuel company, announces half year results for the six month period ended 31 October 2018. Comparable figures, where stated, refer to the corresponding period in 2017 unless otherwise indicated.
• As of today, £23.2m (£27.0m) of projects are under contract and a further £10.4m (£10.4m) are in the final stages of negotiation, making a total backlog of £33.6m (£37.4m).
• The tender opportunity pipeline has grown steadily and is now over £240m (£200m), representing 36 commercial tender responses within the last 12 months. The average project size of £6m (£3.5m) reflects strong industrial demand for larger systems.
• Hydrogen sales, with a new total of 29 (20) hydrogen fuel contracts, totalled £295k (£93k) over the last 12 months up with the strongest demand from Green Tomato Cars and the Metropolitan Police.
• The seventh ITM Power owned UK hydrogen refuelling station (HRS) opened in Swindon, next to the M4, in September 2018
• Gatwick and Derby HRSs are under construction and due to open at the end of Q1 2019.
• Civil works are underway on the Birmingham 3MW Bus Project, due to be operational in Q3 2019
• UK Government funding received for 100MW Power-to-Gas energy storage feasibility study in Cheshire.
• Green-light given for HyDeploy trial and further funding received for HyDeploy phase 2.
• Strategic partnership agreed with Sumitomo Corporation, covering Japan and Australasia, with commercial discussions continuing to progress as expected.
• The Company continues to make positive progress in Australia, with discussions with various counterparties progressing as planned.
• Total income of £5.0m (£4.4m), comprising:
o Revenue – £1.2m (£1.7m)
o Grant income plus grants receivable for capital projects – £3.8m (£2.7m)
• As in previous years, revenue is expected to be weighted towards the second half of the year with an increased value of contracts expected.
• Loss from operations £5.3m (£2.9m), greater than originally anticipated, due to cost overruns on four ‘first-of-a-kind’ projects as well as significant investments made in people, resources and capacity during the period.
• Strong balance sheet: total financial assets constitute £24.9m with £15.6m of cash, £1.7m of cash on guarantee and deployed working capital (debtors less creditors) of £7.6m.
• Production and design staff materially expanded.
• New hires in Procurement, Legal, QHSE, Project Management, Manufacturing and Field Support.
• New factory manufacturing process design completed; tender processes underway.
• A dedicated team and project office established to focus on the 10MW Shell refinery project.
• Expansion of the German subsidiary team to support our European customer commitments and new German premises to hold spares and support a growing recurring maintenance income.
Graham Cooley, CEO, commented: “The six months under review have been a major transition for the company having expanded the skill base and delivered many MW scale industrial deployments. The company is highly regarded internationally and solid progress is being made on all fronts.”
Roger Putnam, Chairman, added: “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.”
For further information please visit www.itm-power.com or contact:
ITM Power plc Andy Allen, Finance Director +44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and Broker) Corporate Finance: Jeremy Ellis / Alexander Ruffman Corporate Broking: Chris Sim / Helene Comitis +44 (0)20 7597 5970
Tavistock (Financial PR and IR) Simon Hudson / Nick Elwes / Barney Hayward +44 (0)20 7920 3150
About ITM Power plc:
ITM Power manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green hydrogen for transport, renewable heat and chemicals. ITM Power was admitted to the AIM market of the London Stock Exchange in 2004. In September 2017 the Company announced the completion of a GBP29.4m working capital fundraise. The Company signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015 and subsequently a deal to deploy a 10MW electrolyser at Shell’s Rhineland refinery. The company entered into a Strategic Partnership Agreement with Sumitomo Corporation in July 2018 for the development of multi-megawatt projects in Japan. Additional customers and partners include National Grid, Cadent, Northern Gas Networks, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American among others.