£5.7m Working Capital Fundraise and Interim Results

Thursday, 26 January 2017 07:53

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces that, further to the announcement made earlier today entitled “Proposed Accelerated Bookbuild to raise a minimum of £5.5 million”, the accelerated bookbuild process has now closed.  The accelerated bookbuild was successful and the Company has conditionally raised a total of £5.7 million, subject to the passing of certain resolutions by shareholders at the General Meeting.

Graham Cooley, CEO, said: “We are pleased to announce this successful placing to raise £5.7 million which demonstrates clear support from both new and existing shareholders. The proceeds of the placing will ensure that we have the required working capital to deliver our current pipeline and future growth. The Company is looking forward to an exciting phase of delivery and the proceeds of the placing will strengthen our balance sheet and enable us to be more competitive in tenders”.

ITM Power Interim Results
ITM Power (AIM: ITM), the energy storage and clean fuel company, announces its interim results for the six-month period ended 31 October 2016. The Group has recognised total revenue and grant funding of £2.97m in the period and currently has £16.98m of projects under contract with a further £1.37m of contracts in the later stages of negotiation, making a total pipeline of £18.35m. In the 2016 calendar year, orders have totalled £15.68m, representing an increase of 100% year on year.

Given the current contracted order book, the Directors remain confident of delivering full year results in line with market expectations.


Commercial Progress
• National Physics Laboratory (NPL) & The Centre for Engineering and Manufacturing Excellence (CEME) refuelling sites now open in London as part of the HyFive project.
• Upgrade completed to M1 Hydrogen refuelling station in Rotherham.
• H2ME2 grant awarded to continue to extend the network of refuelling stations in the UK.
• Stations on Shell forecourts at Cobham and Beaconsfield already underway.
• Fuel contracts signed with Arcola Energy, Commercial Group and Arval.

Post period end
• A further £3.1m of products under contract secured making a current total of £16.98m under contract and a total pipeline of £18.35m
• Sale of 1.25MW electrolyser to major EPC.
• First UK Power-to-Gas project awarded.
• Fuel contracts signed with Anglo American, Europcar UK and Hyundai.
• Announcement of a proposed placing to raise a minimum of £5.5m to;
o generate working capital to support the expanding project order book;
o move toward achieving a positive cash flow position; and
o strengthen the Company’s balance sheet, to assist in meeting tender requirements

Key Financial Results for the six months ended 31 October 2016
• Total revenue and grant funding of £2.97m (2015: £3.45m), down 14%, reflecting the early stages of build projects during which there is relatively little revenue recognition*:
o Revenue – £0.4m (2015: £0.66m), down 39%
o Grant income – £1.62m (2015: £1.37m), up 18%
o Grants receivable for Capital Projects – £0.95m (2015: £1.42m), down 33%
• Increase in fixed assets to £3.8m (2015: £3.13m), up 21%
• Loss from operations £2.27m (2015: £3.17m), improved by 28%
• Cash burn+ of £1.61m (2015: £3.90m), decreased by 59%
• Cash balance of £1.7m at period end (2015: £2.6m)
• Debtors balances of £9.2m (2015: £5.14m), up 79%
• Debtors balance comprises substantially of balances from the California energy commission, UK government, and the EU Joint undertaking, but also balances paid in advance to suppliers.

* Revenue is recognised based on the percentage of costs incurred on a project, which means that the majority of revenue recognition takes place towards the end of a project
+Cash burn is a non-statutory measure and is defined underneath the Cash Flow Statement

Corporate Development
• New Managing Director, Calum McConnell, appointed in Germany to replace Phil Doran who is relocating to Scotland.

Graham Cooley, CEO, commented: “The last six months have seen significant development of our refuelling infrastructures around London and whilst this has been a key area of progress, we have also maintained a focus on our other markets and products. Demand for quotes and interest in our products and expertise continue to grow, resulting in some sizeable contracts for the second half of the current year and beyond. We hope that we can continue to develop our technology, contacts and order book as demand for our products and know-how increases on the back of these high-profile undertakings.”

Roger Putnam, Chairman, added: “While changes in world economies and the UK’s relationship with Europe in particular, have provided challenges for UK businesses, ITM Power has progressed with its refuelling projects in the UK and continues to receive significant interest from overseas power-to-gas markets, further raising the profile of ITM Power as a world leader in the deployment of PEM electrolysis.”

For further information please visit www.itm-power.com or contact:

ITM Power plc
Graham Cooley, CEO +44 (0)114 244 5111
Zeus Capital
Andrew Jones / Jonathan Sharp / Hugh Kingsmill Moore
+44 (0)20 3829 5000
Simon Hudson / James Collins +44 (0)20 7920 3150

About ITM Power plc:
ITM Power manufactures integrated hydrogen energy solutions which are rapid response and high pressure that meet the requirements for grid balancing and energy storage services, and for the production of clean fuel for transport, renewable heat and chemicals.  ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004 and is a founder member of the Social Stock Exchange. In 2016 the Group has continued its work on the Hyfive project, opening two refuelling stations in London, and signed fuel contracts with Arcola Energy, Commercial Group and Arval. The Group currently has £16.98m of projects under contract and a further £1.37m in the later stages of negotiation (£18.35m in total). http://www.itm-power.com

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ITM Power is a public limited company registered in England and Wales. Company Number 0509407