ITM Power H1 losses widen despite record interim revenues

(Sharecast News) - Electrolysers manufacturer ITM Power said on Thursday that first-half losses had widened as it issued some cautious guidance, despite reporting record interim revenues.

ITM reported revenues of �18m for the six months ended 31 October, its highest ever halfyear performance, but also booked an adjusted underlying loss of �11.9m. Cash at the end of the period stood at �197m, with yearend levels forecast between �170m and �175m.

Looking ahead, the AIMlisted group expects fullyear revenues of �35m to �40m, alongside an LBITDA of �27m to �29m, leaving concerns regarding the pace of profitability.

ITM Power also highlighted progress on major projects, including delivery of its scope for RWE's 100MW Lingen plant, and said its sales pipeline remained strong, particularly for its NEPTUNE V containerised 5MW system and ALPHA 50 flagship 50MW plant.

Momentum was described as accelerating in Europe, led by its performance in Germany, while UK projects were said to be gathering pace. However, ITM also acknowledged policydriven uncertainty in the US.

Chief executive Dennis Schulz said: "In the first half of the year, we again delivered our strongest ever six-month revenue performance. We continue to have a solid contract backlog and sales pipeline.

"Our EBITDA losses have narrowed further, supported by strong manufacturing and project performance, as well as disciplined cost control and capital allocation. We look forward to providing our next update alongside our interim results in January."

As of 1105 GMT, ITM shares were down 2.89% at 70.31p.

Reporting by Iain Gilbert at Sharecast.com