ITM Power PLC Trading and Pipeline Update (3385R)

TIDMITM

RNS Number : 3385R

ITM Power PLC

14 June 2018

ITM Power plc

("ITM Power" or the "Company")

Trading and Pipeline Update

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces a trading and pipeline update, ahead of reporting results for the financial year ended 30 April 2018, which are expected to be announced in late July 2018.

Trading

During the year ended 30 April 2018, the Company has focused on delivering its contracted pipeline of orders with the result that total income for the year is expected to be approximately GBP14.0m. The cash loss for the year is expected to be approximately GBP5.0m, which reflects the higher than expected costs due to the following three largely one-off factors: the amount of first-of-a-kind plant that has been delivered in the year; fees related to the recruitment of additional project delivery personnel; and higher factory testing costs for larger scale equipment (a factor that will be mitigated with the upcoming factory move, expected in the first half of 2019, and associated power upgrade at the new site). The Company retains a strong balance sheet with a year-end cash position of approximately GBP22.0m and a positive working capital position of approximately GBP8.0m.

New orders and deal pipeline

New orders received in the last 12 months have totaled GBP21.9m. The Company has an overall deal pipeline today of GBP39.0m, of which GBP33.5m is under contract and GBP5.5m is in the final stages of negotiation, representing an increase of approximately 42% since June 2017 after recognising GBP10.4m as income in the period.

Tender opportunity pipeline

The tender opportunity pipeline has grown strongly since the previously reported level of over GBP200m in January 2018. It now stands well in excess of GBP250m with a breakdown evenly spread across the three sectors of fuel, power to gas and renewable chemistry.

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

 
ITM Power plc 
 Graham Cooley, CEO 
 Andy Allen, Finance Director                   +44 (0)114 244 5111 
Investec Bank plc (Nominated Adviser and 
 Broker) 
 Jeremy Ellis / Chris Sim / Alexander Ruffman   +44 (0)20 7597 5970 
Tavistock (Financial PR and IR) 
 Simon Hudson / James Collins                   +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. Additional customers include National Grid, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American among others. The Company's order pipeline stands at GBP33.5m of projects under contract and GBP5.5m of contracts in the final stages of negotiation, totaling GBP39.0m (subject to exchange rate variation).

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