The electrolyser maker closed in on profitability as a record order book and government backing lifted sentiment, even as losses persisted.
ITM Power (AIM: ITM) shares climbed 4% to 96.25p on Monday after the hydrogen equipment maker reported revenue up 68% to £43.6m for the year to 30 April, comfortably ahead of its own upgraded guidance, while its adjusted EBITDA loss narrowed by 39% to £20.2m.
The move higher reflected investor relief that ITM's long push towards commercial scale is translating into firmer numbers, with the quality of its order book improving sharply, 83% of the backlog is now on profitable contracts, up from 60% a year earlier, alongside a boosted cash pile of £215.6m after a £40m investment from government-owned Great British Energy.
The results cap a year in which ITM moved from technology developer towards genuine commercial delivery. Its Lingen plant in Germany, built for RWE, is now operational and described as the largest electrolyser facility of its kind in the world. The company also launched Hydropulse, a new venture through which it intends to build, own and operate hydrogen production plants itself, alongside a government grant to support a new UK manufacturing line for its next-generation electrolyser technology.
Chief executive Dennis Schulz said the business was entering its next growth phase with momentum, pointing to a strengthening policy backdrop as governments prioritise energy security. Despite the improved fundamentals, ITM remains loss-making as it scales, and the shares are still well below the 219p level touched earlier this year, underlining how far sentiment has fallen even as the underlying business improves.
Looking ahead, ITM has guided to further revenue growth of between £50m and £60m for the current financial year, a target that will test whether its improved contract mix and expanding manufacturing capacity can keep narrowing losses without further reliance on government support.
This report is based on ITM Power’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Alex Simpson on Unsplash.
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