PRELIMINARY FINAL RESULTS FOR THE YEAR TO 30 APRIL 2020
ITM Power (AIM: ITM), the energy storage and clean fuel company, announces preliminary final results for the year ended 30 April 2020. The full annual report and financial statements will be available on our website shortly.
Developments In the last 12 months:
• Strategic partnership with Linde announced in October 2019 and formation of ITM Linde Electrolysis (ILE) GmbH joint venture, allowing ITM Power to focus exclusively on the manufacture of electrolysis equipment for larger scale systems
• Commercial partnership agreement with Snam S.p.A. (one of the world's leading energy infrastructure operators) announced today, including a £30m strategic equity investment in the Company, together with an initial 100MW preferred supplier indicative commitment to 2024
• Proposed equity fund raise of £150m (including the Snam investment) plus an up to £7m open offer (to existing shareholders) to accelerate the Company's development also announced today
• Record current backlog of £118.7m (previous high £55.0m) and tender opportunity pipeline of £324.9m (£263m as at June 20)
• Near completion of the worlds' first Gigafactory at Bessemer Park, Sheffield, expected to reach annual production capacity of 1,000MW per annum by end 2023
• EU funding of €150 billion announced for green hydrogen in the 10 years to 2030
• A total of five European governments have now stated explicit electrolyser targets for 2030: France 6.5GW, Germany 5GW, Spain 4GW, Holland 3-4GW and Portugal 2GW
• Transition year with revenues and EBITDA adversely affected by COVID-19, Brexit and the adoption of IFRS 15
• Total Revenue & Project Grant Funding of £5.4m (2019: £17.5m) down 69%, comprising:
o Sales revenue: £3.3m (2019: £4.6m) down 28%
o Collaborative grant income recognised: £2.1m (2019: £12.9m) down 84%
• Loss from operations £29.4m (2019: £9.3m),
• Adjusted EBITDA loss (see note 7) £18.1m (2019: loss £7.3m), increased 148%
• Available cash balance of £39.9m at year-end (2019: £5.2m)
Graham Cooley, CEO, commented, '2020 has been a transformational year for ITM Power. We attracted a strategic investor and joint-venture partner in Linde, the world's largest speciality gases company, we strengthened our balance sheet so that we can take full advantage of the rapidly expanding green hydrogen market and we put the finishing touches to the world's largest electrolyser factory in Sheffield. I believe we have the right products at the right time and the capacity to produce them at scale. Today's partnership agreement with Snam and the fund raise means that we are very well positioned for the future.'
Sir Roger Bone, Chairman, added, 'One of the long-term impacts of Covid-19 will be to accelerate green strategies as part of a recovery package for individual economies. As such, I see ITM Power, with the capabilities it has developed, the new factory in Bessemer park, and its strategically-aligned partnerships with global companies very well placed to offer solutions to the demand seen in the global market. Our staff are our greatest asset and I am consequently delighted that we have been able to establish a new incentive scheme for all our employees '
For further information please visit www.itm-power.com or contact:
ITM Power plc +44 (0)114 244 5111 Graham Cooley, CEO / James Collins, IR
Investec Bank plc (Nominated Adviser and Broker) +44 (0)20 7597 5970 Jeremy Ellis / Chris Sim / Ben Griffiths
Tavistock (Financial PR and IR) +44 (0)20 7920 3150 Simon Hudson / Nick Elwes / Barney Hayward
About ITM Power plc:
ITM Power plc manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of renewable hydrogen for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. In October 2019, the Company announced the completion of a £58.8 million fundraise, including a subscription by Linde of £38 million, together with the formation of a joint-venture with Linde to focus on delivering renewable hydrogen to large scale industrial projects worldwide. In October 2020, ITM Power announced a proposed equity fund raise of at least £150m, including £30m from Snam, one of the world's leading energy infrastructure operators. ITM Power signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015, (which was extended in May 2019 to include buses, trucks, trains and ships) and in January 2018 a deal to deploy a 10MW electrolyser at Shell's Rhineland refinery. ITM Power announced the lease of the world's largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum in July 2019. Customers and partners include Sumitomo, Ørsted, Phillips 66, National Grid, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai and Anglo American among others.
The full release can be viewed here