ITM Power has issued a third profit warning in eight months following a detailed review of the company’s operations that highlighted deepening troubles at the UK hydrogen equipment manufacturer.
The Sheffield-based electrolyser maker, which is central to the country’s ambitions to develop clean energy supply chains, said on Monday that all the issues were “surmountable”. However it forecast lower revenues and deeper losses in the year ending in April because of previously unrecognised losses on customer contracts, extra costs and inventory writedowns.
“It has become clear that the outcome for the financial year ending 30 April 2023 will be materially different from the current guidance, with lower revenue and a higher earnings before interest, tax, depreciation and amortisation loss,” it said in a statement.
The shares fell 14 per cent on Monday morning and are now down more than 70 per cent over the past year.
Founded in 2001 and backed by industrial gas major Linde and yellow digger manufacturer JCB, ITM Power is one of the UK’s biggest hopes for a homegrown manufacturing champion in the energy industries of the future.
The group is aiming to develop and manufacture electrolysers that use renewable power to split water into hydrogen and oxygen.
The company has issued three profit warnings since June, revealing production delays for its flagship electrolyser product in its full-year results in September.
ITM Power plans to issue a strategic 12-month plan with its interim results at the end of the month as new chief executive Dennis Schulz, who came from Linde Engineering, attempts to turn the group around.
