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ITM Power sees pipeline growth, but 'one-offs' to result in full-year cash loss
Energy storage and clean fuel firm ITM Power on Thursday released a pre-close trading update showing strong growth in its orders and tender opportunity pipelines, although higher-than-expected costs were expected to result in a cash loss.
The AIM-traded company said its total income for the year ending on 30 April is expected to be approximately £14.0m, with new orders over the last 12 months totalling £21.9m, while the firm's overall deal pipeline stands at £39m.
Meanwhile, ITM Power's tender opportunity pipeline stands "well in excess" of £250m, with an equal spread across fuel, power-to-gas and renewable chemistry.
However, the company said it expected a cash loss of approximately £5m due to "largely one-off" higher than projected costs associated with recruitment, deliveries of new plant equipment and factory testing costs.
The latter would be mitigated by the upcoming factory move, expected in the front half of 2019, and the associated power upgrade at the new site.
"The company retains a strong balance sheet with a year-end cash position of approximately £22.0m and a positive working capital position of approximately £8.0m," the company also said in a statement.
ITM Power aims to manufacture integrated hydrogen energy solutions for the purposes of grid balancing, energy storage and production of green hydrogen for transport, renewable heat and chemicals.
The company said its finals would be published in late July.
As of 1215 BST, ITM Power's shares were down 5.63% at 31.00p.