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ITM Power shares surge after bullish trading update

The clean fuel specialist expects to report “significant financial progress” this year, while its cash position is strong, the pipeline is growing and project delivery remains on track

itm power refuelling station
ITM has given investors a wide-ranging update on its finances, operations and staff

Energy storage and clean fuel company ITM Power PLC (LON:ITM) expects another year of “significant financial progress” as the move towards alternative fuels for vehicles gathers pace.

The AIM-quoted firm’s pipeline has grown by almost £4mln to £34.3mln since August’s full-year results, with £27.6mln of that under contract.

IN-DEPTH: ITM driving forward

ITM’s cash position remains strong with £18.6mln of cash in the bank. Debtors less creditors stand at £8.4m, making a total of cash and cash receivables of £27.0m.

The company is in the process of opening a new, larger factory which it said is “progressing well”. A lot of work has already gone into designing the layout of the new site and getting the necessary approvals, and ITM expects to sign heads of term in the first quarter of next year.

New contracts on the horizon

“ITM Power is in good shape - financially and operationally - and I hope this positive trading and pipeline update demonstrates this to shareholders,” said chief executive Graham Cooley.

“We are making good progress with the new factory, with the delivery of key multi-megawatt reference projects and we have made a number of high-quality appointments to strengthen the team for further growth.”

He added: “Our business is performing well and we look forward to reporting more important new contracts in the near future.”

Project delivery on track

As for its “ground-breaking” project with oil giant Royal Dutch Shell PLC (LON:RDSB) to build a 10 megawatt (MW) electrolyser at a refinery in Germany, that is “progressing well” with a planning permit application is on track to be submitted later this year.

ITM is also working on its first hydrogen fuel bus project, which is also coming along nicely. The refuelling station is set to be up-and-running in March 2019, with 20 fuel cell buses to start running on select Birmingham bus routes shortly after.

Off the field, the company has also made a number of key additions to its staff, with Nicola Ham Edmonds coming in as Head of Legal, Robert Crawford as Quality and Health and Safety manager and Mark Theaker as Head of Procurement.

Shares jumped 8% to 24.4p early on Monday morning. 

Quick facts: ITM Power PLC

Price: 68 GBX

AIM:ITM
Market: AIM
Market Cap: £320.32 m
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