ITM Power shares were suffering on Monday after the hydrogen energy solution company said results for the financial year ending April 2023 will be ‘materially different from the current guidance’ as revenue falls and EBITDA losses expand.
The ITM Power share price is now down 72% over the past 52-week period after falling 11% in early trade on Monday.
ITM attributes the poor performance to a period of testing as they move towards volume manufacturing. Write-downs, legacy contracts and underestimating certain costs are also putting pressure on earnings.
“This is the challenge I was expecting when I joined ITM,” said Dennis Schulz, ITM Power CEO
“For the Company to develop from an R&D and prototyping entity, to a mature delivery organisation, we require firmer foundations. Our 12-month plan will make ITM a stronger, more focused and highly capable company.”
“The large-scale opportunities in the market are yet to come, and by putting these foundations in place ITM will be ready for the significant market demand ahead of us.”
Another warning on profit
When a company commits to such a large scale undertaking such as revolutionising the way we generate energy and power travel, there will inevitably be growing pains. Technology from their first wave of innovation has been replaced with more efficient solutions a they seek to scale up their operations. This process has created costs that will hit profits.
Lower generation of revenue will be a concern and further insight into customer traction will be scrutinised in ITM’s interims.
ITM Power’s interim results are due 31st January when it says it will provide greater details on the strategic outlook.