(Sharecast News) - ITM Power said annual losses were set to widen significantly after the green energy specialist increased investment across the business.
The AIM-listed firm said adjusted earnings before interest, tax, depreciation and amortisation were expected to be around £36.5m in the year to 30 April, compared to last year's losses of £21.4m. It noted that EBITDA had been impacted by a £7m investment in training and recruitment, and £14m in project delivery and ramp up costs.
Revenues, meanwhile, are expected to come in at £5.5m compared to £4.3m a year previously. Around £11m of revenue from one contract will now be recognised in the 2023 full year, ITM added.
Shares in the firm, a specialist in energy storage and clean fuel, fell sharply on the update. As at 1130 BST, they were off 12% at 254.47p.
Graham Cooley, chief executive, said: "Over the past year, ITM Power has laid the foundations, financially and operationally, to scale our production capacity which will play a critical role in decarbonising economies.
"Russia's invasion of Ukraine has accelerated the intent of many countries to increase energy and food security, with a specific focus on green hydrogen. We believe we can gain a material share of these global markets as a result of our experience, expertise, partnerships and capacity."
The group also said it had a "record backlog" of work, which stood at 755 mw as at the start of June, a 53% increase since the start of the year. Year-on-year, the backlog is 160% higher. Of that, 75 mw is contracted, 342 is in negotiation and 338 mw is preferred supplier.
The company will announce final results on 8 August.