(Alliance News) - Clean Power Hydrogen PLC shares dropped on Wednesday, after the firm announced its annual revenue is likely to be hit by manufacturing delays.
The UK-based green hydrogen technology and manufacturing company detailed further delays to the delivery of its membrane-free electrolyser 220 units, as global supply chain issues compound pre-existing problems.
Shares in CPH2 dropped 10% to 42.30 pence each in London on Wednesday morning, slightly below its initial public offering price of 45p in February of this year.
At the end of April CPH2 reported engineering and scale up issues during its early-stage commission process. This led to delays in the delivery of the units whilst it modified the designs.
"While the company still expects to deliver the first two contracted units to its customers before the end of the year, the performance of these units will be subject to further optimisation as the revised design and engineering processes are finalised," CPH2 said.
The delays will drag revenue for 2022 down, but the firm is confident of realising the income from the contracts in 2023.
"The impact of this reduction is more than off-set at a cash level by the recently signed GHFG Ltd licensing deal, with the company's cash position expected to be ahead of forecast," CPH2 added.
In July, CPH2 said it had signed its first license agreement with GHFG Ltd for the construction of 2 gigawatts of MFE electrolysers over a period of up to 20 years.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Clean Power Hyd (CPH2)