(Alliance News) - ITM Power PLC on Thursday reported a drop in annual earnings and the energy storage and clean fuel company also announced a GBP150 million capital raise.
For the financial year ended April 30, ITM's pretax loss sharply widened to GBP29.5 million from GBP9.3 million last year on a revenue of GBP3.3 million, down from GBP4.6 million.
ITM said in financial 2020 revenue and earnings before interest, tax, depreciation and amortisation were adversely affected by Covid-19, Brexit uncertianty and the adoption of IFRS 15.
"2020 has been a transformational year for ITM Power. We attracted a strategic investor and joint-venture partner in Linde, the world's largest speciality gases company, we strengthened our balance sheet so that we can take full advantage of the rapidly expanding green hydrogen market and we put the finishing touches to the world's largest electrolyser factory in Sheffield. I believe we have the right products at the right time and the capacity to produce them at scale. Today's partnership agreement with Snam and the fund raise means that we are very well positioned for the future," said Chief Executive Graham Cooley.
Seprately, ITM Power announce its intention to raise a minimum of GBP150.0 million via fundraising initiiaves. These include a strategic investment of GBP30.0 million at 235 pence per share by Italian energy infrastructure company Snam SpA and a conditional placing of GBP120.0 million also at 235 pence per share with existing and new institutional investors.
ITM also announced a non-underwritten open offer of up to GBP7.0 million at the same price.
The company said net proceeds of the fundraising will be used mainly to enable an acceleration of its technology, manufacturing and operational capabilities in response to the rapidly growing global demand for large-scale electrolysis.
"The agreement with one of the main global producers of electrolysers is Snam's first external investment in the hydrogen sector and stands alongside those we are already advancing to make our infrastructure ready for the transport of this new clean energy carrier. The partnership with ITM Power allows us to build on our know-how in technologies for the production of green hydrogen in a way that is functional to business development and to become a player along the value chain," said Snam CEO Marco Alvera.
The stock closed up 1.6% at 256.00p in London on Thursday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Itm Power (ITM)