(Alliance News) - ITM Power PLC shares suffered on Thursday as it warned of a widened annual loss on increased spending, but it hailed its "record backlog" of work.
The energy storage and clean fuel firm creates hydrogen energy solutions to boost the take-up of renewable energy.
For the financial year that ended April 30, ITM Power expects an adjusted loss before, interest, tax, depreciation and amortisation of GBP36.5 million, widened from GBP21.4 million.
ITM put the chunkier loss down to GBP7 million of "increased skills acquisition" and another GBP14 million in project delivery and output ramp-up costs.
It expects a revenue increase, however. Its top line is to grow 28% to GBP5.5 million from GBP4.3 million.
"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 using green hydrogen and enabling countries around the world to enhance their energy and food security," Chief Executive Graham Cooley said.
"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, as shown by the recent UK government and REPowerEU announcements. We believe we can gain a material share of these global markets as a result of our experience, expertise, partnerships and capacity."
REPowerEU is a European Commission strategy to reduce the dependence on Russian fossil fuels.
ITM hailed its "record backlog" of work, which stands at 755 megawatts as of the start of June, rising 53% since the beginning of 2022 and more than double year-on-year.
The South Yorkshire-based company expects to report its annual results on August 8.
Shares were 11% lower at 256.40 pence each in London on Thursday morning. It has a market capitalisation of GBP1.53 billion.
The company's share price progress in recent years has varied. The stock is down 36% over the past 12 months. This, however, followed a period between the second half of 2020 and early 2021 when the stock price more than doubled, reaching a closing high of around 720p in January of last year.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Itm Power (ITM)