Message from Head of ITM Investor Relations25 Mar 2025 11:03
Last week I have shared this and I have been asked to share it again in case people has not seen it;
I have exchanged emails with Justin Scarborough, Head of Investor Relations of ITM. I asked him what he thinks about the current situation, future and if more can be done to update shareholders by arranging some interviews between the trader updates. Since we can see, many members go all over the world to attend the fair, congress or panels but we don't have access to those events.
I must say, I wasn't expecting a long reply from him. Justin has given me a detailed, sincere response which I found encouraging. He thinks there is a very significant disconnect between the share price today versus the prospects from ITM and the green hydrogen market. He says there should be no doubt (after the RNSs they announced) that ITM is operationally in great shape, financially sound, and commercially accelerating, as seen from the NEPTUNE V announcements.
I want to copy the part directly here as it is since it explains the current sentiment very well;
“What we cannot control is the macro or geopolitical environment, which is having a negative impact on the energy transition market and any companies within it. In addition, some of our peers, quoted or private, have been issuing negative statements. Many have announced significant cost cuts, reductions in capex, and, in some cases, filing for administration. This is unhelpful in the near term because we want the rising tide to lift all boats rather than the negative sentiment it breeds”.
He mentions the delay on the revenues from large contracts which Dennis explained it before.
"Let’s take REFHYNE II with Shell, for example. This is c£45-50m. Shell stated at the time of the contract announcement that the plant should be operational in 2027. The plant could be operational in Q127 (calendar), meaning we recognise the revenue in FY27 (April). However, a more prudent approach would be to expect the plant to be operational late that year."
The good news is on cash, he says it is ample to see us through to profitability even excluding any future positive cash contribution from projects/contracts.
Finally, I liked the confidence. He says ITM is highly ambitious and confident that the green hydrogen market and, thus, the electrolyser demand will be large.
He says he is always available if someone wants to ask him questions.
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