ITM Power PLC Trading Update (3949F)

TIDMITM

RNS Number : 3949F

ITM Power PLC

29 October 2018

29 October 2018

ITM Power plc

("ITM Power", "the Company" or "the Group")

Trading Update

ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to provide a trading update ahead of its AGM at 10.30am today, including progress on the Company's new factory, updates on two major ongoing projects and some key appointments.

Trading

The current financial year ending 30 April 2019 has started well and we continue to expect another year of significant financial progress for the Company. As has been the case in previous years, revenue is expected to be weighted towards the second half of the year. Underlying performance of project delivery remains on track. The Company's financial position is strong with GBP16.9m of cash and GBP1.7m of cash on guarantee. Debtors less creditors stand at GBP8.4m, making a total of cash and cash receivables of GBP27.0m.

The Group currently has GBP27.6m under contract and a further GBP6.7m in the final stages of negotiation, constituting a total pipeline of GBP34.3m, representing an increase of GBP3.7m since the full year results announced on 13 August 2018. The non-contracted tender opportunity pipeline currently stands at GBP200m.

New Factory

The planned move to the new 11,610 sq.m floor space factory (with grounds of 30,000 sq.m) is progressing well. The Company has designed a new manufacturing process (including introducing new automated technical processes), designed a new factory layout (to optimise product flow-through), completed all of the detailed drawings of the factory, the technology centre and the offices and applied for planning consent. The consenting process has also included a traffic survey and full environmental impact survey. Terms are expected to be signed in Q1 2019.

The new factory will be commissioned and run in parallel with the existing factory until the lease runs out at the existing Atlas Way site in 2021. The project manufacturing capacity ramp up across the old and new factories is more than adequate to support the Company's substantial projected sales growth in the ensuing three years. Product testing is currently a constraint at the old Atlas Way factory as we deliver larger products and so the power supply at the new factory will be commissioned early in the fit-out process.

The EU 10MW Refinery Project with Shell

The project is progressing well. We have established a dedicated project office and ring-fenced staff to work exclusively on this ground-breaking project. The initial design work has been completed for the planning permit application submission in Q4 2018. The Project Manager, Dr John Newton (formerly CIO at RWE npower), is working closely with Shell and their chemical process engineering sub-contractor in preparation for the detailed design phase, to ensure the plant will conform with the stringent safety and compliance requirements of a major refinery. The project team are attending regular joint technical review meetings at the refinery and will be hosting Shell and their sub-contractor partners, for similar meetings in the dedicated project office in Sheffield. The Refhyne consortium has recently produced an information video, available at: https://www.youtube.com/watch?v=tpPS62RTKd0

The Birmingham 3MW Bus Project

This is ITM Power's first project in the hugely promising hydrogen fuel bus segment and is expected to enhance our competitive advantage for additional future opportunities. The 3MW Electrolyser is built and has successfully undergone initial testing. The civil engineering works at the Tysley Energy Park are underway and will be completed in December and the refuelling station will be ready for operation in March 2019. 20 fuel cell buses are expected to be delivered in Q2 2019 to commence operation on Birmingham bus routes.

Key Appointments

We have appointed a number of senior managers recently. Nicola Ham Edmonds has been appointed as Head of Legal. Nicola has some 15 years of experience within in-house legal teams including Bombardier Transportation and the Royal Mail. Robert Crawford has been appointed as Quality and Health and Safety manager with over 20 years' experience in the electronics, aerospace, automotive, renewable energy and petrochemical sectors. Mark Theaker joins the company as Head of Procurement with experience gained at Tata Steel, Tarmac, National Grid and EDF Energy.

Dr Graham Cooley, CEO, ITM Power plc. commented: "ITM Power is in good shape - financially and operationally - and I hope this positive trading and pipeline update demonstrates this to shareholders. We are making good progress with the new factory, with the delivery of key multi megawatt reference projects and we have made a number of high-quality appointments to strengthen the team for further growth. Our business is performing well and we look forward to reporting more important new contracts in the near future."

For further information, please visit www.itm-power.com or contact:

 
ITM Power plc 
 Graham Cooley, CEO                             [phone] 
Investec Bank plc (Nominated Adviser and 
 Broker) 
 Jeremy Ellis / Chris Sim / Alexander Ruffman   [phone] 
Tavistock (Financial PR and IR) 
 Simon Hudson / Nick Elwes / Barney Hayward     [phone] 
 

About ITM Power plc

ITM Power manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green hydrogen for transport, renewable heat and chemicals. ITM Power was admitted to the AIM market of the London Stock Exchange in 2004. In September 2017 the Company announced the completion of a GBP29.4m working capital fundraise. The Company signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015 and subsequently a deal to deploy a 10MW electrolyser at Shell's Rhineland refinery. The company entered into a Strategic Partnership Agreement with Sumitomo Corporation in July 2018 for the development of multi-megawatt projects in Japan. Additional customers and partners include National Grid, Cadent, Northern Gas Networks, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American among others. www.itm-power.com

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October 29, 2018 03:00 ET (07:00 GMT)