The ITM Power plc (LON: ITM) share price edged 5.32% higher after releasing a trading update about the twelve months to 30 April 2023. The company made an adjusted pretax loss of £90 million after generating revenues worth £2 million but still had net cash worth £253 million at the end of the year.
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The energy storage and clean fuel company issued a brief market update about its performance during the 12-month period, which saw it deliver revenues ahead of its initial guidance of £2 million. The company’s loss was also within the guidance issued to analysts of £85 million to £95 million.
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The company ended the year with significant cash reserves even as it reiterated its commitment to stopping the massive cash burn after losing £90 million. The firm still had significant cash reserves of £253 million, which could fund its operations for the next two and a half years.
ITM Power said it was making solid progress on its 12-month plan outlined in January this year ahead of its fiscal Q4, aiming to make the firm a highly focused delivery organisation capable of manufacturing at high volumes.
Some steps taken to achieve its annual plan include improving engineering and product robustness and shipping products to customers, including the cubes and stacks for RWE's 4MW project in Lingen, Germany.
ITM Power noted that its efforts to reduce its cash burn were already proving successful despite being implemented for a short duration. The company plans to release its full-year final results on 27 July 2023.
Dennis Schulz, ITM Power’s CEO, said: “We are pleased with the progress made so far against our 12-month plan laid out in January, which aims to transform ITM Power into a highly focused delivery organisation with volume manufacturing capabilities. Focus areas are concentrating on a core product suite, reducing cash burn, and de-bottlenecking fabrication and testing. Recently announced milestones such as the 300% planned increase in power supply to 30MVA and the decision to expand our facilities at Bessemer Park are tangible signs of progress.”
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ITM Power share price.
The ITM Power share price edged 5.32% higher to trade at 73.04p, from Wednesday’s closing price of 69.35p.
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