ITM Power slides on warning it will miss forecasts
Proactive Investors – Electrolyser specialist ITM Power saw its share price fall some 14% on Monday after outlining that full-year revenue and earnings would miss forecasts.
Shares price fell from 103.7p to 89p in early trading, before seeing slight gains back to 93.8p.
Losses of customer contracts, legacy commitments on earlier products and warranty provisions were reasons for the worsened outlook, said ITM, but it added these were “surmountable”.
ITM also outlined that its balance sheet “remains in a strong position,” with net cash sitting at £318mln as of late October.
Having named Dennis Schulz as its new chief executive in December, the company is currently carrying out a detailed review of its operations and will present a 12-month plan when it reports interim results on 31 January.
A concentrated portfolio of core products, schemes for automation and “a rigorous approach” to capital allocation will all feature in this plan, ITM added.
Commenting on the outlook, Schulz said: “This is the challenge I was expecting when I joined ITM.”
“Our 12-month plan will make ITM a stronger, more focused and highly capable company.”
“The large-scale opportunities in the market are yet to come, and by putting these foundations in place ITM will be ready for the significant market demand ahead of us.”
