ITM Power PLC Trading Update (3949F)
October 29 2018 - 2:00AM
UK Regulatory
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 +44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and
Broker)
Jeremy Ellis / Chris Sim / Alexander Ruffman +44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / Nick Elwes / Barney Hayward +44 (0)20 7920 3150
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
-ends-
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END
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