British electrolyser manufacturer ITM Power warned on Monday its financial year ending 30 April 2023 will be “materially different” from the current guidance, Kallanish reports.
The company said in a security filling it expects lower revenue and higher loss in the period, but that its balance sheet remains “in a strong position.” It reports net cash of £318 million ($388.5m) on 30 October 2022.
New ceo Dennis Schulz is currently undertaking a detailed review of the company’s operations and plans to present his 12-month priorities plan on 31 January. Then, he will also unveil interim results and further details on guidance.
The strategy update is anticipated to cover three main areas: concentrating portfolio on a core product suite, with robust product validation and at scale manufacturing readiness; plans for future testing capabilities and automation; and a “rigorous” approach to capital allocation and costs.
The company says the main factors impacting the outcome for the financial year relate to losses on customer contracts, legacy commitments for earlier product generations causing on-site support costs, warranty provisions, and inventory write-downs originating from iterations of product designs during manufacturing. “All the issues we have encountered are surmountable, appreciating that the changes will require focus, time and diligence,” ITM reassures investors.
“This is the challenge I was expecting when I joined ITM,” comments Schulz. “For the company to develop from an R&D and prototyping entity, to a mature delivery organisation, we require firmer foundations.”
The executive, in charge since 1 December 2022, adds the upcoming 12-month plan will make the company “stronger, more focused and highly capable,” ahead of large-scale opportunities.
ITM currently runs a 1-gigawatt PEM electrolyser manufacturing plant in Sheffield, UK. The so-called Bessemer Park gigafactory has a semi-automated template, developed in partnership with Linde. Plans for a second UK gigafactory were put on hold last year, with ITM disclosing intentions to remodel and increase Bessemer Park’s capacity by 0.5 GW in Q1 2023. It’s unclear whether this plan will go ahead following the ongoing review.
Former ceo Graham Cooley announced in September he would step down to allow a more experienced executive to take the company into its next stage of volume manufacturing. Schulz comes from Linde Engineering and has been closely involved in ITM’s strategic relationship with Linde.
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