Sheffield-based power specialist reduces losses

Graham Cooley, of ITM Power.

Graham Cooley, of ITM Power.

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Sheffield-based power storage specialist ITM Power reduced losses in its latest trading year while the number of projects and order enquiries grew steadily.

ITM’s technology enables electricity to be converted to hydrogen, which can then be stored or used as fuel, and projects under construction or in negotiations rose in value by 13 per cent to £10.5m.

Speaking about the year end results to April 30, Graham Cooley, chief executive, said: “Customer engagement with our products is at an all-time high.

“The project and quotation pipeline as a result has been steadily growing in our target applications of energy storage and hydrogen fuel.”

Sales and grant income in the year to April rose 64 per cent to £5.06m, within which revenues were 45 per cent higher at £1.66m.

Losses declined to £5.75m, compared with £7.95m in 2014, and is better than forecast at the half-way stage.

Cash at the year-end was £6.58m, with the financial position bolstered by a £4.86m strategic investment by off-road vehicle giant JCB.

Cash burn over the year rose to a record £8.03m from £7.57m, resulting in an operating loss of £5.7m.

The company said that despite technical product improvements, sales are proving slow to come.

Meanwhile, trading for the year was “slower than originally anticipated”, the firm added.

Mr Cooley said: “ITM Power enjoys a strong foothold in Germany with its PEM power-to-gas technology and is building a valuable portfolio of refuelling stations in the UK centred on London, which will provide strong commercial experience in the manufacture, deployment and operation of on-site hydrogen production and refuelling stations.”