ITM Power PLC (AIM:ITM) shares slumped by a third as the hydrogen electrolyser specialist warned it is behind schedule in the development of its newest range of products.
Manufacturing issues, including delays in finalising the tooling and testing of the latest range of stack modules, mean full-year output and revenue are likely to be towards the bottom of the current guidance range.
Even hitting this forecast will be subject to the success of the current work to resolve these issues, the company said in a statement.
Guidance currently is 48MW-65MW of delivered product and revenue of £23mln-£28mln.
Field data for performance to assess the level of warranty provisions has also been affected by the limited deliveries of the new products.
As a consequence, ITM expects warranty provisions for the new stacks will rise materially from the current level of £3mln and might result in a revision to EBITDA loss guidance.
The accuracy of the product warranty provision will improve as more field data is acquired, it said, but because of the uncertainty some contracts in the final stages of negotiation might be deferred.
ITM added its cash holding currently is around £320mln, with a forecast for year-end 2022 of £240mln-270mln.
Graham Cooley, ITM’s long-serving chief executive, recently stepped down and the statement said that the search for his replacement is going well.
Shares plunged 32.15% to 70.87p in midmorning trade.