07:00 Mon 29 Jan 2018
ITM Power PLC - Half-year Report
("
Half Year Results for the Period ended
Significant commercial progress, financial position strengthened by
Commercial Progress:
· As at today,
· Tender opportunity pipeline has grown steadily and is now over
· 10MW refinery hydrogen project with Shell to build the world's largest PEM electrolyser at the
· World's first tidal-powered hydrogen generated at European Marine Energy Centre (EMEC) in Orkney
· First hydrogen bus route in the Pau region of
· 20 tonne/day (50MW) hydrogen refuelling station designs launched in
· A new total of 20 hydrogen fuel contracts
Financial Highlights:
· Total income of
o Revenue -
o Grant income plus grants receivable for capital projects -
· Increase in fixed assets to
· Loss from operations
· Cash balance of
· Debtors balances of
Operational Developments:
· New, larger factory premises identified and heads of terms agreed
· Expansion of the manufacturing and after sales support teams
· Creation of Australian subsidiary
For further information please visit www.itm-power.com or contact:
|
+44 (0)114 244 5111 |
Corporate Finance: Corporate Broking:
|
+44 (0)20 7597 5970 |
Tavistock (Financial PR and IR) |
+44 (0)20 7920 3150 |
About
CHAIRMAN'S STATEMENT
The half year under review and the months since the period end have seen considerable progress made by the Company towards converting interest into tenders, and more importantly, tenders into contracted backlog and commercial sales. Our opportunity pipeline is at a record level, which is more than double the level it was a year ago. The traction developed by
The successful equity fund raise of
Financial Results
Revenue recognised for the period under review was
As a result of the fundraise, cash and short-term deposits at the period end were
The Board is not recommending the payment of a dividend for the period in accordance with our stated policy.
Team
In October,
I am delighted to welcome Dr
Once again, the Board would like to record its appreciation of the hard work and fantastic commitment of the Company's staff, without which we would not be in the strong position globally that we are today.
Outlook
The second half of the financial year to end
Our relationship with key blue-chip partners such as Shell,
Hydrogen technology is now receiving the attention it deserves in industrial processes, energy storage and refuelling. The second half is set to be very exciting, with
Prof
Chairman
CEO's Review
The strong growth in the opportunity pipeline reported in these results reflect the hydrogen and energy storage markets' rapid growth worldwide and
Products in Build and Order Backlog
Technology Progress
Industry Developments:
On 13 November the
Marketing
The Group's marketing efforts remain focused on engagement with multi-national companies that operate within the energy, transport and chemical sectors. Salesforce has become a key tool for the sales and marcomms teams with the industry contacts data base now at over 28,000 contacts.
Outlook
Quotations, sales and the order pipeline are stronger than they have ever been. The traction with customers and partners that
Dr
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Results for the six months ended
|
Six months ended £'000 |
Six months ended £'000 |
Year ended £'000 |
|
|
|
|
Revenue |
1,739 |
405 |
2,415 |
Cost of sales |
(1,580) |
(313) |
(1,757) |
Gross profit |
159 |
92 |
658 |
|
|
|
|
Operating costs |
|
|
|
- Research and development |
(957) |
(790) |
(2,023) |
- Prototype production and engineering |
(1,586) |
(1,614) |
(2,615) |
- Sales and marketing |
(673) |
(744) |
(1,528) |
- Administration |
(1,739) |
(833) |
(2,202) |
Other operating income - grant income |
1,920 |
1,616 |
4,160 |
Loss from operations |
(2,877) |
(2,274) |
(3,550) |
|
|
|
|
Investment revenues |
- |
2 |
- |
Loss before tax |
(2,877) |
(2,272) |
(3,550) |
Tax |
348 |
69 |
(230) |
Loss for the period |
(2,529) |
(2,203) |
(3,780) |
|
|
|
|
OTHER TOTAL COMPREHENSIVE INCOME: |
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
Foreign currency translation differences on foreign operations |
134 |
81 |
(250) |
Total comprehensive loss for the period |
(2,395) |
(2,122) |
(4,030) |
Loss per share |
|
|
|
Basic and diluted |
(1.0p) |
(1.0p) |
(1.7p) |
Weighted average number of shares |
250,613,176 |
216,892,973 |
222,513,007 |
The loss per ordinary share and diluted loss per share are equal because share options are only included in the calculation of diluted earnings per share if their issue would decrease the net profit per share or increase the net loss per share.
All results presented above are derived from continuing operations.
The loss for the period is equal to the total comprehensive expense for the period.
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Results for the six months ended
|
Called up share capital £'000 |
Share premium account £'000 |
Merger reserve £'000 |
Foreign Exchange reserve £'000 |
Retained loss £'000 |
Total Equity £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At |
10,845 |
58,151 |
(1,973) |
54 |
(55,442) |
11,635 |
Loss for the period |
- |
- |
- |
- |
(2,203) |
(2,203) |
Other comprehensive income for the period |
- |
- |
- |
81 |
- |
81 |
Total Comprehensive income for the period |
- |
- |
- |
81 |
(2,203) |
(2,122) |
|
|
|
|
|
|
|
Issue of share capital |
- |
- |
- |
- |
- |
- |
Credit to equity for equity settled share based payments |
- |
- |
- |
- |
- |
- |
At |
10,845 |
58,151 |
(1,973) |
135 |
(57,645) |
9,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At |
12,531 |
61,930 |
(1,973) |
(196) |
(59,222) |
13,070 |
Loss for the period |
- |
- |
- |
- |
(2,529) |
(2,529) |
Other comprehensive income for the period |
- |
- |
- |
134 |
- |
134 |
Total Comprehensive income for the period |
- |
- |
- |
134 |
(2,529) |
(2,395) |
|
|
|
|
|
|
|
Issue of share capital |
3,669 |
24,767 |
- |
- |
- |
28,436 |
Credit to equity for equity settled share based payments |
- |
- |
- |
- |
- |
- |
At |
16,200 |
86,697 |
(1,973) |
(62) |
(61,751) |
39,111 |
The accompanying notes form part of these financial statements.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
|
As at (unaudited) £'000 |
As at (unaudited) £'000 |
As at £'000 |
NON CURRENT ASSETS |
|
|
|
Development Costs |
330 |
352 |
380 |
Property, plant and equipment |
5,137 |
3,447 |
4,519 |
|
5,467 |
3,799 |
4,899 |
|
|
|
|
CURRENT ASSETS |
|
|
|
Inventories |
749 |
445 |
760 |
Trade and other receivables |
12,834 |
9,195 |
11,082 |
Cash and cash equivalents |
26,190 |
1,315 |
1,558 |
Restricted cash and cash equivalents |
1,117 |
410 |
1,446 |
TOTAL CURRENT ASSETS |
40,890 |
11,365 |
14,846 |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
Trade and other payables |
(6,479) |
(5,651) |
(6,666) |
Provisions |
(767) |
- |
(9) |
TOTAL CURRENT LIABILITIES |
(7,245) |
(5,651) |
(6,675) |
|
|
|
|
NET CURRENT ASSETS |
33,644 |
5,714 |
8,171 |
|
|
|
|
NET ASSETS |
39,111 |
9,513 |
13,070 |
|
|
|
|
EQUITY |
|
|
|
Called up share capital |
16,200 |
10,845 |
12,531 |
Share premium account |
86,697 |
58,151 |
61,930 |
Merger reserve |
(1,973) |
(1,973) |
(1,973) |
Foreign Exchange Reserve |
(62) |
131 |
(196) |
Retained loss |
(61,751) |
(57,645) |
(59,222) |
TOTAL EQUITY |
39,111 |
9,513 |
13,070 |
The accompanying notes form part of these financial statements.
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Results for the six months ended
|
Six months ended £'000 |
Six months ended |
Year ended £'000 |
|
|
|
|
Loss from operations |
(2,877) |
(2,274) |
(3,550) |
Adjustments: |
|
|
|
Depreciation of property, plant and equipment |
730 |
415 |
1,181 |
Loss on disposal |
2 |
22 |
22 |
Fixed asset impairment |
39 |
- |
100 |
Amortisation |
50 |
- |
23 |
Operating cash flows before movements in working capital |
(2,056) |
(1,837) |
(2,224) |
Decrease/ (Increase) in inventories |
11 |
(154) |
(469) |
(Increase) in receivables |
(1,493) |
(2,803) |
(5,363) |
Increase in payables |
1,984 |
3,838 |
2,747 |
Increase in provisions |
758 |
- |
9 |
Cash used in operations |
(796) |
(956) |
(5,300) |
Income taxes received |
189 |
252 |
252 |
Net cash used in operating activities |
(607) |
(704) |
(5,048) |
|
|
|
|
Investing activities |
|
|
|
Interest received |
- |
2 |
- |
Purchases of property, plant and equipment |
(3,574) |
(839) |
(647) |
Proceeds from sale of plant & equipment |
- |
3 |
4 |
Payments for intangible assets |
- |
(100) |
(151) |
Net cash (used in) investing activities |
(3,574) |
(934) |
(1,419) |
|
|
|
|
Financing activities |
|
|
|
Proceeds from issue of shares |
29,359 |
- |
5,732 |
Costs associated with fund raise |
(921) |
- |
(267) |
Net cash from financing activities |
28,438 |
- |
5,465 |
|
|
|
|
Increase/ (decrease) in cash and cash equivalents |
24,257 |
(1,638) |
(377) |
Cash and cash equivalents at the beginning of the period |
3,004 |
3,336 |
3,336 |
Effect of foreign exchange rate changes |
46 |
27 |
45 |
Cash and cash equivalents at the end of the period |
27,307 |
1,725 |
3,004 |
Cash Burn
Cash burn is a measure used by key management personnel to monitor the performance of the business.
Increase/ (Decrease) in Cash and Cash equivalents per the cash flow statement |
24,257 |
(1,638) |
(377) |
Effect of foreign exchange rates |
46 |
27 |
45 |
Less share issue proceeds |
(29,359) |
- |
(5,732) |
Cash Burn |
(5,056) |
(1,611) |
(6,064) |
The accompanying notes form part of these financial statements.
The condensed interim financial statements were approved by the board of Directors on
Notes to condensed interim financial statements
1. Basis of preparation of interim figures
The interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted for use in the EU. While the financial information included in this interim announcement has been compiled in accordance with the recognition and measurement principles of IFRSs, this announcement does not itself contain sufficient information to comply with IFRSs. This interim financial information does not constitute statutory financial statements within the meaning of section 435 of the Companies Act 2006. The financial information for the six months ended
The Group's condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the
The financial statements have been prepared on the historical cost basis. The principle accounting policies adopted by the Group are as applied in the Group's latest audited financial statements.
Going concern
The Directors have prepared a cash flow forecast (the "Forecast") for the period to
The Directors have a reasonable expectation that the Company and Group can continue to meet their liabilities as they fall due, for a period of not less than twelve months from the date of approval of this condensed set of financial statements.
Accordingly, the financial statements have been prepared on a going concern basis.
2. Revenue, other operating income and Investment Income
In 2017, the following accounted for more than 10% of total revenue (2016: no single customer contract):
Customer A |
|
Customer B |
|
Customer C |
|
Customer D |
|
An analysis of the Group's revenue is a follows: |
2017 £'000 |
2016 £'000 |
Continuing operations |
|
|
Revenue from construction contracts |
1,522 |
213 |
Consulting services |
99 |
157 |
Maintenance services |
32 |
23 |
Fuel sales |
63 |
4 |
Other |
23 |
8 |
Revenue in the Consolidated Income Statement |
1,739 |
405 |
Grant income |
1,920 |
1,616 |
Investment income |
- |
2 |
|
3,659 |
2,023 |
Revenues from major products and services
The Group's revenues from its major products and services were as follows:
|
2017 £'000 |
2016 £'000 |
Continuing operations |
|
|
Power-to gas |
639 |
148 |
Refuelling |
398 |
249 |
Chemical Industry |
679 |
- |
Other |
23 |
8 |
Consolidated revenue (excluding investment revenue) |
1,739 |
405 |
GEOGRAPHIC ANALYSIS OF REVENUE
A geographic analysis of the Group's revenue is set out below:
|
2017 £'000 |
2016 £'000 |
|
|
|
|
419 |
150 |
|
770 |
172 |
|
439 |
- |
Rest of |
53 |
2 |
|
58 |
81 |
|
1,739 |
405 |
-ends-
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