ITM Power PLC on Thursday said it should meet and exceed guidance for the financial year just ended, but will still fall short of last year’s performance.

The Sheffield, England-based company designs and manufactures electrolysers to produce green hydrogen using renewable electricity and water.

For the year ended April 30, ITM expects an adjusted earnings before interest, tax, depreciation and amortisation loss of between £90 million and £95 million. This would fall within guidance of £85 million to £95 million.

For financial 2022, it posted a pretax loss of £46.7 million, nearly doubled from £27.6 million.

This decline came as cost of sales nearly tripled to £29.1 million from £10.8 million. Administrative expenses increased 44% to £10.7 million from £7.4 million.

Revenue for this year is expected to be ahead of £2 million guidance. Net cash at the year’s end should be £281 million, above £245 million to £270 million guidance.

However, ITM’s projection still falls below sales last year, when revenue rose by 32% to £5.6 million from £4.3 million.

Chief Executive Officer Denis Schulz was optimistic about progress made since January, when the firm laid out a new strategic plan following poor full-year results.

‘Focus areas are concentrating on a core product suite, reducing cash burn, and de-bottlenecking fabrication and testing,’ Schulz said.

He added: ‘I am particularly delighted to see our intense efforts to slow down cash consumption already proving to be effective in such a short space of time.’

ITM Power shares were trading 4.2% higher at 72.16 pence each in London on Thursday morning.

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