RNS Number : 7806Q
ITM Power PLC
29 January 2026
29 January 2026
ITM Power plc
Interim Results for the Six Months to 31 October 2025
We are pleased to present the interim results for H1, which show continued strong year-on-year progress, with revenue further increasing, EBITDA losses reducing, and a continuing strong cash position.
Interim results summary
· Revenue of £18.0m (H1 2025: £15.5m)
· Adjusted EBITDA loss of £11.9m (H1 2025: £16.8m)*
· Cash on 31 October 2025 of £197.8m (31 October 2024: £203.1m)
· Contract backlog to date of £152m, up from £43.7m two years ago, and now consisting of 71% profitable contracts as we work through our legacy contracts, up from 60% in April 2025
· H1 highlights:
o NEPTUNE V contract with Westnetz GmbH
o Selected by Uniper for 120 MW HAR2 project and FEED contract signed
o NEPTUNE II contract with a leading Spanish cement producer
o Selected for a large-scale 300+ MW confidential project in the Asia-Pacific region
o 20 MW POSEIDON contract with MorGen Energy for their HAR1 West Wales project, which remains subject to Final Investment Decision (FID)
o 150 MW NEPTUNE V capacity reservation by RWE, with call-offs foreseen by 2027
o FEED contract for multi-unit NEPTUNE V HAR2 project
o Launch of Hydropulse, our new business, which will build, own and operate (BOO) decentralised green hydrogen production plants using ITM's technology, with a focus on serving industrial customers under long-term offtake agreements
· Post period end:
o Launch of ALPHA 50, our highly competitive new 50 MW full-scope green hydrogen plant
o Selected for two grid balancing projects in Germany totalling 710 MW, with FIDs expected in 2026 and 2028
o Two engineering contracts with customers in Australia and Canada
o 12.5 MW NEPTUNE V contract under HAR1 with Octopus Energy Generation
· Reiteration of full-year guidance:
o Revenue between £35m and £40m
o Adjusted EBITDA loss between £27m and £29m
o Cash £170m-£175m
*Adjusted EBITDA is a non-statutory measure. The calculation methodology is set out in Note 3.
Dennis Schulz, CEO of ITM, said: "We have yet again delivered our strongest six-month revenue performance to date while maintaining strict cash and operational discipline.
In the first half of the financial year, commercial activity has progressed well with the award of multiple equipment supply contracts, several engineering contracts, a significant capacity reservation from RWE, an important repeat customer, and beyond that our selection as electrolyser provider for several other upcoming projects. This progress underpins customer confidence and market traction in an environment which had to fight with known headwinds.
The Hydropulse business was well received at its launch and has since progressed several project discussions, supporting ITM's move towards recurring profitable revenue. Furthermore, Hydropulse is lining itself up to play a role in various government-backed funding programmes including HAR3 in the UK and various schemes in Germany.
Q4 saw the launch of our new product, ALPHA 50, the world's most competitive full-scope and highly efficient green hydrogen plant solution, which has generated strong interest among large-scale industrial customers.
While FID timing, of course, remains customer-led, we are closely engaged with our customers across many projects, and we expect FID momentum to continue accelerating through 2026 and beyond.
CHRONOS, our next-generation stack platform, has continued to progress through development and validation to plan. We are confident that, once launched, CHRONOS will be a true gamechanger for the electrolyser industry.
Project progress has been solid. To pick a few: The world's most advanced and largest PEM electrolyser plant, Lingen 1, for RWE has seen all 100 MW of TRIDENT stacks and skids installed and pressure-tested on time. For the second 100 MW, Lingen 2, all TRIDENT skids and already 40% of the stacks have been installed. The Leuna project with Linde is also nearing completion.
There is no doubt that green hydrogen will play an essential role in the decarbonisation of global industries and energy systems. Despite wider macroeconomic and geopolitical headwinds, clean hydrogen continues to progress at pace, with committed investments having risen elevenfold from $10bn to $110bn between 2020 and 2025[1]. Growth remains strongly supported by policy, increasing industrial demand, and ongoing sector consolidation - strengthening the foundations for a more resilient and commercially viable market."
Dennis Schulz, Amy Grey, and Simon Bourne will present to analysts and investors at 9:00 a.m. GMT.
The presentation will be via the Investor Meet Company platform. Questions can be submitted pre-event via the Investor Meet Company dashboard anytime and during the presentation. Analysts and investors can sign up to Investor Meet Company for free via:
https://www.investormeetcompany.com/itm-power-plc/register-investor. Those who follow the Company on the Investor Meet Company platform will automatically be invited.
A recording will be made available on the Investor Relations section of the ITM website after the event.
For further information, please visit www.itm-power.com or contact:
ITM Power plc
Justin Scarborough, Head of Investor Relations
+44 (0)114 551 1080
Berenberg
Ciaran Walsh, Harry Nicholas
+44 (0)20 3207 7800
J.P. Morgan Cazenove
Richard Perelman, Charles Oakes
+44 (0) 20 7742 4000
About ITM Power plc:
ITM Power was founded in 2000 and ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. Headquartered in Sheffield, England, ITM Power designs and manufactures electrolysers based on proton exchange membrane (PEM) technology to produce green hydrogen, the only net zero energy gas, using renewable electricity and water.
INTERIM REVIEW
Operational update
We have continued to strengthen operational execution, disciplined cost management and capital allocation. We have also continued to advance our market-leading technology and product portfolio. This tangible progress underpins our ability to deliver high-quality, scalable electrolysers at highly competitive cost, positioning us for sustained margin improvement.
· Process and capabilities: We continue to focus on manufacturing quality and process control. In parallel, we have halved electrolysis time during Factory Acceptance Testing (FAT), increasing throughput and reducing energy costs. We have received and installed our new autostacker manufacturing line, a key next step in automation that substantially reduces manual work in stack assembly. The new autostacker has a stack assembly capability of over 2 GW.
· Product portfolio: Towards the end of H1, we launched ALPHA 50, our flagship 50 MW full-scope green hydrogen plant, designed to set a new benchmark for cost-competitive, industrial-scale hydrogen production. Priced at only €50m, ALPHA 50 is materially more competitive than comparable solutions, regardless of technology or supplier. Customer interest has exceeded expectations, with discussions underway across multiple projects spanning a broad customer base. We expect ALPHA 50 to be just as successful as our most sought-after product NEPTUNE V.
· Technology development: Development of CHRONOS, our next-generation stack platform, continues in line with planned milestones for development and validation. CHRONOS remains central to ITM's roadmap to lower plant Capex and Opex, enhancing performance and expanding the addressable market.
· Sales pipeline: Our sales pipeline remains robust, with strong demand for NEPTUNE V, our containerised 5 MW electrolyser plant. The launch of ALPHA 50 has further strengthened the depth and quality of the pipeline. Subsequent to the half-year, ITM was awarded a contract with Octopus Energy Generation for three NEPTUNE V units to decarbonise yet another hard-to-abate industrial application.
Hydropulse: Our new BOO platform has been well received by customers. The business has established offices in Berlin and Sheffield and is building an experienced team to support project origination and delivery. Hydropulse is developing several projects, with strong and growing customer interest. Hydropulse will contribute recurring, asset-backed revenue and profit streams. Hydropulse is destined to play a role in various government funding programmes including HAR3 in the UK and various schemes in Germany.
Income statement
Historically, ITM has recognised revenue under the completed-contracts method, at specific milestones such as delivery, testing or commissioning, depending on individual contract terms. This approach has historically resulted in lumpy revenue recognition, with timing influenced by customer actions and project milestones.
As our product portfolio has expanded and matured, we have reviewed the appropriateness of this methodology for new contracts. While TRIDENT and standard NEPTUNE products are expected to continue under the completed-contract approach, non-standard NEPTUNE, POSEIDON, and ALPHA products are increasingly suited to a percentage-of-completion (PoC) method, enabling revenue to be recognised progressively over the life of the contract.
This transition is underway and is strategically important as it aligns revenue recognition with value creation, improves revenue visibility, and reduces dependency on end-point customer actions, supporting a more predictable financial profile as the business scales.
The percentage of profitable contracts in our contracted order backlog continues to grow, now standing at 71%, up from 60% in April 2025. The remaining legacy projects, which do not contribute to margin but are fully provided for, are expected to be recognised over the next 18 months.
Revenue for the period was £18.0m (H1 2025: £15.5m). Of this, £15.5m is from equipment sale contracts, of which £13.9m of this is recognised using the completed-contracts method, driven predominantly by deliveries against Lingen 1, and £1.6m from equipment sale contracts which are recognised over time.
Income of £1.1m (H1 2025: £0.2m) was received from maintenance and upgrades, while £1.4m (H1 2025: £1.1m) was recognised from engineering contracts.
The gross loss was £6.5m (H1 2025: £10.2m), predominantly due to the under-absorption of factory costs.
The Company posted an adjusted EBITDA loss of £11.9m (H1 2025: £16.8m) for the period. The administrative expenses presented in the income statement are net of costs booked to inventory or development costs.
The loss before tax was £14.1m (H1 2025: £28.8m), the prior year includes exceptional costs in the period.
Cash flow and balance sheet
Capital expenditure totalled £6.9m in the period (H1 2025: £5.4m), with £4.5m (H1 2025: £3.4m) invested in fixed assets and investment in new product development (intangible assets) of £2.4m (H1 2025: £2.0m).
The working capital inflow in the first half was £12.7m, with receivables and payables increasing by £7.1m and £14.9m respectively, offset by a decrease in inventories of £4.9m.
Inventories held decreased to £51.1m from £73.0m in the prior year and £56.0m at 30 April 2025. The inventory has primarily been processed into finished subsystems and products, with the raw materials balance reducing from £7.8m (31 October 2025) to £4.3m.
Cash at 31 October 2025 was £198m (31 October 2024: £203m), representing an outflow since the year-end of £9.2m as we continued manufacturing customer commitments for which cash had been received in previous periods. Finance income in the period was £4.1m (H1 2025: £5.5m), representing an annual average interest rate of c.4%.
Market update
It is clear that hydrogen will play a critical role in the energy transition and industrial decarbonisation. In many sectors, only a few viable alternatives exist. Refining, ammonia, heavy industry and industrial heat are structurally difficult to decarbonise, and electrification alone will be insufficient to achieve global net-zero ambitions, positioning green hydrogen as an essential solution. The same applies to grid balancing in an increasingly green and fluctuating electricity mix.
In September 2025, the International Energy Agency noted that, while deployment has been slower than originally targeted, the hydrogen sector continues to demonstrate progress and reach key milestones, rather than stalling. Importantly, the IEA highlighted that Europe has the world's largest project pipeline, accounting for nearly one-quarter of announced global production capacity by 2030, underlining the scale and durability of regional demand. The Hydrogen Council and McKinsey have tracked global clean hydrogen project investments and highlighted an elevenfold increase from $10bn to $110bn between 2020 and 2025, representing a massive and accelerating growth.
At the EU level, the regulatory framework continues to mature in favour of green hydrogen adoption. Under the Renewable Energy Directive III (RED III), the EU mandates that 42% of hydrogen used in industry must be renewable by 2030, alongside a 1% renewable hydrogen requirement in transport fuels. From January 2026, the introduction of the Carbon Border Adjustment Mechanism (CBAM) requires carbon costs to be paid on imported emissions-intensive products, while free allowances under the EU Emissions Trading Scheme (EU ETS) will be progressively reduced, structurally improving the competitiveness of green hydrogen in heavy industry.
The EU is also reinforcing this regulatory push with material funding support. In December, €5.2bn of EU ETS proceeds were allocated across three new programmes, including €2.9bn for clean technology manufacturing and industrial decarbonisation under the Innovation Fund, €1.3bn for the third EU Hydrogen Bank auction, and c.€1.8bn of national co-funding from Germany and Spain for hydrogen and industrial heat projects. Together, these measures provide long-term demand visibility, funding depth, and bankability for large-scale green hydrogen deployment.
In the UK, the government reaffirmed its commitment to hydrogen at the November Budget, including plans to publish an updated UK Hydrogen Strategy and to launch HAR3 in 2026 and HAR4 from 2028, providing ongoing visibility on revenue support mechanisms. In addition, GB Energy published its strategic plan in December, targeting the mobilisation of £15bn of private capital by 2030, including £1bn earmarked for clean energy technologies.
Tangible progress continues across projects supported under HAR1. In August, the company announced a supply agreement with MorGen Energy for the 20 MW West Wales Hydrogen project, followed in December by a 12.5 MW contract with Octopus Energy Generation to deploy NEPTUNE V systems at Kimberly-Clark's Northfleet manufacturing site. Progress has also been made on HAR2 shortlisted projects, including FEED contracts announced in October for a multi-unit NEPTUNE V deployment and for Uniper's 120 MW Humber H2ub® project, supporting future commercial momentum.
Board changes
In October, the Board was strengthened by the appointment of Sir Warren East and John Howarth as Non-Executive Directors, while Denise Cockrem stepped down. Sir Warren brings extensive global leadership experience across technology and engineering, including serving as CEO of ARM and Rolls‑Royce. John adds deep financial expertise and is currently a Partner at S&W LLP.
In January 2026, Jürgen Nowicki was appointed Non-Executive Chair, succeeding Sir Roger Bone. Jürgen brings deep industrial expertise and a strong track record in the global hydrogen and industrial gases sectors, most recently serving as CEO of Linde Engineering and as a member of Linde plc's Executive Leadership Team.
Financial guidance for FY26
ITM's financial performance in the first half of the year was in line with our expectations, and we reiterate guidance for the full year:
· Full-year revenue of £35m to £40m
· Adjusted EBITDA loss range between £27m and £29m
· Net cash at year-end in the range of £170 to 175m.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Results for the six months ended 31 October 2025
Note
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
Revenue
2
18,026
15,534
26,040
Cost of sales
(24,500)
(25,722)
(49,726)
Gross loss
(6,474)
(10,188)
(23,686)
Administrative expenses
(11,522)
(23,894)
(34,275)
Other income - government grants
2
559
295
3,420
Loss from operations before exceptional items
(17,437)
(20,705)
(41,451)
Exceptional items
7
-
(13,082)
(13,090)
Loss from operations
(17,437)
(33,787)
(54,541)
Share of loss of associate companies
-
(2)
(5)
Finance income
4,066
5,496
10,168
Finance costs
(714)
(499)
(985)
Loss before tax
(14,085)
(28,792)
(45,363)
Tax
(75)
(68)
(152)
Loss after tax
(14,160)
(28,860)
(45,515)
Other comprehensive income:
Foreign currency translation differences on foreign operations
(6)
(142)
(46)
Total comprehensive loss for the period
(14,166)
(29,002)
(45,561)
Basic and diluted loss per share
(2.3p)
(4.7p)
(7.4p)
Weighted average number of shares
617,370,989
617,175,156
617,273,073
All results presented above are derived from continuing operations.
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. The number of potentially dilutive shares not included in the calculation above due to being anti-dilutive at 31 October 2025 were 12,125,035 (31 October 2024: 6,586,560; 30 April 2025: 12,271,234).
CONSOLIDATED BALANCE SHEET
As at 31 October 2025
Note
31 October 2025 (unaudited) £'000
31 October 2024 (unaudited) £'000
30 April 2025 (audited) £'000
Non-current assets
Investment in associate
48
87
48
Intangible assets
13,046
10,965
11,997
Right of use assets
13,219
11,926
11,388
Property, plant and equipment
36,082
31,137
34,173
Financial assets at amortised cost
804
512
526
Total non-current assets
63,199
54,627
58,132
Current assets
Inventories
4
51,121
73,000
56,009
Trade and other receivables
28,028
24,049
20,782
Cash and cash equivalents
197,848
203,134
207,041
Total current assets
276,997
300,183
283,832
Current liabilities
Trade and other payables
(95,305)
(67,330)
(80,364)
Provisions
5
(9,077)
(9,357)
(11,296)
Lease liability
(1,313)
(804)
(837)
Total current liabilities
(105,695)
(77,491)
(92,497)
Net current assets
171,302
222,692
191,335
Non-current liabilities
Lease liability
(13,414)
(11,820)
(11,494)
Provisions
5
(10,504)
(25,283)
(13,718)
Total non-current liabilities
(23,918)
(37,103)
(25,212)
Net assets
210,583
240,216
224,255
Equity
Share capital
30,869
30,869
30,869
Share premium
542,833
542,833
542,833
Merger reserve
(1,973)
(1,973)
(1,973)
Foreign exchange reserve
294
204
300
Retained loss
(361,440)
(331,717)
(347,774)
Total Equity
210,583
240,216
224,255
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Results for the six months ended 31 October 2025
Share capital £'000
Share premium £'000
Merger reserve £'000
Foreign Exchange reserve £'000
Retained loss £'000
Total Equity £'000
At 1 May 2025
30,869
542,833
(1,973)
300
(347,774)
224,255
Transactions with Owners
Issue of shares
-
-
-
-
-
-
Credit to equity for share based payment
-
-
-
-
494
494
Total Transactions with Owners
-
-
-
-
494
494
Loss for the period
-
-
-
-
(14,160)
(14,160)
Other comprehensive income
-
-
-
(6)
-
(6)
Total comprehensive income
-
-
-
(6)
(14,160)
(14,166)
At 31 October 2025 (unaudited)
30,869
542,833
(1,973)
294
(361,440)
210,583
At 1 May 2024
30,849
542,735
(1,973)
346
(303,239)
268,718
Transactions with Owners
Issue of shares
20
98
-
-
-
118
Credit to equity for share based payment
-
-
-
-
382
382
Total Transactions with Owners
20
98
-
-
382
500
Loss for the period (restated)
-
-
-
-
(28,860)
(28,860)
Other comprehensive income
-
-
-
(142)
-
(142)
Total comprehensive income
-
-
-
(142)
(28,860)
(29,002)
At 31 October 2024 (unaudited)
30,869
542,833
(1,973)
204
(331,717)
240,216
At 1 May 2024
30,849
542,735
(1,973)
346
(303,239)
268,718
Transactions with Owners
Issue of shares
20
98
-
-
-
118
Credit to equity for share based payment
-
-
-
-
980
980
Total Transactions with Owners
20
98
-
-
980
1,098
Loss for the year
-
-
-
-
(45,515)
(45,515)
Other comprehensive income
-
-
-
(46)
-
(46)
Total comprehensive income
-
-
-
(46)
(45,515)
(45,561)
At 30 April 2025 (audited)
30,869
542,833
(1,973)
300
(347,774)
224,255
CONSOLIDATED CASH FLOW STATEMENT
Results for the six months ended 31 October 2025
Note
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
Net cash used in operating activities
6
(5,915)
(27,012)
(20,020)
Investing activities
Investment in loan notes
(257)
-
-
Deposits paid on new leasehold assets
-
-
(100)
Purchases of property, plant and equipment
(4,491)
(3,441)
(8,546)
Purchases of intangible assets
(2,379)
(1,988)
(4,277)
Proceeds on disposal of non-current assets
1
-
130
Interest received
4,052
5,483
10,141
Net cash generated from / (used in) investing activities
(3,074)
54
(2,652)
Financing activities
Issue of ordinary share capital
-
118
118
Payment of lease liabilities
(186)
(383)
(785)
Net cash used in financing activities
(186)
(265)
(667)
Decrease in cash and cash equivalents
(9,175)
(27,223)
(23,339)
Cash and cash equivalents at the beginning of period
207,041
230,348
230,348
Effect of foreign exchange rate changes
(18)
9
32
Cash and cash equivalents at the end of period
197,848
203,134
207,041
The interim summary accounts were approved by the board of Directors on 29 January 2026.
Notes to the interim summary accounts
1. Basis of preparation of interim figures
These interim summary accounts have been prepared using accounting policies consistent with UK-adopted international accounting standards, with the requirements of the Companies Act 2006. Whilst the financial information has been compiled in accordance with the recognition and measurement principles of UK-adopted international accounting standards (IFRSs), it does not 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 has been prepared on the historical cost basis. The principal accounting policies adopted by the Group are as applied in the Group's latest audited financial statements.
As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting".
The information relating to the year ended 30 April 2025 has been extracted from the Group's published financial statements for that year, which contain an unqualified audit report that does not draw attention to any matters of emphasis, and did not contain statements under section 498(2) and 498(3) of the Companies Act 2006 and which have been filed with the Registrar of Companies.
Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at the year ended 30 April 2025.
Going Concern
The Directors have prepared a cash flow forecast for the period ending 31 January 2027. This forecast indicates that the Group and parent company would expect to remain cash positive without the requirement for further fund raising based on delivering the existing pipeline, for a period of at least 12 months from the date of approval of these summary accounts.
By the end of the period analysed, the Group expect to hold funds sufficient to trade for a minimum of a further year if the business continued to operate in a similar way beyond the forecast period.
This cash flow forecast has also been stress tested. As a worst-case scenario, if all payments had to continue as forecast while receipts were not received at all, the business would remain cash positive for the full twelve months from the date of approval of these summary accounts.
The interim summary accounts have therefore been prepared on a going concern basis.
2. Revenue and other operating income
An analysis of the Group's revenue is as follows:
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
Revenue from product sales recognised over time
1,567
-
-
Revenue from product sales recognised at point in time
13,962
13,820
22,533
Engineering contracts recognised at point in time
1,393
1,072
1,755
Maintenance contracts recognised at point in time
1,104
208
900
Fuel sales
-
94
131
Other
-
340
721
Revenue in the Consolidated Income Statement
18,026
15,534
26,040
Grant income (claims made for projects)
259
24
85
Other government grants (R&D claims)
300
271
3,335
Grant income in the Consolidated Income Statement
559
295
3,420
18,585
15,829
29,460
The "Other" category includes contractual revenues recognised at point in time but not classified elsewhere as not involving the transfer of goods or the completion of maintenance or consultancy services.
Revenues from major products and services
The Group's revenues from its major products and services were as follows:
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
Power
12,755
74
1,911
Transport
2,339
251
1,401
Industry
1,888
13,896
20,379
Other
1,044
1,313
2,349
18,026
15,534
26,040
The "Other" category contains consultancy values that cannot be allocated to a single product group.
GEOGRAPHIC ANALYSIS OF REVENUE
A geographical analysis of the Group's revenue is set out below:
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
United Kingdom
2,349
985
1,627
Germany
15,319
11,966
21,306
Rest of Europe
289
774
1,299
Japan
-
1,672
1,672
Rest of World
69
137
136
18,026
15,534
26,040
The table has been restated for the prior periods to combine individual countries into the rest of world category, where amounts were not individually material.
The following accounted for more than 10% of total revenue:
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
Customer A
<10%
10,753
10,753
Customer B
12,571
N/A
N/A
Customer C
N/A
1,672
<10%
Customer D
<10%
N/A
9,037
3. Calculation of Adjusted EBITDA
In reporting EBITDA, management use the metric of adjusted EBITDA, removing the effect of the non-repeating costs that are not directly linked to the trading performance of the business in the period under review:
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
Loss from operations
(17,437)
(33,787)
(54,541)
Add back:
Depreciation
2,830
2,329
4,927
Amortisation
1,330
1,188
2,454
(Gain) / loss on disposal of property, plant and equipment
688
-
(10)
Impairment
-
-
-
Non-underlying share-based payment charge
710
403
1,053
Exceptional Items
-
13,083
13,090
(11,879)
(16,784)
(33,027)
Management uses Adjusted EBITDA as an alternative performance measure (APM) as it allows better monitoring of the operations. Notwithstanding, Management recognises the limitations of APMs as it may not allow industrywide comparison and includes removing the effect of certain annual changes such as share-based payments, identified above.
4. Inventories
31 October 2025 £'000
31 October 2024 £'000
31 April 2025 £'000
Raw Materials
4,313
7,761
7,869
Work in progress
46,808
65,239
48,140
51,121
73,000
56,009
Included in work in progress is inventory that has yet to be assigned to a specific contract. If not assigned to a specific contract, inventory is tested for obsolescence and net realisable value (NRV) and a provision is created against such non-contract stock where necessary. Inventories are stated after a provision for impairment of £28.7 million (31 October 2024: £27.9 million; 30 April 2025: £28.1 million).
In addition to the above inventory provisions, at the point that the work in progress is assigned to a contract and it is loss-making, the work in progress will be reduced to recoverable value, which will be offset by an equal and opposite reduction in the contract loss provision.
5. Provisions
Six months to 31 October 2025
Leasehold Property Provision
Warranty
Provision for contract losses
Other Provisions
Employers' National Insurance Provision
Total Provisions
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 May 2025
(1,175)
(3,845)
(12,297)
(7,276)
(421)
(25,014)
Provision created
(210)
(132)
(1,497)
(320)
(428)
(2,587)
Provision used
-
456
7,527
-
-
7,983
Provision transferred
-
(89)
89
-
-
-
Provision released
-
37
-
-
-
37
Balance at 31 October 2025
(1,385)
(3,573)
(6,178)
(7,596)
(849)
(19,581)
In the balance sheet:
Expected within 12 months (current)
-
(102)
(2,309)
(5,818)
(849)
(9,077)
Expected after 12 months (non-current)
(1,385)
(3,471)
(3,870)
(1,778)
-
(10,504)
Six months to 31 October 2024
Leasehold Property Provision
Warranty
Provision for contract losses
Other Provisions
Employers' National Insurance Provision
Total Provisions
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 May 2024
(1,109)
(3,431)
(19,852)
(7,272)
(405)
(32,069)
Provision created
(33)
(77)
(748)
(497)
(26)
(1,381)
Provision used
-
18
1,158
64
18
1,258
Provision transferred
-
(111)
111
-
-
-
Transfer from inventory
-
-
(4,734)
-
-
(4,734)
Provision released
-
83
1,006
1,197
-
2,286
Balance at 31 October 2024
(1,142)
(3,518)
(23,059)
(6,508)
(413)
(34,640)
In the balance sheet:
Expected within 12 months (current)
-
(2,032)
(1,878)
(5,034)
(413)
(9,357)
Expected after 12 months (non-current)
(1,142)
(1,486)
(21,181)
(1,474)
-
(25,283)
Full year to 30 April 2025
Leasehold Property Provision
Warranty
Provision for contract losses
Other Provisions
Employers' National Insurance Provision
Total Provisions
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 May 2024
(1,109)
(3,431)
(19,852)
(7,272)
(405)
(32,069)
Provision created
(66)
(321)
(1,194)
(1,497)
(37)
(3,115)
Provision used
-
26
5,271
-
21
5,318
Provision transferred
-
(1,139)
1,139
-
-
-
Provision released
-
1,020
2,339
1,493
-
4,852
Balance at 30 April 2025
(1,175)
(3,845)
(12,297)
(7,276)
(421)
(25,014)
In the balance sheet:
Expected within 12 months (current)
-
(107)
(6,158)
(4,610)
(421)
(11,296)
Expected after 12 months (non-current)
(1,175)
(3,738)
(6,139)
(2,666)
-
(13,718)
The leasehold property provision represents management's best estimate of the present value of the dilapidations work that may be required to return our leased buildings to the landlords at the end of the lease term. The discount applied to this is amortising over the lease term.
The warranty provision represents management's best estimate of the Group's liability under warranties granted on products, based on knowledge of the products and their components gained both through internal testing and monitoring of equipment in the field. As with any product warranty, there is an inherent uncertainty around the likelihood and timing of a fault occurring that would trigger further work or part replacement. Warranties are usually granted for a period of one year, although two-year warranties are the standard within some jurisdictions.
The provision for contract losses is created when it becomes known that a commercial contract has become onerous. The provision is based on best estimates and information known at the time to ensure the expected losses are recognised immediately through profit and loss. The effects of discounting on non-current balances were not deemed to be material. The provision created in the year is allocated against two projects. This provision will be used to offset the costs of the project as it reaches completion in future periods. Contract loss provisions are recognised as greater than one year based on the expected completion of the contract.
Provision is also made at the point when project forecasts suggest that the contractual clauses for liquidated damages might be triggered. The other provisions category relates to potential liquidated damages for overruns on contracts with customers. The release last year was attributable to renegotiations of contract terms. The provision also represents management's best current estimate of monies that could be refundable to grant bodies for non-completion of works.
Lastly, there is a provision for Employer's NIC due on share options as they exercise.
6. Notes to the Cashflow Statement
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (unaudited) £'000
Loss from operations
(17,436)
(33,787)
(54,541)
Adjustments:
Depreciation of property, plant and equipment
2,830
2,332
4,927
Loss / (gain) on disposal of property, plant and equipment
688
-
(10)
Amortisation
1,330
1,189
2,454
Share based payment (as seen through equity)
494
382
980
Foreign exchange on intercompany transactions
(8)
(178)
(80)
Operating cash flows before movements in working capital
(12,102)
(30,062)
(46,270)
Decrease / (increase) in inventories
4,888
(2,583)
14,408
(Increase) / decrease in receivables
(7,132)
4,521
7,808
Increase / (decrease) in payables
14,941
(959)
12,074
(Decrease) / increase in provisions
(5,642)
2,542
(7,121)
Cash used in operations
(5,047)
(26,541)
(19,101)
Interest paid
(679)
(471)
(919)
Income taxes paid
(189)
-
-
Net cash used in operating activities
(5,915)
(27,012)
(20,020)
Cash Burn
Cash burn is a measure used by key management personnel to monitor the performance of the business.
Six months to 31 October 2025 (unaudited) £'000
Six months to 31 October 2024 (unaudited) £'000
Year ended 30 April 2025 (audited) £'000
Decrease in Cash and Cash equivalents per the cash flow statement
(9,175)
(27,223)
(23,339)
Effect of foreign exchange rates
(18)
9
32
Less share issue proceeds (net)
-
(118)
(118)
Cash Burn
(9,193)
(27,332)
(23,425)
7. Related Parties
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. All related party transactions which were not intra-group have been conducted at arm's length.
In the last financial year, the Group reached the conclusion of the commercial dispute with Linde/BOC Group, represented on the Board by M von Plotho, leading to a payment to Linde of £13.0m. Whilst the details of the dispute remained confidential, the Directors are satisfied that all historic claim risk was settled. The costs, together with related professional fees, were shown as exceptional items in the income statement.
During the period purchases from Linde/BOC Group totalled £0.0m (H1 2025: £0.1m; YE 2025: £0.8m) with £0.0m outstanding for payment at each period-end. There were also milestone billings on sales contracts of £5.0m (H1 2025: £9.4m; YE 2025: £12.2m) with £4.6m outstanding at the end of the period (31 October 2024: £6.1m; 30 April 2025: £2.8m).
8. Subsequent events
There have been no subsequent events to report.
-ends-
[1] Hydrogen Council & McKinsey
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