REG - ITM Power PLC - Half-year Financial Report
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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 (#_ftn1) . 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
(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
(http://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 Six months to 31 October 2024 Year ended 30 April 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'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 31 October 2024 30 April 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'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 Share premium Merger reserve Foreign Exchange reserve Retained loss Total
£'000 £'000 £'000 £'000 £'000 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 Six months to 31 October 2024 Year ended 30 April 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'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) Six months to 31 October 2024 (unaudited) Year ended 30 April 2025
£'000 £'000 (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 Six months to 31 October 2024 (unaudited) Year ended 30 April 2025
(unaudited) £'000 (audited)
£'000 £'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) Six months to 31 October 2024 Year ended
£'000 (unaudited) 30 April 2025
£'000 (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) Six months to 31 October 2024 (unaudited) Year ended 30 April 2025
£'000 £'000 (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 Six months to 31 October 2024 Year ended 30 April 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'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 31 October 2024 31 April 2025
£'000
£'000 £'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 Leasehold Property Provision Warranty Provision Other Provisions Employers' National Insurance Provision Total
October 2025 for contract losses 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 (1,385) (3,573) (6,178) (7,596) (849) (19,581)
October 2025
In the balance sheet:
Expected within 12 months (current) - (102) (2,309) (5,818) (849) (9,077)
Expected after 12 months (1,385) (3,471) (3,870) (1,778) - (10,504)
(non-current)
Six months to 31 Leasehold Property Provision Warranty Provision Other Provisions Employers' National Insurance Provision Total
October 2024 for contract losses 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 (1,142) (3,518) (23,059) (6,508) (413) (34,640)
October 2024
In the balance sheet:
Expected within 12 months (current) - (2,032) (1,878) (5,034) (413) (9,357)
Expected after 12 months (1,142) (1,486) (21,181) (1,474) - (25,283)
(non-current)
Full year to Leasehold Property Provision Warranty Provision Other Provisions Employers' National Insurance Provision Total
30 April 2025 for contract losses 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 (1,175) (3,845) (12,297) (7,276) (421) (25,014)
April 2025
In the balance sheet:
Expected within 12 months (current) - (107) (6,158) (4,610) (421) (11,296)
Expected after 12 months (1,175) (3,738) (6,139) (2,666) - (13,718)
(non-current)
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 Six months to 31 October 2024 Year ended 30 April 2025
(unaudited) (unaudited) (unaudited)
£'000 £'000 £'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 (12,102) (30,062) (46,270)
movements in working capital
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 Six months to 31 October 2024 (unaudited) Year ended 30 April 2025 (audited)
(unaudited) £'000 £'000
£'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 (#_ftnref1) Hydrogen Council & McKinsey
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