REG - ITM Power PLC - Preliminary results
15/08/2024 07:00
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RNS Number : 5109A ITM Power PLC 15 August 2024
15 August 2024
ITM Power PLC
("ITM Power" or the "Company")
Preliminary results for the 12 months to 30 April 2024
Ready to scale with balance sheet strength
ITM Power (AIM:ITM) announces its preliminary results for the year ended 30
April 2024.
HIGHLIGHTS
Financial results summary
· Revenue £16.5m (FY23: £5.2m) in line with the £10m to £18m
guidance, a more than threefold increase year-on-year
· Adjusted EBITDA* loss £30.4m (FY23: £94.2m) well ahead of the £45m
to £50m guidance, reduced to less than one third of the previous year
· Net cash at the year-end of £230m (FY23: £283m) ahead of guidance
of £200m to £220m, allowing us to conclude the year with a strong balance
sheet
Operational highlights
· 12-month plan successfully completed:
o Product portfolio narrowed for standardisation and volume manufacturing
o Greater capital discipline, cost reduction, and improved processes
achieved
o Manufacturing, supply chain and testing debottlenecked, automation
deepened
· Yara 24MW plant inaugurated in June 2024 and now the biggest PEM
electrolyser in Europe
· Signed capacity reservation with major industrial customer for 500MW
· Shell REFHYNE II contract signed in August 2024 for 100MW
· Operational data from reference plants confirming market-leading
stack and wider product performance
· 20MW POSEIDON module and 5MW NEPTUNE V plug & play electrolyser
products launched in the year, both very well received by customers
· Positive regulatory developments stimulating customer demand (see CEO
report)
Strategic priorities
Strategic priorities defined, reflecting the balance between expected
long-term and near-term development of the market, necessitating readiness and
flexibility, whilst maintaining a strong balance sheet:
· Remain at the forefront of technology, product and delivery
credibility
· Scale operations whilst retaining flexibility and conserving cash
· Grow global footprint and reach whilst staying adaptable
Financial guidance for FY25
We start the new financial year in a strong position, and with a sales
pipeline that has grown very strongly. Our operational near-term focus is on
executing existing and securing new customer projects.
· Revenue expected between £18m and £22m
o In TRIDENT contracts, revenue recognition is dependent on the site
activities of the EPC integrator and/or end customer, outside of our control.
As such, the value created in the year remains in WIP before being recognised
as revenue at a later point. Without customer delays, the revenue guidance
would have been in the range of £35m to £40m, with the delta being deferred
into future periods.
· Adjusted EBITDA loss expected to be in the range of £35m to £40m
o Having restructured the company in the prior year, we are now capable of
delivering at volume. Remaining EBITDA losses are a function of factory
loading and fixed cost (under-)absorption.
· Net cash at year-end is expected to be in the range of £160m to
£175m
o Capex for the year is expected to be in the range of £15m to £20m, as we
continue to invest in R&D, product development and our manufacturing
capabilities.
* Adjusted EBITDA is a non-statutory measure. The calculation methodology is
set out in Note 4
Commenting on the results, CEO Dennis Schulz said: "My first full financial
year at ITM has seen the company make significant progress. We completed our
12-month plan and transformed ITM into a credible delivery organisation.
Today, we have a focussed and highly competitive portfolio of products, all
utilising the same market-leading stack technology which we can deploy into
projects of any size and into almost every region of the world.
We also have achieved a shift in culture of doing things right the first time,
and prioritising quality over quantity, which is becoming increasingly evident
in our day-to-day operations. As a result, EBITDA losses in the financial year
decreased to one third of the previous year, whilst we were able to grow
revenues threefold. We now have a disciplined approach to the use of our
capital, which is reflected in our year-end net cash position.
On the technology side, we are at the forefront globally, and we are deploying
our electrolysers into some of the largest and most prestigious green hydrogen
plants under construction worldwide. Our growing base of reference plants and
operational field data helps us to convince new customers of our capabilities,
as will the large-scale projects we are currently executing.
Today, ITM is significantly more capable than the company has ever been. We
have gained control over what we can control. Our path to profitability is no
longer a question of capability, but now a question of volume of customer
orders. The foundations we have laid will enable ITM to build long-term value,
allowing us to invest for growth and drive attractive returns for our
shareholders.
In the meantime, our sales pipeline has been growing strongly, also backed by
an increasingly positive regulatory landscape, which makes me optimistic about
what lies ahead for ITM and our industry.
We are ready. Now we need more customers to take FIDs."
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
Investec Bank plc (Nominated Adviser and Broker) +44 (0)20 7597 5970
James Rudd / Chris Sim / Ben Griffiths
There will be a presentation for investors at 0900h BST on the Investor Meet
Company platform. Investors can sign up to Investor Meet Company for free
and add to meet ITM POWER PLC via:
https://www.investormeetcompany.com/itm-power-plc/register-investor
(https://www.investormeetcompany.com/itm-power-plc/register-investor) .
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.
STATEMENT FROM THE CHAIR OF THE BOARD
Over the past year, we have transitioned from an R&D company to an
ambitious volume manufacturer. Our 12-month plan, announced in January 2023
and completed by January 2024, was a three-step strategy to simplify our
product portfolio, improve our cost and capital discipline, and debottleneck
our manufacturing facilities. As part of this, we completed a restructuring of
our organisation, including a 30% reduction in our headcount, while at the
same time, we have continued to enhance our professional capabilities.
The changes made will support the long-term success of our business.
Operationally, ITM is in better shape than ever, and everyone in the Company
is laser focused on delivering success. Financially, we are in a healthy
position, borne out by the year-end net cash of £230m, which is substantially
ahead of our original guidance in August 2023.
The macro picture
Global decarbonisation is not a choice; it is an irreversible necessity if net
zero targets are to be achieved by 2050 and fossil fuels are to be phased out.
However, remaining on this pathway requires a substantial and accelerated
expansion of the entire clean energy value chain.
Green hydrogen is widely regarded as a critical technology for
decarbonisation. It will play an increasingly important role in the future
energy mix as the world accelerates its progress towards a global net-zero
energy system. Achieving net zero requires a comprehensive transformation of
the energy system, and governments worldwide are implementing policies and
regulatory frameworks, along with financial support mechanisms, to stimulate
demand and supply and create a future hydrogen economy.
While policies are being put into place to encourage hydrogen project
development and to aid the decarbonisation of hard-to-electrify sectors, in
the short term this nascent industry has faced rising capital costs, cost
inflation, supply chain bottlenecks and lack of hydrogen infrastructure,
including transportation and storage. It is therefore important to distinguish
between the effects of short-term challenges and the inevitable long-term
trends.
The short-term challenges will eventually dissipate, and there will be
increasing momentum in the development of the hydrogen industry. As an energy
carrier and industrial feedstock, green hydrogen will reshape the global
energy landscape.
With our combination of world-leading technology and manufacturing capability,
we are in a strong position to participate in the growth of this globally
significant market. Everyone at ITM is tremendously excited about what lies
ahead.
Environmental, social and governance (ESG) objectives
We are dedicated to delivering robust ESG performance out of a desire to
uphold ethical standards. Our MSCI rating remained at "AA" for a fourth
consecutive year demonstrating that our practices are well aligned with
shareholder interests, and we are proud of this achievement. It also indicates
that we are a business setting the standard for how our sector manages the
biggest ESG risks and opportunities.
Board changes
During the year, Katherine Roe stepped down from the Board. Denise Cockrem
assumed the role of Chair of the Remuneration Committee. At the same time,
Martin Green was appointed as Senior Independent Director (SID).
Looking ahead
Our strategic priorities are clear. They acknowledge the need for readiness
and flexibility while maintaining stringent capital discipline.
During the next year, we will continue to invest in our core technology,
enabling us to remain at the leading edge of the industry. We will increase
our capacity at the pace required to fulfil customer contracts, which will be
enhanced by further automation, particularly in stack assembly. In closing, I
thank our shareholders, employees and customers for their continued support
and confidence in our business. We remain committed to delivering value to our
shareholders and creating a sustainable future for our Company.
Sir Roger Bone
Chair of the Board
CHIEF EXECUTIVE OFFICER'S STATEMENT
My first full financial year at ITM has seen the Company make significant
progress. We completed our 12-month plan which transformed ITM into an
organisation that manufactures and delivers market-leading products to
customers on a consistent basis, as set out in January 2023, and laid out our
three strategic priorities in January 2024.
Today, we have a focussed portfolio of products, all utilising the same
market-leading stack technology which can be deployed into projects of any
size and into almost every world region. This strategic approach is
well-aligned with the needs and preferences of our customers, enabling us to
manufacture in volume to build a sustainable business.
We continue to strive for operational excellence, which is the relentless
pursuit of efficiency, effectiveness and continuous improvement throughout our
operations. This unwavering commitment to improvement is a testament to our
dedication to providing the best electrolysers and services to our customers.
Previously, we spoke about focussing on doing things right the first time, and
prioritising quality over quantity. This shift in culture has been encouraging
our employees to contribute ideas for improvement, and fosters a culture of
accountability, collaboration and continuous learning. By upholding these
principles, we can achieve operational excellence and drive competitiveness,
customer satisfaction and, in turn, profitability.
The transformation we have undertaken is evident in our day-to-day operations.
As a result, EBITDA losses in the financial year to April 2024 decreased
significantly to one third of the previous year, whilst we were able to grow
revenues threefold. We now have a disciplined approach to the use of our
capital, which is reflected in our year-end net cash position.
Our technology is at the forefront globally, and we are deploying our
electrolysers into some of the largest and most prestigious green hydrogen
plants under construction worldwide today, such as for Yara in Porsgrunn
(24MW), which was inaugurated in June 2024 and is now the biggest PEM
electrolyser plant in operation in Europe, for RWE in Lingen (200MW) currently
under construction, and, following the REFHYNE II project contract signature
in August 2024, now also for Shell in Wesseling (100MW).
We have also just recently commissioned our first reference plant in Japan for
Sumitomo and Tokyo Gas. The partnership announced in April 2024 with Hygen,
where we were appointed as its preferred supplier for PEM electrolysers for
hydrogen projects in the UK and EU, and more recently the 500MW capacity
reservation by a large industrial customer, are further strong endorsements of
our technology and credibility to deliver.
The market for green hydrogen
Regulation and incentives
On the geopolitical side, today's landscape is characterised by a complex
interplay of power dynamics regional conflicts and various upcoming elections
worldwide. While such a landscape naturally carries both opportunities and
challenges, we see that these developments have further strengthened the
pathway to net zero. Clean technologies are fundamental to governments
achieving their ambitious climate, economic and energy security goals. The
widespread adoption of clean technologies will accelerate the energy
transition and improve energy resilience, with green hydrogen set to play a
key role in the energy mix of the future.
In the short and medium term, government incentives and support mechanisms
will remain key enablers of the hydrogen economy. They can remove barriers to
investment by offsetting cost differentials between fossil-based fuels and
green hydrogen. Over time, as the industry scales up, business cases will get
stronger, and the industry and hydrogen economy will become self-sustaining.
According to the International Energy Agency (IEA), only under 4% of
electrolytic hydrogen production projects worldwide have reached FID so far.
In many cases, this is due to a combination of policy and regulatory
uncertainty, inflation and increased cost of capital, lack of infrastructure
or uncertain offtake commitments for the final product. The IEA estimates that
70 Mt per annum of clean hydrogen will need to be produced by 2030 to remain
on track for climate goals, which compares to less than 1 Mt produced today.
To be robust and resilient, the entire hydrogen value chain must develop and
scale in parallel, including production, transport, storage and end-use
demand.
While this poses complexity, it is widely acknowledged today that renewables
will dominate tomorrow's energy systems. Green hydrogen will be vital to
ensure uninterrupted access to clean energy and to decarbonise
energy-intensive sectors like steel production, chemicals, long-haul transport
and aviation.
In the EU, the Net-Zero Industry Act is a key piece of legislation. In March
2023, the Commission proposed it as part of the broader Green Deal Industrial
Plan, and the Council and European Parliament agreed to it in February 2024.
It aims to strengthen the resilience and competitiveness of key net-zero
technologies in the EU and to create the right conditions to attract
investments. The EU aims to produce 10 Mt and import 10 Mt of green hydrogen
by 2030 which, in order to be realised, will require significant near-term
investment.
Several funding and subsidy avenues are available to industry to support
Europe's energy transition, including the Important Projects of Common
European Interest (IPCEI) and the European Hydrogen Bank, which recently
completed its first €800m pilot auction. In addition to the availability of
central EU funding, individual member states are allowed to fund projects and
developments directly. Beyond such incentives, the EU's Renewable Energy
Directive (RED) and, most recently, RED III mandate an increase of renewable
fuels of non-biological origin (RFNBO), primarily hydrogen. It sets ambitious
targets for the hydrogen sector, notably requiring at least 42% RFNBO usage by
2030 and 60% by 2035.
In the UK, the Government's Hydrogen Strategy ambition is to produce 10GW of
clean hydrogen by 2030, with a minimum of 6GW being green hydrogen. The
Hydrogen Allocation Rounds (HARs) allocate revenue support through the
Hydrogen Production Business Model (HPBM) to hydrogen production facilities to
bridge the cost gap. For HAR1, 11 projects totalling 125MW were successfully
announced in December 2023. The projects will receive over £2bn of support
through 15-year contracts and £91m of up front capital funding. HAR2 aims to
support up to 875MW of capacity, with the application window having closed in
April 2024. A shortlist of projects is expected to be announced in autumn this
year, with successful projects expected to receive a conditional offer from
the Department for Energy Security and Net Zero (DESNZ) in the first half of
2025. Looking ahead, HAR3 and HAR4 are expected to target 1.5GW each.
The UK's Green Industries Growth Accelerator (GIGA) fund of £960m was
announced in autumn 2023 to support the expansion of clean energy supply
chains, including hydrogen. In March 2024, an additional £120m was added to
the fund. Successful applications are expected to begin drawing down their
funding from 2025.
In the US, the government enacted the Infrastructure Investment Jobs Act
(IIJA) of 2021 and the Inflation Reduction Act (IRA) of 2022 to boost
infrastructure development. In 2023, the Department of Energy (DOE) released
its National Clean Hydrogen Strategy and Roadmap, targeting 10 Mt by 2030, 20
Mt by 2040 and 50 Mt by 2050. In December 2023, the Treasury Department and
the Internal Revenue Service (IRS) released long-awaited proposed regulations
for eligibility and implementation of the Section 45V hydrogen production tax
credit (PTC), ranging from $0.60 to $3 per kilogram for producers with the
lowest emissions.
Following the announcement of these drafts, no general consensus has been
achieved yet on the regulations' final shape, creating uncertainty for project
developers.
In the meantime, in October 2023, the DOE announced $7bn of funding to launch
seven Regional Clean Hydrogen Hubs to accelerate commercial scale deployment.
Furthermore, in March 2024, the DOE announced $750m in funding to reduce the
cost of clean hydrogen, covering 52 projects across 24 states to advance
electrolysis technologies and improve manufacturing and recycling capabilities
for clean hydrogen systems and components.
Also elsewhere in the world, green hydrogen strategies continue to evolve at
pace. In 2023, Japan updated its strategy with $107bn earmarked to be invested
over 15 years to achieve 2 Mt by 2030, 12 Mt by 2040 and 20 Mt by 2050. In May
2024, the Japanese parliament passed the Hydrogen Society Promotion Act, which
paves the way for providing 15-year subsidies for locally produced and
imported low-carbon hydrogen. India announced an ambition to produce 5 Mt of
green hydrogen by 2030, and Egypt's green hydrogen strategy is targeting up to
8% of the global tradable market by 2040. Australia announced a Hydrogen
Production Tax Incentive (HPTI) of A$2 per kilogram, which will be available
over a 10-year period starting from 2027.
Given the ambitions and targets of governments around the world, the green
hydrogen market and electrolyser demand are expected to see strong growth in
the coming years. We are well positioned to play a leading role in this very
large market.
Customer activity
These extensive regulatory and policy developments are a major driver of our
customers' green hydrogen strategies, but project activity is also influenced
by wider stakeholder pressure to decarbonise industrial activities and to
satisfy end customer demand for green product options. Our pipeline of project
opportunities has grown strongly, especially in regions where companies see
consistent regulation and incentives relating to green hydrogen production or
demand.
Europe continues to lead the way in terms of tangible progress on small,
medium and large-scale green hydrogen projects, with major industrial and
energy companies developing portfolios of projects in their core markets. In
addition to the strong energy markets of Germany and the Netherlands, the
first Hydrogen Bank auction confirmed the competitiveness of the Iberian and
Nordic markets for large-scale production.
Customers are developing projects at a range of capacities, with a significant
number of projects in the sub-50MW range where our containerised products are
ideally suited. These projects are commonly targeted at mobility applications
and specific industrial use cases such as distilleries or semiconductor
manufacture.
In the 100MW+ scale, we see strong momentum in relation to green ammonia
production, refining and sustainable aviation fuels (SAF). Due to the large
volumes of hydrogen produced and the risks associated with single offtakers,
such projects are often contingent on emerging hydrogen infrastructure like
pipelines and storage.
There are also a number of very large projects of GW scale, predominantly in
regions offering low-cost renewable energy potential, typically targeting
export. In all cases, we expect these projects to need to adopt a realistic
phased approach to manage execution, technical, financial and offtake risks.
Integrated energy, oil and gas companies continue to be active in the
development of their green hydrogen project portfolios. Such organisations
have a mature approach to technical and financial risk management in relation
to the investment into physical assets at scale and the capability to finance
off their balance sheet. Pure play green hydrogen or wider renewable energy
project developers are also increasingly common and, in the absence of balance
sheet strength, are driving the market in relation to project financing
options.
Customers are now reacting to their own experience of developing and
delivering early pilot projects, or to reports of the experience of others.
This has increased customer focus on evidence of technology performance,
design, integration and execution capability across OEMs and EPCs, and the
ability to demonstrate real-world operational data. As projects scale in size,
customers increasingly want to ensure they can deliver on their business case,
especially when they get paid only for each kilogram of hydrogen produced,
like under the UK market mechanism for instance.
Furthermore, customers increasingly recognise that there are only a small
number of OEMs and EPCs truly capable of delivering reliably, especially
large-scale projects, and this will become an ever more important
differentiator in the market.
Strategic update: 12-month plan completed, strategic priorities clear
Our 12-month plan was completed on schedule in January 2024, making ITM a
stronger, more focused, and more capable company. We have put the necessary
foundations in place to ensure that ITM is ready for the large-scale
opportunities and significant demand in the market that lie ahead.
The three areas of focus were:
· to narrow our product portfolio so that our manufacturing processes
and supply chain could be standardised, thereby setting the business up for
volume manufacturing success;
· a disciplined approach to costs and capital, along with process
improvements; and
· to debottleneck manufacturing, our supply chain and testing, and to
incrementally increase the degree of automation.
The next phase of our journey will be focused on our strategic priorities,
which we announced in January 2024. The market potential for green hydrogen
remains excellent, with strong growth expected in the coming years. In the
short term, the realities of industrial scale-up will remain incremental, with
many FIDs delayed compared to original aspirations. This balance implies a
need for readiness and flexibility whilst managing cash commitments carefully.
Our strategic priorities align with our vision of delivering the world's best
electrolysers, scaling our operations profitably to meet the rising demand,
and growing our global footprint and reach over time:
· To remain at the forefront of technology, product and delivery
credibility, we will:
o evolve our products, including the continuous improvement of our TRIDENT
stack platform and NEPTUNE plug & play units;
o strategically extend our portfolio, currently under development, with a
larger capacity, game-changing stack platform to widen the gap to competition
further;
o be prepared for rapid scaling of stack volumes; and
o continue to evolve our processes and capabilities in manufacturing,
engineering, procurement and field services.
· To scale our operations whilst retaining flexibility and conserving
cash, we will:
o continue to deepen the level of automation;
o grow production capacity in line with commercial projects; and
o focus on credible sales opportunities, and capture a significant market
share by offering the best products and credibility to customers.
· To grow our global footprint and reach whilst staying adaptable, we
will:
o ensure an appropriate setup in all attractive offtake regions to be best
positioned and ready for rapid demand uptick, as we are in the EU by means of
our new entity, ITM Power Germany; and
o take a product and service-first approach and continue to expand regional
product compliance.
We have already made great progress since we announced our strategic
priorities. In May 2024, we launched NEPTUNE V, our new 5MW containerised
full-scope plug & play electrolyser plant, in response to significant
customer demand. Designed against the highest safety and quality standards and
incorporating the learnings from our operational electrolysers around the
world, NEPTUNE V utilises ITM's leading and proven TRIDENT stack technology.
NEPTUNE V is compact and versatile, providing 5MW of reliable and highly
efficient hydrogen production capacity, all contained in the smallest
footprint per MW in the industry today. NEPTUNE V is competitively priced and
ideally suited for mid-size projects. It complements our existing 2MW
containerised solution NEPTUNE II, which remains a popular choice for projects
below 10MW.
Outlook
Today, ITM is significantly more capable than the company has ever been.
Our path to profitability is no longer a question of capability, but now one
of volume via customer orders. The foundations we have laid will enable ITM to
build long-term value, allowing us to invest for growth and drive attractive
returns for our shareholders.
In the meantime, our sales pipeline has been growing strongly, which makes me
optimistic about what lies ahead for ITM and our industry.
We are ready. We now need more customers to take FIDs.
Dennis Schulz
Chief Executive Officer
CHIEF FINANCIAL OFFICER'S REVIEW
A key component of our 12-month plan was to embed a rigorous approach to
capital allocation and cost management across the business. The aim was to
ensure that our actions became aligned with our strategic priorities, which
acknowledged the need for readiness in operational scaling and flexibility,
whilst managing cash carefully.
The impact of this change is evident in our robust year-end net cash position
of £230m, which is above the £200m to £220m guidance that we announced with
our interim results in January 2024, and is materially better than our
original guidance of £175m to £200m announced at the time of our preliminary
results in August 2023. Doing things right the first time and challenging
ourselves to achieve our expected outcomes for less are changes in culture
which align everyone at ITM with the use of capital that our shareholders
expect.
Key financials
A summary of the Group's key financials is set out in the table below:
Year to 30 April 2024 2023 2022
£m £m £m
Revenue 16.5 5.2 5.6
Gross loss (16.7) (79.1) (23.5)
Pre-tax loss (27.1) (101.2) (46.7)
Adjusted EBITDA(1) (30.4) (94.2) (39.8)
Property, plant and equipment plus intangible assets 39.6 31.9 24.7
Inventory (raw materials) 10.2 18.3 24.3
Inventory work in progress (WIP) 60.2 40.5 7.9
Net cash 230.3 282.6 365.9
Net assets 268.7 295.5 395.0
(1. ) Adjusted EBITDA is a non-statutory measure. The
calculation method is shown in Note 6.
Non-financial key performance indicators (KPIs)
We also use certain non-financial performance indicators to consider our
performance over time. These include: QHSE metrics; order intake and megawatts
contracted; stacks built; project milestones achieved; FTE numbers and
employee turnover. During the year, MW in WIP decreased to 284MW (FY23:
285MW). Revenue was recognised against 12MW of deliveries (FY23: 5MW). The
Board also regularly reviews other non-financial performance criteria,
including production throughput, testing and validation performance and labour
utilisation. As the Group matures further into a volume manufacturer, it is
likely that we will refresh our non-financial KPIs to reflect the evolved
business.
Financial performance
The principal ways in which we generate revenue and income are through product
sales, maintenance contracts and consulting contracts (FEED and feasibility
studies).
Revenue
Revenue for the period was £16.5m (FY23: £5.2m). Half of this revenue,
£8.2m (FY23: £4.1m), was generated from product sales, namely plug &
play containers. Consulting contracts delivered £5.0m (FY23: £0.7m), mostly
due to a government contract related to our stack platform development. In
addition, we generated £1.5m (FY23: £0.3m) from maintenance contracts.
Gross margin
The gross loss was £16.7m (FY23: £79.1m), reflecting losses arising from
production inefficiency (£3.0m), cost of quality (£3.6m), obsolete stock
(£2.9m) and customer contracts (£4.2m), as well as an underutilisation of
production capacity (£3.0m). With our 12-month plan, we have debottlenecked
manufacturing capacity, and built to the schedules of our customer contracts
instead of at full factory capacity. The improvement year on year reflects the
improved control over our operations and project execution.
Administrative expenses
Operating costs reduced year on year to £22.6m (FY23: £26.2m). Across the
Company (including production), staff and employment costs reduced from
£24.0m to £21.2m, reflecting the impact of the restructure completed in
April 2023. Another feature of our 12-month plan was to narrow our product
portfolio for increased focus. As such, fewer staff costs were capitalised in
the year, at £9.1m (FY23: £10.5m), a function of greater focus and fewer
staff. The average number of FTE was 330, compared to 415 in FY23, and
reflected the headcount reduction announced in January 2023.
Consultancy and consumable costs fell by 51% to £2.5m (FY23: £5.1m) as we
focused activities and further controlled costs, whilst depreciation and
amortisation rose by 50% to £5.9m (FY23: £4.0m), reflecting the conclusion
of the engineering and marketing of products within our portfolio, as well as
the impact of the expansion of capacity.
The impairment charge of £1.4m (FY23: £4.5m) relates to the products where
development costs had previously been capitalised, and which were no longer
offered as part of the streamlined portfolio after the 12-month plan.
Government grants which constitute claims against individual projects or
research and development (R&D) claims totalled £1.2m (FY23: £1.6m), with
£0.8m receivable in relation to R&D tax reclaims (FY23: £1.4m)
Adjusted EBITDA(1)
The Company posted an adjusted EBITDA loss of £30.4m (FY23: £94.2m) for the
period. Adjusted EBITDA is a non-statutory measure and is detailed in Note 6.
The loss before tax was £27.1m (FY23: £101.2m), and the basic and diluted
loss per share was 4.4p (FY23: 16.5p).
2024 2023
£000 £2000
Loss from operations (38,011) (103,713)
Add back:
Depreciation 4,008 3,006
Impairment 1,417 4,469
Amortisation 1,921 942
Loss on disposal 126 64
Share-based payment charge/ credit 149 (420)
Exceptional costs of restructure - 1,436
Adjusted EBITDA (30,390) (94,216)
(1. ) Adjusted EBITDA is a primary measure used across the
business to provide a consistent measure of trading performance. The
adjustment to EBITDA removes certain non-cash items, such as share-based
payments, to provide a key metric to the users of the financial statements as
it represents a useful milestone that is reflective of the performance of the
business resulting from movements in revenue, gross margin and the cash costs
of the business. We have set out below how we calculate adjusted EBITDA (see
also Note 4 for more information). 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 industry-wide comparison, and includes removing the effect of
certain annual charges such as share-based payments, identified above.
Capital expenditure
Capital expenditure totalled £14.0m in the period (FY23: £15.1m), with
£12.0m invested in capital projects (FY23: £8.6m), namely improvements at
our Sheffield factory and machinery, and £2.0m (FY23: £6.6m) in intangible
assets primarily in respect of continued product development.
Working capital
The working capital position (being net of inventory, receivables and
payables) improved by £1.4m in the year (FY23: £8.9m outflow), with
inventories and receivables increasing by £11.6m and £9.2m respectively,
offset by an increasein payables of £22.2m.
Cash
Net cash at the year-end was £230m (FY23: £283m), benefitting later in the
year from the rigorous approach to costs and capital discipline, which was
announced at the time of our interim results in January 2023 and was a key
component of our 12-month plan. This has also led to tighter control of
receivables both in terms of collection of milestone payments but also upfront
payments for work to be done (resulting in deferred income increasing £20.5m
in the year, albeit with inventory increasing by a similar amount, at
£22.7m).
Financial position: positioned for the future
Current assets decreased to £329.5m (FY23: £362.9m), principally reflecting
a reduction in year-end net cash of £52.3m with year-end cash of £230.3m
(FY23: £282.6m), partly offset by an increase in inventories. Inventories net
of provisions were £70.4m (FY23: £58.8m). The amount of inventories held as
raw materials decreased to £10.3m (FY23: £18.3m) as the Company
debottlenecked manufacturing and increased throughput as part of the 12-month
plan. Project milestones completed therefore led to increased inventory and
deferred income in the balance sheet as products were built but revenue not
recognised. Inventory provisions increased by £5.8m to £23.6m (FY23:
£17.8m) as a result of manufacturing inefficiencies (whilst improving) and
also the discontinuation of certain components relating to older versions of
product no longer supplied.
Trade and other receivables were £28.7m (FY23: £19.7m), reflecting the
increase largely brought about by completion of milestones on our sales
contracts, the timing of those billings and receipts thereof. Trade and other
payables increased to £68.3m (FY23: £46.1m), driven by an increase of
£20.4m in deferred sales income principally in relation to the timings of
payments from customers on projects to be delivered and a £4.4m increase in
trade payables, partly offset by a £2.7m reduction in deferred grant income.
Non-current assets increased to £52.3m (FY23: £39.5m), reflecting an £8.9m
rise in property, plant and equipment and £5.3m of right-of-use assets
reflecting the additional facilities in Sheffield.
Contract loss provisions relate to several factors, including acceleration
measures for previously delayed projects, additional on-site works, increased
energy and labour costs due to previously under-estimated stack testing times,
and future costings updated for inflation. Net contract loss provisions were
reduced by £22.8m, with £10.7m created and £33.5m either utilised or
released in the period. The total contract loss provision at the period end
stood at £19.9m (FY23: £42.6m).
The warranty provision was reduced by a net £0.5m in the period, with £0.3m
created during the year, offset by the utilisation of £0.8m. The balance at
period end was £3.4m (FY23: £3.9m). This includes all projects that have
been commissioned and entered their warranty stage, but excludes those not yet
delivered. The warranty costs of projects not yet delivered are presented as
contract loss provisions. Other provisions increased in the year by £1.9m
(FY23: £4.0m), being an increase of £4.5m, offset by a release of £2.6m in
the year.
Contingent liabilities
The Company is in a commercial dispute, the details of which are commercially
sensitive. This dispute has not resulted in a formal claim and based on advice
the Directors have made a judgement that an obligation was possible rather
than probable at the year end.
Accordingly, this matter is considered to represent a contingent liability.
However, the Directors would like to resolve the issue and believe that if a
settlement were made that there could be an outflow of up to £15m.
Events after the balance sheet date
After the balance sheet date, we signed a contract with Shell for its 100MW
REFHYNE II project at its refinery in Wesseling.
Outlook for FY25
We start the new financial year in a strong position. Our near-term focus is
on executing existing and securing new customer projects. We will continue to
invest in the business for the scale-up we expect to arise as FIDs start to be
taken and as contracts materialise. At the same time, we will continue to
manage our cost and capital allocations carefully. Our guidance for the
financial year ending April 2025 is as follows:
Revenue expected to be between £18m and £22m: For the manufacture and
supply of standardised products, we recognise revenue towards the end of a
contract, which is usually either ready for shipment for containerised NEPTUNE
units, or on-site acceptance tests for TRIDENT stacks and skids. In contrast,
cash payment milestones are spread across the duration of a contract.
Therefore, in TRIDENT contracts, revenue recognition is dependent on the site
activities of the EPC integrator and/or end customer, outside of our control.
As such, the value created in the year can often be reflected in deferred
income, rather than revenue. Without customer delays, the revenue guidance
would have been in the range of £35m to £40m, with the delta being deferred
into FY26.
Adjusted EBITDA loss of £35m to £40m: We have gained control of our project
and manufacturing operations, and have restructured the Company in the prior
year to be capable of delivering at volume. Remaining EBITDA losses are a
function of factory loading and fixed costs absorption.
Net cash at year end is expected to be between £160m and £175m: Capex for
the year is expected to be in the range of £15m to £20m, as we continue to
invest in R&D, product development and our manufacturing capabilities. We
anticipate working capital to increase by £10m to £15m, against commercial
contracts awaiting revenue recognition (see Revenue).
Andy Allen
Chief Financial Officer
CONSOLIDATED INCOME STATEMENT AND OTHER COMPREHENSIVE INCOME
2024 2023
Note £000 £000 £000 £000
Revenue 3 16,509 5,229
Cost of sales (33,173) (84,294)
Gross loss (16,664) (79,065)
Administrative expenses (22,575) (26,222)
Other income - government grants 1,228 1,574
Loss from operations (38,011) (103,713)
Share of loss of associate companies (291) (1,567)
Finance income 12,219 4,652
Finance costs (643) (541)
Loss on disposal of joint venture (331) -
Loss before tax (27,057) (101,169)
Current tax (167) (32)
Loss for the year (27,224) (101,201)
OTHER TOTAL COMPREHENSIVE INCOME:
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences on foreign operations 174 160
Net other total comprehensive income 174 160
Total comprehensive loss for the year (27,050) (101,041)
Basic and diluted loss per share 5 (4.4p) (16.5p)
CONSOLIDATED BALANCE SHEET
Note 2024 2023
£000 £000
NON-CURRENT ASSETS
Investment in associate 53 379
Intangible assets 10,174 11,475
Right of use assets 12,250 6,934
Property, plant and equipment 29,398 20,489
Financial asset at amortised cost 400 174
TOTAL NON-CURRENT ASSETS 52,275 39,451
CURRENT ASSETS
Inventories 7 70,417 58,840
Trade and other receivables 28,741 19,657
Cash and cash equivalents 230,348 282,557
329,506 361,054
Assets held for Sale - 1,814
TOTAL CURRENT ASSETS 329,506 362,868
CURRENT LIABILITIES
Trade and other payables 6 (68,290) (46,081)
Provisions (10,095) (17,893)
Lease liability (678) (943)
TOTAL CURRENT LIABILITIES (79,063) (64,917)
NET CURRENT ASSETS 250,443 297,951
NON-CURRENT LIABILITIES
Lease liability (12,026) (6,866)
Provisions 6 (21,974) (35,028)
TOTAL NON-CURRENT LIABILITIES (34,000) (41,894)
NET ASSETS 268,718 295,508
EQUITY
Called up share capital 8 30,849 30,823
Share premium account 542,735 542,593
Merger reserve (1,973) (1,973)
Foreign exchange reserve 346 172
Retained loss (303,239) (276,107)
TOTAL EQUITY 268,718 295,508
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Note Called up share capital Share premium account Foreign exchange reserve
£000 £000 Merger reserve £000 Retained loss Total equity
£000 £000 £000
At 1 May 2022 30,658 542,323 (1,973) 12 (176,067) 394,953
Transactions with owners
Issue of shares 165 270 - - - 435
Credit to equity for share-based payment - - - - 1,161 1,161
Total transactions with owners 165 270 - - 1,161 1,596
Loss for the year - - - - (101,201) (101,201)
Other comprehensive income - - - 160 - 160
Total comprehensive loss - - - 160 (101,201) (101,041)
At 1 May 2023 30,823 542,593 (1,973) 172 (276,107) 295,508
Transactions with owners
Issue of shares 26 142 - - - 168
Credit to equity for share-based payment - - - - 92 92
Total transactions with owners 26 142 - - 92 260
Loss for the year - - - - (27,224) (27,224)
Other comprehensive income - - - 174 - 174
Total comprehensive loss - - - 174 (27,224) (27,050)
At 30 April 2024 30,849 542,735 (1,973) 346 (303,239) 268,718
CONSOLIDATED CASH FLOW STATEMENT
2024 2023
Note £000 £000
Net cash used in operating activities 9 (50,581) (72,554)
Investing activities
Investment in joint venture/associate - (472)
Proceeds on sale of joint venture 1,483 -
Deposits paid on new leasehold assets (496) -
Purchases of property, plant and equipment (11,967) (8,553)
Capital grants received against purchases of non-current assets - 124
Proceeds on disposal of property, plant and equipment 19 -
Payments for intangible assets (2,037) (6,562)
Interest received 12,203 4,562
Net cash used in investing activities (795) (10,901)
Financing activities
Issue of ordinary share capital 167 1,048
Costs associated with previous equity raise - (612)
Payment of lease liabilities (1,058) (531)
Net cash used in financing activities (891) (95)
Decrease in cash and cash equivalents (52,267) (83,550)
Cash and cash equivalents at the beginning of year 282,557 365,882
Effect of foreign exchange rate changes 58 225
Cash and cash equivalents at the end of year 230,348 282,557
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
ITM Power PLC is a public company incorporated in England and Wales under the
Companies Act 2006. The registered office is at 2 Bessemer Park, Sheffield,
South Yorkshire S9 1DZ. The nature of the operations and principal activities
of the Company and its subsidiaries (together the "Group") are disclosed in
the Strategic Report.
These financial statements are presented in Pounds Sterling, which is the
currency of the primary economic environment in which the Group operates.
The summary accounts set out above do not constitute statutory accounts as
defined by Section 434 of the UK Companies Act 2006. The summarised
consolidated balance sheet at 30 April 2024, the summarised consolidated
income statement and other comprehensive income, the summarised consolidated
statement of changes in equity and the summarised consolidated cash flow
statement for the year then ended have been extracted from the Group's 2024
statutory financial statements upon which the auditor's opinion is unqualified
and did not contain a statement under either sections 498(2) or 498(3) of the
Companies Act 2006. The audit report for the year ended 30 April 2023 did not
contain statements under sections 498(2) or 498(3) of the Companies Act 2006.
The statutory financial statements for the year ended 30 April 2023 have been
delivered to the Registrar of Companies. The 30 April 2024 accounts were
approved by the directors on 14 August 2024 but have not yet been delivered to
the Registrar of Companies.
2. MATERIAL ACCOUNTING POLICIES
Basis of accounting
The summary accounts are based on the consolidated financial statements that
have been prepared in accordance with UK-adopted international accounting
standards and with the requirements of the Companies Act 2006 as applicable to
companies reporting under those standards.
They have been prepared under the assumption that the Group operates on a
going concern basis and on the historical cost basis. Historical cost is
generally based on the fair value of the consideration given in exchange for
goods and services at that time.
Going Concern
The Directors have prepared a cash flow forecast for the period from the
balance sheet date until 30 September 2025. This forecast indicates that the
Group would expect to remain cash positive without the requirement for further
fundraising based on delivering the existing pipeline.
By the end of the period analysed, the Group is forecast to retain significant
cash reserves. This should give the business sufficient funds to trade for the
going concern period if the business continues according to its medium-term
business plan.
The business continues in a cash outflow position, using funding generated
from previous fundraises. As such, this cash flow forecast was stress-tested,
both for a worst-case scenario of no receipts and inflationary pressures on
utilities and purchases. In all the scenarios tested, the business would
remain cash positive for the 12 months from the date of approval of these
financial statements.
The accounts have therefore been prepared on a going concern basis.
3. Revenue, OPERATING SEGMENTS AND INCOME FROM GOVERNMENT
GRANTS
Disaggregated revenue recognised 2024 2023
£000 £000
Revenue from product sales recognised over time 75 -
Revenue from product sales recognised at point in time 8,144 4,099
Consulting contracts recognised at point in time 5,040 636
Maintenance contracts recognised at point in time 1,498 250
Fuel sales 216 244
Other 1,536 -
Revenue in the Consolidated Income Statement 16,509 5,229
Grant income (claims made for projects) 401 155
Other government grants (R&D claims) 827 1,419
Other income - government grants 1,228 1,574
17,737 6,803
All revenues are derived from continuing operations.
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.
At 30 April 2024, the aggregate amount of the transaction price allocated to
remaining performance obligations of continuing build contracts was £79.7m
(2023: £87.7m). The Group expects to recognise 24% of this within one year,
with the remaining 76% expected after one year.
Segment information
ITM Power PLC is organised internally to report to the Group's Chief Operating
Decision Maker, the Chief Executive Officer, on the financial and operational
performance of the Group as a whole. The Group's Chief Operating Decision
Maker is ultimately responsible for Group-wide resource allocation decisions,
evaluating performance on a Group-wide basis and any elements within it on a
combination of information from the executives in charge of the Group and
Group financial information.
Management has previously identified three target markets for our products
(Power, Transport, and Industry). Revenue reporting looks at these three
sectors to assess the commerciality of those sales. However, decisions for
resourcing cannot be made by reference to these as segments. The Group
operates a single factory in the UK that builds units for use across all
sectors. It would be hard to assign overhead costs to particular product
segments as builds all occur in that one facility and can run concurrently.
Similarly, fixed assets and suppliers' balances cannot be assigned to the
production of one specific segment. For overhead costs and net asset
resources, therefore, decisions are taken on a Group basis.
An analysis of the Group's revenue, by major product (or customer group), is
as follows:
2024 2023
£000 £000
Power 253 126
Transport 2,764 2,717
Industry 7,275 1,750
Other 6,217 636
Revenue in the Consolidated Income Statement 16,509 5,229
The "Other" category contains consultancy values that cannot be allocated to a
single product group.
Geographical analysis
The United Kingdom is the Group's country of domicile but the Group also has
subsidiary companies in the United States, Germany and Australia. All
non-current tangible assets were domiciled in the United Kingdom (NBV:
£29.1m) or Germany (NBV: £0.27m). All intangible assets were domiciled in
the United Kingdom. Revenues have been generated as follows:
2024 2023
£000 £000
United Kingdom 5,900 699
Germany 6,028 1,750
Austria 1,659 -
Rest of Europe 996 188
United States 216 244
Australia 1,710 2,348
16,509 5,229
Included in revenue are the following amounts, which each accounted for more
than 10% of total revenue:
2024 2023
£000 £000
Customer A Industrial n/a 1,750
Customer B Other 4,490 636
Customer C Chemical 3,121 n/a
Customer D Refuelling <10% 2,348
Customer E Chemical 1,659 n/a
4. Calculation of Adjusted EBITDA
In reporting EBITDA, Management uses the metric of adjusted EBITDA, removing
the effect of non-repeating costs that are not directly linked to the trading
performance of the business in the year under review:
2024 2023
£000 £000
Loss from operations (38,011) (103,713)
Add back:
Depreciation 4,008 3,006
Amortisation 1,921 942
Loss on disposal of non-current assets 126 64
Impairment 1,417 4,469
Non-underlying share-based payment charge/(credit) (Note 25) 149 (420)
Exceptional costs of restructure - 1,436
(30,390) (94,216)
The exceptional costs of restructure refer to redundancy costs in the prior
year that largely sit within the staff costs in administrative expenses.
Management removed these in the adjusted EBITDA calculation due to their
one-off nature that would otherwise distort the true operational figures.
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.
5. LOSS PER SHARE
The calculation of the basic and diluted earnings per share is based on the
following data:
2024 2023
£000
£000
Loss for the purposes of basic and diluted loss per share being net loss (27,224) (101,201)
attributable to owners of the Company
Number of shares
Weighted average number of ordinary shares for the purposes of basic and 616,743,434 614,683,780
diluted earnings per share
Loss per share 4.4p 16.5p
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 in the years presented was 6,582,037 (2023: 5,999,019).
6. Provisions
Leasehold property provision Warranty Provision Other provisions Employer's NIC provision Total
for contract losses provisions
£000 £000 £000 £000 £000 £000
Balance at 1 May 2022 (854) (2,938) (12,493) (1,330) (4,153) (21,768)
Provision created in the year (42) (3,219) (44,810) (4,059) - (52,130)
Use of the provision - 2,303 14,673 1,615 18,591
Release in the year - - - 63 2,323 2, 386
Balance at 1 May 2023 (896) (3,854) (42,630) (5,326) (215) (52,921)
Provision created in the year (213) (344) (10,734) (4,524) (261) (16,076)
Use of the provision - - 27,695 - 71 27,766
Release in the year - 767 5,817 2,578 - 9,162
Balance at 30 April 2024 (1,109) (3,431) (19,852) (7,272) (405) (32,069)
In the balance sheet:
Expected within 12 months - (452) (3,152) (6,086) (405) (10,095)
(current)
Expected after 12 months (1,109) (2,979) (16,700) (1,186) - (21,974)
(non-current)
The leasehold property provision represents management's best estimate for the
dilapidations work that may be required to return our leased buildings to the
landlords at the end of the lease term. In a prior year we recognised a
dilapidations provision for the present value of the cost of works quoted by
our Employer's Agent for stripping our current factory building back to the
original condition at handover from the landlords. The discounting will
continue to amortise over the remaining 12 years of the lease. Although we
have taken on the lease of the unit next door in the current year, no
provision for dilapidations has yet been recognised; this is due to work
having yet to be undertaken for the fit-out of the unit.
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 increase on the
provision in the current year is due to a number of factors including changes
of scope to projects, additional on-site engineering works, increased energy
and labour costs due to extended stack testing times and updating costs for
the effects of inflation since the original quote to the customer. The
increase in the year is allocated against three 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 late delivery
on contracts with customers. It also includes amounts payable to contracted
parties for potential non-performance on contracts.
There is a provision for Employer's NIC due on share options as they exercise.
7. inventory
Inventories held 2024 2023
£000
£000
Raw materials 10,257 18,308
Work in progress 60,160 40,532
70,417 58,840
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 have been
stated after a provision for impairment of obsolete inventory of £23.6m
(2023: £17.8m).
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. Inventory has increased as contract sizes have increased and we are
also building to inventory when possible.
The total cost of inventories recognised as an expense through the income
statement was £18.6m (2023: £23.3m)
8. CALLED UP SHARE CAPITAL AND RESERVES
Accounting policy:
An equity instrument is any contract that evidences a residual interest in the
assets of the Group after deducting all of its liabilities. Equity instruments
issued by the Group are recorded at the proceeds received, net of direct issue
costs.
Called up, allotted and fully paid (ordinary shares of 5p each) Number of shares
£000
At 1 May 2023 616,465,655 30,823
Share options exercised 513,668 26
At 30 April 2024 616,979,323 30,849
Holders of ordinary shares have voting rights at General Meetings in
proportion with their shareholding.
The share premium account represents the amount paid in excess of the nominal
value when shares are issued.
The merger reserve arose on the acquisition of ITM Power (Research) Limited in
2004.
The foreign exchange reserve arises upon consolidation of the foreign
subsidiaries in the Group, and accounts for the difference created by
translation of the income statement at average rate compared with the year-end
rate used on the balance sheet as well as the effect of the change in exchange
rates on opening and closing balances.
The Group's other reserve is retained earnings which represents cumulative
profits or losses, net of any dividends paid and other adjustments.
9. notes to the cash flow statement
2024 2023
£000 £000
Loss from operations (38,011) (103,713)
Adjustments:
Depreciation 4,008 3,006
Share-based payment (through equity) 92 1,161
Foreign exchange on intercompany transactions 176 (137)
Loss on disposal 126 64
Impairment 1,417 4,469
Amortisation 1,921 942
Operating cash flows before movements in working capital (30,271) (94,208)
Increase in inventories (11,577) (26,642)
(Increase)/decrease in receivables (9,219) 5,852
Increase in payables 22,209 11,787
(Decrease)/increase in provisions (21,056) 31,152
Cash used in operations (49,914) (72,059)
Interest paid (605) (495)
Income taxes paid (62) -
Net cash used in operating activities (50,581) (72,554)
10. Events after the balance sheet date
In August 2024, we signed a contract with Shell for its 100MW Refhyne II
project at its refinery in Wesseling.
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