TIDMITM
RNS Number : 9565O
ITM Power PLC
25 August 2017
25 August 2017
ITM Power plc
("ITM Power", the "Group" or the "Group")
Final Results for the Year to 30 April 2017
ITM Power (AIM:ITM), the energy storage and clean fuel Group,
announces preliminary results for the year ended 30 April 2017. The
Group currently has GBP17.8m under contract and a further GBP17.6m
in the final stages of negotiation, constituting a total pipeline
of GBP35.5m having recognised GBP6.3m of income in H2 2017.
Commercial
Clean Fuel
-- Launched first London Hyfive refuelling station at the
National Physical Laboratory, Teddington, London
-- Opened first hydrogen refuelling station with Shell in the UK
and obtained planning permission for three other Shell stations
-- GBP3.5m contract won to deploy a 3MW electrolyser system in the year ending 30 April 2018
Power-to-Gas
-- Contracted the GBP1.1m sale of 0.5MW electrolyser to National
Grid under the HyDeploy project for build in FY2019
-- EUR1.5m sales contract to HDF, a multi-MW electricity storage
solutions provider, ITM's first sale in France
-- EUR0.7m electrolyser sale to global speciality gas Group by competitive tender
Renewable Chemistry
-- GBP1.6m sale of a 1.25MW electrolyser to a major Engineering
Procurement & Construction ("EPC") Group
Since Year End
-- A further GBP4.1m of products under contract secured since
year end (31 July 2016: GBP1.4m)-
-- A further GBP12.3m of grant contracts entered into final
stages of negotiation (31 July 2016: GBP0.5m)
Financial
-- Total Revenue & Grant Funding of GBP9.2m (2016: GBP8.2m) up 13%, comprising:
o Revenue - GBP2.4m (2016: GBP1.9m) up 25%
o Grant income - GBP4.2m (2016: GBP3.2m) up 30%
o Grants receivable for capital projects - GBP2.7m (2016: GBP3.1m), down 14%
-- Increase in property, plant and equipment net book value of GBP4.6m from GBP3.0m, up 53%
-- Loss from operations GBP3.6m (2016: GBP4.4m), down 18%
-- Cash balances of GBP3.0m (2016: GBP3.3m), down 10%; comprising
o GBP1.6m available cash (2016: GBP1.1m)
o GBP1.5m restricted cash on guarantee (2016: GBP2.1m)
-- Development costs of GBP0.15m capitalised in the year (2016: GBP0.25)
-- A material uncertainty exists around going concern as the
Group remains in a growth phase. Recognising the current need to
manage working capital carefully and efficiently, ITM Power
continues to structure quotes to include upfront payment with
orders so that working capital is not impacted adversely by
increased activity.
Technical
-- Winner of the Rushlight award for improvement of the manufacturing process
-- New Control room established in Sheffield
-- Development of an autonomous test facility for ultra-high current density (cost reduction)
Corporate
-- Appointment of new Managing Director of ITM Power GmbH, Calum McConnell
-- GBP5.7m gross funding round secured in January 2017 for
working capital to service existing pipeline
-- Appointment of Investec Bank plc as Nominated advisor and sole broker
-- Exhibited at All-Energy, the UK's largest renewable energy event, Glasgow, 10 & 11 May 2017
-- Staff numbers increased by 4 full-time equivalents (currently the Group has 72 staff)
-- Development work is tightly focused on increasing
electrolyser scale, improving performance and cost reduction
The annual general meeting shall be held on Wednesday 18 October
2017 at 11:00 at 1 Cornhill, London EC3V 3ND.
Graham Cooley, CEO, commented, "This is a very exciting time for
the energy industry, and ITM Power is at the forefront of a market
which will revolutionise air quality and energy storage for future
generations. As evidenced by the significant growth in our
pipeline, momentum in the hydrogen sector is continuing to gather
pace. Our market is growing rapidly and with larger systems,
compliant to operate all over the world, ITM Power is in a great
position to be a market leader."
Roger Putnam, Chairman, added, "ITM Power continues to develop a
burgeoning pipeline of exciting projects that demonstrate that
there is a large and growing market for electrolyser technology.
Our focus remains ensuring that ITM Power is optimally positioned
to deliver its growing pipeline of established high efficiency
products into those markets. I would like to thank the staff this
year for their continued hard work as the Group takes its next
steps as a leading technology supplier."
For further information please visit www.itm-power.com or
contact:
ITM Power plc
Graham Cooley, CEO +44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and
Broker)
Jeremy Ellis / Chris Sim / Jonathan Wynn +44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / James Collins +44 (0)20 7920 3150
About ITM Power plc
ITM Power manufactures integrated hydrogen energy solutions
which are rapid response and high pressure that meet the
requirements for grid balancing and energy storage services, and
for the production of clean fuel for transport, renewable heat and
chemicals. ITM Power plc was admitted to the AIM market of the
London Stock Exchange in 2004. The Company received GBP4.9m as a
strategic investment from JCB in March 2015. The Company signed a
forecourt siting agreement with Shell in September 2015. The
Company currently has GBP24.06m of projects under contract and
GBP18.22m of contracts in the final stages of negotiation,
totalling GBP42.28m (subject to exchange rate variation).
REVIEW OF THE BUSINESS
Business environment
Today ITM Power is a globally recognised expert in hydrogen
technologies with applications in clean fuel for transport, energy
storage and industry. We believe that all of these markets will
grow significantly over the next few years based on the increasing
drive for improved air quality in inner cities worldwide, the
growth of renewables in the energy mix and the need to decarbonise
the production of hydrogen for industry.
We now have four publicly accessible hydrogen refuelling
stations (HRS) in operation with a further six under contract,
positioned to take advantage of the accelerating roll-out of
commercial and passenger fuel cell electric vehicles. With this
market in its infancy, these stations will initially incur losses,
and will be dependent on vehicle rollout for the stations to reach
profitability and positive cash flows in the medium to long term.
The Group will report hydrogen sales in the April 2018 financial
statements. In addition, we have secured GBP5.2m in funding for our
first fuel cell electric bus (FCEB) refueller in Birmingham. We
expect the FCEB market to grow quickly, driven by air quality
legislation. In the UK, cities are now under increasing pressure to
improve air quality. Air pollution levels have reached "very high"
or "high" in eight regions and London has been issued a final
warning by the EU. This is a global problem and the products and
services ITM Power is developing, particularly for the 'return to
base' FCEB market, will be exportable to multiple locations
worldwide.
Power-to-Gas
Proposals during the year from the EU include energy storage
involving the conversion of electricity to another energy carrier,
such as hydrogen. Ongoing work includes investigating
hydrogen/methane blends and establishing admissible concentration
levels for hydrogen in natural gas grids across Europe. These
developments will enable Europe-wide deployment of power-to-gas
plant for injecting hydrogen into the gas grid while offering
balancing services to the electricity grid. These balancing
services can be an important source of revenue for operators and
ITM Power's rapid response PEM technology allows units to be turned
on and off in under one second making them eligible for the UK
National Grid's Enhanced Frequency Response Payments.
ITM Power enjoys a unique position having supplied the world's
first Proton Exchange Membrane (PEM) Power-to-Gas electrolyser in
2014, which continued throughout the financial year to inject
hydrogen into the German gas distribution network. The Group
supplied a second PEM Power-to-Gas system to RWE Group Gmbh in the
financial year ended April 2015, and contracted in March 2016 to
supply a third in Germany, which remained in build and on schedule
at year end. The Group also contracted with National Grid as part
of the HyDeploy project for a 0.5MW electrolyser to inject into a
UK gas network for deployment in calendar year 2018.
Clean Fuel
ITM Power has won contracts to supply on-site hydrogen
generation equipment for refuelling in the UK and the US, and more
recently to France, and is currently rolling out a network of 10
hydrogen refuelling stations in the UK of which four are now open
for public access.
ITM Power systems are now at a scale where a fleet of thirty
buses could be supported by one electrolyser on a return to base
principle and large schemes are now being envisaged, for
applications such as heavy logistics, trains and ships. In the year
the Group was awarded a GBP3.5m contract for its first hydrogen
refuelling station for buses which will be deployed in 2018.
Renewable Chemistry
In the year, ITM Power won its first renewable chemistry
contract with a major EPC contractor and the project was
substantially completed within the year. This plant will serve as
reference plant for future bids into the industry. The scale of
hydrogen production capacity required in the renewable chemistry
market means that this market will likely adopt the larger scale,
multi-MW systems.
ITM Power showcased a series of large scale electrolyser
configurations up to 100MW in size at Hannover Messe 2017 in April
this year, attracting significant interest from potential customers
worldwide.
Key financials
A summary of the financial KPI's is set out in the table below
and discussed in this section.
2017 2016 2015 2014 2013
------------------- --------- --------- --------- --------- -------------
Total Projects GBP9.2m GBP8.20m GBP5.1m GBP3.1m GBP1.4m
income, being
sales and grants
receivable
------------------- --------- --------- --------- --------- -------------
Of which: Sales GBP2.4m GBP1.9m GBP1.6m GBP1.1m GBP0.1m
Revenue
------------------- --------- --------- --------- --------- -------------
Of Which: Grant GBP4.2m GBP3.2m GBP1.8m GBP1.4m GBP1.4m
recognised
in the income
statement
------------------- --------- --------- --------- --------- -------------
Of Which: Grant GBP2.6m GBP3.1m GBP1.6m GBP0.6m GBPnil
recognised
on the balance
sheet (offsetting
asset build)
------------------- --------- --------- --------- --------- -------------
New grant project GBP6.6m GBP8.1m GBP5.8m GBP3.4m GBP3.7m
awards*
------------------- --------- --------- --------- --------- -------------
Pre-tax loss GBP3.6m GBP4.4m GBP5.7m GBP8.0m GBP6.2m
------------------- --------- --------- --------- --------- -------------
Projects Under GBP35.5m GBP16.3m GBP10.5m GBP9.3m Not measured
Contract or
in final stage
of negotiation*
------------------- --------- --------- --------- --------- -------------
Non-Current GBP4.9m GBP3.3m GBP2.5m GBP1.8m GBP1.5m
Assets
------------------- --------- --------- --------- --------- -------------
Net Assets GBP13.1m GBP11.6m GBP10.3m GBP11.0m GBP7.4m
------------------- --------- --------- --------- --------- -------------
*Contracts can take a period longer than 12 months to unwind
through the accounts. In the year ended 30 April 2017, income
recognised was GBP9.2m against a pipeline reported at the results
announcement of GBP16.3m. Therefore, of the contracted pipeline,
the Group delivered on projects equivalent to 57%.
Projects under contract and in the final stage of negotiation
are a non-statutory measure that the board of directors use to
assess progress and monitor the Group. Items under contract are
contract projects that are being progressed. Projects in
negotiation are added once the directors are 100% certain that a
contract will get signed, and represents future pipeline. These
numbers are reported via the regulatory news service (RNS) with
each announcement. The directors do not make representations as to
the timing of the revenue recognition associated with the projects
under contract or in the final stages of negotiation.
Financial performance
The pre-tax loss for the year under review decreased to GBP3.6m
(2016: GBP4.4m) and net cash burn before fund raise decreased to
GBP5.9m (2016: GBP8.5m). Cash burn is a non-statutory measure the
directors use to monitor the Group, and is calculated by deducting
from the cash flow the effects of any equity fund raise.
The decrease in loss in the year being reported can be
attributed to three major factors - a concerted development and
engineering effort towards product efficiencies through economies
of scale and standardisation; the increase in sales revenue and at
profitable margins, and; the increased grant funding received in
the year on both new and existing projects. Grant funding has
specifically increased as the rate of grant funding (the
intervention rate, or percentage reimbursed to the Group) has
increased compared with prior years, such that grant activity was
increasingly between 70% and 100% funded in the year in review.
The cash burn decrease is a result of increased sales activity
in the year, along with an increased intervention rate on grants
that were completed in the year. The Group was also the recipient
of large grant claims debtors from the prior year, which were
received in the current year. The timing of grant receipts is often
not aligned in the same period as the expenditure. This cash
outflow, which is significantly greater than the losses in the
year, shows the continued commitment of ITM Power to being a
refuelling system owner and operator as the industry grows in the
UK in order to gain market share and improve opportunities for FCEV
adoption.
Debtors have increased from GBP6.5m to GBP11.1m at the year ends
in 2016 and 2017 respectively. This movement is dominated by
prepayments made to suppliers near year end to order components for
the existing pipeline and also as deposits on dispensers for
deployment as part of the fleet of refuelling stations. Prepayments
and accrued income was GBP8.8m in 2017, up GBP4.7m year on year
(2016: GBP4.0m).
Creditors have increased from GBP1.8m to GBP6.7m at the year
ends in 2016 and 2017 respectively. This movement is a result of an
increase in accruals and deferred income from GBP0.9m to
GBP5.6m.
Revenue has increased as the Group gains traction in the growing
hydrogen market, but is also representative of servicing a growing
pipeline. In the year, revenue growth was encouraging and comprised
largely of an electrolyser for the chemicals industry, and part
builds of a number of contracts announced in the year, including
for refuelling applications in Germany. With the Group in a strong
pipeline development and delivery phase, it is likely that the next
period will continue to see a supply of units to Europe despite the
challenges in the current political climate. The Group will
continue to operate in a high value, low volume environment too,
which will continue to influence the results over the next few
years.
ITM Power is first and foremost a manufacturer, and the majority
of revenue comes from construction contracts to design and build
full hydrogen systems. These systems can then be deployed in a
number of scenarios.
Revenue continues to be driven by sales to the chemical
industry, which is a newer application identified for the Group's
products. There has also been an increase year on year in
consultancy, with ITM Power a recognised expert in the field. The
Group is starting to find its consultancy services are procured
with a view to sourcing units in the future in competitive tenders.
ITM Power has a strong record in competitive tenders and considers
the technical achievements made in the year will make the Group
even more competitive.
In the year, the Group capitalised development costs of GBP0.15m
(2016: GBP0.25m). This is for product developments that will
continue to keep the Group at the forefront of PEM electrolysis and
the directors see continued product development as key to building
commercial traction.
Total collaborative project funding recognised in the year was
GBP6.8m of which GBP4.2m is recognised on the income statement
(2016: GBP6.3m, of which GBP3.2m was recognised on the income
statement). This increase in asset builds supported through project
funding has allowed ITM Power to develop a suite of hydrogen
generation equipment that it will own and operate as part of the
collaborative projects, with data and knowhow to be incorporated
into new generations of electrolysers.
In the year, three refuelling stations have been opened to the
public around London. Revenues from refuelling will be reported
separately in note 5 of the financial statements from the year
ended April 2018.
Commentary on the year's revenue
The sales order book at the year-end stood at GBP5.3m (2016:
GBP2.9m). This increase is representative of the growing commercial
pipeline and represents a large Power-to-Gas unit, some smaller
units, the sale of a hydrogen refuelling station in France and the
first contract with National Grid.
The value of projects under contract at the time of writing
stood at GBP17.8m (2016: GBP16.3m). Projects under contract
represents the value of contracted revenue and grant funding yet to
be recognised by ITM Power in the future. The Board believes this a
more accurate reflection of the increase in activity the Group has
experienced in the year. The Board also recognises that not only do
contracts need to continue to be signed but also that delivery on
these contracts is a part of the picture that leads to a fully
commercial offering and a reduction in the Group's proportionate
mix of grant funding as part of the pipeline.
Financial position
At year end, ITM Power had GBP3.0m (2016: GBP3.3m) of funds in
the bank, and trade and other receivables of GBP11.1m (2016:
GBP6.5m), totalling GBP14.1m (2016: GBP9.8m). The receivables
predominantly relate to trade debtors (while 2016 was predominantly
grant income debtors). ITM Power had cash held on guarantee that
totalled GBP1.5m (2016: GBP2.2m). Presently, the Group is required
to place amounts on guarantee as cash cover, which limits working
capital available to the Group mid-contract. This limited the Group
to GBP1.6m of available cash at year end. As such, there is a
material uncertainty over the going concern assumption due to the
risk around the timing of cashflows. Recognising the current need
to manage working capital carefully and efficiently, ITM Power
continues to structure quotes to include upfront payment with
orders so that working capital is not impacted adversely by
increased activity.
At year end, the Group had trade creditors of GBP0.9m against a
prior year balance of GBP0.7m. This number has predominantly
increased due to the stage of progress on contracts in the
pipeline, but there has been an increase in creditor days as better
supplier terms are negotiated. The Group also had accruals and
deferred income of GBP5.6m against a prior year figure of GBP0.9m.
This reflects both money received up front for construction
contracts and also accruals for goods received that have not yet
been invoiced.
ITM Power has seen an increase in fixed assets to GBP5.0m from
GBP3.3m in the prior year as the Group engages in projects that
create assets for the future. This is a policy that will continue,
especially with the completion of H2ME and H2ME2 projects.
Outlook
The Group has enjoyed a greater level of customer engagement in
the past year than at any other time in its history. This was never
more noticeable than at the Hannover Messe in April 2017 where the
Group enjoyed the greatest footfall it had ever experienced as it
showcased its 100MW electrolyser plant. The year ending 30 April
2017 also saw the Group deliver a number of landmark events,
including the deployment and opening of the first ITM Power
refuelling station on a Shell forecourt, and of two further
refuelling stations in London, as well as successfully winning a
contract to build a 3MW bus refueller in the UK. ITM Power is now
in a position to be cost competitive with other forms of
electrolysers and other hydrogen solutions, having hit the European
Horizon2020 price target for MW scale electrolysers.
The directors have disclosed as part of the going concern
statement that there is a current sensitivity to the timing of
sales and grant receipts. As always, near term cash resources will
continue to be closely monitored and controlled due to the
associated working capital requirements of the Group in delivering
its growing order pipeline, and winning new business. The Board
believes that in order for the Group to secure the best chance of
winning new business contracts, the Group needs to be able to
continue to demonstrate to potential customers its suitability to
be awarded long term contracts. A consequence of this is that
certain customers may continue to request that the Group provide
guarantees for contracts. A mitigating action the Group is taking
is to structure smaller stage payments aligned with more frequent
milestones.
With markets growing rapidly, and air quality in particular
being a major issue throughout 2017, ITM Power looks forward to
developing further contracts in the pipeline. The bulk of enquiries
continues to be for 0.3MW to 6MW, often including ancillary
hydrogen energy systems and after sales support contracts. In
addition, the Group is increasingly receiving enquiries from
multinational entities for significantly larger platforms and for a
broader range of applications.
The Board looks forward to reporting progress as contracts are
awarded, and to providing an update at the AGM.
STRATEGY AND OBJECTIVES
Strategies:
ITM Power is now firmly focussed on large scale solutions. The
current strategy is to use the existing, operational Thüga and RWE
projects as a reference plant for Power-to-Gas sales.
Using the same initial platform, the Group will also be able to
show demonstrable success in the near future of hydrogen, using the
M1 Wind refueller and HyFive stations as reference plant for
further refuelling stations. Similarly the Shell forecourt at
Cobham services and the 3MW bus refueller contract that was won in
the year will serve to demonstrate ITM Power's competitiveness and
application for electrolysers.
In the medium term, the national mobility programmes, in which
ITM Power has positioned itself as a key partner for refuelling
through electrolysis, will drive refuelling station sales.
ITM Power is currently positioned as a refueller of hydrogen,
and will also be able to gain market share for hydrogen sales as
vehicle adoption accelerates. The Group expects to start reporting
on hydrogen sales in the results for the year ending 30 April
2018.
Objectives:
ITM Power had immediate objectives in the prior year in terms of
product development and, in particular, scale-up of proven
electrolysis equipment. Having successfully achieved these,
immediate objectives are to generate more sales traction at higher
volumes and higher capacity in order to achieve penetration of
larger markets.
Cash flow remains a key measure for the Board, with the other
key objective for ITM Power being the achievement of a positive
cash flow in the shortest possible time, whilst maintaining the
appropriate working capital requirements. In the year in review,
cash flow for the year was an outflow of GBP0.3m after the fund
raise of GBP5.6m gross (2016: GBP3.2m after GBP5.7m gross fund
raise). With a sensitivity existing around certain sales and grant
receipts, continuing to closely control cash resources will be a
short-term objective for the management.
Break-even is another measure for the Board and is one of the
key drivers in decisions to develop business.
Strategies for achieving our objectives
Product development, and in particular upscaling of product
offering, will be achieved through securing and utilising project
funding. This serves the dual purpose of reducing cash outflow and
creating strong key partnerships within industry.
Short-term cash flow is aided but not totally mitigated by ITM
Power quoting for sales with upfront payments, which reduces
reliance on working capital. This is dependent on the type of
guarantees customers may require the Group to offer, including cash
cover for some guarantees, which does not help working capital at
the outset. Cash outflow is minimised through working with support
from partners on the development of technology whilst we are
continuing to build a contract pipeline. Historically, it has taken
two years for potential customers to move through a learning curve
and to reach the point of purchasing equipment, and we are keeping
this in mind as we build a larger pipeline.
NON-FINANCIAL KEY PERFORMANCE INDICATORS
FY 2017 FY 2016
---------------- -------- --------
Fuel Dispensed 1,043 -
(kg)
---------------- -------- --------
Fuel Contracts
signed 14 1
---------------- -------- --------
Given the early stage of the refuelling market, no expectation
has been set with regards to the KPI performance in the current
year but these KPIs will act as a baseline for future
performance.
2017 2016 2015 2014 2013
--------------------- ------- ------ ------ ------ -----
Hydrogen production
capacity under
contract in kw 12,138 5,948 2,685 1,613 472
--------------------- ------- ------ ------ ------ -----
CONSOLIDATED INCOME STATEMENT
Year ended 30 April 2017
Note 2017 2016
GBP'000 GBP'000
Revenue 5 2,415 1,930
Cost of sales (1,757) (1,483)
-------- --------
Gross profit 658 447
Operating costs
* Research and development (2,023) (1,952)
* Prototype production and engineering (2,615) (2,954)
* Sales and marketing (1,528) (1,364)
* Administration (2,202) (1,724)
Other operating income -
grant income 6 4,160 3,188
Loss from operations (3,550) (4,359)
Investment income - -
Loss before tax (3,550) (4,359)
Tax 8 (230) 359
-------- --------
Loss for the year (3,780) (4,000)
-------- --------
OTHER TOTAL COMPREHENSIVE
INCOME:
Items that may be reclassified
subsequently to profit or
loss
Foreign currency translation
differences on foreign operations (250) (62)
-------- --------
Net other total comprehensive
income (250) (62)
-------- --------
Total comprehensive loss
for the year (4,030) (4,062)
======== ========
Loss per share
Basic and diluted 6 (1.7p) (2.0p)
======== ========
All results presented above are derived from continuing
operations and are attributable to owners of the Group.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 30 April 2017
Called Share Foreign
up share premium Merger exchange Retained Total
capital account reserve reserve loss equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 May 2015 8,905 54,738 (1,973) 116 (51,442) 10,344
Issue of shares 1,940 3,413 - - - 5,353
Loss for the year - - - - (4,000) (4,000)
Other comprehensive
income for the year - - - (62) - (62)
--------- -------- -------- --------- -------- --------
Total comprehensive
income for the year - - - (62) (4,000) (4,062)
========= ======== ======== ========= ======== ========
At 30 April 2016/
1 May 2016 10,845 58,151 (1,973) 54 (55,442) 11,635
========= ======== ======== ========= ======== ========
Issue of shares 1,686 3,779 - - - 5,465
Loss for the year - - - - (3,780) (3,780)
Other comprehensive
income for the year - - - (250) - (250)
--------- -------- -------- --------- -------- --------
Total Comprehensive
income for the year - - - (250) (3,780) (3,929)
At 30 April 2017 12,531 61,930 (1,973) (196) (59,222) 13,070
========= ======== ======== ========= ======== ========
CONSOLIDATED BALANCE SHEET
As at 30 April 2017
Note 2017 2016
GBP'000 GBP'000
NON CURRENT ASSETS
Intangible Assets 380 252
Property, plant and equipment 4,519 3,024
-------- --------
4,899 3,276
CURRENT ASSETS
Inventories 760 291
Trade and other receivables 4 11,082 6,487
Cash and cash equivalents 1,558 1,207
Restricted cash and cash
equivalents 1,446 2,129
-------- --------
TOTAL CURRENT ASSETS 14,846 10,114
-------- --------
CURRENT LIABILITIES
Trade and other payables (6,666) (1,755)
Provisions (9) -
TOTAL CURRENT LIABILITIES (6,675) (1,755)
-------- --------
NET CURRENT ASSETS 8,171 8,359
-------- --------
NET ASSETS 13,070 11,635
======== ========
EQUITY
Called up share capital 5 12,531 10,845
Share premium account 61,930 58,151
Merger reserve (1,973) (1,973)
Foreign exchange reserve (196) 54
Retained loss (59,222) (55,442)
-------- --------
TOTAL EQUITY 13,070 11,635
======== ========
CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 April 2017
2017 2016
Note GBP'000 GBP'000
Net cash used in operating
activities 2 (5,048) (7,098)
-------- --------
Investing activities
Purchases of property,
plant and equipment (3,293) (3,315)
Capital Grants received
against purchases of property
plant and equipment 2,646 2,148
Proceeds on disposal of
property, plant and equipment 4 -
Payments for intangible
assets (151) (252)
Net cash (used in) / from
investing activities (794) (1,419)
-------- --------
Financing activities
Issue of ordinary share
capital 5,732 5,819
Costs associated with
fund raise (267) (466)
Net cash from financing
activities 5,465 5,353
Decrease in cash and cash
equivalents (377) (3,164)
Cash and cash equivalents
at the beginning of year 3,336 6,576
Effect of foreign exchange
rate changes 45 (76)
-------- --------
Cash and cash equivalents
at the end of year 3,004 3,336
======== ========
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended April 2017
1. BASIS OF ACCOUNTING
The preliminary announcement is based on the financial
statements which have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by
the European Union.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of IFRS, this announcement does not itself
contain sufficient information to comply with IFRS. The Group
expects to publish full financial statements that comply with IFRS
in July 2016.
Going concern
The directors have prepared a cash flow forecast (the
"Forecast") for the period ending 31 August 2018 ("The forecast
period"). This forecast indicates that the Group and group would
expect to remain cash positive without the requirement for further
funding based on delivering existing pipeline, for a period of at
least 12 months from the date of approval of these financial
statements.
However, the forecast includes certain assumptions, in
particular in respect of the timing of contracted sales and grant
cash inflows. The timing of some receipts depend upon actions
outside of the control of the Group and whilst the forecast has
taken a prudent approach to the timing of such receipts based on
historical data, this constitutes a material uncertainty.
The existence of a material uncertainty may cast significant
doubt about the Group's ability to continue as a going concern.
Notwithstanding this material uncertainty, the Directors have a
reasonable expectation that the Group and group are a going
concern. The financial statements do not include the adjustments
that would result if the Group was unable to continue as a going
concern.
Accordingly the financial statements have been prepared on a
going concern basis.
The financial information is prepared on the basis of the
accounting policies as shown on the Group's website,
www.itm-power.com
Copies of the financial statements/annual report will be
available on the Group's web site and for collection from the
Group's registered office at 22 Atlas Way, Sheffield, S4 7QQ.
2. NOTES TO THE CASH FLOW STATEMENT
2017 2016
GBP'000 GBP'000
Loss from operations (3,550) (4,359)
Adjustments for property, plant and
equipment:
- Depreciation 1,181 619
-Impairment of non-current assets 100 -
- Loss on disposal 22 67
Amortisation 23 -
-------- --------
Operating cash flows before movements
in working capital (2,224) (3,673)
(Increase)/ Decrease in inventories (469) 221
Increase in receivables (5,363) (1,998)
Increase/ (Decrease) in payables 2,747 (1,540)
Increase/ (Decrease) in provisions 9 (108)
Cash used in operations (5,300) (7,098)
Income taxes received 252 -
-------- --------
Net cash used in operating activities (5,048) (7,098)
-------- --------
3. FINANCIAL INFORMATION
The financial information set out in this announcement does not
constitute statutory financial statements for the years ended 30
April 2016 or 30 April 2017, but is derived from these statutory
accounts, which have been reported on by the Group's auditor.
Statutory accounts for the year ended 30 April 2016 have been
delivered to the Registrar of Companies and those for 2017 will be
delivered following the Group's Annual General Meeting. The
financial statements were approved by the Board of Directors on 24
August 2017. The auditor has reported on those accounts; their
reports were unqualified and did not draw attention to any matters
by way of emphasis and did not contain statements under section
498(2) or (3) of the Companies Act 2006
4. TRADE AND OTHER RECEIVABLES
2017 2016
GBP'000 GBP'000
Amount receivable for the sale of
goods 61 16
Amounts due from construction contract
customers (note 14) 779 58
Amounts receivable under grant claims 1,133 1,726
Allowance for doubtful debts (166) (29)
Other receivables 317 15
Corporation tax 191 669
Prepayments and accrued income 8,767 4,032
-------- --------
11,082 6,487
======== ========
5. CALLED UP SHARE CAPITAL AND RESERVES
2017 2016
GBP'000 GBP'000
Called up, allotted and fully paid:
250,613,176 (2016 - 216,892,973)
ordinary shares of 5p each 12,531 10,845
======== ========
Authorised Share capital:
256,350790 (2016- 222,630,587)
ordinary shares of 5p each 12,818 11,131
During the year the Group issued 33,720,203 ordinary shares of
5p each for a consideration of GBP5,732,435.
6. LOSS PER SHARE
The calculation of the basic and diluted earnings per share is
based on the following data:
2017 GBP'000 2016 GBP'000
Loss for the purposes of basic
and diluted loss per share being
net loss attributable to owners
of the Group (3,780) (4,000)
Number of shares
Weighted average number of ordinary
shares for the purposes of basic
and diluted earnings per share 222,513,007 184,566,326
Loss per share 1.7p 2.0p
=================== ===================
The loss per ordinary share and diluted loss per share are equal
because share options are only included in the calculation of
diluted earnings per share if their issue would decrease the net
profit per share or increase the net loss per share.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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