Business
Trading and Pipeline Update
Trading and Pipeline Update.
About this update from Itm Power Plc
[{"type":"text","content":"\n \nRNS Number : 5376A ITM Power PLC 30 May 2019 \n\n30 May 2019\n \nITM Power plc\n(\"ITM Power\", \"the Company\" or \"the Group\")\n \nTrading and Pipeline Update\n \nITM Power (AIM: ITM), the energy storage and clean fuel company, provides a trading update, which includes progress on the contracts pipeline and updates on some of the major projects currently underway.\n \nResults\nThe delivery of completed projects increased significantly in the second half of the financial year to 30 April 2019 as expected. As a result, the total income under IFRS 15 is expected to be approximately £17m1 (unaudited) (£14.1m), an increase of over 20% year-on-year. The EBITDA2 (unaudited) loss from operations of approximately £6.7m (£4.9m) is in line with Board expectations. Total financial assets at the year-end were approximately £19.8m, comprising £5.2m of cash, £1.7m of cash on guarantee and deployed working capital (debtors less creditors) of £12.9m.\n1 Includes sales revenue and grant income against both development projects and HRS sites in the UK\n2 EBITDA includes grant income recognised on the income statement\n \nA cash movement of £10.4m for H2 FY2019 reflects a period of deploying working capital. This has involved procuring components for the delivery of 4 hydrogen refuelling stations (HRS) in the UK, the bus HRS in France, and also materials for the Shell 10MW Refhyne project. This increase in working capital is expected to partially unwind in H1 FY2020 as cash receipts are recognised from these projects.\n \nPipeline Numbers\nThe contracts backlog today stands at a record level of £45.1m, an increase since February 2019 of £9.4m (up 26%) comprising £29.0m of projects under contract and a further £16.1m of awards in the final stages of negotiation. The tender opportunity pipeline also stands at a record level of £330m, an increase since February 2019 of £90m (up 38%) comprising 46 active commercial tender responses over the last 12 months with an average project size of £7.2m (£6.5m) reflecting strong industrial demand for larger systems.\n \nNew accounting rules - IFRS 15\nThe Company has used IFRS 15, \"Revenue from Contracts with Customers\" for these results and for all subsequent periods. Under IFRS 15, revenue is recognised upon completion, rather than at stages of completion. The ...