Sheffield hydrogen fuel firm ITM Power has raised £5.7m by selling shares to help cash flow as demand and interest for its products continues to grow.
ITM has £16.98 million of projects under contract and a further £1.37 million in the later stages of negotiation.
A number of agreements require the firm to pay cash up front, while income is received towards the end of the contract, meaning there is a shortfall in working capital.
The firm enjoyed a 100 per cent year-on-year increase in orders in 2016 and the firm said it remains confident of delivering full year results to end April in line with market expectations.
Graham Cooley, CEO, said: “We are pleased to announce this successful placing to raise £5.7 million which demonstrates clear support from both new and existing shareholders. The proceeds of the placing will ensure that we have the required working capital to deliver our current pipeline and future growth. The company is looking forward to an exciting phase of delivery and the proceeds of the placing will strengthen our balance sheet and enable us to be more competitive in tenders.”
The half-year results also showed the loss from operations was £2.27m, compared with £3.17m in 2015 – an improvement of 28 per cent.
Hydrogen refuelling was a particular focus in the latest half, with two new refuelling stations in London opened and fuel contracts signed with Arcola Energy, Commercial Group and Arval.
ITM now has four refuelling units in operation, three in the UK – including one on the Advacned Manufacturing Park in Rotherham – and one in California.
Its first refuelling station on a Shell forecourt will open within the next few months.