ITM Power Aktie

Good morning indeed, and thank you for the interest in the great news we are delighted to announce today. From our RNS this morning, you would have seen that the U.K. government has decided to back ITM Power with a combination of an equity investment and a grant, which is a strong vote of confidence in our technology and delivery credibility.

It demonstrates the government's commitment to promoting the U.K.'s sovereign technology and manufacturing capability in clean energy infrastructure. Amy, Simon and I will provide you an overview of Project Horizon, including the U.K. government's rationale.

A look at the market and our product offering will then lead into our next-generation stack platform, Chronos, and how we plan to manufacture it. We will close today's presentation with our upgraded guidance for FY '26.

The U.K. government has ambitious plans for hydrogen. Through its energy company, Great British Energy, in short GBE, they aim to power Britain with clean, secure homegrown energy. DESNZ, the Department for Energy Security and Net Zero is a ministerial department of the U.K. government and is awarding funding to projects under the hydrogen allocation rounds, in short, HAR program.

Their mission is to make the U.K. a clean energy superpower. Together, they have decided to back ITM Power as the U.K.'s electrolyzer champion. In turn, we are helping the U.K. government to reach their decarbonization and energy resilience targets and offer the creation of new well-paid jobs and boosting the economy.

Their support package amounts to GBP 86.5 million, consisting of a GBP 40 million equity investment from GBE and a GBP 46.5 million grant from DESNZ. The grant is currently going through the usual subsidy control review, which is expected to be completed in June upon which the grant would be contracted.

The funds will enable the establishment of large-scale domestic manufacturing capability for our next-generation stack platform, Chronos. We have been working on Chronos for over 2 years now. And once launched, our new stack will represent a step change in electrolyzer technology.

Chronos is incorporating the latest technological developments and valuable lessons from our commercial projects and field data. It will deliver significant improvements in cost effectiveness and energy efficiency, enhancing our product offering and further substantiating our tech leadership.

Chronos will help us increase our market share, speed up the industrial adoption of hydrogen and accelerate our growth and path to profitability. Importantly, as part of the transaction, our Chronos program has undergone rigorous technical and commercial due diligence by an independent third party to assess the effectiveness and likely impact of Chronos.

Against the backdrop of recent geopolitical developments, clean power underpinning energy sovereignty and resilience has become increasingly critical to long-term economic success. We are grateful for the confidence and support demonstrated by the U.K. government, firmly establishing ITM Power at the very center of the U.K.'s hydrogen economy and positioning us as a natural partner for projects in the U.K.

Let's talk about ITM. With 26 years of innovation and experience, we have developed into an established leader in electrolyzer technology and hydrogen plants. Our involvement in some of the largest and most prestigious PEM electrolyzer projects worldwide, strong reference plants, our vertically integrated manufacturing and IP leave us well positioned in an expanding market.

Our robust manufacturing, supply chain and quality systems underpin our proven capability to deliver for repeat blue-chip customers, including the likes of Shell, RWE and Linde.

Today, we have around 500 megawatts of plants built or under contract and more than 550 megawatts of additional capacity reservations plus a strong sales pipeline.

Including the financial year ending this month, we will have seen revenue grow by more than 700% over 3 years. And despite these record revenue numbers, firm contract backlog has continued to grow as well, demonstrating strong order momentum.

Our capital discipline has helped us maintain a healthy cash position and balance sheet, which is a sign of long-term resilience and eases project bankability for our customers as recently demonstrated as well in the North Field project FID with Octopus Energy in the U.K.

Our continued revenue growth leads us on to the market we are operating in and how it is expected to develop from here. Whichever market study we take, whether bold or conservative, they all forecast continued and massive growth. By default, market forecasts will never be accurate, but they can at least give us a sense of direction.

The International Energy Agency, short IEA expects an 11-fold increase to 77 gigawatt in 5 years worldwide without China. If we look at Europe alone as our main target region, Hydrogen Europe forecasts a growth of more than 400% over the next years.

This market expansion is carried by strong policy support in key markets such as more than EUR 20 billion of EU funding, additional investments in pipeline and storage infrastructure, for example, in Germany, the transposition of RED III into national law of EU member states and many more programs such as HAR in the U.K.

We expect approximately 70% of future demand to originate from the decarbonization of existing hydrogen use cases like refining and ammonia and the remaining 30% from new use cases like grid balancing, natural gas blending and others.

Our strong order momentum is also reflected in our sales pipeline, which has grown from below 1 gigawatts to over 20 gigawatts of projects today. While a growing number of our peers is struggling to compete in the market, we are winning through our reference plants, real-world product performance data, customer confidence demonstrated by repeat business with leading industrial and energy companies and our comprehensive and competitive product portfolio.

Our strategic alignment with the U.K. government and their strong backing will help us to build on our strength and open the next exciting chapter on our journey in a fast expanding market.

Thank you, Dennis. Many of you will be familiar with our product range. Each product is standardized, providing modular building blocks ranging from 2 megawatts to 50 megawatts, enabling us to engage with projects of any size. NEPTUNE II and V are fully autonomous containerized systems. Everything needed is in the box, meaning deployment is straightforward, the site only needing flat ground with access to water and electricity.

The output is a reliable supply of high-pressure, high-purity hydrogen. NEPTUNE containers can be ganged together as necessary to achieve higher capacities. For reference, NEPTUNE V, the 5-megawatt container, is priced at EUR 5 million all in and widely recognized as best-in-class. It's currently our most popular product being routinely inquired for projects up to 50 megawatts in size.

The most recent announced sale was to Octopus Energy for 3 units. POSEIDON is a 20-megawatt process module. Again, it is a repeatable building block. It includes the stacks together with the associated process equipment designed for integration into wider plants. POSEIDON is the product of choice for MorGen Energy. The West Wales project was announced in March.

ALPHA is the world's first full scope 50-megawatt plant. Based on skid-mounted standardized and prefabricated modules, ALPHA is the most cost-effective solution for large-scale green hydrogen production. It can be scaled in 10-megawatt steps, enabling it to be sized to suit the application without needing to reinvent the wheel.

Launched in October last year with a sales price of EUR 50 million for the 50-megawatt system, we've had tremendous reaction from the market. Two aspects that customers find particularly valuable are full scope of supply from one source and elimination of costly on-site construction and integration.

All ITM products have Trident stacks at their heart. Trident is the leading PEM stack platform today. It has the highest current density and the highest efficiency available on the market. It also enables high response speeds, a capability that is often required for load balancing applications.

Hundreds of Trident stacks have been manufactured and tested in the U.K. and supplied to commercial projects. Our previously published infield performance data from a demanding industrial application that demonstrates a degradation rate, which already beats the EU target for 2030, and that's for both PEM and alkali technologies.

Chronos is our next-generation 2-megawatt stack platform, and it marks a genuine step change. ITM is an electrolyzer OEM that has invested deeply in research and development, and we have systematically in-sourced key technologies and processes.

While this has generated significant value and know-how, it has also been an important differentiator that has enabled the pace of technology improvement to be accelerated.

Looking back over our history, ITM has had several stack platforms, each better performing and higher capacity than the last. Chronos is not simply an upgraded version of Trident, however, it's a game changer, and here's why.

The part count has been reduced by over 50%, making it significantly easier and faster to assemble. The footprint has been reduced by over 50%, achieving an unmatched power density of 2.5 megawatts per square meter. The weight has been reduced by over 50%, making it easier to handle and transport. We are targeting a 40% cost reduction and a further 10% efficiency improvement.

This includes further reduction in precious metal loading, building on the 80% reduction already achieved in Trident. We've also ensured that Chronos is ready for the future technology improvements so that they can be implemented rapidly without the need for reengineering.

Finally, the stack has been designed with material recovery and recyclability in mind from the start, meaning over 90% of components can be recycled or reused. These are all meaningful improvements, which draw on the experience we have accumulated to date across technology, manufacture, automation, project execution and operation.

To appreciate the impact, it's important to understand that stacks account for approximately 30% of electrolyzer CapEx and over 90% of electrolyzer energy consumption. Therefore, improvements to the stack have a disproportionately large impact on the competitiveness of the complete product portfolio, reducing the cost of green hydrogen production.

The development and validation of Chronos is well underway and continues to progress to plan. We have deliberately not guided for a specific release date because we're doing this thoroughly and do not intend to interfere with existing projects. I can say, however, that we have begun engagement with existing customers regarding field trials for next year.

Before I hand over to Amy, I'd like to add a few personal remarks. The backing from U.K. government that we're announcing today represents a clear and compelling endorsement of ITM's technology as well as our capability to implement and execute.

It follows an in-depth and rigorous assessment, including extensive technical and commercial due diligence across key areas such as technology, supply chain, manufacturing, intellectual property, cost structure and commercial impact. This work was conducted by an independent third party, and it was a significant undertaking, and I'm extremely proud of the whole ITM team and the outcomes achieved.

ITM is currently operating out of 3 strategic locations, supporting both manufacturing scale and proximity to our customer base. In the U.K., our 2 co-located facilities in Sheffield form the core of our business. This site brings together R&D, manufacturing, testing and support functions. It is also the world's first and largest PEM electrolyzer gigafactory in commercial operation, which provides a strong platform for scalable growth.

In Germany, our Linden site supports European delivery, housing sales, EPC capability and aftersales services. Alongside this, spare parts and stacks are kept there to enable rapid response to our customers. Our Hydropulse business is headquartered in Berlin, positioning us at the center of a key European hydrogen market. Both German locations are supported by embedded functions as we continue to expand our EU footprint in line with demand.

Looking ahead, the Chronos manufacturing line is planned to be in Sheffield alongside our existing Trident production. This ensures we can leverage our established infrastructure while efficiently serving both European and global markets.

We plan to establish the Chronos manufacturing line within our existing Sheffield facilities, leveraging processes and operational learnings developed over the past 5 years on Trident. The project represents an investment of up to GBP 120 million, focused on scaling capacity while maintaining quality, efficiency and reliability.

Placing this alongside our current Trident manufacturing lines allows us to make the best use of synergies, skills and processes while reducing risk and allowing an efficient and reliable manufacturing process.

We will continue to progress our deep in-house value add, along with additional in-sourcing of processes, which will enhance quality, control and scalability. This will allow us to manufacture efficiently and to further control product costs.

The majority of the investment, approximately 63% will be directed towards bespoke automated production and testing equipment. This includes catalyst coated membrane manufacturing, electrode welding, platinum coating and stack assembly. Fitout and cleanroom facilities, which are essential to ensure product quality, will make up a further 13% of estimated costs.

The purchase of all validation materials, which are the materials that validate the manufacturing process for Chronos, make up a further 13% of the projected costs. The remaining projected spend is for other costs such as project delivery and cost inflation. We target commercial operation in 2028.

Trident, our current stack platform, will remain an important part of our stack technology suite. We will continue to manufacture Trident to serve our existing customers and long-term service agreements. Importantly, we will continue to innovate our Trident stack, including adopting features from Chronos, allowing current customers to take advantage of compatible improvements and the increased energy efficiency and cost competitiveness that they will bring.

This means that we will be operating the 2 different manufacturing lines together. There will be no requirement to write off existing assets.

Aftersales, including replacement stacks, is a profitable revenue stream for us. When all our current contracts are complete, we will have more than 700 stacks in operation, and we will continue to sell Trident over the coming years. This is why it's very important that not only do we keep manufacturing Trident, but that we keep improving it.

The DESNZ grant of GBP 46.5 million is currently going through subsidy control. Now just to explain what that means, that means that the grant is referred to the subsidy advice unit, which sits within the Competition and Markets Authority. This is a requirement for all grants or grant schemes.

The unit's role is to evaluate the grant against the subsidy control requirements and to publish a report. The unit's function is advisory only. It does not have the power to prohibit the making of a grant. The process takes 30 working days. We expect to take a final investment decision in June, which is when we expect the grant to formally conclude.

And now on to our guidance for our current financial year, which ends on the 30th of April 2026. Both revenue and EBITDA guidance remain in line with our last update. In February, we increased our revenue guidance to be between GBP 40 million and GBP 43 million, and we held our EBITDA loss guidance to be between GBP 27 million and GBP 29 million.

We are pleased to announce that our FY '26 cash guidance has now increased from between GBP 170 million and GBP 175 million to be between GBP 210 million and GBP 215 million. This is due to the GBP 40 million cash injection from Great British Energy. This further strengthens our balance sheet and underpins our ability to execute on growth.

That concludes our presentation for today. We thank you for your attention and for your continued support.

Good morning, and welcome to the ITM Power Plc investor presentation. [Operator Instructions] The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll.

I'd now like to hand you over to the team at ITM Power Plc. Good morning.

Good morning, and welcome. We are pleased to present a strong set of results for the first half of the financial year '26. We have yet again delivered our highest 6-month revenue performance while maintaining strict cash and operational discipline.

Today, in order to set the scene, we will start with a look at the market environment, our operational and financial situation and our sales activity. I will then explain our business model, talk about operational progress achieved and provide an update on selected projects. Simon, our CTO, will shed light on our newest product, ALPHA 50, and give insights on the levers we have and use to lower the cost of hydrogen. He will then talk about ITM's future, our game-changing next stack platform, CHRONOS. After that, Amy, our CFO, will explain our financial results in more detail and provide guidance for the full year.

Okay. Let's start with the market and our competition. Hydrogen will play an essential role in the decarbonization of industry and the energy mix, especially in hard-to-abate applications like refining, ammonia, heavy industry and industrial heat. While refineries undoubtedly show the biggest momentum right now, we start to see first hydrogen applications in cement, steel, paper and many other industries.

Despite the known macroeconomic headwinds, the momentum is undeniable. The Hydrogen Council and McKinsey have tracked clean hydrogen project investments from 2020 to 2025 and recorded an 11-fold increase from USD 10 billion to USD 110 billion. The policy situation remains favorable for our industry. And the EU, Nordics and U.K. are making the most tangible progress, while the U.S. has unsurprisingly stalled. With market consolidation continuing to put pressure on many of our peers, we continue to see a healthy level of sales engagement and strong demand, in particular for NEPTUNE V and ALPHA 50.

Let's move on to our operational situation. Commercial activity has progressed well in the first half of the financial year. We were awarded several equipment supply contracts, including for Westnetz in Germany and for cement producer in Spain. We also signed multiple engineering contracts, and we were selected for a number of small to large-scale projects, laying the foundation for future order intake. Importantly, RWE as a repeat blue-chip customer has reserved 150 megawatts of NEPTUNE V capacity with us, following on from our strong project progress on the 2 Lingen plants, each 100 megawatt in size. I will speak more about these projects later in the presentation.

While we wish that some customer FIDs could be taken a bit quicker, we remain agile and exceptionally well positioned to capitalize on the market dynamics, be it based on our comprehensive and competitive product portfolio or through our new build-own-operate business, Hydropulse.

Next up, our financial position, which remains strong, underpinned by capital discipline and our focus on operational improvements. Our balance sheet is increasingly seen as a competitive advantage by customers. Later, Simon will shed more light on this topic.

Now I don't want to take Amy's part away, but despite record revenues, our firm contracted order backlog continued to grow and in it, the share of profitable contracts as we work through the few remaining legacy projects.

As I already mentioned, sales activity has remained healthy with a notably increasing share of industrial customers in the mix. NEPTUNE V continues to be our most demanded product. And given very high early interest, we expect our new ALPHA 50 product to become just as successful. We are also pleased to see growing momentum in our home market, the U.K., where we were selected for a number of HAR1 and HAR2 government-backed projects already, including the Uniper Humber 120-megawatt project, which has been progressing well through FEED towards FID. We have also signed our first POSEIDON contract for the HAR1 MorGen Energy project, for which our customer expects to be able to take FID in the short term. Also post period end, we have seen continued momentum.

Among other successes, we were selected for 2 grid balancing projects in Germany, totaling 710 megawatts in size, and we were awarded a 12.5-megawatt contract by Octopus Energy Generation, one of the first HAR1 projects in the U.K. to have taken FID.

Our strategic priorities, you have seen them before, were shaped by a dynamically evolving market environment and unsteady macroeconomic conditions. They have served us well. And while many of our peers are struggling, they have helped us grow sustainably, steadily and with the necessary patience. And they remain fully valid. You can be assured that we will continue to closely observe the market environment and that we are staying adaptable and responsive.

Now on this slide, I'd like to explain you our business model and take you on the journey of building an integrated hydrogen company with significant growth potential. It is the journey of becoming a one-stop shop for customers who need electrolyzer equipment, complete hydrogen plants or simply just hydrogen. Today, we are proudly looking back on 26 years of innovating, designing and manufacturing electrolyzers. Electrolyzer technology, we and many of our customers believe is the best in the world.

We have learned to engineer these electrolyzers into full green hydrogen production plants. And over time, we have acquired the capability to perform the necessary EPC services by ourselves. Our newest product, ALPHA 50, is the culmination of that. We are also offering our customers comprehensive aftersales services to help them to best operate and maintain our plants and to maximize the value they can derive from the use of our products.

The newest pillar of our business model, Hydropulse, is the logical next step on our growth path. Following in the footsteps of the big gas majors of our time, once you have the leading technology and the capability to deploy it competitively, then you have a solid foundation for a build, own and operate model. Hydropulse will buy the electrolyzers and related EPC services from ITM and operate plants to supply hydrogen to industrial customers under long-term offtake contracts. This increases the group's factory utilization, provides plannable recurring income streams and is highly cash generative. Hydropulse is poised to play a key role in creating shareholder value, and we'll be able to offer green hydrogen at a cost level not seen before in our industry.

Our operations have been further strengthened. Besides countless day-to-day improvements, we were able to cut electrolysis time during end-of-line testing in half, saving precious energy costs and increasing throughput significantly. In our last update, we spoke about our planned NEPTUNE V assembly line in our adjacent second factory. It is now in full operation and the NEPTUNE containers move from build station to build station until they are completed. This efficient production line layout allows us to meet the growing demand for our best-selling product.

The next and even bigger improvement is our new autostacker robot assembly line for our stacks. We took our time to develop a tailored machine and validated the process properly. The autostacker marks a major leap in factory automation and is capable of producing more than 2 gigawatt of stacks per year. Last time, I featured our 20-megawatt NEPTUNE V project for FDE in Norway. This time, I want to highlight a project we won just about a month ago. Octopus Energy Generation awarded us a 12.5-megawatt contract for their government-backed North Fleet project in the U.K. The green hydrogen will be used to decarbonize the papermaking process, a hard-to-abate industry at Kimberly-Clark's U.K. mill, which manufactures Andrex products. Hydrogen will replace natural gas in a new dual fuel boiler system, which can operate on either of the 2 gases, offering operational flexibility.

The second project I want to highlight is in Germany. I already spoke about RWE reserving 150 megawatts of NEPTUNE V capacity with us following their satisfaction with our delivery against the world's biggest PEM electrolyzer in Lingen. So let's talk about the project. The 200-megawatt installation is divided into 2 100-megawatt plants, Lingen 1 and Lingen 2, which we are building with our partner, Linde Engineering. The installation of the first 100 megawatt, Lingen 1 was successfully completed at the end of 2025, marking the completion of the first plant of its size anywhere in the world.

For ITM, this meant producing and shipping 50 TRIDENT skids and 150 stacks, which have all been successfully installed into the Linde [indiscernible] plant and pressure tested on site. Importantly, we have delivered everything on time for this massive plant. I hope the photos convey the scale. Lingen 2, the second 100-megawatt plant is in full construction swing with all skids and 40% of stacks already installed, yet again, all on time.

With this, I would like to hand over to Simon to talk about ALPHA 50.

Thank you, Dennis. Since the last market update, we've introduced another product to our portfolio, ALPHA 50, a full scope 50-megawatt green hydrogen plant. This was triggered by 2 key pieces of market feedback. The first was that a full scope offering from a single supplier is highly desirable. We've seen that with the success of the NEPTUNE product line, where everything from AC power and water, all of the way through to high-pressure and high-purity hydrogen is provided in one package. This minimizes integration complexities and split supplier responsibilities, making it a straightforward and more competitive deployment. The second was the demand for ever larger systems, which have previously been the domain of the EPC stick-built approach.

ALPHA 50 fills a gap in the market, providing a skid-mounted, standardized and prefabricated solution compatible with scale. As is common to all ITM products, it has the state-of-the-art TRIDENT stack platform at its heart. It has a highly optimized footprint and is designed for outdoor operation over a very wide temperature range. Being modular, it can be adjusted in 10-megawatt blocks, providing flexibility for a range of project sizes without needing to reinvent the wheel. This means, for example, that ALPHA could be configured into a 60 or 70-megawatt plant. The product was introduced in October 2025 with a price of EUR 50 million for the 50-megawatt system. Just like NEPTUNE V that Dennis referred to earlier, it's landed very well in the market, and we are already pursuing several live opportunities.

At this point, I'd like to take a step back and answer a question which we frequently get asked. Let's take a look at the factors that influence the cost of green hydrogen. I break this down into 3 categories: CapEx, how much does it cost to buy the necessary equipment? OpEx, how much does it cost to operate the equipment and customer confidence? How much risk is perceived that requires contingency in the project budget. Improvements in these areas have positive impacts on business cases, making green viable in more and more applications.

CapEx first. The cost of an electrolyzer can be broken down relatively simply. The stacks account for approximately 1/3 of the cost and the balance of plant, including the power conversion system accounts for the rest. There are several levers available to ITM to address CapEx, and I'll give a few examples.

From a technology perspective, increasing current density has a significant effect on stack cost reduction. Doubling current density doubles the hydrogen production rate from the same stack, meaning half the number of stacks are required for a given hydrogen demand. This is why ITM pioneered high current density and has been providing high current density stacks commercially for several years. I would add that in parallel to making the stacks work harder in this way, we've done so while both reducing the use of high-value precious metals and increasing stack efficiency at the same time, something that is a credit to our technical teams that continue to push the technology further.

From a supply chain perspective, standardizing the product portfolio means fewer parts to manage and more efficient repetitive processes. Strategic relationships with key suppliers ensures priority access to the best equipment at a negotiated price. Working closely with suppliers in this way maximizes joint learning, builds trust and enables both sides to work together to drive down costs and optimize the offering. A high-quality manufacturing system minimizes waste and rework costs while enabling processes to be streamlined. This also saves energy and people cost for repeated end-of-line testing. On-site construction costs are minimized due to preassembly and containerization. Smaller footprint requirements and the full scope nature of products eliminates complex on-site works.

OpEx. The operational cost of a green hydrogen plant is dominated by the consumption of electricity. While there are several power consumers in the system, the stacks account for over 90% of the electricity used. Therefore, improvements to stack efficiency have a disproportionate impact on reducing the molecule costs. Through our in-house IP and our joint research and development with Gore for membranes, our stacks benefit from a market-leading efficiency. We have also demonstrated and published extremely low rates of infield performance degradation, keeping operational costs low and predictable over long periods. The ability of the electrolyzer to modulate rapidly enables access to lower-cost electricity. The plant can also attract revenues for providing balancing services for the electricity grid and waste heat can be recovered and utilized in adjacent processes, further optimizing overall energy usage. Ongoing maintenance programs are lean and supported by a remote operating center that provides real-time support and helps maximize plant availability.

Finally, customer confidence. Every customer business case builds in buffers for risk and the main risk questions for customers and their lenders are usually technology related. That's why the increasing availability of operating data from real industrial deployments is so important. Having gained data from real-world small and large-scale applications, we've been able to show customers performance data that they can build into their models with increasing confidence. This, in turn, has enabled ITM to develop specific product guarantees that help customers achieve the certainty they need.

We are proud to have received repeat business from several blue-chip companies, and I personally see this as an important indicator of customer traction and trust. Combine this with the reference plants mentioned earlier and our strong balance sheet, the bankability dial is moving in the right direction. This is particularly important when project financing is required.

From CapEx and OpEx minimization to maximizing customer confidence, ITM has been active in all these areas. Our continued development activities, focus on real-world deliveries and operational learnings are the foundation of tangible improvements that are driving down the cost of green hydrogen production for our customers.

Let's take a look into the future. In due course, TRIDENT will be succeeded by CHRONOS, and this will be a genuine game changer. CHRONOS is our next-generation stack platform, and it benefits from all our experiences. It will be lower cost, higher performing and more compact. Now remember that the stack is the heart of all of our products, such as NEPTUNE and ALPHA. Therefore, improvements to the stack mean improvements to the full product range, making them even more competitive. Using the market-leading TRIDENT stack as a benchmark, let's take a look at some of the changes that CHRONOS will bring.

We've reduced part count by over 50% and made it significantly easier and faster to build. And none of this comes from making slight tweaks. This is the result of a major exercise rethinking each element of the stack. We're targeting 40% cost reduction, and CHRONOS has been designed to maximize component reuse and recyclability up to 90%. A single stack will be rated at 2 megawatts in base operation, tripling the capacity compared to TRIDENT, and it's capable of up to 2.5 megawatts. We're targeting a 10% efficiency improvement despite further reducing precious metal loading. The footprint is reduced by over 50%, achieving an unmatched power density of 2.5 megawatts per square meter, making it compatible with even the most congested industrial sites. The weight has been reduced by over 50%, making it easier to handle and transport. All of these attributes are focused on further reducing the cost of green hydrogen production. CHRONOS represents a genuine step change, and we'll continue to innovate and improve.

The development and validation of CHRONOS is well underway and progressing to plan. We've deliberately not guided for a specific release date because we are doing this thoroughly and ensuring that we get the most important technological foundation to all of our products right.

Thank you, Simon. Good morning to everybody, and thank you for joining us today. I will take you through a strong set of results for the half year ended 31st of October 2025 and then talk about our guidance for the year ended 30th of April 2026.

We are pleased to report revenue of GBP 18 million, representing the highest half year revenue in ITM's history. This performance was driven primarily by equipment sales of GBP 15.5 million, with a further GBP 2.5 million generated from engineering studies, spare parts, maintenance and equipment upgrades. Historically, ITM has recognized revenue using the completed contracts method at specific milestones such as delivery, testing or commissioning. These are dependent on the individual contract terms.

As our product portfolio continues to evolve, we have actively reviewed and refined this approach. While TRIDENT and standard NEPTUNE products are expected to remain under the completed contracts method, nonstandard NEPTUNEs, POSEIDONs and ALPHA projects are suited to the percentage of completion approach, allowing revenue to be recognized progressively over the life of a contract. This evolution is important. It better aligns revenue recognition with value creation, enhances revenue visibility and reduces reliance on endpoint customer actions. As a result, it supports a more predictable and higher quality financial profile as the business continues to scale.

Of the equipment sales recognized during the period, GBP 13.9 million related to legacy contracts recognized at a point in time. In addition, we successfully recognized GBP 1.6 million of revenue from a NEPTUNE V contract under the percentage of completion method, marking an important milestone in the transition to overtime revenue recognition.

The gross loss reduced to GBP 6.5 million, a significant improvement from the GBP 10.2 million in the first half of the previous financial year. This reflects both higher production volumes and continued discipline on cost control with overheads held broadly stable despite increasing operational activity. We have maintained strong focus on cash and cost discipline while continuing to enhance the capabilities and competencies and grow our level of production. These actions continue to support a clear path towards efficiency, scalability and profitability.

We ended the first half of the year with a cash position of GBP 197.8 million, representing a reduction of only GBP 9.2 million in 12 months. This reduction reflects the continued manufacturer of customer commitments for which cash was received in prior periods and demonstrates ongoing execution against contracted orders. We expect cash outflows to increase in the second half as we continue to manufacture and deliver contracted projects. Importantly, our customer contracts are structured to provide cash ahead of or in line with production outflows, meaning that anticipated half 2 outflow is both expected and fully aligns with contractual milestone timings.

The chart on the right illustrates continued progress in inventory management. As finished products are dispatched, overall inventory levels are reducing, and we have further improved the mix by lowering the proportion of raw materials relative to finished goods, which reflects tight operational control.

Capital expenditure increased modestly to GBP 6.9 million, in line with our expectations. We continue to advance CHRONOS, and we have taken delivery and completed installation of the autostacker.

As Dennis mentioned, our contracted order backlog increased to GBP 152 million despite delivering record revenues in the period. The backlog comprises only of fully contracted orders without any starting conditions. And therefore, it doesn't include MorGen energy contracts, which is still awaiting the customer to take final investment decision. Crucially, the quality of our contract backlog continues to improve. The proportion of profitable contracts has grown to 71%, increased from 60% in April 2025. This reflects the structural reset of pricing, risk allocation, project selection and execution.

The remaining 29% of the backlog relates to legacy projects, and we expect to recognize this in revenue over the next 18 months. As we've previously stated, these contracts are fully provided for, but they do not contribute to margin.

Turning now to our guidance for the year ending 30th of April 2026. We are maintaining revenue guidance of between GBP 35 million and GBP 40 million, which represents a growth of approximately 400% over 2 years and 600% over 3. The majority of our revenue this year will continue to be recognized on legacy contracts using the completed contracts method.

Looking ahead, and as I've mentioned, we are pleased that POSEIDON, ALPHA and Bespoke NEPTUNE projects will increasingly be recognized over time, and we have already successfully implemented this approach in the first half of the year. EBITDA loss guidance stays unchanged at GBP 27 million to GBP 29 million, reflecting continued delivery of remaining legacy contracts. This represents an improvement of approximately GBP 4 million year-on-year. At this stage, remaining losses are primarily driven by factory loading, and we continue to maintain a strong control over production, project and overhead costs.

We expect year-end cash to be in the range of GBP 170 million to GBP 175 million. The higher outflow in the second half reflects the timing of milestone receipts, which are typically received ahead of or sometimes alongside cash outflows. Strong progress on projects enabled certain receipts to be collected in the first half of the year with associated payments occurring in the second half. Therefore, and counterintuitively, the lower outflow number in this first half and the higher outflow number in the second half of the year are signs of ITM execution in a disciplined and cash positive manner.

Bumpy cash inflows and outflows will never be avoidable in the business we are operating in, but will flatten over time with an increasing number of projects in delivery. That concludes our presentation. Thank you for your attention and your continued support. We are excited about what lies ahead of us in 2026.

[Operator Instructions] I'd like to remind you the recording of the presentation along with a copy of the slides and the published Q&A can be accessed via investor dashboard. I'd now like to hand you over to Justin Scarborough, Head of Investor Relations, to host the Q&A.

Justin, as you can see, we've received a number of questions. Could I, therefore, please ask you just to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Thank you, Paul, and welcome, everybody. Our first question is for Simon. Could you provide an update on CHRONOS, its development and your planned launch date?

Absolutely. So the starting point for CHRONOS is TRIDENT, our existing stack platform. So it's a very good starting point because that is already performing exceptionally well. Now while there are a number of things that we can carry across from TRIDENT to CHRONOS, it's still very important to go through a very comprehensive and robust verification process, and that's exactly what we're going through at the moment.

To put a bit of color on that, recent activities have included inspection of all of the full-scale components. We've been verifying the various manufacturing processes and reviewing long-term data from the components operating in the lab. And we've already built our first stack already. We did that last year. We used that as an exercise to check all of the assembly processes. And I'm very happy with the progress of the program.

Now as I mentioned in the presentation, we've deliberately not guided towards a launch date. and that's primarily for 2 reasons. The first is that we don't want to inadvertently trigger customers to stop purchasing our existing stack, TRIDENT. That is what we're supplying today. And the second is that we will only launch CHRONOS when we have fully completed all of the validation steps that we need to go through.

As a follow-up for Simon, given the development of CHRONOS, where does TRIDENT fit in terms of ITM's product portfolio?

Well, TRIDENT remains central to ITM. We continue to build and supply TRIDENT today for existing programs and for aftersales activities. And as you've seen from the presentation, we've continued to invest in production capability and quality for TRIDENT with the autostacker. And so that very much remains a product that we continue to manufacture, and we will maintain that capability because we have an existing fleet of products that we'll need to continue to support into the future. So in due course, at the right time, we will transition from TRIDENT to CHRONOS, but we will not get rid of the TRIDENT platform.

And perhaps to add one more thing, some of the technology that we've developed for TRIDENT, we'll take a close look at that. And if it is feasible to transfer to TRIDENT, we will do so to make that available to existing TRIDENT customers.

Amy, a question for you. Regarding your adjusted EBITDA and the first half performance -- your midpoint guidance suggests a flat EBITDA loss in the second half of this year versus the second half of last year. Could you shed some light on this year-on-year expectation given the fact that the first half adjusted EBITDA loss reduced by around 30%?

Yes, sure. So firstly, our EBITDA is not achieved flatly across the year when you're comparing one half to another or even when you're comparing on a month-to-month basis. A couple of things make up that. Firstly, our revenue recognition being on completed contracts means that there are different margin levels in each period. Again, whether you're comparing a month-to-month or a half year to half year, we make every effort to flatten out manufacturing profile, but we can have variances in between different periods due to the level of production, how many hours needed on Neptune products, testing levels that can increase or reduce our electricity consumption. And then we also have some general cost increases that are probably going to affect half 2 more than half 1 as they do in any year while you're in an inflationary environment.

I think what's important to remember is we take a really conservative approach to revenue, cash and EBITDA guidance, and we will only guide to what we are certain will be achieved. That's what we believe is going to be achievable at the moment. And if there are any differences, we will update market.

Thanks, Amy. Whilst we're on the subject of EBITDA, there's a follow-up question, which is when do you expect EBITDA to be positive for the company?

Okay. So I think I've probably said this before, but we never guide beyond our current financial year. But we are confident that we know the path to profitability. We need to do a lot of what we've been doing for the last few years. So we need to really focus on winning and then executing profitable contracts. We need to retain focus on quality manufacturing and quality of our supply chain, and we need to maintain the discipline on overheads and cost control in every area of the business.

In addition, particularly important to our path is Hydropulse. So that's our build, own, operate model, which will bring recurring predictable revenues and increase our profitability.

Thank you, Amy. I think this question is probably for Dennis. The autostacker looks like it could be a game changer for your stack assembly. What redundancy have you built in, in the event of the autostacker not working for whatever reason?

That's a good question. So first, it is a very important leap in automation for our factory. I think it was one of the remaining parts, which still had quite manual involvement in the process. And I mean you've seen a little video as part of the presentation. It's quite impressive. It's quite an automated process now and proper manufacturing line, and it is definitely helping us in terms of consistency. It's helping us in repeatability, and it will minimize the risk of remaining human errors as part of the manufacturing process of stacks. Obviously, it will also save cost and increase capacity quite substantially. I mentioned the number already as part of my part of the presentation. The capacity of the robot alone is above 2 gigawatts of stacks.

Now redundancy is important. You don't want to be too dependent on one machine alone. That's why we will retain the capability to produce our previous process, which I have to say was also not bad. I mean we spoke about very high factory acceptance test rates in the past, and these we had achieved with our previous process. Now the next leap, as I said, the autostacker will take that even further and improve repeatability.

Thank you, Dennis. I think that's probably the next question is for you as well. Regarding the RWE 150-megawatt NEPTUNE V capacity reservation, when do you expect the first call-offs to be? And could this create a potential bottleneck?

I guess you would have to ask RWE when they want to sign the first contract with us. But jokes aside, we are in active contract negotiation for the first call-off under that agreement. As always, we do not guide on specific timing, not just because we don't want to, mainly because it's not fully in our control. And I think it doesn't make sense to guide for something which is outside of your control. But the negotiation is going well. It's not the first contract we are negotiating, executing together.

Maybe allow me a little bit to expand on the nature of the projects we are talking about here to give you a bit more color to the topic. The reservation agreement is aimed at, I would say, rather large contracts. And such a contract would always start with an engineering phase, usually with the aim to obtain the necessary building permits as well as government funding if applicable.

In the case we are talking about here, the government funding was already granted. So it's mainly about permits. Then subsequently, the manufacturing and delivery phase would be triggered based on the permitting. And this is when we would start to manufacture. By the way, the Lingen contract we are executing right now is following the exact same pattern. So this is a proven model we have done in the past. With regards to bottlenecks, I think that was the other question, Justin? Correct?

That's correct.

I do not see an emerging issue at this point in time. It depends obviously how many other customers are ordering NEPTUNE V containers now. But I can tell you, there's always a way to expand container assembly. This is mainly labor-driven, and you need factory space, both not very difficult to increase, especially in the Sheffield region. We could also work with integrators if really needed. But at this point in time, I do not foresee a bottleneck.

Thank you, Dennis. A question for you, Amy. Based on your order book of GBP 152 million today and your midpoint revenue guidance range for the year, your book-to-bill ratio stands at just over 4x versus about 5.5x at the end of last year. With only 3 months of the current financial year remaining, do you expect your book-to-bill to increase by the end of the financial year?

Okay. So I think to be honest, keeping 4x revenue in the order book while delivering revenues that are 600% above 3 years ago and 400% above 2 years ago is something to be really very proud of and certainly something that our peers would love to achieve and the opposite here saying. I think the important thing on the order book is it has grown in value. And the most important part of that growth is the increase in the percentage of profitable contracts as we win orders, and we continue to deliver on the legacy contracts removing those from the order book as we go.

Just to add as well that we only guide including contracted equipment sales orders. So they're fully contracted and are going to happen during the year. So in summary, I'm not going to give any guidance on how much I expect or not expect it to increase, but it's important we maintain the healthy ratios that I think we've absolutely got today.

Thank you, Amy. Simon, one for you, I think. In previous results announcements, we've spoken about FAT pass rates and how successful ITM has been in improving that. Could you provide some tangible insights on how the high pass rate translates into lower cost per stack?

Yes. And I think that's right. Previously, we have reported first-time pass rates of around 99% -- and that's no small thing given that we do very extensive testing of our stacks at the end of line. We don't just do pressure tests and leak tests. We have third-party witness tests for various compliance reasons. We electrolyze the stacks and characterize their performance over the full operating range. So it's a whole suite of tests that we're looking to pass first time through. And that statistic is a result of a focused effort to improve our supply quality, introduce additional quality checks throughout our manufacturing processes and so on. And that drive was successful, and we've put in place lasting measures to make sure that we continue to benefit from that high at first-time pass rate.

What does that mean? Well, it avoids us spending additional time examining stacks or retesting stacks that would otherwise find its way into the price of the stacks themselves. I'd perhaps add that we haven't stood still. In recent time, we have made big strides in our efficiency of our end-of-line testing. And in particular, we just over halved the amount of time we now spend doing our electrolysis testing of stacks as part of that process. So we still enjoy the high pass rate, and we're getting more efficient in parallel.

Thank you, Simon. A question for Amy again. Regarding revenue recognition, could you provide a split of your order book between completed contracts and the percentage of completion met?

Yes, of course. But before I do that, let me just take a little step through the changes that have happened in revenue recognition. So I'm really pleased that we've managed to review the recognition methods as our product portfolio grows and develops, it's really important to take that step back and make sure what we're doing is appropriate. And it's allowed us to implement different ways of recognizing revenue to the one that we've historically used. So the one that we've historically used is completed contracts. So that's where we recognize revenue at specific points in our contracts when performance obligations are met. They could be -- that could be delivery or commissioning, but generally towards the end of a contract's life.

We will still use that method for TRIDENT, and we'll still use that method for our standard NEPTUNE products. The difference is that NEPTUNEs that contain a customer modification, POSEIDONs or ALPHAs will be recognized over time as we produce the equipment. And that's really important as we'll be able to see the revenue track through the profit and loss as we are actually manufacturing and leads to a lot more predictable revenue going forward.

If I could give you a real-life example, if you take the Uniper 120-megawatt HAR project in the U.K. So that's currently at the FEED process. So under the old recognition methods, the completed contract method, we would recognize a small amount of revenue as we go through that FEED study. And then effectively, you would see nothing else for 2 to 3 financial periods until we get towards the end of that contract and revenue would be recognized in one lump sum. If we transfer that to the new version of percentage completion using ALPHA or POSEIDON, we get exactly the same revenue for the FEED study, which would be recognized at the same point in time. But the difference being that at the point that we signed the contract up until delivery, we'd be able to progressively recognize revenue. So in that first financial year, you would see revenue happening for that project and in the second and then at delivery until you get to the same point in time. So it will allow us to be able to see progress through the factory in the P&L.

I think that's a massive change, if I may add. In the past, when we signed a large contract, 100 megawatt, more than 100 megawatt, for example, you would not see relevant revenue from that contract for minimum 2, 3 years, right? And then everything would come at once.

Under the new POC percentage of completion method from contract signature, you will see revenue coming in. That is important because it changes the financial profile of the company quite significantly. What it means is if we sign a new large contract during a year, now for the first time, you will see an immediate impact on guidance for the year, and you will see an immediate impact on the financial numbers of that particular year, which is something very different from the past.

Justin, if I could just answer the specific question because I realize I haven't answered it yet. The current order book is roughly speaking, 85% completed contracts and 15% percentage of completion.

Thank you very much. We've got another financial question. In the first half, admin expenses pretty exceptional and before depreciation and amortization stood at around about GBP 10 million versus just over GBP 9 million in the first half of last year. Do you expect the second half of this year to be at a similar level to that of the first half?

Okay. So as I mentioned earlier, we are in an inflationary environment. So costs are expected generally to go up a little bit one half to the other. And then we do certain things such as we don't award salary increases until partway through half 1. So there's a full year effect of that in half 2. And we've also been on a journey of increasing capability and competencies within ITM, which generally leads to a higher cost base and some of those vacancies are being filled towards the back end of half 1 and half -- into half 2. So in summary, I wouldn't expect it to be vastly different, but I would expect a slightly higher cost base in half 2 compared to half 1.

Thank you. We've had a number of questions through on Linde today. So this is trying to bucket it into a more general one and for all of you. Can you provide an update on ITM's relationship with Linde?

The relationship with Linde is a productive one, right? I mean we are in the middle of executing some of the largest electrolyzer projects globally today. So as you might imagine, there are a lot of meetings, a lot of discussions and a very active and productive relationship. So interactions with Linde are daily. And I think the progress that's been presented today on those large projects is a testament to the 2 teams working together effectively.

Yes. I mean I think if I could just add, we're also looking forward, not just execution, but we are actively working with Linde to think about how we, contracts going forward and that kind of sales arrangements that we have with them and how we proactively work together.

Yes, I think nothing to add. All has been said.

Okay, Dennis. Amy, can you explain the significant rise in trade and other receivables, about 35% and trade number payables in the first half of about 19% since the end of April?

Yes, of course. So -- we'll have a general conversation about cash and how that might impact that. So just as a reminder, we structure our customer contracts to receive cash ahead of or at the same time as payments to suppliers. Those receipts are staged throughout the life of a contract. So they'll be generally based on milestones such as contract signature, purchase of significant equipment, factory acceptance testing, and there can be various different makeups through the contract. Each is individual, but the important point is getting the cash ahead of it's going out.

We structure supplier payments in the same basis. So where we're buying a big piece of equipment, we'll have similar milestones in that contract as well. The result of that means that we can have swings in both trade receivables and trade payables, which is just normal part of the cash cycle of this business. As an example, we had some receivables in half 1 with payables going out in half 2. So you will see that balance shift in again in the full year results. But it's just a normal kind of course of a healthy way of managing cash.

And it's also very normal for our industry. I mean most of the contracts we do would foresee a down payment just at the beginning. So when you sign the contract, basically, you issue the first invoice for a down payment in order to be executing cash positively. And from contract signature within then 30 to 45 days, you would see a big spike because you have like 10%, 15% of contract value coming in at once. And then there is a time of spend phase where you then use up that money where you have cash out of the door. And depending on whether that lands now in the first half of the year, second half or slightly into the next half of the year, that is something which will always create some bumps, and that is a perfectly normal thing for an EPC type of company. That will be a bit more flatten as soon as Hydropulse becomes bigger in the mix there, we have a more stable cash in and cash out profile.

And the other thing which flattens it is the amount of contracts that we're doing at any one time. So the more that we grow and the more contracts that we have going on at one time, it will flatten itself.

Thank you. Next question for Dennis. Jurgen Nowicki has now taken over the role as ITM's Non-Executive Chairman. As your ex-boss, Dennis, what does Jurgen bring to ITM?

Well, what does he bring? Probably his excellent German humor. No. Jokes aside, he's actually quite funny. Jokes aside, I mean, he brings long-standing experience in the industrial gas segment, in particular, in plant engineering, procurement construction for EPC, but also in plant operations from the Hydropulse angle. In his role as CEO of Linde Engineering, he was basically in charge of managing thousands of people, hundreds of projects worldwide at the same time and billions in revenue every year. So I think that he will bring a lot of knowledge, which will help us to further grow the company.

I spoke about the business model earlier in my presentation. And I think his knowledge and expertise adds very well to that. He also has known ITM and supported us for many years on the Linde side, and he joins us after a 6-month cool down period from his Linde job, which I think makes sure that we see that also as separate assignments. I think it's also worth mentioning that wasn't the question, Justin, I know, but I think it's worth mentioning that we had 2 more starters to the Board in October, who both significantly strengthened the Board further. The first one being Sir Warren East, former CEO of ARM and Rolls-Royce and the second one being John Howarth with -- bringing a lot of financial knowledge being an audit partner at S&W in the U.K.

Thank you, Dennis. Another one for Amy. Are you assuming any contract signings in your cash guidance for the rest of the year?

Okay. Simple answer is no. So we don't forecast any contract signings in the cash guidance. We forecast based on what we know is going to come in and what we know is going to go out, both in terms of contracted orders, OpEx and CapEx. And we do that because as we structure the customer contracts to be cash flow neutral at a base case position, and we hope for better, but we forecast them to be neutral. So actually, it wouldn't be cash generative. And that's a very prudent way of looking at the cash flow forecast. Again, just to reiterate, if we did believe we were going to be any different to guidance on a material basis, we would update the market.

Thank you, Amy. Back to you, Simon. How does the launch of CHRONOS impact your product portfolio in terms of NEPTUNE and ALPHA 50?

Okay. Well, I think it's a good thing. And we've said earlier that the stack is the heart of the electrolyzer system. So if you have a higher-performing stack, you have a higher-performing product. So at the right time, CHRONOS gives us the opportunity to reenergize the entire product portfolio to take advantages of the improvements in the CHRONOS platform. So I think that's the first thing.

The second thing is that CHRONOS has a much more compact footprint. So it's feasible to squeeze more stacks and get more capacity into the same space envelope. So from a product evolution perspective, CHRONOS arguably makes it easier for us to address larger and larger capacity products.

Thank you, Simon. Next question, I think, is for Dennis. You mentioned in the presentation and in the release this morning, the level of interest in ALPHA 50 and you're clearly very bullish on Hydropulse. Could you provide any context on the number of customers you are speaking with and when some of these engagements may convert into contracts?

So I think people know me by now. It's not my or our time to disclose detailed sales discussions. And as I said earlier on the RWE topic, it's very difficult to forecast when customers will take their part of the investment decision, right? But what I can tell you is that ALPHA 50 has landed similarly well to NEPTUNE V. And those of you who follow us a bit longer know that NEPTUNE V has quickly emerged to become our best-selling product. I think even the best-selling product in ITM's history actually.

Seeing the very good early interest by customers, especially large-scale industrial customers on ALPHA 50, I would expect the product to be just as successful as NEPTUNE V, of course, on a much bigger scale because the product is 50 megawatt instead of 5, right?

To give you a bit of a feel on timing, again, don't take that as a specific guidance now, but as a rough estimate, for NEPTUNE V. It took us around 3 quarters to be able to announce the first signed contract and sale. I think that's a typical time horizon you see from us launching a product, then having to go into the trenches with customers and explaining them what is the product, increasing their confidence, going through safety critical documents, making sure that they believe that we can actually pull that off. And that usually takes around 3 quarters. And the only difference being that for an ALPHA product, usually you would start a project with a FEED, less often straight directly into the EPC phase just because projects are much bigger.

I would not expect to see ALPHA for anything smaller than 50 megawatt, although you could scale down in 10 megawatt, I think you said that earlier. But I think ALPHA really comes into play when it's above 50 megawatts in size and especially when you talk 100, 200, 500, then ALPHA is really interesting. And these projects usually need a bit of a FEED phase.

The other question was on Hydropulse. Hydropulse. I mentioned Hydropulse as part of my presentation already. I think we are serving a real gap in the market here by eliminating CapEx and OpEx barriers to hydrogen adoption. Customer interest has also been great. I'm conscious I say that a lot, but it's actually true. Customer interest has been great since the launch. As I mentioned, I've not given a specific price, but I can tell you that we have now done a couple of plant configurations with customers.

We really went deep into financial modeling of the full CapEx, OpEx, how much do we have to spend in terms of operational support, spare part exchange and everything. And even in the most conservative cases, the cost of hydrogen, which we can offer via Hydropulse is exceptionally competitive, something the industry has not seen on cost. And I can tell you that we have various very good project discussions ongoing with customers. But as always, projects take time to develop, especially under a build, own and operate model when we have to get confident on the site, on the site specifics, on the customer, on the specific use case. Is there a real believable long-term offtake contract in side? Are we talking 10 years plus, maybe 15 years? And then there's a permitting involved.

So these projects take some time. So in my view, patience remains key. It's not so much a question of if Hydropulse, just when and how quickly it will scale. It will definitely become a very important pillar of ITM's growth story going forward.

Thank you, Dennis. The last question now, which is for Amy. You've been at ITM for just over a year now. Has the job worked out as you expected so far?

Okay. So I'll give you something that was absolutely expected to start with, which is that Dennis is just as hard work and demanding as I thought he would be. So that's perfect. I think there's lots of things I didn't expect. So I expected things to be really busy, but the amount of activity and opportunity that's out there in the market has really exceeded my expectations. The potential that we've got to grow shareholder value is vast, being part of kind of live customer negotiations and seeing what we can do and what value we can add and not just ITM, but the entire market, what the entire market can do for the energy transition has been eye-opening.

The other thing I would say is that I think the ITM team has been amazing, and there's probably more knowledge than I ever thought was possible out there. We have a really dedicated and determined team who are going to drive this forward. And I think people always make the difference in these circumstances, and they certainly do with ITM. And then I think probably the final thing is like actually, I can exist on very little sleep, which is not something that I knew about myself.

Welcome to my world.

Thank you, Amy. And as Paul from IMC mentioned earlier, we will endeavor to work through any questions that weren't answered today over the coming week. Thank you for your attention, and have a nice day. Thank you very much.

Justin, thank you, and thank you to the ITM management team for updating attendees today. Can I please ask investors not to close the session to be automatically redirected to provide your feedback in order that management can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company.

On behalf of the management team of ITM Power Plc, I would like to thank you for attending today's presentation, and good morning to you all.

Good morning, and welcome to the ITM Power Plc Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question received during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll.

I'd now like to hand you over to the team at ITM Power Plc.

This year, ITM has turned 25, and I'm proud that we can present to you a strong set of results, reflecting continued growth, commercial momentum and disciplined capital management. Over the past 25 years, we have evolved into a leader in electrolyzer technology. We are known for high-performing and reliable solutions with our stack technology at the very core of our success. In March this year, the Financial Times has confirmed us as the fastest-growing manufacturing company in the U.K.

Simon Bourne, Amy Grey and I will give you a comprehensive update today with special emphasis on real-world projects and actual in-field product performance data, a level of transparency you will rarely see in our industry. We will also dedicate time to CHRONOS, our next step generation; and Hydropulse, our recently launched business model.

Before going into more detail, let me provide you an overview, first, on the market and competition. Our pipeline of project opportunities is healthy and growing, and we are securing more than just our fair share in the market. Whether in refineries transitioning to green hydrogen or energy companies optimizing excess renewable power generation, we are positioned as a key player. With customers' FIDs taking time to mature, competitive pressure has increased and market consolidation is underway. This is a phase we expected and we are well prepared for.

Governments continue to play an important role and regulatory frameworks remain favorable. Unchanged, Germany is the single most active market with significant funding already flowing into projects, pipeline and storage infrastructure and wider decarbonization.

Net zero by 2045 is now enshrined in the German constitution and the release of the country's debt brake has unlocked EUR 500 billion of planned infrastructure investments. In contrast to the U.S., which has unsurprisingly slowed down significantly, the U.K. is finally gaining traction. With first FIDs now in sight, the Hydrogen Allocation Round 1 selected projects are coming to life. HAR2 has shortlisted 27 projects, together, 7x the capacity of HAR1. The only large HAR2 project, which announced supplier selection so far is Uniper's 120-megawatt Humber project, and it came our way. We are excited to support our customers to make their projects in our home market a special success.

I don't want to go into too much region detail here, but Europe will continue to be the most important region for our products for the time being. Implementation of RED III is destined to stimulate demand even further.

Operational excellence is fundamental to our strategy, be it for highest competitiveness in the current market environment, for customer confidence of our path to profitability. Our focused and disciplined approach is best explained by the improvement of our Factory Acceptance Test pass rate, which we were able to improve from below 50% to now 99% over the last 200 stacks produced. This reflects strong processes, efficiency, product reliability and our capability to execute effectively. Underpinned by continuous technological innovation, we are agile and responsive to the evolving needs of our customers in a dynamic global environment.

Evidence for that are the launches of our products, POSEIDON and NEPTUNE V, which have landed particularly well with customers and which are generating commercial traction and success. Having retained full ownership of our core science and manufacturing processes, we do not only keep the technological edge. We maximize value add and ensure supply chain resilience. This plays to our own advantage even in times of global tariff uncertainty and supply chain disturbances as recently seen in the market.

With our comprehensive product portfolio, proven track record of delivery and especially with our growing number of reference plants, ITM is well positioned. In particular, reference plants and in-field product performance data have become a key differentiator and are conducive to customer confidence. Thanks to the successful delivery and operation of flagship projects, we offer customers proven technology, underscoring our credibility with efficiency and reliability data from real commercial plants. Simon Bourne will talk more about this point later.

Now I don't want to take the full financial part away, but it's worth summarizing that our strong set of results has confirmed our robust financial position. With revenue up 50% year-on-year or 400% over 2 years and with GBP 207 million of cash in the bank as of April, our financial performance and balance sheet are seen as clear competitive advantages by our customers. This also helps the bankability of projects. Our contract backlog has grown even quicker than revenue, which I will talk about in more detail on the next slide.

The outlook for green hydrogen remains strong. The energy transition is no longer just about decarbonization but also about energy security and economic resilience. While early excitement led to unrealistic expectations, the cost correction was inevitable. Rather than signaling failure, these market adjustments reflect a healthy maturation process.

The customer landscape, technologies and supply chains are evolving, weeding out weaker projects and paving the way for a more resilient commercially viable hydrogen market. In this environment, operational agility and financial discipline are key to remain strategically positioned to capitalize on emerging opportunities. One of these opportunities is Hydropulse, our newly launched build, own, operate business model, which I will shed more light on later in the presentation.

Our strategic priorities have remained valid. We will continue to innovate and deliver best-in-class electrolyzers, scale our operations profitably to meet the growing demand and consciously expand our global presence to grow market reach, pursuing an asset-light approach.

If order intake grows quicker than revenue, then the contract backlog is increasing. In turn, a growing contract backlog is therefore an important leading indicator of a sustainable business model. Over the past 2 years, ITM sales has grown by a staggering 400%, and still, our contract backlog has easily outpaced that and almost doubled during the year.

Due to record order intake from the REFHYNE II 100-megawatt project, 40 megawatt of NEPTUNE V contracts, FEED study and aftersales contracts, at the end of April this year, our backlog stood at GBP 145 million. Also post financial year-end, this momentum did continue. Since then, we signed another NEPTUNE V contract with Westnetz in Germany, a NEPTUNE II contract with a Spanish cement producer, a 120-megawatt FEED contract with Uniper and more. We expect our contract backlog to grow further during this financial year.

One part of our contract backlog is this great project in Norway for our customer, La Française De l’Énergie, short FDE, with whom we signed a contract in this calendar year. Located directly at the coast, the H2 Hub Agder project is consisting of 2 phases. Phase 1 comprises 20 megawatts for which we are proud that FDE chose our NEPTUNE V electrolyzers. The planned second phase aims to add another 40 megawatts of capacity at a later stage. Phase 1 is already in execution, currently in the so-called detailed engineering phase. For ITM, this is the first time we are integrating 4 NEPTUNE V containers into 1 overall plant, thereby demonstrating high flexibility to configure the plant to site-specific requirements.

Given the harsh marine environment, we need special corrosion protection and opted for water instead of air cooling. The NEPTUNE V containers for this project will be manufactured in our new adjacent manufacturing workshop in Sheffield, no longer following a static build methodology but one where the containers are moving through different build stations for higher throughput, something you would normally expect in a car manufacturing environment. We are working very closely with our customer, FDE, to enable our joint ambitious time line. Commissioning is planned for the end of 2026, after which FDE will supply green fuels for the shipping industry.

Another very important project we are currently delivering is the RWE Lingen 2x 100-megawatt plant. This time, I'm letting our customers and partners speak for themselves with their own LinkedIn posts.

The world's biggest PEM plant in execution is well on track with now already 81 out of 150 stacks installed. The first 100 megawatts are planned to go live still this calendar year. The Lingen plant will supply green hydrogen via pipeline to the Total refinery in Leuna.

I have to say that I'm particularly proud about Sopna's positive confirmation that we are a steady and reliable partner for RWE. This is the kind of credible customer validation, which goes a long way with prospective other customers. And of course, we couldn't be more proud and excited to being entrusted to deliver this XXL project together with our strategic partner, Linde. The many real-world learnings we are gathering together here are positioning us strongly for future joint projects.

Thank you, Dennis. I've previously discussed the performance of our TRIDENT stack platform in this forum before and claimed it to be the most advanced on the market. ITM has extensive testing facilities and many years of lab data, but it's real-world field data that customers want to hear about. This is because customers need to have confidence that the performance claimed by the OEM is representative of what they'll actually deliver. They also need to know that the rate of performance degradation is slow and working with the business model.

If stacks need more energy to produce a given quantity of hydrogen, the cost of generation increases. Efficiency degradation is an important concern of customers and many competitors are struggling with this, not least because there are a few large-scale PEM plants in operation using current stack technology, even fewer that have been operating for several years.

ITM has stacks deployed at numerous sites across Europe, Australia and Asia. The current TRIDENT stack platform has acquired over 125,000 cumulative hours of operation in the field. And this data is being routinely used to monitor performance and performance degradation rates. Today, I want to book the trend of the industry and share some of this analysis with you. I will use stack data from the 10 megawatts Shell REFHYNE I project, a refining application.

This is a plant that has seen variable and intermittent operation, a very challenging profile and one only possible with PEM technology. The graph on the top right shows the recorded profile for 1 of the 5 modules that make up the plant, operating between 30% and 100% load. To assess performance degradation, I've looked at full load efficiency during the months of May 2024 and May 2025. Between those 2 periods, the plant accumulated approximately 30,000 stack operating hours and an average of 1,200 pressure cycles and 400 power cycles for each stack in the plant. Efficiency is measured in kilowatt hours per kilogram. The fewer kilowatt hours required to generate a kilogram of hydrogen, the higher the efficiency. Degradation is described in percent per 1,000 operating hours.

During the 12-month period, the stacks achieved an average performance over the variable load profile of less than 49 kilowatt hours per kilogram. This is real-world market-beating efficiency, and the performance degradation rate was 0.09% per 1,000 operating hours. To provide some benchmarking, the EU 2030 target for degradation is 0.12% per 1,000 hours for PEM and 0.1% per 1,000 hours for alkaline technologies. This field data from ITM's TRIDENT stack beats both of these targets. This is highlighted in the graph on the bottom right. It must be said that this should still be considered early data. However, it's being added to rapidly and becoming tremendously valuable in strengthening customer confidence. I'd also like to express my thanks to Shell for continuing to allow partners and prospective customers to view the plant in Wesseling.

This takes us to another example deployment of TRIDENT stacks, this time in partnership with Linde Engineering, who designed and supplied the balance of plant. This plant is located at a Yara facility in Porsgrunn, Norway. It has a capacity of 24 megawatts and is used to generate hydrogen for the production of green ammonia as fertilizer.

To date, this plant has accumulated over 70,000 stack operating hours and has produced over 500 tonnes of green hydrogen already, another example of a plant that's being operated commercially in a real-world industrial setting. This, together with field data from several other plants is contributing valuable performance data that is starting to differentiate ITM. Our rapidly growing number of industrial-scale commercial reference plants is a tangible competitive advantage.

My final slide is a brief update on our next-generation stack platform, CHRONOS, which is currently in development. In short, CHRONOS will have a larger capacity, lower cost and higher performance. It will support large-scale projects while also providing a route to refresh the full product range. CHRONOS builds on the technology that we've proven via TRIDENT. It applies all of the lessons learned from manufacture, project execution and field operations. The design squeezes much more electrolysis into a smaller footprint, dramatically increasing power density. It's also future proofed to not only take advantage of the best technology today but also the improvements that are coming through our rich technology pipeline. We've progressed through validation of new features and processes and are well on track with testing.

While not publishing a specification until validation is completed, I can tell you that part count is reduced by approximately 50%. Ceiling components have been reduced by approximately 70%, and power density has more than doubled to over 2.5 megawatts per square meter. We're genuinely excited about what's to come. The validation process continues at pace, and I look forward to updating the market on progress in the near future.

Thank you, Simon. In June, we launched Hydropulse, which was greeted with excitement by industrial customers. Under the slogan Zero CapEx, Zero Risk, Hydropulse opens a new chapter for ITM and for the green hydrogen industry.

The Hydropulse premise is easily explained. While the industry needs green hydrogen to decarbonize operations, in the current market environment, project developers are faced with challenges around CapEx, financing and technology risk. This has opened a gap in the market, which in turn proves to be an opportunity for ITM. Hydropulse is tailored for exactly that, a simple, bankable and scalable solution to overcome the most pressing rework hurdles that are holding back exponential industry growth.

Designed for industrial users with defendable hydrogen demand, Hydropulse will build, own and operate decentralized green hydrogen production plants. Each project will be built around a guaranteed long-term offtake agreement with the customer. Hydropulse, therefore, provides an additional more direct route to market for ITM, targeting small to mid-sized plants in Europe.

Each invested asset will utilize ITM's NEPTUNE product range and will provide a high-quality, predictable revenue stream, expanding our addressable market, improving factory utilization and accelerating profitability for the ITM Group. We will not pursue speculative infrastructure investments.

By taking unnecessary intermediaries out of the equation and offering all out of one hand, Hydropulse will be able to produce hydrogen at a cost others can only dream of. Operationally and strategically, we are in an exceptional position. We pair agility with scale, and we are staying ahead of the evolving market dynamics.

And with this, over to you, Amy.

Thank you, Dennis. Good morning to everyone, and thank you for joining us today. I'll take you through a strong set of results for the financial year ended 30th of April 2025 and share our guidance for the current year ending 30th of April 2026. We are pleased to report revenue of GBP 26 million, a 50% year-on-year increase and significantly ahead of our original guidance of GBP 18 million to GBP 22 million. This growth was driven primarily by equipment sales of GBP 22.5 million, complemented by income from front-end engineering design studies, maintenance, spare parts and equipment upgrades.

While the majority of equipment sales revenue this year came from legacy contracts, which, while fully provided for, were not contributing to profit, these deliveries reflect our commitment to fulfilling past obligations, positioning for a far stronger higher-margin future. As a reminder, most of our equipment revenue is recognized at a point in time, typically upon delivery or site acceptance testing, which means revenue lags long behind factory activities.

Our growth loss has increased this year, but importantly, this reflects strategic actions from our previous plan, expanding capacity, improving manufacturing efficiency and shifting to build to order rather than build to capacity. These changes are already delivering results with our Factory Acceptance Test pass rate soaring from under 50% to 99%, a transformational improvement in product quality and reliability.

We have continued to uphold strong discipline around cash and cost control and have achieved an overall cost reduction in overheads while we continue to improve the level of capabilities and competencies of our employees. These steps strengthen our operational foundation and set us on a clear trajectory towards even greater efficiency, scalability and profitability.

Our contract order backlog now stands at GBP 145.1 million, double that of FY '24. Since Dennis joined ITM, we committed that every contract we win must be profitable in its own right. This focus is paying off, 60% of the current order backlog represents future revenue that will contribute positively to margin and the share continues to grow. We are not only building profitable contracts, we are also creating valuable reference plants, building lasting relationships and increasing the proportion of profitable projects in our backlog. This disciplined approach is taking us step by step towards sustained profitability.

We ended the year with a cash position of GBP 207 million, significantly ahead of our original guidance, and notably, the second half of the year was cash generative. The table shows the major cash movements in the year contributing to the GBP 23.3 million change. This includes an exceptional item of GBP 13.1 million in a commercial settlement as previously disclosed. Excluding this, the cash movement was GBP 10.2 million, a major improvement compared with the GBP 52.4 million movement in the prior year.

The graphs on the right show that while reducing overall inventory balances as products are dispatched, we have maintained a healthy ratio of raw materials to finished goods, which was established in the prior year. Our CapEx has also decreased in line with our cash discipline, while we've increased the proportion of spend on research and development, particularly in advancing CHRONOS, our next-generation stack, which has already been highlighted in this presentation.

And now on to our guidance for the year ended 30th of April 2026. We are expecting revenue to grow by a further 50% to between GBP 35 million and GBP 40 million, including recognizing revenue on the Lingen I project, which was reported on earlier in this presentation. As a reminder, we recognize revenue on contract completion, and we expect the majority of this revenue to be recorded in the second half of the year, aligned with deliveries and site acceptance tests.

We forecast our adjusted EBITDA loss to improve to GBP 27 million to GBP 29 million as we continue to work through the remaining legacy contracts. The losses are now primarily linked to factory loading and fixed cost absorption, while we maintain rigorous control over production, projects and overhead costs.

We expect year-end cash to be between GBP 170 million and GBP 175 million, reflecting tight cost and capital discipline alongside an expected working capital increase of GBP 10 million to GBP 15 million. CapEx is expected to be GBP 15 million to GBP 20 million with a focus on further developing CHRONOS, continuing to carefully advance manufacturing automation and scaling the efficient production of our NEPTUNE units. This will be conducive to our competitiveness.

Finally, I'm delighted to extend a special invitation to our retail investors. To mark our 25th anniversary, we are opening the doors of our Sheffield factory to 25 retail investors. Guests will see our manufacturing process firsthand, meet our talented team and experience the heart of our business. Details will be shared on social media in the coming weeks, and we look forward to welcoming you.

That concludes our presentation. Thank you for your attention and continued support.

[Operator Instructions] I would like to remind you the recording of the presentation, along with a copy of the slides and the published Q&A can be accessed via investor dashboard.

I'd now like to hand you over to Justin Scarborough, Head of Investor Relations to host the Q&A. Justin, as you can see, we've received a number of questions. Can I, therefore, please ask you just to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Thank you very much, Paul, and welcome to everybody to today's FY '25 results call. We've got a number of questions that have come through. And the first one is aimed towards Simon, which is how excited are you about CHRONOS.

I'm very excited about CHRONOS. I think we're starting from a tremendous place. We have industrialized and supplied some great technology in the form of TRIDENT, and it is delivering market-leading performance, and I've shown you some evidence of that today. CHRONOS has really been an opportunity to incorporate all of our lessons learned, and that has meant that we've been able to make steady improvements to manufacturing processes to make it more straightforward, quicker and easier to assemble. And we have also been able to simplify the logistics of shifting stacks around to site during project execution.

I think the part of CHRONOS that I'm most excited about is the design and technology changes that will be delivering some significant cost down and performance improvements. We have also managed to squeeze a lot more electrolysis in a smaller footprint. That means that the whole system will be much smaller. That helps us to reduce the footprint of a site and that, in turn, helps reduce the cost of construction in project realization.

We've also future proofed the stack so that not only can it take advantage of market-leading technology today, but the technologies that are in the process of coming through our design and validation process can also be utilized once they're ready. And that means that we can adopt those into the stack without having to make any stack redesigns on the way. So very excited.

Thank you, Simon. Question #2 is for Amy. The FAT improvement is impressive. Can you help us understand how this helps to improve costs within the business?

Yes, of course. So yes, I think it's a particularly impressive statistic that we've managed to transform our operations by. Essentially, efficient and quality production processes will ultimately give us less wastage, less write-offs, reducing costs and giving us, in turn, a really good strong competitive advantage. That, in the round, opens up the possibility of different factory testing regimes, different manufacturing processes and the ability to make our production even more efficient than it is today.

Yes. Maybe if you allow me to add a bit to that, when you talk about testing regimes, I think it's fair to say that, today, we test each and every stack we deploy and the more confidence we have in the recurring quality. And as I said earlier in my presentation, we had 1 failure out of 200 stacks produced. And this will allow us soon to go to batch testing instead of testing every stack, which will increased throughput, but we will also take down energy cost and all related costs when it comes to testing.

Thank you very much. Question #3 is another 1 for Amy. Could you remind us about your revenue recognition and cash flow profile through the life of a contract?

Yes, absolutely. So revenue recognition, we assess under the accounting standards. So it's a contract-by-contract basis to assess which accounting treatment you use in each particular case. It leads to different accounting treatments based on the specific of the contracts, but the majority of ours are on a completed contract basis. So that's typically where we recognize revenue in a lump sum towards the end of a contract, so that will be either on SAT or delivery. And that lags behind any factory activity. So you don't see the revenue until after we've produced everything.

There are occasions where we have contracts that are based over time, but they are limited. And in those cases, you recognize revenue as the contract progresses. So there are no hard and fast rules for each product type because each contract and each sale is bespoke. But some of our products lend more easily to over time, such as POSEIDON and some of them lend to more completed contract basis such as just the TRIDENT, NEPTUNE. So that's where we'd recognize revenue at the end.

All that differs very much from our cash profile where we set all our contracts up to be, at a minimum, cash neutral throughout the life. So we're collecting cash as we are producing whatever goods that we're making. And the time scales of that cash collection can be different. So -- and NEPTUNE is a much shorter time frame than a, say, 200-megawatt plant, which could be over a couple of years.

Yes, true. When it comes to cash profiles, maybe still worth adding that, usually, we would execute cash neutral or cash positive, which means that usually the cash in should be pretty well aligned to cash out in projects or slightly above.

Thank you. I think it's probably a question for Dennis. Beyond Lingen I, what is the next biggest project you expect to recognize revenue on in the current financial year?

In FY '26. So that would be Leuna, our 24-megawatt project, which we are executing together with and for Linde. The plant is currently in installation, and we would expect commissioning before calendar year-end.

Thank you. A question for Amy. Your order backlog was GBP 145.1 million at the year-end. What is it today?

Okay. So we don't give guidance on the order backlog beyond the end of the year, so beyond the end of FY '25. But I think you'll be able to see from recent RNSs that we have kept increasing our order intake. So we've won several contracts. There was a NEPTUNE V with Westnetz, NEPTUNE II with a Spanish customer. And then we've very recently announced our first POSEIDON contract with MorGen. So it's safe to say that the number has grown, but we won't give actual numbers beyond the year-end.

Thank you. The next question, I think, probably for Simon first of all. Do you think it is correct that some believe that alkaline is cheaper than PEM technology?

Okay. So I've always said that each of the technologies have their advantages and disadvantages. But do I believe that alkaline is cheaper than PEM? No. I mean, on the one hand, alkaline stacks do use lower cost materials, but because the current density in alkaline stacks is so low, the stacks are so much bigger, so lower cost material but much, much more material, doesn't really give you a net advantage.

I think when you then start to look at the cost of project execution, because the stacks are so much bigger, the systems are so much bigger, the building costs get really quite significant and will be more expensive than PEM. And in Europe today, there's no cost advantage for alkaline at the full-scale plant size. And we've had that feedback from a number of reference points in both the U.K. and in Europe.

Perhaps while I'm on the topic, if I can, there's normally a second part to that question, which is, do I believe that alkaline stacks are more efficient than PEM, and the answer to that would also be no. I wouldn't just take my word for it. You can look at the EU 2030 targets, which are there for both PEM technology and alkaline. And it's quite interesting to note that those targets are identical in terms of performance for both alkaline and PEM. The difference though is the target for PEM is at 3 amps per square centimeter and the target for alkaline is at 1 amp per square centimeter. So I think that says quite a lot about the difference in efficiency of the 2 technologies.

Yes. Maybe adding to that, I mean, from real life deployments or real life tender processes, if you take a 100-megawatt PEM and 100-megawatt alkaline plant full EPC total installed cost, in Europe, as Simon said, that's more or less the same today. There wouldn't be a significant advantage. But probably worth mentioning, again, that with CHRONOS, that would shift significantly. As you explained, CHRONOS will not only leap ahead in terms of efficiency and performance, but it will also be significantly cheaper than the current TRIDENT solution, which means that with CHRONOS, we are effectively cheaper than alkaline even if you, for example, take a 100-megawatt comparison in Europe.

Thank you very much. A question for Dennis. Just over a year ago, ITM announced the 500-megawatt capacity reservation. Is it possible to provide an update on this?

Yes, of course, we cannot disclose the customer due to NDA requirements or confidentiality requirements. But what we can say, I think we're allowed to say that, is that there has been a first call-off in the financial year '25. So in the last financial year, there's been a call-off against that 500-megawatt capacity reservation, and we are working very closely with our customer towards more projects as call-offs from the capacity reservation.

Thank you. The next question is for Amy. Within the FY '26 CapEx guidance, how much is allocated to Hydropulse?

Okay. So the simple answer is we haven't allocated any CapEx to Hydropulse within that guidance at the moment. How Hydropulse will work is each individual contract will be judged on its own merits with a full business case behind it, and any investment decision will be made on that specific individual case. If there are significant investments that we need to make into Hydropulse that would alter the cash guidance, we would, of course, raise your guidance at that point. But the moment, the CapEx doesn't include any Hydropulse projects. In our overall cash numbers, we have a small amount of overhead allocated to Hydropulse this year.

Thank you. Almost like a follow-up for Hydropulse. Can you please explain how project financing will work with Hydropulse?

Of course. So project financing, again, this is going to be on an individual project-by-project basis. So there is no one kind of clear rule. It will be based on the individual requirements of that project and the specifics of it. But to give some examples, we could, for example, look at funding it through a debt financing, which is asset backed or based on future customer receipts. I think what's important in the Hydropulse business model is that it makes the chance for individual projects to be very cash positive quickly. And also they would be profitable from day 1, so they would be revenue generating and profitable from day 1 of operation.

Yes. I think it's fair to say Hydropulse is, by its business model, not designed to drain cash from ITM but to deliver cash.

Thank you. Next question, over the past year, we have announced several FEED contracts. Could you explain the FEED process and time lines associated?

Sure. Want to go first?

Sure. Well, FEED stands for Front-End Engineering Design. And it is there to really specify everything to do with a particular project, so everything that is project specific. So there's quite a lot to do, there's some genuine heavy lifting, defining the site layout, getting the piping system all organized, doing some safety documentation and so on and so forth. And they would typically run for 6 to 9 months. They could go a bit longer to 12 months if the project is particularly big.

And the reason that FEEDs are so important is that, that is the place where you get enough definition so that you can start to engage with suppliers and get some quotes back. And that means that you can get much crisper on the cost. And that process is really important to feed into the final investment decision.

And usually, you would see -- so after FEED completion, you would usually expect a 3, 4 months delay to FID under normal circumstances if there's no other factors which would delay a decision. But as Simon rightfully explained, FEED processes come into play, especially for larger projects, which are more complex where you're trying to integrate a specific plant component either into brownfield already existing installation or where you need to have a highly bespoke customized product plant design, which -- where you need a proper design basis before you can engage with suppliers regarding firm prices in order to get to a full firm price towards the end of the FEED process for the customer to have a proper basis for their FID.

Sorry, the next question. Does the situation in the U.S. regarding the development of the green hydrogen market have any impact on ITM?

I'll start. Well, ITM has got an ASME-compliant stack in TRIDENT today. So we are able to engage now in projects in the U.S. But we did see the risk of slowdown in green projects in the U.S., and so we didn't invest in the U.S. to any significant degree. So that means there's a certain insulation that we have from that slowdown that doesn't cost us particularly. There may be other [ OEMs out there ] that perhaps have put more money into the U.S., and we chose not to do that. So we are able to pick up business there when it fits, but the slowdown isn't really hurting us.

Yes. I still remember, I think it was a year ago, 1.5 years ago when I was asked the same question in the other direction. When are we -- or what are we doing more when it comes to the U.S.? And at that time, I said I would always want to see more anchor demand, sustainable anchor demand in a certain world region before committing capital into that region to build a factory. And I think that strategy has proven to be right. We shied away from early investments also because we were a bit skeptical about the hype of the U.S. market.

Now we have seen a reversal basically, which was also a bit unexpected, but I think it proved to be the right strategy to be very careful with capital allocation, especially given that that's all shareholder capital. And we -- I think we have now made ourselves a name to be very careful how we spend money, as you also see in the cash flow numbers of FY '25.

Thank you. A couple of finance questions coming your way, Amy. The first one is what proportion of your work in progress relates to the FY '26 guidance?

Okay. So we state in our accounts that -- of the contracted order backlog we're going to recognize roughly 25% of that. It's about 1/4 in this next year, so in FY '26. Work in progress is really quite closely aligned with that. So while we wouldn't give specific numbers, you would expect a similar level of work in progress to be related to that revenue.

Thank you. And a second financial question. Could you help us understand your gross loss line, what it's made up of and what the near-term drivers of it are?

Yes, of course. So first of all, let me just say that I think we've done some really great work over the last couple of years of controlling costs, making sure we've got an efficient and quality production line, controlling costs on projects, winning profitable projects and also controlling overheads, and we'll maintain that discipline and accelerate it where we can but keep an absolute focus on there.

We're now at that point where our losses are really made up of under absorption of the factory. And that speaks to both the improvements that we've made in our production processes and quality over the last few years. But also, we did shift from building to capacity, so essentially filling the factory and filling work in progress and stock to building to order. So there are under absorptions in the factory at the moment. They will lessen as the volumes go up. So as we win more projects, as we gain significant orders as we have been doing, we will complete -- fill the factory and reduce some of those under absorptions.

The other thing that contributes towards gross loss, which is talked about, is the legacy projects that we're still working through. So we're still recognizing revenue on those legacy projects that is fully provided for if they are loss making, but they don't contribute towards gross margin at the moment.

Thank you very much. The next question, when do you expect to deploy the first NEPTUNE V given that the Guttroff contract was announced last November.

I assume that's to me, right? Guttroff, the customer name is Guttroff in Germany, a smaller gas company. We indeed signed the contract in November last year. The engineering has been completed. Procurement has been mostly completed. Almost all of the parts or the key parts have arrived. The NEPTUNE V unit is currently in build on our shop floor. Actually, if we were just looking out of the window here, which you can see, you would see it being built as we speak. And we are on track towards factory acceptance testing still this calendar year and then shipment is planned for Q1 2026.

Thank you. A question for Amy. I believe in the RNS and during the presentation, you talked about the path to profitability. Could you help us understand what that path looks like?

Yes. So just to reiterate, we can't guide beyond the current year, but I can talk about the kind of the elements that will make up that profitability. So we can confidently say that we think we've got a strong enough balance sheet to see us to that point of profitability. We need to absolutely maintain the cost discipline that I've talked about, so overheads, projects and production. We need to continue growing the order backlog, and particularly the percentage of that order backlog that is new contracts where it is outweighing the legacy contracts now, that will continue to grow and contribute towards it.

So really, profitability is a question of time now. It's filling the factory and time. And we're doing lots of development work to make that an accelerated time line and in particular, CHRONOS should give the ability to reduce costs and give us more of a competitive advantage in terms of filling the factory.

Thank you. In terms of time, that's all we've got for questions today. There is one thing that's come in as a note and it's not a question. It's someone who wanted to say congratulations on the MorGen contract that was announced yesterday morning.

Thank you very much.

So many thanks, everybody, for your interest in ITM. Questions that were submitted prior or during the meeting that weren't answered will be responded to in the normal way via the IMC platform over coming days. Thank you for your attention.

Thank you.

Justin, thank you, and thank you to the ITM management team for updating attendees today. Can I please ask investors not to close the session to be automatically redirected to provide your feedback in order that management can better understand your views and expectations. This will only take a few moments to complete, and I'm sure it will be greatly valued by the company.

On behalf of the management team of ITM Power Plc, I would like to thank you for attending today's presentation, and good morning to you all.