ITM Power Plc is developing technology to enable the storage of time varying renewable energy and to provide a low carbon replacement for hydrocarbon fuels. The Company now has granted IP protecting novel low cost ionomeric materials and methods of production for both fuel cells and electrolysers. The Board believes that these combine to provide ITM with a unique position in the development of technology to replace hydrocarbon fuels with a zero-carbon alternative (hydrogen) using renewable resources, a fuel which is suitable for storage and subsequent re-conversion in existing heat engines or fuel cells.
Following the departure of the CEO earlier in the year, the Board, led by its Chairman Peter Hargreaves, has pursued two objectives:
(A) a bottom-up review of ITM’s operations and objectives, the latter being undertaken by Dr. Donald Highgate and Prof. Roger Putnam CBE; and
(B) the search for a replacement CEO of proven technical and commercial ability.
The Board is now pleased to announce the results of these activities:
(A) The review has been completed and its recommendations have been accepted by the Board as the basis for the Company’s development in the coming year. The principal recommendations are:
(i) revision of the Company’s activities to expand the range of potential applications which could be serviced by the Company’s platform technology. Furthermore, to seek to ensure that these are effectively demonstrated and their potential widely publicised. This is considered necessary to allow ITM to make further commercial contacts with potential commercial partners which the Board recognise to be essential;
(ii) recognition that the Company could seek income from a wider range of activities and applications of its existing core technology, including sales of components and systems into existing electrolyser markets, not previously pursued as a preferred route to commercialisation; and
(iii) reduction of the Group’s operating expenditure by a thorough review of the facilities and staff necessary to achieve success in the newly defined business space. As a result of that review, the following actions are currently in process:
(a) closure of ITM’s Head Office and the transfer of any continuing functions to its existing sites at Sheffield (sites S1 & S2);
(b) closure of an analytical laboratory facility (S3) at Sheffield; and
(c) reorganisation and rationalisation of the management of the two remaining sites at Sheffield to improve the process flow from research to development and on to prototype production.
As part of this process the Company is proposing to make a number of redundancies amounting to approximately 12% of the workforce. These proposed redundancies are currently the subject of on-going consultation with potentially affected staff.
Excluding restructuring costs, this programme would be expected to result in annualised savings of about 10% of the current cost base. It would not be expected to affect ITM’s ability to carry out its activities as set out by the Board. Taken together with income from the recently awarded TSB research project the costs savings from this programme would partially offset the increase in net expenditure that would otherwise have resulted from the reduction in income interest.
In pursuit of these objectives, the Board has appointed ‘New Century Media’ with the remit to make the Company’s technical achievements and potential widely understood, and in support of this process ITM will be demonstrating a range of application ‘packages’ which show the potential of its technology in a range of areas not restricted to the transport field.
The first of these will be a demonstration of the technology package designed to make low carbon housing a reality. Later demonstrations will focus on the local provision of high pressure hydrogen for clean industrial applications and the use of fuel cells.
In recognition of ITM’s new focus, the Board intends to formally open the Company’s Prototype Production Facility at Sheffield on the 15th June and invites any shareholder who wishes to see the progress made in the recent past to attend for a guided tour. Details of arrangements and registration are available on the Company’s web site, www.itm-power.com, and by application to Tavistock Communications.
(B) The Board is pleased to announce that it has appointed Dr. Graham Cooley as CEO of ITM Power with effect from 29th June 2009. Dr. Cooley, age 45, has a wide experience in the development, engineering and application of energy interfaces and storage systems; indeed he developed the Regenesys energy storage technology from a lab scale experiment to an industrial scale technology and managed National Power’s polymer fuel cell technology. He has extensive experience as the CEO of technology development companies being the former CEO of Antenova, Metalysis and Sensortec. He has a PHD in Materials Technology and an MBA.
The Board believes that he has the technical and management expertise necessary to further the commercial development of ITM at this critical time in the Company’s history.
Dr Cooley is currently a director of Sensortec Ltd, Universal Sensors Ltd, Cawood Plc and Cogswell & Harrison Ltd. Previous directorships in the last five years include Metalysis Ltd. There are no other disclosures required under Schedule Two paragraph (g) of the AIM Rules for Companies.
The Board intends to grant Dr. Cooley options over 200,000 ordinary shares in the Company with effect from his appointment at an exercise price of 18.25p per share.
In summary the Board feels that ITM has emerged from the challenges of the past months with a clear structure and review of its technical capabilities which have combined to provide a redefined path for future development.
For further information please visit www.itm-power.com
