Brexit hits ITM Power's contract pipeline

UK hydrogen specialist ITM Power plc (LON:ITM) on Friday said the Brexit decision has prompted it to revise its pipeline as it meant increased uncertainty for contracts in the final stages of negotiation.

The company has removed GBP 3.47 million (USD 4.6m/EUR 4.2m) of such contracts from its pipeline figure. As a result, ITM Power now has a total pipeline of GBP 18.85 million, including GBP 17.67 million of projects under contract and a further GBP 1.18 million of contracts in the final stages of negotiation.

The company said the pipeline reduction was not expected to impact its expectations for the year through April, 2017. It added that the pipeline was reliant on deals in currencies other than pounds and that greater currency volatility could have a near-term impact on the contract pipeline.

ITM Power is involved in EU-backed projects such as Hydrogen Mobility Europe (H2ME). Earlier this month it announced a EUR-35-million project for the Hydrogen Mobility Europe 2 (H2ME2) programme funded by the Fuel Cells and Hydrogen Joint Undertaking (FCH JU) under Horizon 2020. The company will get EUR 5.06 million from the project.

(GBP 1.0 = USD 1.331/EUR 1.203)

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