The ITM Power plc (LON: ITM) share price fell 2.52% today, extending its 3-month losing streak that has seen it fall by 27.86%. The company’s losing streak has persisted despite multiple positive announcements from the firm, such as its recent entry into the US market.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Earlier today, the company announced that it had completed the sale of Motive Fuels Ltd, as detailed in its 14 August 2023 press release. The company revealed its plans for selling Motive Fuels Ltd., signalling a significant shift in focus towards core business operations.
The journey to this decision began with the announcement made during the Interim results presentation in January. At that time, ITM Power disclosed its intent to explore strategic options for Motive Fuels Ltd., setting the stage for what was to come.
Motive Fuels Ltd. has been a prominent part of ITM Power's journey, mainly through its joint venture established in March 2022. This venture was formed with a clear mission: to develop and deploy hydrogen refuelling stations across the United Kingdom.
The vision was to create a substantial presence in the UK's refuelling business, and both parties in the joint venture committed £30 million each as seed funding to drive this ambitious project forward.
However, as ITM Power continues to evolve and grow, it identified the need for increased cost and capital discipline. As part of a comprehensive 12-month plan, redirecting resources and optimising financial strategies emerged as one of the top priorities.
The strategic decision to divest from Motive Fuels Ltd. will enable ITM Power to reallocate £28 million of pre-committed funds into its core business operations. The strategic sale of Motive Fuels Ltd. comes as ITM Power steers its focus towards becoming a high-volume manufacturer of cutting-edge electrolysers.
ITM Power's move to divest from Motive Fuels Ltd. reflects the company's evolving priorities and its commitment to focusing on core operations.
ITM Power’s CEO Dennis Schulz said: “This sale will allow us to redirect £28m of pre-committed ringfenced capital to our core business. Under its new ownership, we wish Motive every success for the future and the contribution that it will play in helping to decarbonise the UK transport sector.”
ITM Power share price.
The ITM Power share price edged 2.52% lower to trade at 67.68p, from Thursday’s closing price of 69.43p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.