ITM Power’s CTO Cashes In as a £46.5 Million Subsidy Decision Looms

ITM Power's CTO sells £1.37M in shares as hydrogen firm awaits June subsidy decision for next-gen Chronos electrolyser, despite stock doubling on Morgan Stanley upgrade.

The chief technology officer of ITM Power has sold nearly 873,000 shares at 157.44p each, pocketing a tidy sum just as the hydrogen specialist awaits a make-or-break government funding decision in June. Dr. Simon Bourne exercised options on more than a million shares before offloading the bulk of his stake at elevated prices, a move the company describes as a routine tax sale tied to the option exercise. He retains a small residual holding.

The insider disposal comes at a moment of remarkable momentum for the stock, which has doubled in value over the past month. That rally has been fuelled by a historic upgrade from Morgan Stanley, which lifted its rating on ITM Power to “Overweight” with a price target of 170p — the bank’s first positive industry call in five years. Morgan Stanley now expects the company to reach operational breakeven by fiscal 2028, forecasting revenues of £169 million, well above prevailing market estimates.

Yet the enthusiasm is far from universal. On the AJ Bell trading platform, ITM Power has been the most-sold stock among retail investors. Berenberg maintains a 110p target, while UBS sits at 60p with a neutral rating. The shares currently trade well above their 200-day moving average, leaving the stock technically stretched after such a steep rally.

A June Decision That Could Reshape the Business

All eyes are now on a single date in the calendar. In June, the UK’s competition authority is expected to formally sign off on a £46.5 million subsidy for ITM Power’s new Chronos production line. That sum forms part of a broader £86.5 million financing package, with Great British Energy already contributing £40 million. The company plans to take its final investment decision immediately after the regulatory green light.

The Chronos platform represents a step-change in the company’s technology. The next-generation electrolyser will deliver two megawatts of capacity in base operation — triple the output of the current Trident system — while slashing costs by 40%. The design also brings significant physical improvements: floor space requirements are cut by more than half to a power density of 2.5 MW per square metre, weight is reduced by over 50% for easier transport, and up to 90% of components are reusable or recyclable.

If approved, the Chronos line will be built in Sheffield, creating 250 new jobs in the UK and dramatically expanding ITM Power’s manufacturing capacity. A delay or rejection would severely disrupt the timeline for bringing the new technology to market.

Operational Progress — But at a Price

The funding decision arrives against a backdrop of genuine operational improvement. ITM Power posted a record first-half revenue of £18 million and subsequently raised its full-year guidance to as much as £43 million. The company has also been cleaning up its legacy portfolio: of the £152 million in outstanding orders, 71% are now considered profitable, reflecting a strategic shift away from loss-making early-stage contracts.

Government backing has also deepened. The British government has made a direct equity investment in the company, and additional grant funding is flowing into the Sheffield plant.

Still, the valuation remains punchy. The stock trades at roughly 38 times forward sales, and the company is expected to post an operating loss of around £30 million this year. Zeus Capital points to a comfortable cash buffer of nearly £198 million as a backstop, but the path to profitability is still a work in progress.

For now, the June ruling will determine whether the bulls or the bears have the better argument. A positive outcome would lock in the Chronos expansion and validate the stock’s recent surge. Anything less would leave ITM Power’s ambitious timeline — and its elevated share price — on shaky ground.