CITY WHISPERS: New boss aims to reverse clean fuel firm’s fortunes

It’s been quite the week for ITM Power. The company – which makes electrolysers that produce hydrogen for cleaner fuel – has a new boss. 

So why are investors betting against the Sheffield company, which works with the likes of Shell? 

More than 5 per cent of its shares are held by short sellers. It is among the top five most shorted stocks. 

New boss: ITM Power makes electrolysers that produce hydrogen for cleaner fuel

One analyst blamed ITM Power’s execution issues and the firm’s lack of profitable orders. 

The value of the company has dived from more than £2.5billion a year ago to about £630million. 

But Peel Hunt’s Nick Walker predicts a rebound with the arrival of new chief executive Dennis Schulz. 

Schulz was managing director of a division of Linde, the world’s largest industrial gas company and ITM’s top shareholder with a 16 per cent stake. 

ITM Power has decided to delay this week’s scheduled trading update until the end of January to allow Schulz time to get a grip on the firm. Best of luck to him.

Bullish comments from Shore Capital on Compass

The broker previously said the caterer could hit annual sales of £35billion in the medium term. 

Sales in the year to the end of September rose 40 per cent to £25.8billion, Compass said last month. 

Reiterating his buy rating, analyst Greg Johnson said this ‘blue sky scenario’ was now ever more feasible, adding: ‘Given the momentum we now see this as more of a forecast than pipe dream.’ 

Renshaw revolt hardly a high point 

The revolt against Renishaw’s board last week was hardly a high point in the company’s history. 

The engineering firm sought to reassure investors that the backlash against founders Sir David McMurtry and John Deer at its annual general meeting was under control. 

Sir David, who is chairman, saw almost 30 per cent of shareholders vote against his reappointment as a director.

Deer, his deputy, faced a similar revolt – with slightly more than a quarter rejecting him. 

The pair founded the firm in 1973. It now employs more than 5,000 people in 36 countries. 

While both votes passed, Renishaw insisted it will continue to ‘engage with shareholders’ to understand their concerns. 

Let’s hope so… 

Life isn’t getting any easier for Asos

At least not according to analysts at Credit Suisse. 

‘We believe the operating initiatives highlighted at the full-year results are insufficient to drive a material change to Asos’s challenges,’ said analysts at the bank. Ouch. 

‘Inventory levels are far too high,’ they added, striking their rating on the stock from ‘outperform’ to ‘neutral’ and the target price to £6.60 from £12.50. Ouch again. 

On Friday, Asos revealed its interim chief financial officer Katy Mecklenburgh is leaving. 

The shares fell 2 per cent on Friday, closing at £6.31. 

                                                                                                                                  Contributor: Neil Craven 

This post first appeared on Dailymail.co.uk