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

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CITY WHISPERS: New boss wants to reverse clean fuel company fortunes – Dennis Schulz wants to get to grips with ITM Power

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It has been a rough 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 collaborates with Shell, among others?

More than 5 percent of the shares are held by short sellers. It is among the top five stocks with the most short positions.

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

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

One analyst blamed ITM Power’s execution problems and the company’s lack of profitable orders.

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

But Peel Hunt’s Nick Walker predicts an upswing with the arrival of new CEO Dennis Schulz.

Schulz was general manager of a division of Linde, the world’s largest industrial gas company and ITM’s largest shareholder with a 16 percent stake.

ITM Power has decided to postpone this week’s scheduled trading update to the end of January to give Schulz time to get to grips with the company. Good luck to him.

Bullish commentary from Shore Capital on Compass

The broker previously said the caterer could achieve an annual turnover of £35 billion in the medium term.

Sales in the year to the end of September were up 40 percent to £25.8 billion, Compass said last month.

1670134047 528 CITY WHISPERS New boss aims to reverse clean fuel firms

1670134047 528 CITY WHISPERS New boss aims to reverse clean fuel firms

Analyst Greg Johnson reiterated his buy rating, saying this “blue sky scenario” was now increasingly feasible, adding: “Given the momentum, we now see this more as a prediction than a utopia.”

Renshaw Rebellion hardly a highlight

Last week’s rebellion against Renishaw’s board was hardly a high point in the company’s history.

The engineering firm tried to reassure investors that opposition to 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 uprising – with just over a quarter turning him down.

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

1670134048 482 CITY WHISPERS New boss aims to reverse clean fuel firms

1670134048 482 CITY WHISPERS New boss aims to reverse clean fuel firms

While both votes were passed, Renishaw insisted it will “continue to engage with shareholders” to understand their concerns.

Let’s hope…

Life is not getting any easier for Asos

At least not according to analysts at Credit Suisse.

1670134049 81 CITY WHISPERS New boss aims to reverse clean fuel firms

1670134049 81 CITY WHISPERS New boss aims to reverse clean fuel firms

“We believe that the operational initiatives highlighted by the full-year results are insufficient to drive a material change in Asos’ challenges,” analysts at the bank said. Ouch.

“Inventory levels are way too high,” they added, upping their rating on the stock from “outperform” to “neutral” and target price from £6.60 to £12.50. Ouch one more time.

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

Shares fell 2 percent on Friday to close at £6.31.

Contributor: Neil Craven