UPDATED: Business is ailing at Green Hydrogen Systems, which announced earlier this month that it would lay off approximately one in three of the company's more than 300 employees. The layoffs are part of a comprehensive cost-cutting plan that is intended to reduce costs by 40 to 50 percent. In addition, new funds are also needed, specifically 300 million DKK, for the company to survive through 2025.
This critical situation has now had consequences for the company's CEO Peter Friis, who is leaving the company. Instead, the company's board of directors has appointed René Umlauft as the new CEO with effect from November 1, 2024. The company announced this in a statement.
- The third quarter has been a challenging period for Green Hydrogen Systems. In light of the current situation, we need to implement a different strategy with the aim of securing a sustainable and profitable future for Green Hydrogen Systems, says Thomas Broe-Andersen, Chairman of the Board of Directors of Green Hydrogen Systems. He continues:
- We see René Umlauft as the right profile to take over the role of CEO with competencies in complex industries within the green transition as well as significant experience in business transformation and restructuring. Together with the Board of Directors, René Umlauft will play a central role in ensuring a solid foundation for the future.
René Umlauft has a PhD in engineering and has previously been CEO and CSO of Rittal, as well as CEO of MAN Diesel and Siemens Renewable Energy. Now he will lead Green Hydrogen Systems in the search for new capital and profitability.
- I look forward to taking on the role of CEO of Green Hydrogen Systems and having the opportunity to contribute to navigating through the current challenges with my experience and knowledge as CEO of a number of global companies. With the latest strategic decisions from the board of directors, I am convinced that the company will have a strong future within this important industry, says the new CEO.
René Umlauft and CFO Michael Kaalund will form the management board of Green Hydrogen Systems in the future.
Breaches its loan obligations
Green Hydrogen Systems has also published sales figures for the third quarter on Wednesday. This shows that the company had a turnover of 33.7 million DKK in the quarter.
The company maintains its expectation of reaching a turnover of between 105 and 145 million DKK in 2024. The expectations were adjusted downward on October 9 from an expected turnover of 125 to 165 million DKK.
On Wednesday, the company said that it is currently breaching obligations in its loan agreements. If no new money comes into the coffers, the reserves will be used up at the beginning of 2025, it says. That's why Green Hydrogen Systems desperately needs money. The goal is to raise 300 million kroner by the end of 2024.
The company states that it is in "constructive" dialogue with its largest shareholders and lenders to meet the financing needs.
At the same time, Green Hydrogen Systems will ask shareholders for permission to issue new shares or convertible bonds at an extraordinary general meeting on November 14.
Green Hydrogen Systems, headquartered in Kolding, develops and produces plants that can split water into hydrogen and oxygen. The hydrogen can be used as a climate-friendly fuel or used in other processes.
Since Green Hydrogen Systems was listed on the stock exchange in 2021, the price has fallen by around 90 percent. After the announcement that René Umlauft would take over the CEO position from Peter Friis, the share price rose. Shortly before 11 a.m., the price had risen by about 13 percent.
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