Strategic Partnerships Continue To Deliver Commercial Growth
Ceres Power Holdings plc (“Ceres Power”, “Ceres”, the “Company” or the “Group”) (AIM: CWR.L), a global leader in fuel cell and electrochemical technology, announces its second set of interim results for the 12 months ended 30 June 2020, following the change of year-end to 31 December.
Financial Highlights
- Strong progress on major contracts has driven a 21% increase in revenue and other operating income to £19.9m (2019: £16.4m)
- Increased gross profit of £13.8m (2019: £11.5m) at sector leading gross margin of 73% (2019: 75%)
- Adjusted EBITDA loss increased slightly to £6.5m (2019: £5.9m) due to further investment in growth area of electrolysis for hydrogen
- Increased equity investment by Bosch and Weichai, of £49m, supports strong cash and short-term investments of £108m at 30 June 2020
- Order book* of £14m and strong pipeline* of £54m as at 30 June 2020
Operating and Corporate Highlights
- Bosch has commenced manufacturing of Ceres’ core cell technology at its pilot facility in Germany
- Weichai 30kW range extender system for electric buses targeting the Chinese market moving into field trials. Some delays in timing due to Covid-19 means establishment of a joint venture in China is now likely to be H1 2021
- Wider deployment of the Group’s combined heat and power (“CHP”) system in the Japanese market by Miura Co.
- Hydrogen Electrolysis R&D delivering positive results triggers further investment in the technology
- Successful development of Ceres’ first zero-emission CHP system designed for exclusive use with hydrogen fuel
- 2MW advanced manufacturing pilot facility built, commissioned and running in Redhill, UK
- Appointment of Warren Finegold as Chairman and Uwe Glock and Qinggui Hao as Non-executive Directors
Covid-19
The disruption from Covid-19, coinciding with the commissioning of our new facility at Redhill, has meant that some
revenues have been deferred from this reporting period. Nonetheless, we have delivered a solid set of results, with
continued revenue growth through good progress with our customer programmes and increased manufacturing
output; a huge credit to the entire Ceres team.
Phil Caldwell, CEO of Ceres Power commented:
“The urgency for climate action continues to drive the global demand for clean energy technologies, and our strategy of
licensing to global partners, with a leading position in their products and markets, continues to be highly successful.
“Despite the disruption from Covid we have delivered a solid set of results, with continued revenue growth and sector
leading margins. This is driven by good progress with our customer programmes and increased manufacturing output
thanks to the hard work of the entire Ceres team.
“Trading since the period end has remained strong with good commercial progress with our partners globally. Bosch has
now installed prototype products of its 10kW system utilising Ceres’ technology at five locations in Germany while, despite
an initial delay in the early part of 2020 due to the pandemic, good progress is now being made to validate Ceres’
technology for transportation applications with Weichai’s SOFC team in China.
“These developments, combined with the opportunities from our new, long term growth areas of electrolysis for hydrogen,
mean that Ceres is very well positioned to build on the strong momentum generated during the period as we look to play
our part in delivering clean energy technology to enable a net-zero future.”
Financial Summary:
| Financial Summary: | 12 months ended 30 June 2020 (Unaudited) £’000 |
Year ended 30 June 2019 (Audited) £’000 |
|---|---|---|
| Total revenue and other operating income, comprising: | 19,942 | 16,365 |
| Licence fees | 5,841 | 7,412 |
| Engineering services revenue and provision of technology hardware | 13,056 | 7,888 |
| Other operating income | 1,045 | 1,065 |
| Gross margin % | 73% | 75% |
| Adjusted EBITDA loss 1 | (6,519) | (5,881) |
| Operating loss | (10,081) | (7,924) |
| Net cash used in operating activities | (5,442) | (3,058) |
| Net cash and short-term investments | 107,981 | 71,267 |
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