Ceres Power Announces Robust Financial Results for 2023, Eyeing Rapid Expansion and Innovation

With significant revenue growth and strategic partnerships, Ceres Power solidifies its position in clean energy technology development.

Horsham, UK– Ceres Power Holdings plc (“Ceres”, the “Company”) (CWR.L), a leading developer of clean energy technology, announces its results for the year ended 31 December 2023.

Financial highlights

·      Revenue of £22.3 million (2022: £19.8 million¹)

·      Gross profit of £13.6 million (2022: £10.7 million¹), maintaining sector-leading gross margin at 61% (2022: 54%¹)

·      Research and development investment increased by 11% to £54.0 million (2022: £48.5 million¹), consistent with strategy to drive innovation and commercial acceleration in electrolysers

·      Strong cash and short-term investments position of £140.0 million (2022: £182.3 million) with reduced cash outflow of £42.4 million (2022: £67.3 million) through disciplined working capital and cash management

 

Strategic highlights

·      Bosch’s ‘power units’ based on Ceres’ technology received European funding of ~€160 million to support series ramp up and mass production

·      Doosan’s 50MW stack factory in South Korea has completed factory acceptance testing and machine installation with commissioning on schedule for 2024

·      Second generation stack design has passed critical design review, offering improvements in performance and cost to licence partners

·      The electrolysis programme is progressing well. The megawatt-scale electrolyser demonstrator successfully completed testing in Germany and has arrived at partner Shell’s R&D centre in Bangalore, India

·      Graduation to the Main Market of the London Stock Exchange in June 2023

 

Current trading and outlook

·      Signed significant new fuel cell and electrolysis license with Delta Electronics in January 2024, which includes staged revenues of £43 million to Ceres through technology transfer and licensing, of which approximately half is expected to be recognised as revenue in 2024. Initial production by Delta is expected to start by the end of 2026

·      We have confidence at this early stage of the year to approximately double revenues in 2024 from existing partnerships, compared to 2023

Phil Caldwell, Chief Executive Officer of Ceres, said: “After a challenging 2023, Ceres is already on track for a strong year in 2024, underpinned by a significant new licence deal with Delta, our first to include SOEC. This is further validation of our strategy to accelerate investment into SOEC our green hydrogen technology and adds to our series of world class partnerships as we continue to scale our business globally.”

As indicated on 14 March 2024, the Company was informed by its auditors BDO that they required more time to complete this year’s audit. The process is now complete and a number of prior period corrections were identified, the main ones relating to the historical timing and treatment of revenue recognition and foreign exchange impact for long term contracts, the dilapidation provision and capitalisation of relevant costs.

The total impact of all items is a decrease in net assets of £3.6 million in 2022, with the majority being explained by a reduction of revenue of £1.7 million in 2021 and £2.3 million in 2022. These decreases in revenue are offset by increases in revenue of £0.3 million in 2023 and £3.3 million increase in the opening order backlog for 2024. Please see note 1 of the Financial Statements for further detail.

Financial Summary	2023	2022 Restated1
	£’000	£’000
Total revenue1, comprising:	22,324	19,788
Licence fees	6,378	5,369
Engineering services revenue	10,220	9,039
Provision of technology hardware	5,726	5,380
Gross profit	13,554	10,709
Gross margin %	61%	54%
Adjusted EBITDA loss2	(50,297)	(45,686)
Operating loss1	(59,401)	(54,013)
Net cash used in operating activities	(33,899)	(50,832)
Net cash and investments	139,956	182,320
1. The restatement to 2022 is described in Note 1 2. Adjusted EBITDA loss is an Alternative Performance Measure, as defined and reconciled to operating loss in the non-GAAP section at the end of this report.

 

Analyst presentation

 

Ceres Power Holdings plc will be hosting a live webcast for analysts and investors on 15 April 2024 at 09.30 GMT. To register your interest in participating, please go to: https://www.investormeetcompany.com/ceres-power-holdings-plc/register-investor.

 

For further information visit www.ceres.tech or contact:

 

Ceres Power Holdings plc Elizabeth Skerritt/ Merryl Black	Tel: +44 (0)7932 023 283/ +44 (0)7770 853 463
FTI Consulting (PR Adviser) Ben Brewerton/ Dwight Burden	Tel: +44 (0)203 727 1000 Email: [email protected]

 

About Ceres

Ceres is a leading developer of clean energy technology: electrolysis for the creation of green hydrogen and fuel cells for power generation. Its asset-light, licensing model has seen it establish partnerships with some of the world’s largest companies, such as Bosch, Doosan, Delta and Weichai. Ceres’ solid oxide technology supports greater electrification of our energy systems and produces green hydrogen at high-efficiencies as a route to decarbonise emissions-intensive industries such as steelmaking, ammonia and future fuels. Ceres is listed on the London Stock Exchange (“LSE”) (LSE: CWR) and is classified by the LSE Green Economy Mark, which recognises listed companies that derive more than 50% of their activity from the green economy. Read more on our website www.ceres.tech or follow us on LinkedIn.

 

 

 

 

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