Strong Financial Growth: Revenue and Gross Profit Rise, with Significant Investment in Green Technology.
Horsham, UK– Ceres Power Holdings plc (“Ceres”, the “Company”) (CWR.L), a global leader in fuel cell, electrolysis and electrochemical technology, announces its interim results for the six months ended 30 June 2023.
Financial update
- Revenue increased by 17% to £11.3 million (H1 2022: £9.7 million)
- Gross profit of £6.9 million (H1 2022: £4.7 million), maintaining sector-leading gross margin at 61% (H1 2022: restated to 49%)
- “Investment in the future”1 increased by 19% to £30.6 million (H1 2022: £25.7 million), in line with strategy to expand into electrolysis for green hydrogen and deliver the next generation of fuel cell technology
- Reduction in equity free cash outflow by 24% to £21.8m from £28.6m
- Cash and investments of £161.2 million as at 30 June 2023 (31 December 2022: £182.3 million)
Strategic highlights
- Bosch’s ‘Power Units’ have received European funding of ~€160 million as an Important Project of Common European Interest (IPCEI) to support the development and mass production of its solid oxide fuel cell product, utilising Ceres’ stack technology
- Building construction for Doosan’s 50MW factory in South Korea is now complete. All machinery and processes have undergone factory acceptance testing, installation is almost complete, and commissioning is on schedule for completion in H2 2024
- Our second-generation design of fuel cell stacks has passed Critical Design Review (a key milestone), which offers improvements in performance and cost for SOFC partners
- The first-of-a-kind megawatt-scale electrolyser is undergoing commissioning and initial testing at AVL in Germany, in preparation for deployment at the end of this year to Shell’s R&D centre in Bangalore, India, in line with the timetable set out in the 28 June 2022 announcement
- A two-year collaboration with Linde Engineering and Bosch has been signed to validate the performance, cost, and operational functionality of Ceres’ electrolyser technology, which starts next year
- Ceres has been announced as the Winner of the Royal Academy of Engineering’s 2023 MacRobert Award, widely regarded as the UK’s most prestigious prize for engineering innovation
- Further augmented the Board with Karen Bomba and Caroline Brown joining as Non-Executive Directors
- As of 18 September 2023, Ceres has joined the FTSE 250 index, following its graduation from AIM to a Premium Listing on the Main Market of the London Stock Exchange
Current trading and outlook
- As previously announced, given the continued delay of signing the China JVs with Bosch and Weichai, as well as taking into account time needed for regulatory clearances, we do not expect revenue associated with these to be recognised this year
- Full-year growth against the prior year is subject to the timing of securing new licensees
Phil Caldwell, Chief Executive Officer of Ceres said: “We are at an important stage of the Company’s growth as we support our partners to scale manufacture for our existing fuel cell business, and make rapid progress in the development of our game-changing electrolyser technology, which will enable new partnerships to address the huge market opportunity for green hydrogen. Our recent inclusion in the FTSE250 index and the recognition for engineering innovation of the MacRobert Award have been made possible by the progress of the Company, and the hard work the team has put into maturing the Ceres technology over many years.”
1. “Investment in the future” comprises R&D costs, capitalised development and capital expenditure.
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Financial Summary:
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Six months ended 30 June 2023 Unaudited |
Six months ended 30 June 2022 Unaudited Restated1 |
12 months ended 31 December 2022 Audited |
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£’000 |
£’000 |
£’000 |
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Total revenue, comprising: |
11,310 |
9,687 |
22,130 |
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