News

Fuel Cell Developer Ceres Power Reports Strong Commercial Performance and Revenue Growth

By July 9, 2019

July 9, 2019

  • Full Year Performance to Exceed Forecasts
  • Strong Commercial Performance Driving Revenue Growth

Trading Update–Ceres Power Holdings Plc (AIM: CWR, “Ceres”), is pleased to provide a post period end trading update ahead of the announcement of audited results for the year ended 30 June 2019.  As a result of continued strong commercial activity, the Group anticipates that audited results for the full year will be ahead of market expectations.  

Financial Update

·    Revenue and other operating income for the year ended 30 June 2019 to be approximately £16.5 million (c.135% growth from £7m in 2018), an increase from previous expectations of c. £15 million, driven by continued strong progress across existing contracts with our commercial partners

·    Cash and short-term investments were greater than £71 million at 30 June 2019

·    Operating loss and cash outflows from operating activities reduced significantly from prior year due to high margin license revenue.

Key Commercial Highlights of the year

·    Bosch Collaboration and License Agreement (with initial value to Ceres to 2020 of c.£20m) and equity investment of c.£9m

·    Weichai Power completed a total equity investment in Ceres of £48m and additional License and JV Agreements with staged technology transfer payments worth c.£30m and a Joint Development Agreement of £9m

·    First product launch: Miura Co. Ltd, Japan’s largest industrial boiler company, to use Ceres SteelCell® in fuel cell CHP product launch for use in commercial premises in Japan

·    Continued investment in growing the business including a new £8m manufacturing facility in Redhill, UK as a reference plant both to serve our growing customer needs and also to act as blueprint model for licensee manufacturing partners

In line with the strong order book from our commercial partners, we expect revenue growth to continue into FY20. 

Phil Caldwell, CEO said, “This year has been transformational for Ceres. Our strategic partnerships with Weichai Power and Bosch have enabled us to rapidly grow the business, doubling revenue for the fourth consecutive year. Fuel cells are one of the few technologies that offer a path to hydrogen and a net zero carbon future, tackling climate change and improving air quality globally. The past year has seen a renewed interest in the fuel cell sector and we are well positioned to benefit from this growth having established relationships with major manufacturers in the world’s leading fuel cell markets. With a strong balance sheet, unique technology and world class partners, we are on track to establish Ceres as a leading global fuel cell company.”  

Full year results will be announced in early October.

About Ceres Power

Ceres Power (http://www.cerespower.com/) is a world leader in low cost, next generation fuel cell technology for use in distributed power products that reduce operating costs, lower CO2, SOx and NOx emissions, increase efficiency and improve energy security. The Ceres Power unique patented SteelCell® technology generates power from widely available fuels such as natural gas and future fuels such as Hydrogen at high efficiency. The SteelCell® is manufactured using standard processing equipment and conventional materials such as steel, meaning that it can be mass produced at an affordable price. Ceres Power offers its partners the opportunity to develop power systems and products using its unique technology and know-how, combined with the opportunity to supply the SteelCell® in volume through manufacturing partners.