Ceres Power revenue surges as technology development continues
Low cost, next generation fuel cell technology developer Ceres Power Holdings announced its half-yearly results for the six months to 31 December on Wednesday - a period in which it signed two new development agreements, bringing the total to four including with Honda, Nissan, Cummins and a further unnamed global original equipment manufacturer.
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The AIM-traded firm explained that its first 'go-to-market' agreement was signed with the global OEM to develop and launch a “highly efficient” combined heat and power product for business markets.
Its revenue and pipeline reportedly remained strong, with revenue and other operating income for first half year tripling to £1.5m from £0.5m in the prior year.
The board confirmed it was aiming for the full year to be at least double.
Ceres’ order book stood at £4.8m as at 31 December, and three new evaluation agreements were said to be underway with potential future partners.
It also highlighted what the board called the first significant US commercial success with global power leader Cummins and the US Department of Energy, to develop an energy system for data centre and commercial scale applications.
Ceres said new market opportunities were also enabled during the period by rapid progress in SteelCell technology, with the improvements in efficiency, robustness and power density opening up new high growth power markets in commercial and business sectors.
It managed to successfully fundraise a £20m placing, enabling continued investment in the business and its technology.
On the financial front, the company’s revenue surged to £1.03m during the period, from £0.24m in the prior year, while its other operating income almost doubled to £0.53m from £0.22m, making for total revenue and income of £1.55m, firming from £0.45m in 2015.
Its operating loss was in line with the prior period at $6.24m, with equity free cash flow being an outward flow of $4.18m - reducing from the $5.43m outflow reported at the same time in 2015.
It held net cash and short term investments of $22.17m at period end, rising significantly from the $12.75m it held a year earlier.
“Ceres Power is on track for an excellent year, driven by new commercial partnerships, the rapid progress of our technology and our first 'go-to market' agreement bringing us closer to a first product launch,” said CEO Phil Caldwell.
“We said we would sign five partners by the end of 2017 and with four to date we are on track to do just that, plus we have three new evaluation agreements and a strong pipeline with a series of international prospective partners”
Caldwell said, with a forward order book of £4.8m and a successful fundraising secured, the company was in a strong position to capitalise on significant market opportunities.
“As the world wrestles with the growing challenge of a decarbonising and decentralising energy system, our proven SteelCell technology, and our work with global power specialists, shows Ceres Power is capable of providing a cheaper, cleaner, distributed alternative to centralised power generation.”