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Ceres Power expects full year revenues to double as it completes “key commercial milestones” in collaboration agreements

The fuel cell developer said in a trading update that revenues and other operating income were expected to reach £15mln in the year, up from £7mln in 2017
Electric car charger
Ceres develops fuel cells that can be used in electric cars

Ceres Power Holdings PLC (LON:CWR) said it expects full-year revenues to “more than double” as it hit two “key commercial milestones” with partners Bosch and Weichai Power.

The fuel cell developer said in a trading update that revenues and other operating income were expected to reach £15mln in the year, up from £7mln in 2017.

WATCH: Ceres Power hits significant milestones with two key strategic partners

Following investments from Bosch and Weichai and a share placing in July, Ceres added that it expected a cash position of around £77mln at the half year, with revenues for the six months expected to rise 125% on last year to at least £7mln.

The company said the delivery of “two significant milestones” in its collaborations with both firms this week was driving revenue growth.

For Bosch, Ceres said the milestone in the collaboration agreement had triggered a second “significant payment” of €5mln, part of a £20mln deal signed with the German firm in August.

Meanwhile, the group announced earlier this week that it had finalised a long-term strategic collaboration with Chinese engine firm Weichai that included a new £9mln joint development agreement, up to £30mln in stage payments under a license agreement and a further £28mln equity investment which was due to complete shortly.

READ: Weichai Power confirms further equity investment in Ceres Power and joint venture

In total, Weichai will invest around £48mln for a 20% stake in Ceres.

The company also said it was progressing with multi-year programmes with other original equipment manufacturers (OEMs).

Phil Caldwell, chief executive of Ceres, said the milestones had given the company’s partners “confidence in taking our technology forwards towards commercialisation. This has enabled us to grow the business in the UK and also extend our markets internationally”.

Ceres will report its first-half results in March 2019.

In a separate announcement, the company also said it had appointed Dr Haoran Hu as a non-executive director with immediate effect.

Hu is the vice president and chief technology officer of Weichai, with the appointment forming part of Ceres’ collaboration agreement with the firm.

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