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Ceres Power primed for a strong second-half

The fuel cell specialist made significant headway in the first six months of its financial year, inking deals with Weichai of China and Robert Bosch
Ceres Power primed for a strong second-half
The company is the inventor of the SteelCell, a low-cost, next-generation fuel cell, which is in its fifth iteration

Ceres Power Holdings PLC (LON:CWR) shares rose in Thursday as the firm said it is on track to see revenues double for the year as it accelerated commercial growth, inking deals with Robert Bosch and Chinese engineering giant, Weichai.

The company is the inventor of the SteelCell, a low-cost, next-generation fuel cell, which is in its fifth iteration. Interest in the technology translated financially into revenues of £8.3mln in the six months to December 31, up from £3.1mln.

For the year, Ceres estimates it will generate a turnover of £15mln, £8mln more than the year before - and at a gross profit margin of around 50%.

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

The operating loss for the period more than halved to £3.2mln.

More importantly, it had cash as of December 31 of £78.4mln, which funds the business to break-even.

And it also has £30.5mln of contracted future revenues “with significant licence deals, leading to potential future royalties”.

Field trials have begun with large manufacturers, while there is a healthy pipeline of potential partners at the evaluation stage.

The company’s work with Weichai will see a Ceres-powered range extender fitted to an electric bus. The vehicle will be demonstrated in China later this year.

Development work with Robert Bosch and the firm’s other partners continues.

"This has been another period of significant commercial and financial progress,” said Ceres chief executive Phil Caldwell.

He told investors the company has entered the second-half in a financially strong position, adding: “The interest in our technology and the wide-ranging applications it has in power, transport and heating is now gaining real traction. We are well placed to deliver on our growth potential."

In late afternoon trading, shares in Ceres Power were up 8.6% to 149.90p.

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