REG - Ceres Power Holdings - New licence partner and trading update

Ceres Power HoldingsAnnouncement

22/07/2024 07:00

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RNS Number : 1852X  Ceres Power Holdings plc  22 July 2024

22 July 2024

 

Ceres Power Holdings plc

("Ceres" or the "Company")

New manufacturing licence partner and trading update

Ceres Power Holdings plc (CWR.L), a leading developer of clean energy
technology, has signed a global long-term licence agreement for the
manufacture of Ceres' proprietary solid oxide electrolyser cell ("SOEC")
technology with a global original equipment manufacturer ("OEM") headquartered
in the Asia Pacific region (the "Partner").

Highlights

·    Global OEM Partner - secures another partner for Ceres with the
scale, expertise and resource to manufacture advanced equipment for the
growing green hydrogen sector

·    Significant Revenues - the agreement provides revenues for licence
fees, engineering services and hardware over multiple years, similar to the
profile of previous OEM licences

·    Royalty Payments - the agreement also provides for royalty payments
to Ceres on future commercial production and sale of SOEC equipment to end
customers by the Partner

At the Partner's request, further details are not expected to be disclosed
until early August.

Trading Update

Ceres also provides a trading update, with interim results for the six-month
period ended 30 June 2024 expected to be released on Friday 27 September 2024.
 

·    Increased full year revenue guidance of £50-60 million

·    Revenue for the first half is expected to be in the range £27-29
million (H1 2023: £11.7 million 1 ), more than double the revenue of the
prior year comparator six-month period

·    Gross margins in the half year increased to around 75-80% (H1 2023:
62%(1))

·    Cash and short-term investments were approximately £126 million as
at 30 June 2024 (31 December 2023: £140 million)

·    The corresponding cash outflow of £14 million in H1 2024 represents
a reduction to the cash outflow in the same period last year (H1 2023: cash
outflow £21 million)

Momentum in the business is strong with today's agreement being the second
major license deal and new partner signed this year following on from the
manufacturing collaboration with Delta announced in January 2024.

Consequently, the Company increases its revenue guidance for the year ending
31 December 2024 to the range of £50-60 million, based on the contracts
secured to date.

Commenting on the new partnership Phil Caldwell, CEO of Ceres, said: "We are
making great commercial progress this year, and I am particularly excited by
the advances in our highly efficient and differentiated SOEC electrolyser
technology, which is now being adopted by several leading global companies
with the manufacturing, supply chain and balance sheet strength to bring this
technology to market at scale.

"This builds on Ceres' strategy to establish partnerships in regions with
strong manufacturing capability coupled with ambitious targets for the use of
hydrogen for industrial decarbonisation. By licensing our best-in-class solid
oxide technology, Ceres is establishing its clean energy technology as the
industry standard and, through its partner network, is building towards
delivering decarbonisation at the scale and pace needed globally for the
energy transition."

Ends

 

For further information visit www.ceres.tech (http://www.ceres.tech/) or
contact:

 Ceres Power Holdings plc          Tel: +44 (0)7884 654179

 Patrick Yau/ Merryl Black         Email: investors@cerespower.com

 FTI Consulting (Financial PR)     Tel: +44 (0)203 727 1000

 Dwight Burden / Ben Brewerton     Email: ceres_power@fticonsulting.com

 

About Ceres

Ceres is a leading developer of clean energy technology: electrolysis for the
production of green hydrogen and fuel cells for power generation. Its
asset-light, licensing model has seen it establish partnerships with some of
the world's largest companies, such as Bosch, Doosan, Delta and Weichai.
Ceres' solid oxide technology supports greater electrification of our energy
systems and produces green hydrogen at high-efficiencies as a route to
decarbonise emissions-intensive industries such as steelmaking, ammonia and
future fuels. Ceres is listed on the London Stock Exchange ("LSE") (LSE: CWR)
and is classified by the LSE Green Economy Mark, which recognises listed
companies that derive more than 50% of their activity from the green economy.
Read more on our website www.ceres.tech (http://www.ceres.tech) or follow us
on LinkedIn (https://www.linkedin.com/company/ceres-power/) .

 

Inside Information

This announcement contains inside information for the purposes of article 7 of
Regulation 2014/596/EU (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018) ('UK MAR'). Upon publication of this
announcement, this inside information (as defined in UK MAR) is now considered
to be in the public domain.

 

 1  H1 2023 revenue and gross margin restated to reflect historical timing of
revenue recognition for a legacy licence as described in Note 1 of the final
results for the year ended 31 December 2023 published on 15 April 2024

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