REG - Ceres Power Holdings - Trading and JV Update

Ceres Power HoldingsAnnouncement

28/07/2022 07:00

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RNS Number : 9823T  Ceres Power Holdings plc  28 July 2022

28 July 2022

 

Ceres Power Holdings plc

 

Trading and JV Update

 

Finalisation of the China JV progressing with revenues weighted to the second
half

 

Horsham, UK: Ceres Power Holdings plc ("Ceres", the "Company") (AIM: CWR.L), a
global leader in fuel cell and electrochemical technology, provides a post
period end trading update ahead of the announcement of its interim results for
the six months ended 30 June 2022, which will be released on Thursday 22
September 2022.

 

Financial

 

·    Revenue and other operating income for the six months to 30 June 2022
is expected to be approximately £10 million (H1 2021: £17.4m), with the
timing of completion of the China JV contracts with Bosch and Weichai and
associated licence fees expected to fall in the second half of 2022

·    Cash and short-term investments were approximately £221 million as
at 30 June 2022

 

Operational

 

·    As announced on 28 June, Shell and Ceres are building a partnership
to utilise solid oxide electrolyser cell (SOEC) technology to deliver
high-efficiency, low-cost green hydrogen. This significant step endorses the
strategy and potential of SOEC

·    Two studies concluded as part of the UK Clean Maritime Demonstration
Competition, show Ceres' SOFC technology offers a highly differentiated and
fuel flexible solution which can reduce carbon emissions by up to 47% on
conventional maritime fuels

·    Long-term agreement signed with HORIBA MIRA, Europe's leading
engineering and testing consultancy, to increase test capacity and accelerate
delivery of new fuel cell and hydrogen technology to international markets

 

Current trading and outlook

 

As noted in our FY 2021 results announced in March, the phasing of sales in
2022 is highly dependent on the timing of the completion of the China JV
contracts.  All three parties are making good progress towards definitive
agreements.  Subject to signing and receipt of the necessary regulatory
clearances we expect completion this year and anticipate a high proportion of
licence fee revenue recognition to be booked in H2 2022, with associated high
gross margin.

 

Phil Caldwell, Chief Executive Officer of Ceres: "Ceres is placed at the heart
of the energy transition, and everything we do is focused on ensuring the
success of our partners by deploying our technology in multiple geographies
and applications. Whilst short-term revenues are dependent on the timing of
significant licensing deals, our focus remains on building long-term value
through scaling the manufacturing capacity for our technology and growing the
recurring, annual royalty streams we will receive as partners succeed. We
continue to make good progress towards this aim both with existing and new
partnerships."

 

Ends

 

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

 

 Ceres Power Holdings plc                      Tel: +44 (0)7932 023 283

 Elizabeth Skerritt

 Investec Bank PLC (NOMAD & Joint Broker)      Tel: +44 (0)207 597 5970

 Jeremy Ellis/ Patrick Robb/ Ben Griffiths

 Berenberg (Joint Broker)                      Tel: +44 (0)203 207 7800

 Ben Wright/ Mark Whitmore

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

 Dwight Burden                                 Email: ceres_power@fticonsulting.com (mailto:Ceres_power@fticonsulting.com)

 

 

About Ceres Power

 

Ceres is a world-leading developer of electrochemical technologies: fuel cells
for power generation, electrolysis for the creation of green hydrogen and
energy storage. Its asset-light, licensing model has seen it establish
partnerships with some of the world's largest engineering and technology
companies, such as Weichai in China, Bosch in Germany, Miura in Japan, and
Doosan in Korea, to develop systems and products that address climate change
for power generation, transportation, industry, data centres and everyday
living.  Ceres is listed on the AIM market of the London Stock Exchange
("LSE") (AIM: 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.

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