REG - Ceres Power Holdings - Trading Update

Ceres Power HoldingsAnnouncement

25/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230725:nRSY0197Ha&default-theme=true

RNS Number : 0197H  Ceres Power Holdings plc  25 July 2023

CWR.L

 

25 July 2023

 

Ceres Power Holdings plc

 

Trading Update

 

Progress in green hydrogen technology driving commercial interest

 

Horsham, UK: Ceres Power Holdings plc ("Ceres", the "Company") (CWR.L), a
global leader in fuel cell and electrochemical technology, today provides the
following update ahead of the announcement of its interim results for the six
months ended 30 June 2023, which will be released on Thursday 28 September
2023.

 

Financial

·    Revenue for the six months to 30 June 2023 is expected to be
approximately £11 million (H1 2022: £9.7m)

·    Gross margins are expected to be around 55-60% (H1 2022: 55%)

·    Cash and short-term investments were approximately £162 million as
at 30 June 2023

·    On 29 June 2023, Ceres successfully moved to the Main Market of the
London Stock Exchange from AIM

 

Current trading and outlook

·    Bosch and Weichai have reconfirmed to Ceres their commitment to the
China JVs and are targeting signature this year. However, given the continued
delay which is not within Ceres' control, and the time required post signature
for regulatory clearances, we are taking a prudent view that the revenue
associated with the JVs is now unlikely to be recognised this year.  This
reduces our expectation for 2023 by an estimated net £15m (compared with
current market consensus 1  (#_ftn1) ), by moving revenue associated with the
China JVs to 2024, partially offset by the anticipation of additional licence
fee revenue from new contract wins this year.

·    The Company continues to expect full-year revenue growth against the
prior year as a result of the growing pipeline of potential new licence
partners with whom the Company is in active discussions.   The Company will
update guidance as appropriate once any new material commercial contracts are
signed.

·    Bosch's 'Power Units' have received European funding of ~€160
million as an Important Project of Common European Interest (IPCEI) to enable
the mass production of its solid oxide fuel cell
(https://www.linkedin.com/feed/hashtag/?keywords=fuelcell&highlightedUpdateUrns=urn%3Ali%3Aactivity%3A7084190826368491520)
 product, utilising Ceres' stack technology.

·    Building construction is nearing completion on Doosan's 50MW factory
in South Korea.  All machinery and processes have undergone factory
acceptance testing, and is on track for installation and commissioning to
achieve first production in 2024.

·    The first-of-a-kind MW-scale electrolyser is undergoing commissioning
and initial testing at AVL in Germany, in preparation for deployment later in
the year to Shell's R&D centre in Bangalore, India, in line with the
timetable set out in the 28 June 2022 announcement.

·    A two-year collaboration with Linde Engineering and Bosch has
commenced to validate the performance, cost, and operational functionality of
Ceres' electrolyser technology.

·    Ceres has been announced as the Winner of the Royal Academy of
Engineering's 2023 MacRobert Award, widely regarded as the UK's most
prestigious prize for engineering innovation.

 

Phil Caldwell, Chief Executive Officer of Ceres said: "Despite the ongoing
delay with the China JVs, the company is making good progress elsewhere,
especially with our growing pipeline of opportunities.  We have made a
significant shift in the business over the past two years, and I am
particularly excited by the progress in our electrolyser technology, including
signing a partnership with Linde and Bosch earlier this year, and the level of
interest in licences to exploit the global market for green hydrogen.  I look
forward to sharing further updates in the coming months."

 

Ends

 

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

 

 Ceres Power Holdings plc

 Elizabeth Skerritt                Tel: +44(0)7932 023 283

                                   Email: elizabeth.skerritt@cerespower.com

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

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

 

About Ceres

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 Bosch, Doosan, Shell and Weichai, to develop systems and
products that address climate change for power generation, transportation,
industry, data centres and everyday living.  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.

 

 

 

 1  (#_ftnref1) Current market consensus revenue for 2023 = £49m (Source:
Bloomberg)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFERDRISFIV