REG - Ceres Power Holdings - Trading update

Ceres Power HoldingsAnnouncement

24/01/2024 07:15

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RNS Number : 6787A  Ceres Power Holdings plc  24 January 2024

CWR.L

 

24 January 2024

 

Ceres Power Holdings plc

("Ceres", the "Company")

 

Trading update

 

Horsham, UK: Ceres Power Holdings plc (CWR.L), a leading developer of clean
energy technology, today provides a post period end trading update ahead of
the announcement of its full year results for the year ended 31 December 2023,
which will be released on Wednesday 20 March 2024.

 

Financial

·    Revenue for the year ended 31 December 2023 is in line with previous
guidance at approximately £21-22 million (2022: £22 million)

·    Gross margin for the year is expected to be around 60% (2022: 59%)

·    Cash and short-term investments were approximately £140 million as
at 31 December 2023

 

Current trading and outlook

·    Signed significant new fuel cell and electrolysis license with Delta
Electronics on 18 January 2024, which includes staged revenues of £43 million
to Ceres through technology transfer and licensing, of which approximately
half is expected to be recognised as revenue in 2024. Initial production by
Delta is expected to start by the end of 2026.

·    Our electrolysis programme is progressing well. The 1MW-scale
electrolyser successfully completed testing in Germany and is now en-route to
partner Shell's site in India. The Ceres team is now developing the next
product concept for a 4-5MW modularised system, which would facilitate larger
scale installations.

·    Construction of the Bosch and Doosan factories continues to progress,
however the launch of commercial fuel cell systems is now expected to take
longer, with initial royalties anticipated from 2025 onwards.

·    We were not able to conclude the planned China JV in 2023. Whilst we
continue to maintain strong relationships with both Bosch and Weichai it is
now our belief that the proposed JV is unlikely to be completed in its current
form. However, we are evaluating other options with Weichai to address the
China market. We will update the market on our progress at the appropriate
time.

·    With the new license deal with Delta, we have confidence at this
early stage of the year to at least double revenues in 2024, compared to 2023,
based on existing contracts.

 

Phil Caldwell, Chief Executive Officer of Ceres commented, "It is great to
kick off the new year with a significant new license deal with Delta, our
first to include SOEC, and further validation of our strategy to invest in our
green hydrogen technology. We start 2024 with a strong cash position and a
growing pipeline of opportunities to work with progressive partners to adopt
our technology to decarbonise our global energy systems."

 

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 leading developer of clean energy technology; electrolysis for the
creation 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, Shell and Weichai.
Ceres' solid oxide platform 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, cement 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.

 

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