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Revenue doubles for fourth consecutive year

Horsham UK, 2 October 2019 - Ceres Power Holdings plc ("Ceres Power", "Ceres", the "Company" of the "Group") (AIM: CWR.L), a global leader in fuel cell technology and engineering, announces its final results for the year ended 30 June 2019.

 

Financial Highlights

    - Revenue and other operating income up 133% to £16.4 million with higher margin license activity delivering an improved gross margin of 75%

    - Net cash used in operating activities down significantly to £3.1 million from £9.5 million, reflecting improved operating loss reduced 33% to £7.9 million from        £11.9 million

    - Equity-free cash outflow¹ up slightly to £11.9 million from £10.9 million. £9.0 million invested, largely on new CP2 manufacturing facility in UK

    - Raised £77.1 million of new equity in the year from strategic partners and financial institutions. Cash and short-term investments of £71.3 million at 30 June          2019

 
Commercial and Operational Highlights

      - First product launch with Japan's Miura Co. using Ceres' SteelCell® in a combined heat and power (CHP) system for commercial use

      - Strategic partnerships signed with both Bosch and Weichai including equity investment and licensing agreements

      - SteelCell® reached a key milestone of 60% net efficiency, twice that of a conventional gas engine and greater than that of a centralised megawatt-scale            gas turbine

      - £8.0 million investment in new blueprint manufacturing facility (CP2) in Redhill, UK on track for production from January 2020, creating 60 new skilled jobs

Current Trading

    - New system licence and joint development agreement worth £8.0 million over two years signed with Doosan post year end

    - Completed joint development with Weichai of a prototype 30kW range extender system for electric buses targeting the Chinese market

    - Strong order book of £28.4 million and pipeline² worth more than £50 million (as at report date)


1 Equity free cash outflow is the net change in cash and cash equivalents in the year (£1.2 million) less net cash generated from financing activities (£76.8 million) add the movement in short-term investments (£63.7 million).

2 Order book is the contracted commercial revenue and grant income scheduled to be realised in future years. Pipeline is contracted revenue and other income which management estimate is contingent upon options not under the control of Ceres.


 Phil Caldwell, Chief Executive Officer of Ceres Power, commented:

"2019 was a milestone year for Ceres, which saw us double revenue for the fourth year running through significant license deals and secure our first commercial product launch in Japan later this year, while also approaching first production at our new UK reference manufacturing facility.

 
"We now have license agreements in place with four of the world's largest engineering and power companies.  Bosch and Weichai have chosen not only to partner with us but have invested in significant equity stakes, aligning them to the future success of our business and ensuring that Ceres is well-capitalised to deliver against its strategy.


"Global awareness of the role that fuel cells can play in tackling climate change and improving air quality is growing rapidly. The talent of our team and the quality of our customer partnerships give us increased confidence in the future prospects of Ceres and its long-term value to shareholders."

 

For further information, please contact:


Ceres Power Holdings plc

Elizabeth Skerritt

Tel: +44 (0)1403 273 463

 

Investec Bank PLC (NOMAD & Joint Broker)

Jeremy Ellis / Patrick Robb

 

Tel: +44 (0)207 597 5970

 

Berenberg (Joint Broker)

Ben Wright / Mark Whitmore

 

Tel: +44 (0) 203 207 7800

 

Powerscourt

Peter Ogden / James White

 

Tel: +44 (0) 20 7250 1446

 

 

About Ceres Power

Ceres Power

(http://www.cerespower.com/)

is a world leader in low cost, next generation fuel cell technology for use in distributed power products that reduce operating costs, lower CO2, SOx and NOx emissions, increase efficiency and improve energy security. The Ceres Power unique patented SteelCell® technology generates power from widely available fuels such as natural gas and future fuels such as hydrogen enabling a transition from low to zero carbon power generation at high efficiency. The SteelCell® is manufactured using standard processing equipment and conventional materials such as steel, meaning that it can be mass produced at an affordable price. Ceres Power offers its partners the opportunity to develop power systems and products using its unique technology and know-how, as well as the opportunity to manufacture the SteelCell® in volume.