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STRATEGIC PARTNERSHIPS CONTINUE TO DELIVER COMMERCIAL GROWTH

Ceres Power Holdings plc ("Ceres Power", "Ceres", the "Company" or the "Group") (AIM: CWR.L), a global leader in fuel cell and electrochemical technology, announces its half-yearly results for the six months ended 31 December 2019.

Financial Highlights

• Revenue and other income up 33.6% to £11.0m (H1 2018: £8.3m), reflecting strong progress on major contracts
• Strong gross margin of 67% consistent with the asset-light licencing business
• Continued investment in the business to grow future value, while reducing operating loss to £2.8m (H1 2018: £3.0m)
• Further equity injection of £49m from Bosch and Weichai post period end adds to strong cash and short-term investments of £64.6m at 31 December 2019

Operating Highlights

• New system licence and joint development agreement signed with Doosan worth £8.0m over two years
• Completed joint development with Weichai of first prototype 30kW range extender system for electric buses targeting the Chinese market
• Bosch commenced initial low-volume pilot production of fuel cell systems in Germany
• First product launch of the SteelCell®with Japan's Miura Co. in a combined heat & power ("CHP") system for commercial use
• Developed Ceres' first zero-emission combined heat & power ("CHP") system designed for exclusive use with hydrogen fuel
• New UK manufacturing facility built and commissioned which will ramp up to 2MW annual capacity this year with the intent to upscale to 3MW in due course

Current Trading and Outlook

• Expect similar revenue growth to continue for the full year with strong order book* of £22m and pipeline* of £50m as at 31 December 2019
• We are exploring partnerships with system engineering companies to access new customers and applications
• Bosch has increased its stake in Ceres to c.18%, generating gross proceeds of £38m
• Weichai to invest a further £11m in Ceres to maintain its equity stake at 20%.  We still plan to establish a fuel cell system manufacturing joint venture in China later this year
• Gross equity proceeds of £49m will allow Ceres to extend the application of its technology including developing electrolysis capability
• Ceres has undertaken a brand refresh to support the broadening of its technology, wider industry and business development and purpose
• We are monitoring the rapidly-moving developments around COVID-19.  O ur current guidance for the full year performance remains aligned with market expectations and we will continue to assess potential impacts on future trading

Phil Caldwell, CEO of Ceres Power commented: 

"Ceres has a technology that the world urgently needs to tackle climate change. As a management team, we are focused on maintaining our industry-leading position in fuel cells, while also maximising the future value for Ceres presented by the broader addressable market for clean energy technology. 

"I believe that the quality and success of the partnerships we have built with Bosch, Weichai, Doosan, Miura and others is a huge endorsement of our technology, our team and our approach. We are now in a privileged position, with investor support, committed partners and balance sheet strength, to capitalise on the substantial opportunities that exist to deliver long-term profit and to do so with purpose ."

*Order book refers to confirmed contracted revenue and other income while pipeline is contracted revenue and other income which management estimate is contingent upon options not under the control of Ceres.

 

For further information please contact:

 

Ceres Power Holdings plc	Tel: +44 (0)1403 273 463
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
Powerscourt (Financial PR)	Tel: +44 (0) 20 7250 1446
Peter Ogden / James White