Horsham's Ceres Power reports revenue growth in latest half year

By Giles Gwinnett

26 July 2023

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Horsham-headquartered fuel cell and tech company Ceres Power Holdings reported revenue growth in its latest half year to end-June but has reduced its revenue expectations for the full year due to China joint venture (JV) delays.

The company will post interim results for the six months on September 28 this year, with revenue expected to be around £11 million, compared to £9.7 million in the first half of 2022. Gross margins are expected to be around 55% to 60% (H1, 2022: 55%).

Bosch and Weichai have reconfirmed to Ceres their commitment to the China JVs and are targeting signature this year, the company noted.

"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," it added.

This has reduced the expectation for 2023 by an estimated net £15 million, compared with current market consensus, by moving revenue associated with the China JVs to 2024, partially offset by expected additional licence fee revenue from new contracts this year.

Ceres CEO Phil Caldwell 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."

Ceres, which recently moved to the main market of the London Stock Exchange from AIM, develops electrochemical technologies - fuel cells for power generation, electrolysis for the creation of green hydrogen and energy storage.

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By Giles Gwinnett

Giles Gwinnett is a writer at The Business Magazine. He has been a journalist for more than 20 years and covered a vast array of topics at a range of media settings - in print and online. After his NCTJ newspaper training, he became a reporter in Hampshire before moving to a news agency in Gloucestershire. In recent years, he has been covering the financial markets along with company news for an investor-focused web portal. His many interests include politics, energy and the environment. He lives in Dorset.