TIDMCWR
RNS Number : 1507V
Ceres Power Holdings plc
26 January 2017
26 January 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Ceres Power Holdings Plc
("Ceres Power" or the "Company")
Trading update for the six months ended 31 December 2016
SIGNIFICANT COMMERCIAL PROGRESS WITH TWO NEW INTERNATIONAL
DEVELOPMENT PARTNERS
Highlights
-- New commercial partners: Two new development agreements
signed, bringing total to four including with Honda, Nissan and
Cummins; well on track to meet target of five by the end of
2017.
-- Developing products for launch: First 'go-to market'
agreement signed to develop and launch highly efficient combined
heat and power ("CHP") product to target the business sector using
Ceres Power's SteelCell technology.
-- Rapidly expanding international footprint: Japan, US and
Korea now account for approximately 90% of contracted revenues.
-- Revenue streams accelerating: GBP1.5 million in revenue and
other operating income for the first half, a threefold increase
compared to first half last year.
-- Strong pipeline: Order book of GBP4.8 million as at 31
December 2016 and three new evaluation agreements underway signed
with potential future partners.
Ceres Power Holdings plc (AIM: CWR), a world leading developer
of low cost, next generation steel fuel cell technology, is pleased
to provide a trading update for the six month period to 31 December
2016 - a period in which the Company has rapidly accelerated its
development, signing a further two commercial development
partnerships (including its first agreement with a specific product
launch under development) and expanded its international footprint.
The Company expects to report half yearly results on 8 March
2017.
Phil Caldwell, Chief Executive Officer said:
"Ceres Power has significant momentum heading into the second
half of the financial year. We have now successfully secured four
development partners of international scale and credibility. We
remain confident in our ability to meet our target of five partners
by the end of 2017. Further technical developments mean we can
target new end markets for our technology, including the fast
growing Electric Vehicle and Data Centre sectors. We also signed
our first 'go-to market' development agreement, bringing the
prospect of product launches, and the associated revenue, ever
closer. With 90% contracted revenues now generated in Japan, the US
and Korea, Ceres Power is establishing itself as a truly
international technology business. We look forward to the second
half with enthusiasm and confidence."
New development partners and commercial advancements
In the first half, Ceres Power built on the momentum from the
previous financial year, signing up two new commercial partners in
the period adding to the agreements with Honda and Nissan.
Firstly, with Cummins, a leading US developer of power
generation equipment, to develop power applications for the fast
growing Data Centre market, which already accounts for 3% of global
power usage and is forecast to grow rapidly, representing a
significant addressable market for Ceres Power.
Secondly, in December Ceres Power signed a global original
equipment manufacturer ("OEM") partner to develop and launch a CHP
product to target the business sector using Ceres Power's SteelCell
technology. This is a core market for Ceres Power as Governments
seek to find ways to effectively reduce CO(2) emissions while
increasing stability and security of supply: distributed power
generation driven by steel cell technology is a proven solution to
these challenges.
This was Ceres Power's first 'go-to market' agreement
highlighting the Company's acceleration towards full scale product
launch. The successful commercialisation of the CHP units has the
potential to drive significant revenue growth through both royalty
payments as well as fuel cell supply.
Ceres Power is in talks with a number of global OEMs and is
confident of signing a fifth partner ahead of our 2017 year-end
target.
Financial Strength
The rapid commercial development of the Company has translated
to a significant jump in revenue. Total contract order book as at
31 December 2016 was GBP4.8 million, reflecting Ceres Power's
development partnerships, while revenue and other operating income
grew to GBP1.5 million for the half year, a threefold increase over
the same period last year. The Company will provide further update
at the half yearly results in March.
Following the successful raise in October 2016 the Company's
cash position at 31 December is expected to be c. GBP22 million.
The Company's equity free cash outflow(1) for the half year is
expected to be GBP4.2 million (compared to GBP5.4 million cash
outflow for the first half last year).
The outlook for the year ahead is positive as, in addition to
the development contracts announced this year, the Company has also
undertaken three new evaluation agreements in the past 6 months
providing a healthy pipeline for future revenue growth. The
combination of continued technological development and innovation,
proven ability to sign new development partnerships with global
OEMs, and financial resilience following a successful fund raise
and a large increase in contracted revenues, puts Ceres Power in a
very strong position to grow in the second half of the financial
year and beyond.
(1) Equity free cash outflow is the net change in cash &
cash equivalents in the period less cash generated from financing
activities less the movement in short-term investments.
For further information please contact:
Ceres Power Holdings plc Tel: +44 (0)1403
Phil Caldwell, CEO 273 463
Richard Preston, Finance
Director
Dan Caesar, Communications
& Marketing Director
Zeus Capital (Nominated Tel: +44 (0) 20 3829
Adviser and Broker) 5000
Phil Walker/Andrew Jones
Tavistock Tel: +44 (0) 20 7920
Mike Bartlett/James Collins 3150
Notes to Editors:
About Ceres Power
Ceres Power is a world leader in low cost, next generation steel
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 at high efficiency and is manufactured using standard
processing equipment and conventional materials such as steel,
meaning that it can be mass produced at an affordable price for
domestic and business use.
Ceres Power offer its partners the opportunity to develop power
systems and products using its unique SteelCell technology and
know-how, combined with the opportunity to supply the SteelCell in
volume through its manufacturing partners.
For further information please visit:
http://www.cerespower.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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