TIDMCWR

RNS Number : 8767H

Ceres Power Holdings plc

13 June 2017

13 June 2017

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Ceres Power Holdings Plc

("Ceres Power" or the "Company")

Trading update

revenue AHEAD OF EXPECTATIONS due to commercial progress

Ceres Power Holdings plc (AIM: CWR), a world leading developer of low cost, next generation steel fuel cell technology, provides a trading update ahead of the year ended 30 June 2017.

Highlights:

-- Full year total income expected to more than double to approaching GBP4 million (2016: GBP1.67 million).

-- Growing revenue driven by continued success in winning new development partner agreements and signing follow-on agreements; on track to sign fifth development partner during 2017.

-- Strong financial position - cash & short-term investments at 30 June 2017 expected to be at least GBP16 million.

Phil Caldwell, Chief Executive Officer said:

"I am delighted with the commercial progress we have made. I am confident we will meet our stated objective and sign a fifth development partner this year and a second go-to-market customer before the end of 2018. Our ability to generate revenues by winning new partners and also grow our existing business with some of the leading players in the market shows we have established ourselves now as a truly international business.

"We are extremely confident in the future. We will invest further in our people, technology and capacity to ensure we can continue to meet our partner's requirements."

Revenue ahead of expectations

While working towards commercial launch of its SteelCell technology, Ceres Power continues to generate revenues primarily through charging its development partners fees for engineering services and product development, as well as through winning development grants. The ability to generate revenues while still developing the technology highlights the significant potential of the SteelCell. Ceres Power is pleased to confirm revenue and other operating income ("total income") to date are ahead of expectations and will be approaching GBP4 million for the year, more than double the prior year's total income of GBP1.67 million.

The increase in total income is primarily due to the excellent commercial progress the Company has made in the year, particularly with:

-- the first 'go-to-market' agreement signed in December 2016 to develop and launch a combined heat and power ("CHP") product for the business sector;

   --     the development agreements signed with Honda, Nissan and Cummins during 2017; and

-- the agreement signed in May 2017 with an existing Global OEM to develop a residential CHP product.

Ceres Power is working with its partners to develop SteelCell applications for use in the Residential, Commercial, Data Centre and Electric Vehicles market. Revenues are also geographically spread, with the bulk of order book outside the UK across Japan, the US, Europe and Korea. This high proportion of international revenues reflects Ceres Power's growing reputation and ability to win development contracts in significant international markets.

The Company continues to be in a strong financial position and expects its cash & short-term investments at 30 June 2017 to be at least GBP16 million, with equity free cash outflow for the full year forecast to be less than GBP10 million (2016: GBP11.2 million equity free cash outflow).

(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, CFO 
  Dan Caesar, Communications 
  & Marketing Director 
 
   Zeus Capital (Nominated           Tel: +44 (0) 20 3829 
   Adviser and Broker)               5000 
   Phil Walker/Andrew Jones/Hugh 
   Kingsmill Moore 
 
   Powerscourt                       Tel: +44 (0) 20 7250 
   Peter Ogden/Andy Jones            1446

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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June 13, 2017 02:01 ET (06:01 GMT)

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