Ceres Power Holdings plc Trading Update (8658E)
July 09 2019 - 4:31AM
UK Regulatory
TIDMCWR
RNS Number : 8658E
Ceres Power Holdings plc
09 July 2019
9 July 2019
Ceres Power Holdings Plc
Trading Update
FULL YEAR PERFORMANCE TO EXCEED FORECASTS:
STRONG COMMERCIAL PERFORMANCE DRIVING REVENUE GROWTH
Ceres Power Holdings Plc (AIM: CWR, "Ceres"), is pleased to
provide a post period end trading update ahead of the announcement
of audited results for the year ended 30 June 2019. As a result of
continued strong commercial activity, the Group anticipates that
audited results for the full year will be ahead of market
expectations.
Financial Update
-- Revenue and other operating income for the year ended 30 June
2019 to be approximately GBP16.5 million (c.135% growth from GBP7m
in 2018), an increase from previous expectations of c. GBP15
million, driven by continued strong progress across existing
contracts with our commercial partners
-- Cash and short-term investments were greater than GBP71 million at 30 June 2019
-- Operating loss and cash outflows from operating activities
reduced significantly from prior year due to high margin license
revenue.
Key Commercial Highlights of the year
-- Bosch Collaboration and License Agreement (with initial value
to Ceres to 2020 of c.GBP20m) and equity investment of c.GBP9m
-- Weichai Power completed a total equity investment in Ceres of
GBP48m and additional License and JV Agreements with staged
technology transfer payments worth c.GBP30m and a Joint Development
Agreement of GBP9m
-- First product launch: Miura Co. Ltd, Japan's largest
industrial boiler company, to use Ceres SteelCell(R) in fuel cell
CHP product launch for use in commercial premises in Japan
-- Continued investment in growing the business including a new
GBP8m manufacturing facility in Redhill, UK as a reference plant
both to serve our growing customer needs and also to act as
blueprint model for licensee manufacturing partners
In line with the strong order book from our commercial partners,
we expect revenue growth to continue into FY20.
Phil Caldwell, CEO said:
"This year has been transformational for Ceres. Our strategic
partnerships with Weichai Power and Bosch have enabled us to
rapidly grow the business, doubling revenue for the fourth
consecutive year. Fuel cells are one of the few technologies that
offer a path to hydrogen and a net zero carbon future, tackling
climate change and improving air quality globally. The past year
has seen a renewed interest in the fuel cell sector and we are well
positioned to benefit from this growth having established
relationships with major manufacturers in the world's leading fuel
cell markets. With a strong balance sheet, unique technology and
world class partners, we are on track to establish Ceres as a
leading global fuel cell company."
Full year results will be announced in early October.
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
For further information, please contact:
Ceres Power Holdings plc Tel: +44 (0)1403 273
Phil Caldwell / Richard Preston 463
Investec Bank PLC (NOMAD & Joint Tel: +44 (0)207 597
Broker) 5970
Jeremy Ellis / Patrick Robb
Berenberg (Joint Broker) Tel: +44 (0) 203 207
Ben Wright / Mark Whitmore 7800
Powerscourt Tel: +44 (0) 20 7250
Peter Ogden / James White 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(R) technology
generates power from widely available fuels such as natural gas and
future fuels such as Hydrogen at high efficiency. The SteelCell(R)
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, combined with the opportunity to
supply the SteelCell(R) in volume through manufacturing
partners.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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