Trading and JV Update

28 July 2022

Ceres Power Holdings plc

Trading and JV Update

Finalisation of the China JV progressing with revenues weighted to the second half

Horsham, UK: Ceres Power Holdings plc ("Ceres", the "Company") (AIM: CWR.L), a global leader in fuel cell and electrochemical technology, provides a post period end trading update ahead of the announcement of its interim results for the six months ended 30 June 2022, which will be released on Thursday 22 September 2022.  

Financial

·    Revenue and other operating income for the six months to 30 June 2022 is expected to be approximately £10 million (H1 2021: £17.4m), with the timing of completion of the China JV contracts with Bosch and Weichai and associated licence fees expected to fall in the second half of 2022

·    Cash and short-term investments were approximately £221 million as at 30 June 2022

Operational

·    As announced on 28 June, Shell and Ceres are building a partnership to utilise solid oxide electrolyser cell (SOEC) technology to deliver high-efficiency, low-cost green hydrogen. This significant step endorses the strategy and potential of SOEC

·    Two studies concluded as part of the UK Clean Maritime Demonstration Competition, show Ceres' SOFC technology offers a highly differentiated and fuel flexible solution which can reduce carbon emissions by up to 47% on conventional maritime fuels

·    Long-term agreement signed with HORIBA MIRA, Europe's leading engineering and testing consultancy, to increase test capacity and accelerate delivery of new fuel cell and hydrogen technology to international markets

Current trading and outlook

As noted in our FY 2021 results announced in March, the phasing of sales in 2022 is highly dependent on the timing of the completion of the China JV contracts.  All three parties are making good progress towards definitive agreements.  Subject to signing and receipt of the necessary regulatory clearances we expect completion this year and anticipate a high proportion of licence fee revenue recognition to be booked in H2 2022, with associated high gross margin.

Phil Caldwell, Chief Executive Officer of Ceres: "Ceres is placed at the heart of the energy transition, and everything we do is focused on ensuring the success of our partners by deploying our technology in multiple geographies and applications. Whilst short-term revenues are dependent on the timing of significant licensing deals, our focus remains on building long-term value through scaling the manufacturing capacity for our technology and growing the recurring, annual royalty streams we will receive as partners succeed. We continue to make good progress towards this aim both with existing and new partnerships."

Ends

For further information visit www.ceres.tech or contact:

About Ceres Power

Ceres is a world-leading developer of electrochemical technologies: fuel cells for power generation, electrolysis for the creation of green hydrogen and energy storage. Its asset-light, licensing model has seen it establish partnerships with some of the world's largest engineering and technology companies, such as Weichai in China, Bosch in Germany, Miura in Japan, and Doosan in Korea, to develop systems and products that address climate change for power generation, transportation, industry, data centres and everyday living.  Ceres is listed on the AIM market of the London Stock Exchange ("LSE") (AIM: CWR) and is classified by the LSE Green Economy Mark, which recognises listed companies that derive more than 50% of their activity from the green economy.