Ceres Power on track for first-half forecasts

Fuel cell and electrochemical technology company Ceres Power updated the market on its first half on Tuesday, reporting that revenue and other operating income for the six months ended 30 June would be around £17m, up from £8.9m in the prior period, with a “consistently high” gross margin.

The AIM-traded firm said its order book and pipeline were £42m and £44m respectively, compared to £54m and £44m as at 31 December, as contracts were recognised as revenue.

It said it was on track to be in line with revenue consensus estimates of £31.5m for the 12 months ending 30 December, subject to no significant constraints on its operation as a result of the Covid-19 pandemic.

Ceres noted that it successfully raised £181m in March, through the placing of 17,067,580 new ordinary shares, with Weichai Power and Bosch both supporting the fundraising with full participation.

Cash and short-term investments totalled £263m at period end, on 30 June.

“It has been another period of significant growth for Ceres with strong and meaningful strides from our partners,” said chief executive officer Phil Caldwell.

“In addition, we successfully raised £181m to pursue a broader strategy in electrolysis for green hydrogen and to double the addressable market for our solid oxide technology.”

Ceres Power said it would announce its interim results for the six months ended 30 June on 30 September.

At 1403 BST, shares in Ceres Power Holdings were up 1.2% at 927p.