Ceres' revenues and operating income soar as strong commercial activity continues

Fuel cell technology outfit Ceres Power expects its audited results for the year ended 30 June will reveal the group traded ahead of market expectations thanks to continued strong commercial activity.

Ceres told investors on Tuesday that revenue and other operating income for the year ended 30 June would be approximately £16.5m - for a 135% year-on-year improvement and an increase on its previous guidance of around £15m.

The AIM-listed group also said its operating loss and cash outflows from operating activities had reduced significantly from its previous trading year as a result of high margin licensing revenue.

Ceres credited much of its success to its collaboration and license agreement with Bosch and its joint development agreement with Weichai Power, which also made a £48m equity investment in the group.

In line with its strong order book, Ceres now expects the solid revenue growth to continue into the 2020 trading year.

Chief executive Phil Caldwell said: "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."

As of 1100 BST, Ceres shares had picked up 2.66% to 173.50p.