Ceres Power losses widen, but interim revenues rise
Hydrogen fuel cell maker Ceres Power said interim losses had widened and full-year growth was subject to the timing of securing new licencees.
The company recently promoted to the FTSE 250 index, said pre-tax losses for the six months to June 30 grew to £26.3m from £22.6m, although revenue rose 17% to £11.3m.
Ceres reiterated that the continued delay of signing its China joint ventures with Bosch and Weichai, as well as taking into account time needed for regulatory clearances, it do not expect revenue associated with these to be recognised this year.
Research and development and capital expenditure investment increased by 19% to £30.6m, in line with Ceres' strategy to expand into electrolysis for green hydrogen.
Equity free cash outflow fell 24% to £21.8m from £28.6m.
"We are at an important stage of the company's growth as we support our partners to scale manufacture for our existing fuel cell business, and make rapid progress in the development of our game-changing electrolyser technology, which will enable new partnerships to address the huge market opportunity for green hydrogen," said Phil Caldwell, chief executive.
"Over the summer, we have yet again witnessed record high temperatures, flooding across northern China and devastating fires in Canada, southern Europe and Hawaii. It seems nowhere is immune from the effects of climate change, and the need for rapid deployment of technologies that significantly reduce greenhouse gas emissions, whilst continuing to meet our energy and economic demands, is as urgent as ever."
Reporting by Frank Prenesti for Sharecast.com