Ceres Power warns on revenues, shares tank
Ceres Power tanked on Friday after warning on full-year revenues, as it conceded it was unlikely to sign new deals in time for the revenue to be recognised in 2023.
After the close of markets on Thursday, Ceres - which develops clean energy technology - said it was engaged in a number of discussions with potential licence partners.
"An agreement with the most imminent of the new licensees is progressing well but is now unlikely to be signed in time for the associated revenue to be recognised in 2023," it said. As a result, full-year revenue is expected fall to around £20m to £21m, from £22m in FY22.
Ceres had already said in its interim results in September that the outcome for the year to the end of December 2023 would depend on the timing of securing new licence partners.
Chief executive Phil Caldwell said: "Despite good progress commercially and growing interest in our SOEC technology, we have not been able to conclude a new license partnership in this financial year. We remain confident of securing a new commercial partnership in the coming months and we will provide a year-end trading update in January."
At 1020 GMT, the shares were down 14% at 160.70p.
Berenberg cut its price target on the shares to 925p from 1,025p after the update but maintained its 'buy' rating.
"While the short-term delays are frustrating and will likely disappoint the market, the risk of delays in partnering has been well flagged.
"We remain confident in the long-term potential of Ceres’s differentiated solid oxide fuel cell (SOFC) and electrolyser (SOEC) technology."