Ceres posts dip in gross profits, reiterates outlook

The London-listed company, which develops fuel cells for power generation and electrolysers for green hydrogen, saw revenues rise 8% in the six months to 30 June to £22.8m. The rise was attributed to a "significant" one-off licence revenue, as part of its agreement with China’s Weichai Power.

However, profit declined 3% to £16.1m, reflecting the lower margin mix in the period. The gross margin weakened to 71% from 79%. Operating losses before one-off costs narrowed to £13.7m from £17.2m.

Phil Caldwell, chief executive, said: "We are seeing encouraging signs of commercial momentum across our partner network. This provides further validation of both the scale of the opportunity and the role solid oxide technology can play in address the time-to-power challenge.

"Combined with a stronger balance sheet following our successful capital raise and sharper commercial focus, this gives us confidence in our ability to capitalise on the significant opportunity ahead."

Looking to the rest of the year, and Ceres confirmed that contracted group revenue for 2026 is around £45m before any new business. "We remain confident that we can sign one new licensee partner in 2026. If successful, any revenue recognised in the current year would be in addition to [this] guidance."

As at 0830 BST, the shares - which have risen nearly 92% so far this year - were trading 5% lower at 411p.

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