Business
New licence partner and trading update
New licence partner and trading update.
About this update from Ceres Power Holdings Plc
[{"type":"text","content":"\n\n22 July 2024\n \nCeres Power Holdings plc\n(\"Ceres\" or the \"Company\")\nNew manufacturing licence partner and trading update\nCeres Power Holdings plc (CWR.L), a leading developer of clean energy technology, has signed a global long-term licence agreement for the manufacture of Ceres' proprietary solid oxide electrolyser cell (\"SOEC\") technology with a global original equipment manufacturer (\"OEM\") headquartered in the Asia Pacific region (the \"Partner\").\nHighlights\n· Global OEM Partner - secures another partner for Ceres with the scale, expertise and resource to manufacture advanced equipment for the growing green hydrogen sector\n· Significant Revenues - the agreement provides revenues for licence fees, engineering services and hardware over multiple years, similar to the profile of previous OEM licences\n· Royalty Payments - the agreement also provides for royalty payments to Ceres on future commercial production and sale of SOEC equipment to end customers by the Partner\nAt the Partner's request, further details are not expected to be disclosed until early August.\nTrading Update\nCeres also provides a trading update, with interim results for the six-month period ended 30 June 2024 expected to be released on Friday 27 September 2024. \n· Increased full year revenue guidance of £50-60 million\n· Revenue for the first half is expected to be in the range £27-29 million (H1 2023: £11.7 million[1]), more than double the revenue of the prior year comparator six-month period\n· Gross margins in the half year increased to around 75-80% (H1 2023: 62%1)\n· Cash and short-term investments were approximately £126 million as at 30 June 2024 (31 December 2023: £140 million) \n· The corresponding cash outflow of £14 million in H1 2024 represents a reduction to the cash outflow in the same period last year (H1 2023: cash outflow £21 million)\nMomentum in the business is strong with today's agreement being the second major license deal and new partner signed this year following on from the manufacturing collaboration with Delta announced in January 2024.\nConsequently, the Company increases its revenue guidance for the year ending 31 December 2024 to the range of £50-60 milli...