Proactive Investors - Ceres Power Holdings PLC (LON:CWR) said it expects revenue to grow this year but conceded that the delay from Bosch and Weichai in the signing of China joint ventures has reduced its expectations from their peak.
Both Bosch and Weichai have reconfirmed their commitment to signing the China JVs this year, the hydrogen fuel cell company said, but given the delay so far it is “taking a prudent view” that revenues are unlikely to be recognised this year.
This results in a £15mln reduction in expected revenue compared to the current City consensus of £49mln, per Bloomberg.
For the first half of 2023, revenues will come to roughly £11mln, Ceres said, up from £9.7mln a year ago, with gross margins between last year’s 55% and 60%.
For the full year, the company said its confidence is based a growing pipeline of potential new licence partners with which it is in “active discussions”, adding to work with existing partners.
“We have made a significant shift in the business over the past two years, and I am particularly excited by the progress in our electrolyser technology, including signing a partnership with Linde and Bosch earlier this year, and the level of interest in licences to exploit the global market for green hydrogen,” said chief executive Phil Caldwell.
As well as the collaboration with Linde and Bosch on electrolysers, a separate contract for Bosch to develop ‘Power Units’ using Ceres technology got €160mln European IPCEI funding, while Doosan’s factory in South Korea that will mass produce Ceres' solid-oxide fuel cells is nearing completion, and a large-scale electrolyser for Shell PLC (LON:SHEL) is undergoing testing before being deployed in India.
Ceres, which last month moved up from AIM to London’s full list, said it had cash and other liquid assets of around £162mln at the half-year stage.