Ceres Power Holdings PLC (LON:CWR) has said it ended the last 12 months in a strong position with operational momentum maintained against the headwinds caused by the coronavirus (COVID-19) outbreak.
The clean energy specialist said revenue for the period to June 30, 2020, will be in the region of £20mln, representing year-on-year growth of 20-25%. Cash and short-term investments were £108mln as of that date.
Looking ahead, the fuel cells specialist said it expects to sign new customer partnerships “as commercial demand remains strong”.
Longer-term, the environment appears to be supportive of companies such as Ceres, whose SteelCell technology can efficiently turn biogas, ethanol, or hydrogen into power.
Certainly, chancellor Rishi Sunak’s budget initiatives speak to an increased focus and spending on green initiatives.
In the trading update, Ceres chief executive Phil Caldwell said: "If anything, the current pandemic has only intensified the urgency for climate action and I believe Ceres has a no-regrets fuel cell technology for power generation that is highly complementary to today's energy infrastructure, is hydrogen ready for the future, and can form a critical building block in achieving a net zero carbon future.”
The company received two major votes of confidence during the year just gone with German giant Bosch investing £38mln to increase its stake in the business to 18% and China’s Weichai putting up £11mln to stay at 20%.
The former has now begun manufacturing Ceres’ technology at its pilot facility.
The firm said the commissioning of its new Redhill manufacturing site began in January, and while ramp-up was, slower than anticipated (not surprising given the current challenges), the facility delivered record production last month.
Assessing the impact of COVID on the business, Ceres said it adapted well to lockdown, with the full onsite team returning in early May.
Some orders have been deferred, it said, but “results remain in line with market expectations”. Supply chain hiccups have been “managed well”, it added.
Ceres said it plans to invest £5mln to develop solid oxide electrolysis for hydrogen and potential synthetic fuels over the next 18 months. Plans are also in train to expand the Redhill facility.