Ceres Power Holdings PLC (AIM:CWR, OTC:CPWHF) said the finalisation of its joint ventures in China with Bosch and Weichai is progressing and revenues from tie-up contracts are expected to be weighted to the final half of this year.
In a trading update, the fuel cell and electrochemical technology company forecast revenue and other operating income for the six months to 30 June 2022 of around £10mln, compared with £17.4mln in the same period last year.
“Subject to signing and receipt of the necessary regulatory clearances we expect completion this year and anticipate a high proportion of licence fee revenue recognition to be booked in H2 2022, with associated high gross margin,” Ceres Power said.
All three parties are making "good progress" towards definitive agreements, it added.
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"Ceres is placed at the heart of the energy transition, and everything we do is focused on ensuring the success of our partners by deploying our technology in multiple geographies and applications,” said the company’s chief executive offer Phil Caldwell.
“Whilst short-term revenues are dependent on the timing of significant licensing deals, our focus remains on building long-term value through scaling the manufacturing capacity for our technology and growing the recurring, annual royalty streams we will receive as partners succeed.
“We continue to make good progress towards this aim both with existing and new partnerships."
Ceres Power had cash and short-term investments of £221mln as at 30 June.