Phil Caldwell, Ceres Power CEO said:
“We’ve had a very strong end to 2018 which means we expect to more than double revenue this year. This is on the back of strong progress with our strategic partnerships with Weichai Power and Bosch where we have met stretching technology and performance targets which continue to give our partners the confidence in taking our technology forwards towards commercialisation. This has enabled us to grow the business in the UK and also extend our markets internationally.
Ceres Power Holdings Plc (LON: CWR), is pleased to announce completion of two key commercial milestones with Robert Bosch and Weichai Power this week and as a result, provides a trading update ahead of results for the six months ended 31 December 2018.
· Bosch and Weichai milestones result in higher revenues: revenue and other operating income for the six months to 31 December 2018 expected to be at least £7 million, an increase of 125% from the same period last year
· Full year revenue and other operating income expected to more than double to approximately £15 million from £7 million in FY2017
· Strong cash position of at least £77 million expected at the half year – following Weichai and Bosch investments in 2018 and the successful placing in July 2018
Delivery of key customer contract milestones driving revenue growth
Ceres has completed two significant milestones with Bosch and Weichai this week. These are:
· After the first technology transfer, a key milestone of the collaboration has been achieved with Bosch under the Collaboration License Agreement which has triggered a second significant payment of €5 million. Bosch’s confidence has further increased to go on the with the planned product development towards commercialization. This payment is part of the £20M deal announced in August 2018
· As announced on 4 December 2018, Ceres has now finalised the long-term strategic collaboration with Weichai, first announced in May 2018. This includes signing a new £9 million joint development agreement, up to £30 million in stage payments under a License Agreement and has triggered a further £28m equity investment into Ceres Power, which is due to complete shortly. Once complete, Weichai’s total investment will be £48 million for a 20% stake.
The company is also progressing with other OEM partners on multi-year programmes and will provide further updates in due course.
Ceres expects to announce first half results in March 2019.