Ceres Power shares sank on Friday after the clean energy group reported a 26% drop in half-year revenue to £21.1 million, down from £28.5 million in the same period last year.
The decline was largely expected. Management had warned that 2024’s figures were boosted by significant one-off licence revenue from its Delta partnership agreement—a windfall that wouldn’t repeat this year. Sadly, these sales fell away from the top line in the first half.
Despite the revenue drop, Ceres’ balance sheet looked strong with cash and short-term investments of £104.1 million. The company even managed a positive cash inflow of £1.6 million during the period, thanks to tighter working capital management.
Gross profit fell 27% to £16.6 million, though margins remained healthy at 79%, underlining the asset-light nature of Ceres’ licensing model.
Commercial momentum builds
Investors should be most interested in Ceres’ commercial progress. July marked a watershed moment when South Korean partner Doosan became the first to enter mass production using Ceres’ solid oxide fuel cell technology. Applications span AI-driven data centre power and marine auxiliary systems—with royalty streams set to flow once commercial sales begin.
Meanwhile, Shell’s megawatt-scale electrolyser went live at its Bangalore facility, achieving industry-leading efficiency of 37kWh per kilogram of hydrogen produced.
Delta, another key partner, has committed roughly £170 million to manufacturing assets for large-scale hydrogen energy solutions. Thermax has opened its HydroGenx Hub in India, whilst Denso continues hitting technology transfer milestones.
Outlook cautious but optimistic
Looking ahead, Ceres expects full-year revenue of around £32 million—though late-stage negotiations on a new manufacturing licence could boost this figure if successful.
“We are seeing an unprecedented change in the market with an acute need for power to service the demand of AI-data centres and increased electrification of society which represents a major market opportunity for the business,” said Phil Caldwell, Chief Executive Officer of Ceres.
“The emergence of this market has coincided with Doosan’s start of mass manufacture of Ceres-based products and marks a key inflection point as we transition from being an R&D-led organisation to a commercially focused business.”