Ceres Power Holdings announced its financial results for the first half of 2023 on Thursday, showing increased revenue, gross profit and continued investment in R&D.
Revenue rose 17% to £11.3 million, while gross profit grew to £6.9 million. However, the company’s loss widened as it invested £30.6 million in developing new technologies in their ‘Investment in the future’ scheme.
Ceres Power shares were down 0.5% to 327p at the time of writing on Thursday.
The fuel cell business drove revenue growth with an increase to £10.6 million. Major operational development in the fuel cell included construction completion on Doosan’s 50MW South Korean factory using Ceres’ technology and Bosch’s power units utilising Ceres fuel cells receiving €160 million in EU funding.
The newer electrolysis business recognized £0.7 million in early revenue. The first megawatt-scale electrolyzer is undergoing testing before deployment to a Shell site in India. New collaborations with Linde and Bosch will demonstrate a megawatt-class electrolyzer in Germany in 2024.
Despite higher revenue and gross profit, Ceres continued to invest heavily in R&D and expanding operations globally which weighed on profits. The loss before interest, tax, depreciation and amortisation widened 19% to £23.8 million.The investment reduced cash reserves to £161.2 million.
Phil Caldwell, Chief Executive Officer of Ceres commented:
“We are at an important stage of the Company’s growth as we support our partners to scale manufacture for our existing fuel cell business, and make rapid progress in the development of our game-changing electrolyser technology, which will enable new partnerships to address the huge market opportunity for green hydrogen. Our recent inclusion in the FTSE250 index and the recognition for engineering innovation of the MacRobert Award have been made possible by the progress of the Company, and the hard work the team has put into maturing the Ceres technology over many years.”