Ceres Power (CWR) H1 2024 earnings summary

Executive summary

• Achieved record interim results with revenue up 144% year-over-year to £28.5 million and gross profit up over 200% to £22.9 million, driven by new licensing agreements and strong order intake.

• Signed major new manufacturing and system licensing partnerships with Delta (Taiwan), Denso (Japan), and Thermax (India), expanding global reach and now have four global stack manufacturing license partners progressing toward scale production.

• Order intake for the first half was £46.9 million, reaching £103.3 million by 31 August 2024, reflecting strong commercial momentum.

• Business model is asset-light and licensing-focused, leveraging partners' manufacturing capabilities and balance sheets for global reach.

• Significant reduction in cash outflows and adjusted EBITDA loss, highlighting operational leverage and cost discipline.

Financial highlights

• Revenue for H1 2024 was £28.5 million, up 144% year-over-year; gross margin increased to 80% from 62%, with gross profit at £22.9 million.

• Adjusted EBITDA loss reduced to £9.0 million from £23.5 million year-over-year.

• Cash and short-term investments stood at £126.1 million as of 30 June 2024, with cash outflow reduced to £13.9 million from £21.1 million year-over-year.

• Licence revenue, driven by the Delta partnership, contributed significantly to high-margin growth.

• Basic and diluted loss per share: (6.53)p (H1 2023: (13.63)p).

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at £50–60 million, supported by strong order intake and existing contracts.

• Gross margin for the full year expected in the 75–80% range, slightly lower in the second half due to product mix.

• Cost base to be reduced by approximately 15% through restructuring and headcount reduction in Q4 2024.

• Management expects continued commercial momentum and record full-year revenues.

• Demonstrator programmes for green hydrogen on track with Shell and Bosch/Linde.