Ceres Power Holdings PLC

Latest Results (21.10.2025):

Ceres Power Holdings PLC has released its interim financial results for the six months ended 30 June 2025. The company demonstrated a strong balance sheet with increased cash reserves and positive cash inflow, despite a notable decrease in revenue and gross profit compared to the previous year. Ceres continues to advance its commercial operations through significant partnerships and a strategic business transformation aimed at enhancing its market presence in the clean energy sector.

Financial Performance

Revenue for the six months ended 30 June 2025 decreased by 26% to £21.1 million, aligning with management expectations following a significant one-off licence revenue in the previous year. Gross profit fell by 27% to £16.6 million, resulting in a gross margin of 79%. Adjusted EBITDA loss widened to £11.3 million from £9.0 million in the same period last year.

Cash Position

Ceres Power reported a strong balance sheet with cash and short-term investments rising to £104.1 million as of 30 June 2025, up from £102.5 million in December 2024. The company achieved a positive cash inflow of £1.6 million, reversing the cash outflow of £13.9 million recorded in the first half of 2024, thanks to disciplined working capital management.

Operational Efficiency

Operating costs, excluding exceptional expenses, decreased by 6% to £35.6 million compared to £37.9 million in the previous year. This reduction was achieved through cost base rationalisation initiatives announced in 2024 and continued financial discipline.

Commercial Developments

Ceres Power made significant strides in its commercial partnerships, including Doosan commencing mass production of solid oxide fuel cell (SOFC) technology, Shell launching a megawatt-scale electrolyser, and Delta investing approximately £170 million in large-scale manufacturing facilities. Additionally, relationships with Thermax and Denso are progressing well, supporting the company's growth in green hydrogen technologies.

Business Transformation

The company has initiated a business transformation programme to transition from an R&D-focused entity to a commercially led organisation. This includes establishing sales teams in key markets, launching new marketing initiatives, and focusing on commercial opportunities to support the growing demand for fuel cell power systems driven by the AI data centre and electrification sectors.

Outlook

The Board forecasts that the most probable revenue for the year ending 31 December 2025 will be around £32 million. While negotiations for a new manufacturing licence agreement are ongoing, the company acknowledges uncertainty regarding the completion and timing of revenue recognition from this potential deal. Successful execution of these plans is expected to enhance future revenue streams.