# Ceres Power Holdings PLC Excellent commercial progress reflected in FY17 revenue upgrade

- Link: https://www.directorstalkinterviews.com/ceres-power-holdings-plc-excellent-commercial-progress-reflected-fy17-revenue-upgrade/412730212
- Published: 2017-06-13T07:19:06+01:00
- Author: Giles Arbor

**Ceres Power Holdings Plc** (LON:CWR) issued a trading update this morning upgrading
its FY17 total income line by 140% from £1.67m to approaching £4.0m. For Ceres total
income aggregates commercial revenue and other operating income, and this significant
percentage upgrade has come about due to the outstanding commercial progress made
by the company over the last 12 months. With the topline upgrade comes a modest 
reduction in cash burn, with our FY17 closing net cash position moving from £15.79m
to a healthy £16.35m. Our bottom line remains unchanged, reflecting an increase 
in share based payments and increased investment in the business. In the period 
Ceres signed its first ‘go to market’ agreement for a micro-combined heat and power(‘
micro-CHP’) product in the business sector, as well as development agreements with
Honda, Nissan, and Cummins in stationary power, automotive and data centres respectively,
and with an existing global OEM partner to enter a new vertical and develop a residential
m-CHP product. Management has been executing the Ceres OEM partnering model in multiple
vertical markets exceptionally well, and ahead of stated and forecast time frames.

**\* FY17 Top line upgrade is evidence of the commercial viability of the Ceres 
Steel-cell platform, and management executing its OEM partnering commercialisation
model.** The FY17 revenue upgrade today from Ceres is further testament to the commercial
viability of Ceres’s world-class Steel-cell platform technology. It also validates
the company’s OEM partnering model and demonstrates the capacity of management to
successfully negotiate and close the type of deals necessary for Ceres to execute
its commercialisation strategy.

**\* FY18 top line forecast upgrades.** The revenue uplift from Ceres Power Holdings
Plc has been exceptional in FY17. We fully expect revenues to increase further into
2018, however we do not expect the same percentage increase (140%). In FY 2018 Ceres
is looking to strengthen its existing OEM partnerships and add 1, or maximum 2, 
more. The company will then have its optimum number of OEM partners with respect
to its deployable resource. To reflect this, we have increased our FY18 total income
line by 50% from £4m to £6m. Our bottom line and closing cash remain broadly unchanged,
again reflecting an increase in share based payments and increased investment in
the business.

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