# Ceres Power Holdings plc Q&A with Zeus Capital (LON:CWR)

- Link: https://www.directorstalkinterviews.com/ceres-power-holdings-plc-qa-zeus-capital-loncwr/412747841
- Published: 2018-03-22T08:50:51+00:00
- Author: Amilia Stone

**Ceres Power Holdings plc** (LON:CWR) is the topic of conversation when Zeus Capital’s
Equity Analyst William Game caught up with DirectorsTalk for an exclusive interview

 

**Q1: Ceres Power Holdings put out a rather strong half-year report today, what 
can you tell me about the financials?**

**A1**: It’s certainly been a strong period of continued progress particularly at
a commercial level.

The sales have grown from £1.6 million in a comparative period to £3.1 million in
this interim and this comprises a doubling of revenue from customer programme from
£1 million to £2.6 million and an unchanged grant income of £0.5 million.

The group delivered an operating loss of £6.2 million but this reflects an increased
investment in personnel, particularly working on programmes with Ceres’ partners
over the period.
 At the end of the period, cash was £13.2 million and this results
from a free cash outflow of £4.1 million and includes increased investment of £0.4
million in the period, particularly in manufacturing capacity to meet increased 
demand from partners.

 

**Q2: So, what were the key developments that the company’s made during the period?**

**A2**: It certainly communicated these well over the past 6 months, I think notably
the most recent news is securing a fifth development partner, it’s an unnamed but
major European OEM so that’s very important.

Elsewhere, the company completed a technology transfer with its other confidential
customer to develop multi-kilowatt combined heat and power product for the homes.
Also, the successful field trials in the UK which is supported by the European programme,
ene.field, concluded in September, this confirmed excellent efficiency, flexibility
and reliability of Ceres’ SteelCell product.

The business continues to meet milestones in the electric vehicle range extender
programme which was announced in June 2016 with Nissan. They are also working closely
with Cummins and the US Department of Energy developing the higher density power
cells, initially at a 5-kilowatt stack but is certainly developing the 10-kilowatt
stacks for data centres in the future.

 

**Q3: In terms of the outlook, what can we expect for the rest of the year?**

**A3**: I think the rest of the year, again, is going to be achieving the company’s
targets and milestones with customers. There are another two further OEM’s at this
stage, at the technology assessment stage, and the management team is confident 
in signing additional partners in FY18.

There are expected to be further field trials for Ceres’ technology over the next
6 months which will be seen as an important milestone towards commerciality.

The company has also highlighted in this statement that it is seeking additional
capital, either through strategic or financial investment, at this point and the
statement points to a number of discussions happening now.

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