# Ceres Power PLC FY17 Interims in line and executes platform commercialisation

- Link: https://www.directorstalkinterviews.com/ceres-power-plc-fy17-interims-line-executes-platform-commercialisation/412725087
- Published: 2017-03-08T07:11:06+00:00
- Author: Giles Arbor

H117 interims highlight the message that **Ceres Power Holdings Plc** (LON:CWR) 
is gaining commercialisation momentum and traction, led by a management team building
a reputation for delivery. H117 total income of £1.5m is a 200% YoY increase, and
is on target to comfortably meet our £2.8m FY17 forecast. Ceres signed 2 blue-chip
OEM partner contracts in the period, bringing the total to 4, with Honda, Nissan,
Cummins and a global OEM in several disruptive verticals, including stationary/back-
up power, data-centres, automotive, residential micro combined heat and power (‘
m-CHP’), and business m-CHP. With a £4.8m order book at Dec 31st 2016, and a strong
and growing pipeline of potential OEM partners, including 3 signed evaluation agreements,
Ceres is building revenues and reducing cash burn to be on a growth trajectory, 
which if maintained, takes it through breakeven, into increasing profitability and
cash generation. At Dec 31st 2016, Ceres had £22m cash following a successful £20m
equity raise in the period, providing runway and balance sheet strength.

Interim results show the company is in the early stages of executing its commercialisation
strategy. For Ceres, ‘total income’ aggregates commercial revenue and technology
commercialisation grants. A 200% YoY increase in total income for the period, a 
growing order book that stood at £4.8m as of Dec 31st 2016, and a growing pipeline
of blue-chip OEM partners, including 3 signed evaluation agreements, are all evidence
that Ceres is successfully executing the early stages of its platform commercialisation
strategy. As existing OEM partnerships progress, and new ones are signed in new 
markets, we expect Ceres to build revenues and reduce cash burn through successive
periods, taking the company on a growth profile into profitability and cash generation.

OEM joint development contracts with Honda, Nissan, Cummins and a global OEM in 
a number of disruptive verticals are testament to the core technology platform. 
Ceres continues to successfully build its contracted OEM commercialisation partner
portfolio, both in and out of the public domain. The fact that large, global blue-
chips of such stature are putting Ceres’s unique, proprietary steel-supported, solid
oxide fuel-cell technology platform at the centre of their commercialisation strategies
in some potentially very large global growth markets, is testament to the operational
profile, performance and cost of the platform. Ceres has world-class core IP and
a unique technology offering.

Successful £20m equity fundraise has provided balance sheet strength and cash runway.
In October 2016 the company successfully executed a £20m equity fundraise, and the
cash position at Dec 31st was circa £22m. The capital came from existing and new,
blue-chip institutional investors. This was a key tenet of commercialisation, providing
balance sheet strength for OEM partner contract negotiations, and funding Ceres 
through to a commercial position of strength.

>  **Phil Caldwell, CEO of Ceres Power Holdings Plc said:** “Ceres is on track for
> an excellent year, driven by new commercial partnerships, the rapid progress of
> our technology and our first ‘go-to market’ agreement bringing us closer to a 
> first product launch. We said we would sign five partners by the end of 2017 and
> with four to date we are on track to do just that, plus we have three new evaluation
> agreements and a strong pipeline with a series of international prospective partners.
> With a forward order book of £4.8 million and a successful fundraising secured,
> we are in a strong position to capitalise on significant market opportunities.
> As the world wrestles with the growing challenge of a decarbonising and decentralising
> energy system, our proven SteelCell™ technology, and our work with global power
> specialists, shows Ceres Power is capable of providing a cheaper, cleaner, distributed
> alternative to centralised power generation.”

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