Ceres Power Shares Plunged 27.5% on Lower Revenue Guidance

The Ceres Power Holdings plc (LON: CWR) share price plunged a maximum of 27.53% after announcing its pre-year-end trading update ahead of the release of its full-year results for the year ending on 31 December 2023, which is scheduled for Thursday, 21 March 2024.  

In reflecting on the dynamic nature of the clean energy sector, Ceres Power Holdings plc acknowledges the significance of its interim results announced in September. At that time, it was highlighted that the outcome for the financial year, concluding on December 31, 2023, would hinge on the timing of securing new license partners.  

Ceres has been actively engaged in many discussions with prospective license partners, underlining its commitment to expanding its clean energy ecosystem. The Company is delighted to report that progress with one of its imminent new licensees is advancing positively.

While discussions have been productive, it is crucial to note that the agreement with this key partner is unlikely to be finalised in time for the associated revenue to be recognised within the calendar year 2023. 

Despite this slight delay, Ceres Power Holdings plc remains firmly committed to its mission of advancing clean energy solutions, and this promising partnership indicates its dedication to this endeavour.

As the fiscal year draws to a close, Ceres Power Holdings plc projects that its revenue for 2023 will be approximately £20-21 million. This projection represents a slight decline compared to the preceding fiscal year, with revenue at £22 million (FY 2022: £22m). 

The trajectory of Ceres Power Holdings plc is characterised by its unwavering commitment to innovation and collaboration within the clean energy sector. The Company's dedication to securing strategic partnerships with forward-thinking organisations underscores its ambition to develop sustainable, eco-friendly energy solutions.

Ceres Power Holdings plc is actively navigating the evolving landscape of clean energy technology, forging partnerships that promise a brighter, greener future. 

Phil Caldwell, Ceres Power’s CEO, commented: “Despite good progress commercially and growing interest in our SOEC technology, we have not been able to conclude a new license partnership in this financial year. We remain confident of securing a new commercial partnership in the coming months, and we will provide a year-end trading update in January.”

Ceres Power share price. 

The Ceres Power share price plunged 27.53% to trade at 136.250p from Thursday’s closing price of 188.000p.