Green hydrogen and fuel cell specialist Ceres Power has raised its revenue guidance for the year after signing a bumper manufacturing contract with an Asian original equipment manufacturer.
The contract, which will see new partner manufacture the Ceres’s patented fuel cell tech in return for a licence fee, will boost revenue at the London listed firm “considerably”, it said.
Ceres now expects to post full year earnings of between £50m and 60m when it reports its interim results in September.
Revenue for the first half of the year is expected to more than double to between , £27m and £29m, versus just £11.7m in the first half of 2023.
Margins are also anticipated to rise considerably when it reports in the autumn, increasing to 75-80 per cent from 62 per cent in the same period last year.
Phil Caldwell, Ceres’s chief executive, said: “We are making great commercial progress this year, and I am particularly excited by the advances in our highly efficient and differentiated SOEC electrolyser technology, which is now being adopted by several leading global companies with the manufacturing, supply chain and balance sheet strength to bring this technology to market at scale.
“This builds on Ceres’ strategy to establish partnerships in regions with strong manufacturing capability coupled with ambitious targets for the use of hydrogen for industrial decarbonisation.”
Bosses and investors will hope the increased guidance will be the shock therapy the firm needs to jolt its share price back to life, having crumbled 88 per cent since its pandemic-fuelled all time high in February 2021.
Its decline has continued throughout this year despite full year results in 2023 suggesting the firm had turned a corner having endured two years of contract losses and hydrogen power struggling to meet the lofty expectations of optimistic investors and commentators.
Caldwell added: “By licensing our best-in-class solid oxide technology, Ceres is establishing its clean energy technology as the industry standard and, through its partner network, is building towards delivering decarbonisation at the scale and pace needed globally for the energy transition.”