Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Ceres Power shares slide on China talks, delay to royalties
(Sharecast News) - Shares in Ceres Power were sliding on Wednesday, after it announced the failure of joint venture talks in China in 2023 in a trading update, as well as delays to expected royalties from its fuel cell systems. The London-listed firm said it was unable to conclude the joint venture as originally planned in 2023, adding that it was exploring alternative options with Weichai to address the China market.
Financially, the company reported revenue for 2023 in line with guidance, within the range of £21m to £22m, compared to the £22m it recorded in 2022.
The gross margin for the year was expected to be around 60%, up from 59% in 2022, while Ceres held cash and short-term investments of £140m as of 31 December.
In terms of current trading and its outlook, Ceres Power announced a significant new fuel cell and electrolysis licence agreement with Delta Electronics on 18 January.
The agreement would include staged revenue of £43m to Ceres through technology transfer and licensing, with about half of that expected to be recognised as revenue in 2024.
Initial production by Delta was anticipated to begin by the end of 2026.
Ceres said its electrolysis programme was progressing positively, with a 1MW-scale electrolyser successfully completing testing in Germany and en-route to Shell's site in India.
The company said it was also in the process of developing the next product concept for a 4MW to 5MW modularised system to enable larger-scale installations.
While construction of the Bosch and Doosan factories was continuing, the board said the launch of commercial fuel cell systems was now expected to take longer, with initial royalties projected to start from 2025 onwards.
"It is great to kick off the new year with a significant new licence deal with Delta, our first to include SOEC, and further validation of our strategy to invest in our green hydrogen technology," said chief executive officer Phil Caldwell.
"We start 2024 with a strong cash position and a growing pipeline of opportunities to work with progressive partners to adopt our technology to decarbonise our global energy systems."
At 0938 GMT, shares in Ceres Power Holdings were down 17.31% at 209.2p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
