Ceres Power Shares Fall As Continued Operation Dependent On Funding

20th Mar 2018 10:36

LONDON (Alliance News) - Shares dropped in Ceres Power Holdings PLC on Tuesday as a loss made in the first half of its financial year cast doubts over whether the company has enough cash reserves to continue operating.

Shares in the fuel cell technology provider fell 13% at 10.95 pence on Tuesday.

Ceres Power said that according to cash flow projections made by directors, without securing funds the company would not have enough cash to meet its liabilities as they fall due.

Although the company is in discussions with investors and expects to raise funds during 2018, the ability to raise additional funds remains a material uncertainty that can cast significant doubt on Ceres Power's ability to continue as a going concern.

For the six months to the end of December, pretax loss narrowed slightly to GBP6.1 million from GBP6.2 million, as revenue more than doubled to GBP2.6 million from GBP1.0 million through customer programmes which more than offset increased operating costs through investment in its operations capacity following increased demand.

Ceres Power expects to see progress in all areas of its business as it continues to target the commercialisation of its SteelCell technology with several original equipment manufacturers, as it already has during the year.

"We continue to hit our targets with five world class partners now in place and more in the pipeline. We are building momentum with strong revenue growth from new and existing partners. We expect this trend to continue for the full year and beyond," said Chief Executive Officer Phil Caldwell.

"Global manufacturers are increasingly looking for alternatives to conventional combustion engine and power generation technologies as the trend towards electrification continues. Demand for technologies such as batteries and fuel cells such as our SteelCell is growing as can be seen from our commercial progress," Caldwell added.

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