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17 March 2021

Energy-Efficient Earnings from Ceres Power

Ceres Power, the fuel cell technology and engineering company, reported its earnings before UK market opened on this week, displaying some eye-catching figures. The company, founded in 2014 on the back of university research into renewable and clean energy, has developed into a progressive forward-thinking company.

In 2020, Ceres generated a net loss of £7.27m, significantly larger than the £4.83m the company lost during 2019, while net income fell by 50.53% between year-end 2019 and year-end 2020. At face value, this seems like a negative outcome for the company, however the company is still very much in the stage of development, typically characterised by high revenue growth and often steep losses. Between 2019 and 2020, revenue for the firm increased by 23.51%, while the cost of goods sold as a percentage of sales climbed from 24.86% to 26.96%.

A key financial to focus on is that £34.34m went into investing in assets, which makes sense for a growing company that needs to develop its assets to increase the provision of the company’s fuel cell technology. At the moment, the cash reserves at Ceres Power equate to £17.20m, this level of cash balance provides stability for the company in the case of any unexpected expenses.

Ceres Power is currently focusing on growing its client base and commercialising the firm’s fuel cell technology. One major product of focus is SteelCell, which is a perforated steel layer with a unique ceramic layer that converts fuel directly into electric power. This product has widescale potential applications, with SteelCell technology currently being applied primarily within the automotive industry. The company has a range of partnerships, one being with Weichai Power, where the two companies developed an electric vehicle range extender that has high energy efficiency with low level of pollutants as a biproduct.

Please note that investments and income arising from them can fall as well as rise in value. This communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned.
Energy-Efficient Earnings from Ceres Power
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