Shares in Ceres Power Holdings PLC (LON:CWR) slid sharply on Wednesday after the electrochemical company pushed back the time frame for it to begin seeing proceeds from its planned joint ventures to manufacture fuel cells in China.
The Horsham, U.K.-based Ceres said most of the £30M license fee revenue from the agreements with diesel engine maker Weichai Power (OTC:WEICY) and German engineering firm Bosch will now be recognized in early 2023. It previously expected to factor in about half of those fees in its results in the second half of this year.
All three groups are now anticipated to sign off on the joint ventures, which will establish a third manufacturing site for Ceres’ oxide fuel cells in China, in the fourth quarter. Ceres had initially said the moves would be approved in the second half of 2022 in a trading update in July.
As a result, the AIM-listed Ceres warned, full-year revenue will be lower than 2021 levels. However, sales in the first six months of 2023 are estimated to be “significantly higher” year-on-year.
Meanwhile, Ceres reported a pre-tax loss of £24.2M for the first half of 2022, widening a prior decline of £7.7M registered in the same period last year.
