Ceres shares plunge after fuel cell maker delays timing of major joint ventures in China

Ceres shares plunge after fuel cell maker delays timing of major joint ventures in China

By Scott Kanosky

Investing.com – Participate in Ceres Power Holdings PLC (LON πŸ™‚ fell sharply on Wednesday after the electrochemical company slipped the time frame back to start seeing returns from its planned joint ventures to manufacture fuel cells in China.

UK-based Horsham-based Ceres said most of the Β£30m license fee revenue from agreements with diesel engine maker Weichai Power (OTC:) and German engineering firm Bosch will now be recognized in early 2023. It was Previously expected to take about half. Of those fees in its results in the second half of this year.

The three groups are now expected to sign the joint ventures, which will establish a third Ceres oxide fuel cell manufacturing site 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, AIM-listed Ceres warned that full-year revenue will be below 2021 levels. However, sales in the first six months of 2023 are expected to be “significantly higher” on an annual basis.

Meanwhile, Ceres reported a pre-tax loss of Β£24.2m for the first half of 2022, extending a previous drop of Β£7.7m recorded in the same period last year.

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