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Ceres Power Holdings plc (CWR.L), a prominent developer in the clean energy technology sector, has announced its financial results for the six-month period ending June 30, 2024. The company's performance highlights significant growth, demonstrating its commitment to advancing sustainable energy solutions.
In the first half of 2024, Ceres Power achieved a remarkable 144% increase in revenue, totaling £28.5 million, compared to £11.7 million in the same period last year. This surge reflects the company's successful efforts in securing new contracts, which resulted in record order intake. Ceres Power recorded an impressive £46.9 million in new contracts during the first half, bringing the total order intake to £103.3 million as of August 31, 2024. This strong demand underscores the growing interest in clean energy technologies and Ceres's ability to meet that demand.
The company's gross profit also saw significant improvement, rising by 217% to £22.9 million, up from £7.2 million in the first half of 2023. This increase led to a gross margin of 80%, a notable rise from 62% in the previous year. This growth is attributed to the successful technology transfer to Delta, highlighting Ceres Power’s effective management of its resources and technological advancements.
Despite the operational challenges, the adjusted EBITDA loss was considerably reduced to £9.0 million, down from £23.5 million in the same period last year. This decrease illustrates the operational leverage within the business, as Ceres Power continues to refine its processes and improve efficiency. Additionally, the company experienced a significant reduction in cash outflow, which decreased to £13.9 million from £21.1 million in the prior year. As a result, Ceres Power's robust cash and short-term investments stood at £126.1 million, although slightly down from £161.2 million at the same time last year.
Looking ahead, Ceres Power is focused on optimizing its cost base. Following several successful milestones in its product development roadmap and the conclusion of certain non-recurring investment programs, the company anticipates a natural reduction in investment requirements from historical peak levels. To further support its growth strategy, management has introduced a new organizational structure as of September 2024. This restructuring aims to streamline operations and enhance efficiency, ultimately resulting in a projected 15% reduction in overall expenditure. This strategic move is designed to sustain Ceres's competitive advantage while ensuring the company meets the evolving needs of its partners.
Moreover, Ceres Power has reaffirmed its upgraded revenue guidance for the year ending December 31, 2024. In a trading update released in July, the company projected its revenue for the year to fall within the range of £50 million to £60 million, a reflection of the robust contracts secured thus far.
