TIDMCWR
RNS Number : 3490D
Ceres Power Holdings plc
09 October 2018
9 October 2018
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Ceres Power Holdings plc - Final results for the year ended 30
June 2018
STRATEGIC PARTNERS ENABLE A STEP CHANGE IN COMMERCIAL GROWTH
Ceres Power Holdings plc ("Ceres Power", the "Company" or the
"Group") (AIM: CWR.L) announces its final results for the year
ended 30 June 2018.
Highlights
-- Revenue and other operating income up 71% to GBP7 million;
-- Bosch and Weichai Power strategic partnerships with
significant equity investments, development and licensing
agreements;
-- Major increase in order book from GBP3 million to GBP30
million at the date of these accounts;
-- Strong cash position after new equity of GBP49.3 million from
financial investors and Bosch and Weichai post financial year
end;
-- Progress with existing partners - field trials to start with
confidential partner later this year and new programme signed with
Nissan backed by GBP7 million of funding through the UK's Advanced
Propulsion Centre;
-- Increase in net electrical efficiency to 60% achieved in
customer systems and first-of-a-kind 5kW stack design
completed;
-- GBP7 million investment in new manufacturing facility
announced, creating 60 jobs in Redhill, Surrey (UK).
Phil Caldwell, CEO, commented:
"2018 is a landmark year for Ceres. We have seen a big step
change in order book and strong revenue growth as demand
accelerates for technologies that can enable a post-combustion
future. In the last five months alone we have announced equity
investments and new agreements with both Weichai in China and Bosch
in Germany adding to our existing relationships in Japan and the
US. We are proud our unique British SteelCell(R) technology is
setting the standard for solid oxide fuel cell technology around
the world. We are now working towards trials for three separate
products that tackle air quality and climate change.
Our progress this year confirms we have the right strategy to
enable our partners to access our technology and establish Ceres
Power as a global leader in the fuel cell industry."
Year Ended Year Ended
30 June 2018 30 June 2017
GBP'000 GBP'000
-------------- --------------
Total revenue and other operating
income, comprising: 7,009 4,076
Revenue 6,329 3,119
Other operating income 680 957
EBITDA (1) (10,772) (10,263)
Equity free cash flow (2) (10,898) (9,363)
Net cash and short-term investments
(3) 6,395 17,158
Order book - at the date of this report(4) 29,800 3,200
1. EBITDA (earnings before interest, depreciation and
amortisation) is calculated as the operating loss (GBP11.9 million)
less depreciation (GBP1.1 million). Management use EBITDA as an
alternative performance measure to operating loss as they believe
that it is a more relevant and comparable measure of the operating
activities of the Group.
2. Equity free cash flow (EFCF) is the net change in cash and
cash equivalents in the year (GBP3.2 million) less net cash
generated from financing activities (GBP0.1 million) less the
movement in short term investments (GBP14 million). Management use
EFCF as an alternative performance measure to the net change in
cash and cash equivalents as they believe that it is a more
relevant and comparable measure of the overall cash flows of the
Group as it excludes any funding activities or changes in
investments.
3. Since the year end the Company has raised GBP49.3 million
through new equity raises with new and existing investors including
Weichai Power and Bosch.
4. Order book is the contracted commercial and grant revenue
scheduled to be realised in future years. There is no comparable
figure disclosed in the financial statements as this figure
represents future anticipated revenue and other operating income.
Management use order book as a performance measure as they believe
that it is a useful indicator of the Group's commercial
progress.
For further information, please contact:
Ceres Power Holdings plc Tel: +44 (0)1403 273
Phil Caldwell / Richard Preston 463
Zeus Capital (Nominated Adviser Tel: +44 (0) 20 3829
and Broker) 5000
Andrew Jones / Dom King
Berenberg (Joint Broker) Tel: +44 (0) 203 207
Ben Wright / Mark Whitmore / Laure 7800
Fine
Powerscourt Tel: +44 (0) 20 7250
Peter Ogden/ Niall Walsh 1446
Notes to Editor:
About Ceres Power
Ceres Power is a world leader in low cost, next generation fuel
cell technology for use in distributed power products that reduce
operating costs, lower CO2, SOx and NOx emissions, increase
efficiency and improve energy security. The Ceres Power unique
patented SteelCell(R) technology generates power from widely
available fuels at high efficiency and is manufactured using
standard processing equipment and conventional materials such as
steel, meaning that it can be mass produced at an affordable price
for domestic and business use. Ceres Power offer its partners the
opportunity to develop power systems and products using its unique
SteelCell(R) technology and know-how, combined with the opportunity
to supply the SteelCell(R) in volume through its manufacturing
partners. For further information please visit:
http://www.cerespower.com/
Chairman's Statement
2018 has been a landmark year in Ceres Power's history as the
significant investment and dedication of our people has resulted in
excellent commercial progress and strategic partnerships with some
of the world's leading companies. This has been achieved through
our partnering and licensing business model, facilitated by a
unique world-class British technology and excellent leadership
team. Our recent strategic partnerships with Bosch in Germany and
Weichai Power in China, in addition to further progress in Japan
and the US, show we have the right strategy to enable our partners
to access our technology and establish Ceres Power as a global
leader in the fuel cell industry.
We continue to benefit from the disruption in the energy and
transportation markets as society addresses the significant
challenges of decarbonisation and improving air quality, while also
balancing the intermittency of renewable energy and electrification
of our transportation system.
Many of the world's leading power system and engine companies
are now looking for alternatives to conventional combustion and are
developing products using cleaner, flexible technologies such as
batteries and fuel cells. The SteelCell(R) is rapidly setting a new
standard in the industry due to its robustness, fuel flexibility
and potential to be mass manufactured in a cost-effective way and
the recent contracts with leading global players such as Bosch and
Weichai Power underlines the SteelCell's growing importance.
The company has successfully raised GBP49 million since the end
of the financial year through a combination of a placing in July
with Weichai Power and institutional financial investors and the
additional recent equity investment with Bosch. We have the
potential to raise a further GBP28 million in new equity upon
successful completion of the second stage of the Weichai
investment. I'm pleased to say that with this level of funding,
combined with the strong order book now in place, the Company will
be well funded to deliver its business plan through to
commercialisation in the coming years.
As the Company grows we continue to strengthen the Board and the
governance structure to ensure we have the right effective control
and oversight for the next stage of growth. We intend to strengthen
the Board and focus on strategic issues with a clear distinction
from the Executive Board. Mark Selby, our CTO, has moved across
from the Board to the Executive Board and I would like to thank him
for his contribution. This year Mike Lloyd also completed his
service with the Board and retired and I would like to extend our
thanks for his significant contribution to Ceres Power through this
period. We welcome Caroline Hargrove to the Board who brings direct
experience of fast growing technology companies from her time at
McLaren Applied Technologies.
I would like to offer my thanks to the Board and employees for
their efforts in what has been a very successful year. I look
forward to further progress with our new partners as Ceres Power
reinforces its reputation as a world-leader in the fast-growing
clean energy and electric vehicle sector with the potential to
establish the SteelCell(R) as the new standard for the
industry.
Alan Aubrey
Chairman
8 October 2018
Chief Executive's Review of Performance
Overview of performance
This year has been transformational for Ceres. We recently
signed two very strong strategic partnerships with Weichai Power
and Bosch and secured a strong order book and cash position that
allows us to deliver against our business plan and establish Ceres
as a leading player in the global fuel cell industry. This was only
made possible by the dedication and hard work of everyone at Ceres
Power who continue to deliver year on year against our business
plan of partnering with the world's best companies while continuing
to develop the core SteelCell(R) technology. In the year ahead we
will face some challenges as we have to manage the competing
priorities of servicing customers, maintaining our leading R&D
and increasing capacity. Managing this scale up is never easy but
is a key stage in any business's growth. Over the past 12 months we
have begun to put in place a strong foundation in order to scale
the business to meet our growing commercial demand. A key reason
for the additional capital raise this year was to enable this
growth and we have secured an additional manufacturing facility in
the UK. This will meet near-term customer demand and act as a
reference plant for partners to license manufacturing. The year
ahead will provide fresh opportunities and challenges as we look to
deliver to the high standards demanded by our partners and scale-up
the business with additional manufacturing capacity.
Commercial Progress
This has been an excellent year commercially as we signed two
new partnerships with Bosch and Weichai Power and made good
progress with existing partners. Revenue and Other income grew 71%
year on year from GBP4.1 to GBP7 million and contracted order book
also grew significantly from GBP3.2 million to GBP30 million (at
the time of signing the accounts). We expect this trend of strong
revenue growth to continue into next year as partners progress
through Joint Development projects to licensing the technology with
significant up-front payments for technology transfer. We now have
several partners on this path as summarised below.
Bosch
In August 2018 we signed a strategic partnership with Bosch who
we had been working with as our 5th unnamed European Partner. There
is an obvious synergy with Bosch's capability as a world-leading
technology and manufacturing business and the processes to make the
SteelCell(R) . The collaboration will further develop the
technology, establish low-volume production at Bosch, and help
enable the future scale up and mass manufacture of the SteelCell(R)
for use in multiple applications including Bosch's target market:
small power stations to be used in cities, factories, data centres
and charge points for electric vehicles.
The Collaboration License and Joint Development Agreements
provide significant staged revenue through Technology Transfer and
licensing of 5kW stacks worth approximately GBP20 million over the
next two years subject to performance criteria and could result in
significant longer-term royalties on 5kW SteelCell(R) stacks. In
addition, Bosch has made a GBP9 million strategic equity investment
in Ceres.
Not only does the partnership further validate Ceres' licensing
business model but also Bosch has the potential to become a
significant manufacturing partner for Ceres in the future.
Weichai Power
China is rapidly becoming the fastest growing market for fuel
cells, driven by regulation and incentives from the Chinese
government to improve air quality. As a Board we had identified
that the Chinese market would be a key part of Ceres future growth
but securing the right partner was essential. Therefore in May we
were delighted to sign a deal with Weichai Power, one of the
leading automobile and equipment manufacturing companies in China
which produces over 600,000 engines per year.
The initial plans are for Ceres and Weichai Power to jointly
develop and launch an SOFC fuel cell range extender system for
China's fast growing electric powered bus market. Weichai Power has
a wide network of customers in China and sells c.30,000 buses per
year.
The agreement potentially provides significant staged revenues
to Ceres Power through technology transfer, engineering services,
licence and royalty payments and a longer-term share in the profits
of a proposed manufacturing Joint Venture. As part of this
agreement Weichai Power has invested GBP20 million for a 10% equity
stake in Ceres Power and has the potential to invest a further
GBP28 million to reach a 20% shareholding upon completion of
further Commercial Agreements later this year.
Other Partners
In August this year we announced a new partnership with Nissan
and The Welding Institute backed by the UK Government's Advanced
Propulsion Centre (APC) to further develop the 5kW stack for
electric vehicle applications. This builds on a successful two-year
relationship with Nissan on the UK Innovate EVRE (Electric Vehicle
Range Extender) programme. Under this new APC programme Ceres
should receive GBP7 million over the next 3 years to adapt our
current 5kW stack for vehicle use which will culminate in
demonstrating the stack in a Nissan-designed system suitable for a
variety of fuels (including biofuels).
The UK Government's 'Road to Zero' strategy, which requires a
significant reduction in CO2 emissions, is accelerating the shift
to battery Electric Vehicles (EVs). Introducing fuel cell
technology alongside batteries further enables increased drive
range and has the potential to help accelerate the uptake of
battery EVs.
In addition to these new major contracts, we continue to
progress with our existing relationships. Our first 'go-to-market'
partnership with a confidential OEM for a multi-kW product
targeting applications in the business sector is progressing well
and is due to start field trials this year as the next step towards
product launch.
As part of a US Department of Energy programme, Cummins and
Ceres Power have made significant progress developing an
innovative, modular 10kW Solid Oxide Fuel Cell system and the first
of a kind prototype system is due to start commissioning in the UK
shortly. This will target high electrical efficiency of 60% and be
inherently scalable to meet multiple distributed power
applications. One target application will be the fast-growing data
centre market which currently accounts for 2% of global electricity
consumption. Cummins is a global leader in supplying back up and
temporary power systems to this market and the largest independent
manufacturer of diesel engines.
In addition over the past year we have signed several Technology
Evaluation Agreements with prospective OEMs in Asia with the
potential to add new partnerships this year.
Technology Update
We have made significant technical progress with our V5
technology which is being released to customers. The results from
the in-house testing and validation show lower degradation rates
and higher efficiencies than the V4 technology. We have achieved
60% net electrical efficiency in a customer system development
achieving a significant milestone for the Company. These
achievements mean the technology is amongst the best performing
SOFCs in the industry, with the robustness and cost advantages of
the SteelCell(R) . The new 5kW stack development is well underway
with first of a kind results with Nissan showing promising
performance through the EVRE programme. This is a key new platform
supporting our work with Nissan, Cummins and more recently Weichai
Power and Bosch to provide multi kW modules that can address higher
power high volume markets such as the data centre and automotive
applications.
To accelerate the development and scale up of the 5kW stack, we
are working on processes and design for manufacture with Bosch for
the industrialisation of the technology. The first generation 5kW
stack will deliver higher volumetric power density and lower costs
through economies of scale compared with our existing 1kW stack
platform. This will then be further refined in a second generation
stack which will look at further improvements in power density and
cost.
The technology team has also played an important role in
technology transfer of our systems capability and work is underway
with Weichai Power to scale our system capability to a 30kW range
extender for Electric bus and other applications in China.
The team is also supporting our unnamed partner following
technology transfer of our 1kW system design for a multi kW
application which is undergoing testing at the customer's site. The
team continues to provide valuable support to Joint Developments
with customers globally as well as new technology assessments
across the world.
Operations Update
Due to a significant increase in customer demand for the
SteelCell(R) technology, particularly for higher power
applications, we are investing in additional manufacturing capacity
initially at Horsham and at a new site in Redhill. At the new
facility we are investing GBP7 million over 2 years which will
create 60 new manufacturing and engineering jobs in the UK.
This investment in near-term additional capacity in the UK is
consistent with our long-term strategy and our two strategic
partners, Weichai Power and Bosch, have considerable manufacturing
capability. With Weichai Power we are planning to establish a Joint
Venture in China to manufacture fuel cells and systems to address
the huge market potential there. In Bosch we have a very capable
partner to jointly collaborate on the development and
industrialisation of our 5kW stack and one which could also
manufacture our SteelCell(R) in volume in the future.
Financial progress
The year has been dominated by commercial success which allowed
us to raise new equity through a placing in July 2018. This new
equity, along with that from our strategic partners Weichai Power
and Bosch, brings financial stability and enables the Group to
expand its manufacturing and operational capability to seek to
fulfil its ambitions.
During the year commercial progress has fed through to revenue
and other operating income, which grew 71% from GBP4.1 million to
GBP7.0 million. This was split GBP6.3 million revenue from
customers and GBP0.7 million from grants and other income. As we
invested in the business to enable growth and higher power
applications this led to a slightly increasing EBITDA(1) loss
GBP10.8 million (2016/17 - GBP10.3 million). Equity free cash
outflow(2) was (GBP10.9 million), an increase from prior year
(GBP9.4 million) due principally to an increase in receivables and
other working capital as the Company has grown. This progress has
also increased our order book(4) considerably, which is currently
GBP30 million covering the next 3 years, up from GBP3.2 million
this time last year.
The placing in July 2018 raised GBP39 million, with GBP20
million from new and existing financial investors and GBP19.3
million from Weichai Power as a strategic investment. Since the
year end Bosch has made a strategic investment of GBP9 million and
Weichai Power has the potential to increase its stake in the
Company from 10% to 20% through triggering its option and investing
a further GBP28 million upon agreeing terms of the future Joint
Venture in China. We expect this total new equity of GBP77 million
to give us the runway to commercially launch with partners.
People
Reflecting the commercial success and the longer-term contracts
we have won this year, we will continue to invest in high-quality
people, particularly those supporting our customer programmes and
our new manufacturing facility and the maturing processes required
in Operations.
I recognise that the right people are vital to the business and
I am delighted by the talent we have been able to attract to work
with us.
Outlook
Ceres Power has reached a new phase of its business - having
secured six partners, two of which with the capability to scale up
manufacturing of the SteelCell(R) . We are already seeing several
of these relationships move towards significant license deals and
partnerships leading to field trials with the intent to launch
commercial products. I expect the year ahead to be both exciting
and demanding as we prioritise our work to enable us to achieve our
key business priorities.
Our focus remains on getting SteelCell(R) products to market
under licence with leading OEMs and proving out the technology in
trials. We are targeting field trials for a multi-kW application
with our unnamed commercial partner, the first 30kW system being
run on a bus in China with Weichai Power in 2019, and the 10kW
power module systems to start evaluation in 2019 with Cummins and
the DoE. These initial trials will no doubt provide new challenges
for us as we service OEMs in different markets.
A near term priority is to conclude the negotiations for the
joint venture and licensing agreement with Weichai Power which
would enable us to work towards a manufacturing joint venture in
China and which triggers a further equity stake in the Company to
increase Weichai Power's holding in the Company to 20 per cent.
The strategic collaboration with Bosch is equally a key priority
as we begin technology transfer of the SteelCell(R) technology to
enable the Joint Development of the 5kW stack and manufacturing
scale up in the UK and also at Bosch.
With these core customer and other programmes we will target
further revenue growth this year maintaining the strong trend of
recent years and expect our strong order book position of GBP30
million to result in revenue and other income growing at least 70%
year on year.
With the company now in a strong financial position, the Board
intends to continue to scale and develop the business to be able to
deliver these new opportunities through this key period of growth
to commercial launches. Our key internal action is the preparation
of our new UK manufacturing facility to meet near term customer
demand and also to act as a reference plant for our manufacturing
partners.
This has been both a demanding and very rewarding year for Ceres
Power and I would like to thank everyone at the company for their
hard work and dedication this year in delivering some key
milestones and partnerships across the globe. This takes us forward
to the next phase in growing what could become one of the UKs
leading technology companies.
Phil Caldwell
Chief Executive Officer
8 October 2018
Consolidated statement of profit and loss and other
comprehensive income
for the year ended 30 June 2018
2018 2017
Note GBP'000 GBP'000
-------------------------------------------------------------- ---- -------- --------
Revenue 6,329 3,119
Cost of sales (3,097) (1,334)
-------------------------------------------------------------- ---- -------- --------
Gross profit 3,232 1,785
Other operating income 680 957
Operating costs 2 (15,854) (14,264)
-------------------------------------------------------------- ---- -------- --------
Operating loss (11,942) (11,522)
Finance income 57 89
-------------------------------------------------------------- ---- -------- --------
Loss before taxation (11,885) (11,433)
Taxation credit 1,961 2,025
-------------------------------------------------------------- ---- -------- --------
Loss for the financial year and total comprehensive loss (9,924) (9,408)
-------------------------------------------------------------- ---- -------- --------
Loss per GBP0.01 ordinary share expressed in pence per share:
- basic and diluted 3 (0.98)p (1.00)p
-------------------------------------------------------------- ---- -------- --------
All activities relate to the Group's continuing operations and
the loss for the financial year is fully attributable to the owners
of the parent.
The accompanying notes are an integral part of these
consolidated financial statements.
Consolidated statement of financial position
as at 30 June 2018
2018 2017
Note GBP'000 GBP'000
------------------------------------------------ ---- --------- ---------
Assets
Non-current assets
Property, plant and equipment 2,197 1,913
Other intangible assets 47 -
------------------------------------------------ ---- --------- ---------
Total non-current assets 2,244 1,913
------------------------------------------------ ---- --------- ---------
Current assets
Inventories 1,400 595
Trade and other receivables 3,151 1,339
Other assets 1,630 1,123
Derivative financial instruments 8 8
Current tax receivable 1,900 1,805
Short-term investments 6 - 14,000
Cash and cash equivalents 6 6,395 3,158
------------------------------------------------ ---- --------- ---------
Total current assets 14,484 22,028
------------------------------------------------ ---- --------- ---------
Liabilities
Current liabilities
Trade and other payables and liabilities (4,290) (2,654)
Derivative financial instruments (5) (8)
------------------------------------------------ ---- --------- ---------
Total current liabilities (4,295) (2,662)
------------------------------------------------ ---- --------- ---------
Net current assets 10,189 19,366
------------------------------------------------ ---- --------- ---------
Non-current liabilities
Provisions (851) (828)
------------------------------------------------ ---- --------- ---------
Total non-current liabilities (851) (828)
------------------------------------------------ ---- --------- ---------
Net assets 11,582 20,451
------------------------------------------------ ---- --------- ---------
Equity attributable to the owners of the Parent
Share capital 4 10,163 10,124
Share premium account 107,445 107,349
Capital redemption reserve 3,449 3,449
Merger reserve 7,463 7,463
Accumulated losses (116,938) (107,934)
------------------------------------------------ ---- --------- ---------
Total equity 11,582 20,451
------------------------------------------------ ---- --------- ---------
The accompanying notes are an integral part of these
consolidated financial statements.
Consolidated cash flow statement
for the year ended 30 June 2018
2018 2017
Note GBP'000 GBP'000
----------------------------------------------------- ---- -------- --------
Cash flows from operating activities
Cash used in operations 5 (11,349) (10,822)
Taxation received 1,866 2,217
----------------------------------------------------- ---- -------- --------
Net cash used in operating activities (9,483) (8,605)
----------------------------------------------------- ---- -------- --------
Cash flows from investing activities
Purchase of property, plant and equipment (1,454) (863)
Investment in intangibles (47) -
Movement in short-term investments 14,000 (13,000)
Finance income received 57 89
----------------------------------------------------- ---- -------- --------
Net cash generated from/(used in) from investing
activities 12,556 (13,774)
----------------------------------------------------- ---- -------- --------
Cash flows from financing activities
Proceeds from issuance of ordinary shares 135 20,209
Expenses from issuance of ordinary shares - (635)
----------------------------------------------------- ---- -------- --------
Net cash generated from financing activities 135 19,574
----------------------------------------------------- ---- -------- --------
Net increase/(decrease) in cash and cash equivalents 3,208 (2,805)
Exchange gains on cash and cash equivalents 29 16
----------------------------------------------------- ---- -------- --------
3,237 (2,789)
Cash and cash equivalents at beginning of year 3,158 5,947
----------------------------------------------------- ---- -------- --------
Cash and cash equivalents at end of year 6 6,395 3,158
----------------------------------------------------- ---- -------- --------
The accompanying notes are an integral part of these
consolidated financial statements.
Consolidated statement of changes in equity
for the year ended 30 June 2018
Share
Share premium Capital redemption Merger Accumulated
capital account reserve reserve losses Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
At 1 July 2016 7,779 90,120 3,449 7,463 (99,524) 9,287
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Comprehensive income
Loss for the financial
year - - - - (9,408) (9,408)
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Total comprehensive
loss - - - - (9,408) (9,408)
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Transactions with
owners
Issue of shares, net
of costs 4 2,345 17,229 - - - 19,574
Share-based payments
charge - - - - 998 998
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Total transactions
with owners 2,345 17,229 - - 998 20,572
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
At 30 June 2017 10,124 107,349 3,449 7,463 (107,934) 20,451
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Comprehensive income
Loss for the financial
year - - - - (9,924) (9,924)
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Total comprehensive
loss - - - - (9,924) (9,924)
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Transactions with
owners
Issue of shares, net
of costs 4 39 96 - - - 135
Share-based payments
charge - - - - 920 920
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
Total transactions
with owners 39 96 - - 920 1,055
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
At 30 June 2018 10,163 107,445 3,449 7,463 (116,938) 11,582
----------------------- ----- -------- -------- ------------------ -------- ------------ ---------
The accompanying notes are an integral part of these
consolidated financial statements.
Note to the financial statements
for the year ended 30 June 2018
1. Basis of preparation
The consolidated financial statements of the Group have been
prepared on a going concern basis, in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union, the IFRS Interpretations Committee (IFRS-IC) interpretations
and those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. The consolidated financial statements have
been prepared on a historical cost basis except that the following
assets and liabilities are stated at their fair value: derivative
financial instruments and financial instruments classified as fair
value through the profit or loss.
The financial information contained in this final announcement
does not constitute statutory financial statements as defined by in
Section 434 of the Companies Act 2006. The financial information
has been extracted from the financial statements for the year ended
30 June 2018 which have been approved by the Board of Directors,
and the comparative figures for the year ended 30 June 2017 are
based on the financial statements for that year.
The financial statements for 2017 have been delivered to the
Registrar of Companies and the 2018 financial statements will be
delivered after the Annual General Meeting on 5 December 2018.
The Auditor has reported on both sets of accounts without
qualification, did not draw attention to any matters by way of
emphasis without qualifying their report, and did not contain a
statement under Section 498(2) or 498(3) of the Companies Act
2006.
The accounting policies adopted are consistent with those of the
financial statements for the year ended 30 June 2017, as described
in those financial statements.
In light of the new equity issued after the year end, and having
reviewed the Group's forecast income and expenditure, performing
appropriate sensitivity and scenario analyses, and after making
appropriate enquiries, the Directors have a reasonable expectation
that the Group and Company have adequate resources to progress
their established strategy. Accordingly, they continue to adopt the
going concern basis in preparing these financial statements.
2. Operating costs
2018 2017
GBP'000 GBP'000
------------------------------------------------------------- -------- --------
Operating costs are split as follows:
Research and development costs 11,422 10,516
Administrative expenses 4,432 3,907
------------------------------------------------------------- -------- --------
15,854 14,423
Reversal of provision relating to onerous lease and property
dilapidations - (159)
------------------------------------------------------------- -------- --------
15,854 14,264
------------------------------------------------------------- -------- --------
3. Loss per share
Basic and diluted loss per GBP0.01 ordinary share of 0.98p for
the financial year ended 30 June 2018 (2017: 1.00p) is calculated
by dividing the loss for the financial year attributable to
ordinary shareholders by the weighted average number of ordinary
shares in issue during the year. Given the losses during the year,
there is no dilution of losses per share in the year ended 30 June
2018 or in the previous year.
The loss for the financial year ended 30 June 2018 was
GBP9,924,000 (2017: GBP9,408,000) and the weighted average number
of GBP0.01 ordinary shares in issue during the year ended 30 June
2018 was 1,014,833,814 (2017: 939,762,048).
4. Share capital
2018 2017
Number GBP'000 Number GBP'000
----------------------------------------------- ------------- ------- ------------- -------
Allotted and fully paid
At 1 July 1,012,419,929 10,124 777,857,841 7,779
Allotted on exercise of employee share options 3,849,264 39 5,959,005 59
Allotted on cash placing - - 228,603,083 2,286
----------------------------------------------- ------------- ------- ------------- -------
Ordinary shares of GBP0.01 each at 30 June 1,016,269,193 10,163 1,012,419,929 10,124
----------------------------------------------- ------------- ------- ------------- -------
During the year 3,849,264 ordinary GBP0.01 shares were allotted
for cash consideration of GBP135,000 on the exercise of employee
share options (2017: 5,959,005 ordinary GBP0.01 shares for cash
consideration of GBP206,000)). During the prior year the Company
completed a placing of 228,603,083 ordinary GBP0.01 shares for cash
consideration of GBP20,003,000.
Post year end
On 27 July 2018 the Company completed the allotment of
260,952,269 ordinary GBP0.01 shares for cash consolidation of
GBP39,352,000. The allotment was in respect of the Weichai Power
strategic investment, announced via the Regulatory News Service
(RNS) on the 16 May 2018, for 128,326,275 ordinary GBP0.01 shares,
and the placing of 132,625,994 ordinary GBP0.01 shares to existing
and new institutional investors.
On 20 July 2018 at a General Meeting of the Company, the
shareholders approved the issue of an option to Weichai Power,
subject to the prior subscription being completed, allowing it to
subscribe for up to an additional 182,115,100 ordinary GBP0.01
shares in the Company, but not more than 20% of the issued share
capital of the Company, at a price of GBP0.1645 per share and
subject to certain commercial documents being signed and conditions
being met. This option has not been exercised at the date of this
report.
On the 7 August 2018 Ceres Power Holdings plc completed a 1 for
10 share consolidation, where every 10 existing ordinary shares of
1p each in the Company were consolidated into 1 ordinary share of
10p each. All outstanding capital instruments including employee
share options and the aforementioned Weichai Power option were
amended as a result of this consolidation.
Following the share consolidation, the Company completed the
allotment of 5,973,660 ordinary GBP0.10 shares to Robert Bosch GmbH
for cash consideration of GBP9,008,279 on the 25 September 2018 and
an additional allotment to Weichai Power of 663,740 ordinary
GBP0.10 shares for cash consideration of GBP1,000,920 on the 5
October 2018.
5. Cash used in operations
2018 2017
GBP'000 GBP'000
------------------------------------------------------------------------ -------- --------
Loss before taxation (11,885) (11,433)
Adjustments for:
Other finance income (57) (89)
Depreciation of property, plant and equipment 1,170 1,259
Net foreign exchange gains (29) (16)
Net change in fair value of financial instruments at fair value through
profit or loss
loss (3) 21
Share-based payments 920 998
------------------------------------------------------------------------ -------- --------
Operating cash flows before movements in working capital (9,884) (9,260)
Increase in trade and other receivables (1,812) (842)
Increase in other assets (507) (511)
Increase in inventories (805) (595)
Increase in trade and other payables 1,636 502
Increase/(decrease) in provisions 23 (116)
------------------------------------------------------------------------ -------- --------
Change in working capital (1,465) (1,562)
------------------------------------------------------------------------ -------- --------
Cash used in operations (11,349) (10,822)
------------------------------------------------------------------------ -------- --------
6. Cash and cash equivalents and short-term investments
2018 2017
GBP'000 GBP'000
------------------------------------------------ -------- --------
Cash at bank and in hand 3,828 1,354
Money market funds 2,567 1,804
------------------------------------------------ -------- --------
Cash and cash equivalents 6,395 3,158
Short-term bank deposits greater than one month - 14,000
------------------------------------------------ -------- --------
6,395 17,158
------------------------------------------------ -------- --------
During the prior financial year the fixed rate short-term bank
deposits in pounds sterling had term of between 32 days and 12
months and earned interest of between 0.45% and 1.00%. Floating
rate cash deposits, money market funds and other bank deposits
earned interest based on relevant UK LIBID-related equivalents. The
credit quality of financial assets has been assessed by reference
to external credit ratings.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR FSEFUAFASEES
(END) Dow Jones Newswires
October 09, 2018 02:00 ET (06:00 GMT)
Ceres Power (LSE:CWR)
Historical Stock Chart
From Apr 2024 to May 2024
Ceres Power (LSE:CWR)
Historical Stock Chart
From May 2023 to May 2024