Ceres Power Holdings (LSE:CWR) reported revenue of £22.8 million for the six months ended 30 June, up 8% from £21.1 million in the same period last year.
The London-listed developer of solid oxide fuel cell technology said the increase reflected licence revenue recognised under its manufacturing agreement with Weichai, signed in November 2025, alongside continued engineering work across its partner base.
Gross profit fell 3% to £16.1 million, with gross margin dropping to 71% from 79%, as the revenue mix shifted toward lower-margin hardware and engineering activity. Operating costs before exceptional items fell 14% to £30.7 million following last year's cost base rationalisation, helping narrow the adjusted EBITDA loss to £6.8 million from £11.3 million.
The company booked a £3 million exceptional impairment charge after concluding that partially completed test stands would not be finished or brought into use.
Ceres raised gross proceeds of £102.6 million through an oversubscribed equity issuance in June, lifting cash and short-term investments to £172 million at period end, up from £83.3 million in December.
"Combined with a stronger balance sheet following our successful capital raise and sharper commercial focus, this gives us confidence in our ability to capitalise on the significant opportunity ahead," said chief executive Phil Caldwell.
The company reiterated that contracted group revenue for 2026 stands at approximately £45 million before any new business, and said it remains confident of signing one new licensee partner during the year.
News Intelligence what this means for the company
Ceres Power narrowed its H1 loss to £6.8m adjusted EBITDA from £11.3m a year ago, driven by 8% revenue growth to £22.8m and a 14% cut in operating costs. The company raised £102.6m gross in June, lifting cash to £172m—nearly double the December position—and now has contracted 2026 revenue of ~£45m before any new licensee signings, positioning it to move toward cash-flow inflection as its manufacturing partnerships scale.
The loss narrowing and revenue growth confirm the licensing model is beginning to generate material top-line traction, but gross margin compression to 71% from 79% signals that hardware and engineering work—lower-margin than pure licensing—is now a larger revenue mix. The £3m impairment on test stands and the shift away from internal manufacturing infrastructure suggest Ceres is doubling down on the asset-light licensing strategy, which reduces capex risk but also means near-term profitability depends entirely on partner execution and new contract wins.
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