Investors were selling Ceres Power this morning after the company sneaked out a revenue warning last night.
The stock fell more than 20 per cent in early deals but later recovered to trade down 15 per cent by mid-morning after the company warned contract delays would lead to a decline in revenue for the full year.
The fuel cell and hydrogen technology specialist told investors back in September that its ability to hit full-year revenue targets “would be dependent on the timing of securing new licence partners.”
These talks have been taking longer than expected. As a result, Ceres Power warned yesterday it is unlikely any agreements will be “signed in time for the associated revenue to be recognised in 2023.”
Therefore, the company’s revenue for the year is now expected to be “approximately £20m to £21m” compared to £22m last year.
Phil Caldwell chief of Ceres Power said: “Despite good progress commercially and growing interest in our SOEC technology, we have not been able to conclude a new license partnership in this financial year. We remain confident of securing a new commercial partnership in the coming months and we will provide a year-end trading update in January.”