Fuel cell manufacturer Ceres Power will push ahead with the construction of a production facility after it “substantially strengthened” its financial position in the first three months of this year.
Chairman Brian Count emphasised the progress made since January as he reported on the interim results for the six month period up to December 31, 2007 – which indicated a substantial loss due to investment in developing its technology.
Mr Count emphasised: “After the period end the Group has substantially strengthened the balance sheet and liquidity position. The group now has a robust financial position to commercialise its CHP design.”
Ceres Power has developed a compact, wall mountable unit capable of generating electricity and all the hot water and central heating required for a typical UK home.
The results for the six months up to the end of 2007 showed commercial revenue had increased
to £279,000 compared to £30,000 for the same time in 2006.
But, the loss attributable to shareholders had increased by 25 per cent to £3,017,000 as the company invested in developing its engineering and manufacturing capabilities in preparation for taking its fuel cell technology to the mass market.
Financial improvements since January include Centrica investing £20 million to take a 9.999 per cent stake in the company and British Gas agreeing a volume forward order of at least 35,000 CHP products. British Gas also confirmed its backing for a £5m development and trialling programme.
Mr Count said: “We are now extremely well positioned with leading technology, a clear plan for the commercial roll out of our CHP product and a strong cash position.”
The company said no more details on the “Mother Plant facility” could be confirmed, but a spokesman said UK sites were being sought and building would go ahead subject to planning permission.
Other proposals for the coming year include delivering agreed performance, size and weight improvements under the first phase of its partnership agreement with British Gas.