Ceres has signed a global long-term licence agreement for its SOEC technology with a global original equipment manufacturer (OEM) headquartered in the Asia Pacific region. This marks another significant milestone for the business and follows the Delta collaboration announced in January 2024. Alongside this announcement, a brief trading update signals strong business momentum and, importantly, Ceres has upgraded revenue guidance for FY24 to £50-60m. At the partner’s request, further details are not expected to be disclosed until early August. Another licence partner and the first sole SOEC partnership – further endorsement of Ceres’ world leading technology Ceres has announced a long-term licence agreement with an OEM, headquartered in the Asia Pacific region, with further details to be provided in August. The agreement secures another partner for Ceres with the scale, expertise and resource to manufacture advanced equipment for the growing green hydrogen sector. The agreement provides future revenues from licence fees, engineering services and hardware over multiple years, similar to the profile of previous OEM licences. Additionally, the agreement also presents the opportunity for additional revenue from royalty payments to Ceres on future commercial production and the sale of SOEC equipment to end customers by the partner. Strong business momentum and revenue guidance upgrade Momentum in the business is strong with today’s announcement following the Delta collaboration announced earlier this year. Subsequently, the company has increased FY24 guidance to £50-60m based on the contracts secured to date. Revenue in H1 is expected to be in the range of £27-29m (H1 23: c.£11.7m), more than double the revenue in H1 23. Gross margins in the half year increased to around 75-80% driven by the revenue mix (H1 23: c.62%). Cash and short-term investments were c.£126m at H1 24 (FY23 c.£140m). Corresponding cash outflow of c.£14m in H1 24 represents a significant reduction compared to c.£21m in H1 23.