FY19 results In line with the pre-close trading statement. The company delivered £16.4m of revenue, up 133% yoy, at a gross margin of 75% (INVe 70%) leading to an operating loss better than our estimate at £7.9m (INVe -£8.5m/consensus -£8.4m) reflecting an improvement of 33% yoy. Cash at the end of the period stood at £71.3m. Ceres reports a strong order book of £28.4m and a pipeline worth over £50m. Progress on multiple fronts FY19 was a transformational year with a first product launch with Japan’s Miura for a combined heat and power (CHP) system that will see first commercialisation in Q4 of 2019 as part of a soft market launch. The strategic partnerships with Bosch and Weichai progress. Bosch is developing its own low volume production, mirroring Ceres’ own new plant under construction, which will contribute to the development of future larger plants to be developed by Ceres’ partners. Weichai and Ceres have now produced the first prototype 30kW SteelCell range extender using CNG as a fuel, marking a major milestone in the collaboration between the companies. Post the year-end, Ceres signed a two-year collaboration with Korean major Doosan worth £8m over two years. Progress also continues with leading OEMs, Cummins and Honda. The technology continues to evolve, with the latest V6 now delivering 60% net efficiency, over twice that of a conventional gas engine and better than centralised gas turbines if factoring in transmission losses. Engineering is underway for the next 5kW stack design. The SteelCell technology can be made at capacities that mean it can be placed where the power is needed rather than MW scale power plants that need significant grid infrastructure to deliver the power to the source of demand. The company has doubled its workforce since 2017, to 240, adding 70 professionals to the business in the last year. This will enable Ceres to deliver to its increasing number of partners whose projects are advancing against an increasingly favourable macro-economic backdrop for fuel cell solutions. Our View A positive update with numbers in line or slightly better than our expectations. Management is delivering to plan and the company is well on the way to commercialising its technology across numerous applications and opportunities through its partners. The range of partners helps to mitigate delivery and adoption risk of this exciting technology that offers fuel flexibility (carbon based or hydrogen) and high efficiency that is ever more relevant in an increasingly environmentally conscious world focused on cutting emissions and decarbonisation.