Fuel cell and electrochemical technology developer Ceres Power said in a trading update on Thursday that first-half revenue and other operating income was currently expected to be £10m, down from £17.4m year-on-year.
The AIM-traded firm said the timing of completion of the China joint venture contracts with Bosch and Weichai, and associated licence fees, were now expected to fall in the second half.
Cash and short-term investments totalled around £221m at the end of the six month period on 30 June.
As it noted in its 2021 results in March, the phasing of sales in 2022 was “highly dependent” on the timing of the China joint venture contracts.
The company said all three parties were “making good progress” towards definitive agreements.
Subject to signing and receipt of the necessary regulatory clearances, the board said it expected completion in 2022, and anticipated a “high proportion” of licence fee revenue recognition to be booked in the second half, with an associated “high” gross margin.
“Ceres is placed at the heart of the energy transition, and everything we do is focussed on ensuring the success of our partners by deploying our technology in multiple geographies and applications,” said chief executive officer Phil Caldwell.
“Whilst short-term revenues are dependent on the timing of significant licensing deals, our focus remains on building long-term value through scaling the manufacturing capacity for our technology and growing the recurring, annual royalty streams we will receive as partners succeed.
“We continue to make good progress towards this aim both with existing and new partnerships.”
Ceres Power said it would announce its interim results for the six months ended 30 June on 22 September.