Bloomberg News

Ceres Power Falls Most Since 2008 After Delaying Fuel-Cell

October 12, 2011

(Updates with share price in second paragraph, analyst’s comments in fifth paragraph.)

Oct. 12 (Bloomberg) -- Ceres Power Holdings Plc fell the most in almost three years in London trading after it delayed until 2014 the commercial introduction of its fuel cells for homes. Its loss widened.

Ceres fell 19 percent to 25.25 pence, the biggest decline since Dec. 19, 2008.

David Pummell, who was named chief executive officer last month, said today in a Regulatory News Service statement that Ceres’s fuel cells won’t be commercially available until the first half of 2014. The Horsham, England-based company said in March 2010 that they would be available in the second half of this year. The cells provide heat and power for homes.

The company’s loss for fiscal 2011, ending June 30, widened to 13.8 million pounds ($21.7 million) from 11.7 million pounds a year earlier.

“The product has had teething problems and Ceres went two months without a CEO,” Jefferies analyst Gerard Reid wrote in a note to investors. “The company will need to raise more equity than we had expected over the next years.” Peter Bance resigned as CEO in June.

Ceres has 26.7 million pounds in cash and will need to raise more funding during the next year, Chairman Brian Count said in the statement. The company “is likely to continue to incur losses at the operating level,” he said.

Ceres in March said its products had experienced reliability and durability problems.

“Significant progress” has been made in fixing the problems since then and a second trial is scheduled for the second half of next year, Pummell said. The company is seeking to gain a share of the U.K. boiler market and is working with partners in North America, Asia and elsewhere in Europe, he said.

--With assistance from Todd White in Madrid. Editors: Will Wade, Jasmina Kelemen

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.


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