Companies: CWR   

With technology touted by Tony Blair as world-leading, and acknowledged as being 'at the forefront' of the race to commercialise fuel cells by energy minister Mike O'Brien, Ceres Power is hands down the most exciting play in the fuel cells space. Fronted by hyper-kinetic Canadian CEO Peter Bance, and boasting the City connections of John Gunn (a founder shareholder and non-executive), this Imperial College spin-out floated in November with a Numis-led float pulling in £15m. Ceres is applying its technology to four key markets - combined heat and power, off-grid power, auxiliary power units and uninterruptible power supplies. Although losses in the first half to December came in at £1.35m, Ceres also enjoyed first commercial revenues from development and testing arrangements. Cash at 31 December was a healthy £18.3m, and the monthly burn rate is low and diminishing, which means Ceres can negotiate future partnerships from a position of strength. To date, Ceres has completed grant-funded projects sponsored by the DTI and the Carbon Trust, and also racked up a testing agreement with industrial gases giant BOC, and commercial supply chain tie-ups with major energy supply and power generation companies. In February, Ceres updated shareholders on its system integration programme with Dunlop Aerospace (and other global component suppliers). Having met with management, the sense of excitement is palpable, and we believe intriguing deals are imminent and prospects huge. Buy.