Ceres Power Holdings, a clean energy technology company, has informed investors that BDO has discovered a revenue recognition issue related to the reporting of long-term contracts when it was finalising the annual audit. This means the audited accounts will not be signed off by the 20 March deadline.

Due to the reporting problem with IFRS 15 revenue recognition rules, Ceres will have to make adjustments to the timing of recognition of revenue from the contracts. This manes earlier year numbers will have to be adjusted downwards in prior years, while revenue is pushed forward, leading to a modest increase in revenue in 2023 relative to the £21-22m guidance previously provided.

In the 2022 annual report, Ceres warned that ‘the phasing of revenue in 2022 and 2023 was highly sensitive to the timing of signing new licence agreements’. This followed plans to sign a joint venture with a Chinese partner.

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