I’m making it a habit to read up about the FreeTrade listed companies in the evenings.
What struck me about Ceres was, similar to Games Workshop (unexpected comparison I know), royalty revenues.
They have signed agreements with four of the world’s largest engineering and power companies, and licensing revenue now makes up half of the sales:
2018: £0.9m
2019: £7.4m
Royalties are a high margin revenue source, so the gross margin to 75 per cent in 2019, resulting in a gross profit of £11.5m.
I’ll share if I come across any other groups with licensing activity.