AFC Energy makes headway in rapidly developing hydrogen fuel cell sector.
AFC Energy PLC (AIM:AFC, OTC:AFGYF) interim results for the six months ending April 30 showcase a group making notable headway in its transition from research and development to commercialisation of its suite of power-generation units.
Operational highlights saw AFC Energy advance the commercialisation of its S Series H-Power Tower & Generator and S+ Series H-Power Generator units, as well as launching the group’s next-generation ammonia cracker technology platform.
Post reporting period, AFC Energy also renewed its hydrogen offtake agreement with Air Products at the company’s Stade facility in Northern Germany.
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Revenues from customer contracts fell by a third year on year from £300,000 to £200,000, with cash and cash equivalents also falling by roughly a third, from £48.6mln to £32.7mln.
Due to a lower cost of sales and operating costs, total losses for the period fell 20% to £6.2mln, with basic losses per share falling from -1.06p to -0.85p.
Research and development tax credits generated £1.8mln in the period.
Looking ahead, AFC Energy is focusing on the proposed launch of its joint venture with Speedy Hire as well as the continued manufacture and delivery of its suite of power generators.
As the company continues to transition from R&D to commercialisation, monthly cash burn is expected to increase from £1.1mln to £1.5mln, before reimbursements under the £4.3mln UK Government grant signed on July 26, 2023.
Adam Bond, AFC chief executive commented:
We continue to see an accelerated push to decarbonise hard to abate sectors such as construction and temporary power and are pleased to see this reflected in the traction we are receiving.
“Clearly our focus must remain on delivery of our strategy of initial customer deployments followed by cementing long-term collaborations with plant hire groups and, with our new partner Speedy Hire in the UK, we now have a line of sight to tangible product sales and manufacturing scale up.”
“The recently received backing from the UK Government through our funding award, together with the new targets in the displacement of diesel on construction sites, creates a perfect backdrop for AFC Energy’s success in the UK.”
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AFC Energy makes headway in rapidly developing hydrogen fuel cell sector, July 31, 2023
