AFC Energy confident after reporting wider losses

Hydrogen power technology company AFC Energy reported an improved year-end cash balance of £55.4m in its final results on Wednesday, up from £31.3m a year earlier.

  • AFC Energy
  • 28 March 2024 10:10:14
AFC Energy

Source: Sharecast

The AIM-traded firm said investments in its workforce, product range, manufacturing and facilities resulted in an expanded operating loss of £10.40m for the year ended 31 October, compared to £4.6m in 2020.

Its net cash burn totalled £10.7m, which included a one-off investment in capital assets including office and facility upgrades.

AFC completed an oversubscribed fundraise of £36m before expenses during the year, which the directors said positioned it for near-term growth.

Looking ahead, AFC said “environmental and geopolitical drivers” would support diversification from incumbent fossil fuel imports to the UK and Europe.

The company said it expected ‘S’ series hybrid fuel cells to be deployed on customer sites in the coming months, while it expected the initial integrated system with its partner ABB to be operational by the end of the year.

Upstream hydrogen fuelling technologies were under development, with announcements expected later in the calendar year.

New announcements were also expected for lease deployments across UK construction sites.

AFC described “significant momentum” in the UK construction sector, following the removal of the red diesel subsidy.

“In 2021 we established a stronger platform for accelerating growth,” said chief executive officer Adam Bond.

“We strengthened our balance sheet, increased our manufacturing capabilities, recruited a number of talented leaders and, most importantly, materially expanded our product range to offer solutions with reduced footprints and compatibility with a range of fuel sources.

“We are already seeing this feed through into an increase in contracted revenues.”

Bond said the regulatory platform and political will to address climate change had “never been stronger”, which would help to drive the transition away from traditional technologies.

“We are well-placed to continue to make large strides in 2022 towards our goal of displacing pollutant diesel generators for off- grid power as part of the global transition to net zero.”

At 1318 GMT, shares in AFC Energy were down 3.06% at 35.92p.

N/A

Isin: N/A
Exchange: N/A
Sell:
N/A
Buy:
N/A
Change:
Date:
Prices delayed by at least 15 minutes

Compare our accounts

Whether you're looking for a Share Dealing Account or Share Dealing ISA, we've got an account to suit your needs.

Lloyds Bank is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Logo Allfunds

The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.

FE fundinfo Logo

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Refinitiv Logo

© 2024 Refinitiv, an LSEG business. All rights reserved.