AFC Energy losses stable as it develops product and pipeline

AFC Energy reported a loss before tax of £2.14m in its first half on Friday, broadly in line with the £2.13m loss it posted in the first half of the prior year, as it continued its work towards realising revenue from its electric vehicle charging product.

The AIM-traded firm, which is still pre-revenue, said its basic and diluted losses per share narrowed to 0.4p from 0.49p a year earlier.

During the six months ended 30 April, it launched and demonstrated its charging solution with a “national roadshow” across the UK, and began negotiations with the ‘Extreme E’ motorsport organiser for a bespoke ‘H-Power’ unit.

A binding contract there was reached post-period end, in July.

The company said it reinforced its sales team during the half-year to manage inbound prospects, as a result of the physical demonstrations of the product increasing its visibility to customers.

Those negotiations laid the foundations to conclude a strategic collaboration with Acciona, the board claimed.

AFC raised £ 1.4m at the start of the Covid-19 lockdown to allow it to continue work, with no staff furloughed or made redundant.

It also began its product development work on the ‘HydroX-Cell L 160’ system, for launch later in the year, and invested in research and development staff to support the ‘AlkaMem’ product, which led to membrane samples being delivered to third parties for validation.

As a result of its actions, AFC said that post-period end a further £31.6m was raised to fund further product development, a scale-up of manufacturing, and to reinforce its sales coverage.

“2020 continues to be a transformational year for the international hydrogen economy,” said chief executive officer Adam Bond.

“With unprecedented investment into the sector from both private and public institutions, AFC Energy remains focussed on the consolidation of its position as a leading developer of alkaline, zero emission fuel cell systems.”

Bond said the company was expecting that, in the second half, it would continue to make “large strides forward”, benefiting from a wider technology platform, growing project pipeline across its key target markets, and new enquiries from strategic partners, financed by a strengthened balance sheet.

“These factors, together with the commitment of AFC Energy's management and staff, places the company in a solid position for the realisation of its growth potential into 2020 and beyond.”

At 1146 BST, shares in AFC Energy were down 1.37% at 21.55p.