REG - AFC Energy Plc - Final Results for Year Ended 31 October 2021

AFC EnergyAnnouncement

09/03/2022 07:00

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RNS Number : 1086E  AFC Energy Plc  09 March 2022

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Please see the Full Audited Results in attached PDF

http://www.rns-pdf.londonstockexchange.com/rns/1086E_1-2022-3-8.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1086E_1-2022-3-8.pdf)

 

9 March 2022

AFC Energy PLC

("AFC Energy" or the "Company")

Final Results for year ended 31 October 2021

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to announce its results for the year ended 31 October
2021.  Highlights of those results are as follows.

 

Commercial Highlights

 

 •    Contracted commercial agreements worth £5M (as at the time of this statement,
      including post year-end).
 •    Increased pipeline in Construction, EV Charging, Temporary Power and Data
      Centre markets.
 •    First commercial order of "S" Series Fuel Cell System received from ABB for
      high-power EV charging system (signed post year-end).
 •    Increased scope of ABB partnership to include data centre and maritime
      applications.
 •    First commercial revenue received from Extreme E Season 1 Championship.
      Contract renewed for 2022.
 •    Signed commercial lease of fuel cell system with Urban Air Port for deployment
      in Coventry in April 2022.
 •    Positive momentum in the construction sector. Strategic Partnerships with Mace
      and Acciona to assess and deploy zero-emission hydrogen power generators to
      construction sites.
 •    Significant progress in the international maritime sector with a new product
      concept launched incorporating S Series fuel cell and ammonia cracker.
 •    Maritime concept design awarded "Approval in Principle" status by DNV, the
      leading global maritime agency with system now available for incorporation
      into Vard's Zero Coaster programme, a marine design and construction
      partnership with the Norwegian Government.
 •    Signed MoU with leading diesel generator hire business, Altaaqa Alternative
      Solutions, for an exclusive dealership proposal for the MENA region.

 

Financial Highlights

 

 •    Improved year end cash balance of £55.4M (FY 2020: £31.3M).
 •    Investment in people, product range, manufacturing and facilities reflected in
      increased operating loss of £10.40M (FY 2020: £4.6M).
 •    Net cash burn of £10.7M including one off investment in capital assets
      including office and facility upgrades.
 •    Completed oversubscribed fundraise of £36M (before expenses) positioning the
      Company for near term growth.

 

Operational Highlights

 

 •    New Engineering, Manufacturing, Commercial and Research Teams hired to support
      AFC Energy's route to market strategy.
 •    New Office and System Assembly Facilities opened at Dunsfold Park
      headquarters.
 •    Investment in semi-automated stack manufacturing to facilitate delivery scale
      up.
 •    Appointment of new Non-Executive Chairman, Mr Gary Bullard and Non-Executive
      Director, Dr Monika Biddulph (post year-end) with ongoing process to
      strengthen governance and increase the independence of the Board.
 •    Formation of new ESG Committee to reflect the Company's commitment to the
      building of a sustainable business with a positive impact on society and our
      stakeholders (post year-end).

 

Technology Highlights

 

 •    New product development of the S Series Hybrid Fuel Cell offering higher
      energy density, reduced footprint and ability to use green methanol as a fuel
      as well as green hydrogen.
 •    New maritime concept designed for maritime propulsion and auxiliary power.
 •    Customer "Fuel flex" strategy delivers maximum flexibility in adoption of
      Green Hydrogen, Green Ammonia and Green Methanol fuelling.
 •    Ammonia cracking unit received at AFC Energy campus. Operational analysis
      completed with fuel-cell integration underway ahead of commercial deployment.
 •    New internal product roadmap completed. Integrated system engineering and
      design underway with initial deployments expected in 2022.
 •    Validation of AlkaMem® anion exchange membrane in electrolyser mode. Positive
      results supporting further investment in application.

 

Outlook

 

 •    Environmental and geopolitical drivers supporting diversification from
      incumbent fossil fuel imports to the UK and Europe. Hydrogen economy seeing a
      continued and accelerating increase in investment and technical development.
 •    AFC Energy expect "S" Series Hybrid Fuel Cell deployment on customer sites
      over coming months.
 •    ABB and AFC Energy expect initial integrated system to be operational by the
      end of 2022.
 •    Upstream Hydrogen fuelling technologies under development with announcements
      expected later this calendar year.
 •    New announcements expected for lease deployments across UK construction sites.
      Significant momentum in UK construction sector following removal of the Red
      Diesel Subsidy in the UK.
 •    "S" Series platforms opening new markets for AFC Energy and leading to
      increasing customer traction. Further commercial progress expected in 2022.
 •    Well-positioned to capitalise on leading position to displace diesel
      generators within the next decade

 

 

Adam Bond, Chief Executive Officer of AFC Energy, said:

"In 2021 we established a stronger platform for accelerating growth.  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.

"The regulatory platform and political will to address climate change has
never been stronger which can only help drive 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."

 

For further information, please contact:

 AFC Energy plc                                                 +44 (0) 14 8327 6726

 Adam Bond (Chief Executive Officer)                            investors@afcenergy.com (mailto:investors@afcenergy.com)
 Peel Hunt LLP - Nominated Adviser and Joint Broker             +44 (0) 207 418 8900

 Richard Crichton / Tom Ballard / Alexander Allen
 M C Peat & Co LLP - Joint Broker                               +44 (0) 20 7104 2334

 Charlie Peat
 Zeus Capital Limited - Joint Broker

 Daniel Harris (Corporate Finance)                              +44 (0) 203 829 5000

 Dominic King (Corporate Broking) / Rupert Woolfenden (Sales)
 FTI Consulting - Financial PR Advisors                         +44 (0) 203 727 1000

 Ben Brewerton / Nick Hennis / Dhruv Soni                       afcenergy@fticonsulting.com (mailto:afcenergy@fticonsulting.com)

 

About AFC Energy

AFC Energy plc is commercialising scalable "fuel flexible" fuel cell systems,
to provide clean electricity for on and off grid applications. The technology,
pioneered over the past twelve years in the UK, is now deployable in electric
vehicle chargers, off-grid decentralised power systems and data centre
applications with emerging opportunities across maritime and rail as part of a
portfolio approach to the decarbonisation of local electricity needs.

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