REG - AFC Energy Plc - Interim Results for the half year to 30 April 2025
16/07/2025 17:45
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RNS Number : 3745R AFC Energy Plc 16 July 2025
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16 July 2025
AFC Energy PLC
("AFC Energy" or the "Company")
Interim Results for the half year to 30 April 2025
AFC Energy plc (AIM: AFC), a leading provider of hydrogen power generation
solutions and technologies, is pleased to announce its interim results for the
half year ended 30 April 2025 (H1 FY25).
John Wilson, Chief Executive of AFC Energy, said:
"It is now six months since Karl Bostock, Chief Financial Officer, and I
joined AFC Energy and began to develop our plan to accelerate
commercialisation of our technology through delivering a market push, rather
than reliance on a market pull that would require Governmental subsidies and
support.
Currently, the hydrogen economy is constrained by both cost and infrastructure
challenges - to overcome these requires a high level of creativity to affect
market disruption. We are in the process of delivering this through an 85%
cost reduction in our hydrogen fuel cell generators, coupled with our unique
FaaS (fuel as a service) model (announced in April), delivered via our Hy-5
units that will produce hydrogen by cracking ammonia at site, and on demand.
We continue to validate our technology through strategic partnerships and
especially through the Joint Development Agreement recently signed with our
S&P 500 partner, which verifies the protection provided by the
intellectual property of our reactor technology.
"The next 18 months will be a period of accelerating commercial delivery for
AFC Energy and the Board looks to the future with renewed optimism."
Corporate Highlights
· New commercially driven leadership team with proven track record
of market delivery and creating shareholder value
· Launch of the HY-5, the world's first portable cracker under the
FaaS commercial model
· New business strategy launched, focused on delivering offsite
power at cost parity with diesel in 2026, without Government subsidy
· Actions taken to reduce the cash burn rate
· Cash of £4.26 million at period end. Cash at 30 June 2025 of
£2.6m with £1.6m in tax credits and £0.6m of grants to be received in July
2026
Post-period end
· The Company will today announce the launch of a fundraise for
approximately £20m (gross) via a placing and subscription, including £0.5m
by directors and a retail offer of up to £5m (the "Fundraise"). Separate
announcements will be made in due course regarding the placing, the
subscription and the retail offer and the associate terms
· Joint Development Agreement with a leading S&P 500 industrial
company to develop small to large scale ammonia crackers suitable for portside
cracking and industrial applications (the "JDA")
· Strategic supply agreement with Volex to support the scale up of
hydrogen generator production, validating the Company's ability to deliver the
next generation of generators at an 85% cost reduction compared to those built
in FY24
· Joint Venture with Industrial Chemicals Group ("ICL"), a leading
independent chemical company, to utilise AFC Energy's cracking technology to
produce and sell hydrogen at a market disruptive price
Outlook
The business is focused on delivering low cost, high reliability 30kW hydrogen
fuel cell generators and Hy-5 ammonia crackers in 2026.
· Operationally, AFC Energy is focused on delivering four major
projects:
o Packaging and certification of the Hy-5;
o Packaging and certification of the next generation of 30kW hydrogen
generators;
o Development of large-scale crackers through a JDA with a leading S&P
500 company; and
o Relocation of AFC Energy's cracker facility to an ICL site to enable the
production and sale of hydrogen.
· Commercially, the business is focused on:
o Orderbook development for the Hy-5;
o Selling hydrogen from the pilot cracker (up to 400 kg per day) from an ICL
site; and
o Supporting Speedy Hire's generator deployments to drive future generator
orders.
Key Financials
£'000 Six-months Six-months Year to
to Apr 2025 to Apr 2024 Oct 2024
Revenue 17 408 4,002
R&D tax credit 1,495 1,138 1,890
Inventory Write-off 2,867 - 51
Depreciation / Amortisation 1,969 1,227 2,564
Share based payment expense 1,102 383 1,458
Loss after tax (10,148) (8,318) (17,419)
£'000 At At At
Apr 2025 Apr 2024 Oct 2024
Inventory 1,053 2,424 1,948
Capitalised Development costs 7,544 1,691 4,403
Cash & cash equivalents 4,264 12,288 15,374
-ENDS-
For further information, please contact:
AFC Energy plc +44 (0) 14 8327 6726
John Wilson (Chief Executive Officer) investors@afcenergy.com (mailto:investors@afcenergy.com)
Karl Bostock (Chief Financial Officer)
Peel Hunt LLP - Nominated Adviser and Joint Broker +44 (0) 207 418 8900
Richard Crichton / Georgia Langoulant / Emily Bhasin
Zeus - Joint Broker +44 (0) 203 829 5000
David Foreman / James Hornigold (Investment Banking)
Dominic King (Corporate Broking) / Rupert Woolfenden (Sales)
RBC Capital Markets - Joint Broker +44 (0) 20 7653 4000
Matthew Coakes / Teri Su
Eduardo Famini / James Maitland
FTI Consulting - Financial PR Advisors +44 (0) 203 727 1000
Ben Brewerton / Chris Laing / Evie Taylor afcenergy@fticonsulting.com (mailto:afcenergy@fticonsulting.com)
About AFC Energy
AFC Energy plc is a leading provider of hydrogen energy solutions, to provide
clean electricity for on and off grid power applications. The Company's fuel
cell technology is targeting near term commercial deployment across the
construction and temporary power markets with longer term opportunities in
electric vehicle charging, maritime and data centres as part of a portfolio
approach to the decarbonisation of society's growing electrification needs.
The Company's proprietary ammonia cracking technology further highlights
emerging opportunities across the distributed hydrogen production market with
a focus on hydrogen's role in supporting industries facing challenges in
decarbonisation, such as mining, cement and heavy engineering.
Chief Executive's Statement
Strategy Reset
Following the change of leadership in early 2025, the Company's strategy has
been fundamentally repositioned.
The revised strategy is positioned to achieve commercial viability during 2026
by delivering a product set that provides cost parity with diesel for offsite
power applications without the need for Government subsidies.
Thanks to our partners at Speedy Hire, we are able to holistically understand
the TCO (total costs of ownership) of a generator set. To deliver cost
parity without subsidy, it was necessary to deliver the following:
1. An 85% reduction in the cost of a generator in low volume batches,
delivered through our partnership with Volex.
2. Sell hydrogen at significantly lower prices than current market
rates. This will be delivered through two routes, firstly the relocation of
our pilot cracker from Dunsfold to an Industrial Chemicals Group site (RNS
dated 4(th) July 2025); and secondly through the launch of the Hy-5 unit which
will be available from the end of Q4 2026 (as reported with the FY24 annual
results).
Through these actions, we will deliver a solution which has a TCO at, or
below, the current cost of using diesel generators.
Technical Validation
To confirm the validity of the revised strategy it was necessary to ensure
that our technology has product market fit. In order to achieve this AFC
Energy has sought validation from industry as follows:
· Speedy Hire - our JV with Speedy Hire provides valuable insights
into how customers use our products, the challenges they face and the cost the
market is willing to bear.
· S&P 500 JDA partner - this large and technically competent
business spent a significant amount of time undertaking market due diligence
on a global scale and chose AFC Energy's technology above all others. This
is testament to the hard work of the talented team in Dunsfold and the
strength and depth of the IP that we have filed.
· Volex - we are working with Volex to further reduce the cost of
our generators as we scale. Coupled with their global footprint, we will
benefit from their materials leverage and supply chain expertise.
· Industrial Chemicals Group - ICL provides expertise in both
production and supply of chemicals, with docking infrastructure for delivery
of ammonia.
The financial statements primarily reflect the following activities:
· The completion of the Red Diesel Replacement project, part funded
by the UK Government to replace a diesel generator with hydrogen power.
Successful completion of this project generated £2.3m of grant income.
· Completion of the current generation production run of 30kW
generators. 18 of the 20 units sold to our Joint Venture Speedy Hydrogen
Solutions (SHS) were transacted in the last month of the FY24 and hence the
working capital impact on FY25. The business used spare components to build
a further 8 generators in H1 as well as procured parts to support warranty
commitments.
Financial update
Overview
As reported above, the major items included in the results for H1 are the
completion of the Red Diesel Replacement (RDR) grant and the finalisation of
the build of 29 generators (20 of them sold to the Speedy Hire JV). The cash
flow is reported in the detail below in the statutory format, however the
analysis below better explains the use of cash:
£m
Fixed cost cash burn (previously reported as £1m per month)(1) (6.4)
Investment in research and development (net of grant income received)(2) (2.7)
Capital expenditure (net of financing) (0.4)
Completion costs for the 28 generator build (net of funds from the Speedy Hire (1.3)
JV)
Restructuring costs (0.4)
R&D tax credit received(3) -
Net movement (11.1)
Brought forward cash 15.3
Closing cash 4.3
Notes
1. Included in the fixed cost cash burn are the costs for the
ongoing development of the cracker
2. Grant income of £1.7m received in Q3 with £0.2m to follow
3. R&D tax credit of £1.6m due end of July
The Company experienced some delay in receiving the payment for the RDR
despite having incurred all the cost. In addition to this, there was a delay
in the filling of the annual tax return (due to a change in finance
leadership) which delayed the receipt of R&D tax credits relating to FY24
which are now expected at the end of July 2025. The cash balance adjusting
for the timing of the grant, R&D tax credits and a vat refund relating to
costs incurred as part of the RDR grant, the cash balance as at 30 April would
have been £8.5m
Operating activities
For H1 FY25 the business recognised a post-tax loss of £10.1m (H1 FY24:
£8.3m). This was after revenue of £0.0m (H1 FY24 £0.4m) and was driven by
operating costs of £11.8m (H1 FY24: £9.6m) less R&D tax credits of
£1.5m (H1 FY24: £1.1m). As a result of the current market conditions, the
directors have concluded that in order to be commercially viable the business
needs to provide product that is at or near cost parity with diesel on a total
cost of ownership basis. For this reason, the H1 FY25 operating costs
include a £2.9m write off of inventory (primarily generators built to date)
reflective of the change in business strategy. Normalising for this
adjustment, H1 FY25 operating costs would be £8.9m.
The increase in R&D tax credits was due to an increase in R&D
expenditure as a percentage of total expenditure which will increase the rate
from 10% to 14.5%
Revenue
H1 FY25 revenue related to hire of a generator to Acciona. As noted in the
Company's FY24 full year results, we stated that we would no longer build to
sell the previous version of our generators to Speedy Hire, that resulted in a
£255,000 cash cost to AFC Energy. As the Company executes on its revised
strategy, the Company expect to see increased revenues from 2026.
Financing activities (post balance sheet)
The Company will today announce the launch of a fundraise for approximately
£20m (gross) via a placing and subscription, including £0.5m by directors
and a retail offer of up to £5m. Separate announcements will be made in due
course regarding the placing, the subscription and the retail offer and the
associate terms.
Strategy
The directors remain confident in the Company's updated strategy and the Board
look to the future with renewed optimism.
The technology the business has developed and protected with IP rights is
highly sought after (as confirmed by recent announcements) and the Company's
talented team in Dunsfold have the skills required to execute the strategy.
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 April 2025
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Note Unaudited Unaudited Audited
Revenue from customer contracts 3 17 408 4,002
Cost of sales (74) (523) (5,868)
Gross (Loss)/ profit (57) (115) (1,866)
Other income 113 176 429
Operating costs 4 (11,764) (9,612) (18,133)
Operating loss (11,708) (9,551) (19,570)
Finance costs 5 (38) (51) (55)
Bank interest receivable 5 102 146 316
Loss before tax (11,644) (9,456) (19,309)
Taxation 6 1,495 1,138 1,890
Loss for the financial period and total comprehensive loss attributable to
owners of the Company
(10,148) (8,318) (17,419)
Basic loss per share: pence 7 (1.19) (1.11) (2.22)
Diluted loss per share: pence 7 (1.19) (1.11) (2.22)
All amounts relate to continuing operations. There were no items of other
comprehensive income during the period.
The above unaudited statement of comprehensive income should be read in
conjunction with the accompanying notes.
STATEMENT OF FINANCIAL POSITION
As at 30 April 2025
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Note Unaudited Unaudited Audited
Assets
Non-current assets
Intangible assets 8 7,344 1,942 4,626
Right-of-use assets 9 406 860 646
Tangible fixed assets 10 3,833 4,389 4,666
Investment in JV 14 625 625 625
12,208 7,816 10,563
Current assets
Inventory 11 1,053 2,424 1,948
Receivables 12 6,725 1,937 6,737
Income tax receivable 3,012 3,226 1,517
Cash and cash equivalents 4,264 12,288 15,374
Restricted cash 435 435 435
15,489 20,310 26,009
Total assets 27,697 28,126 36,572
Current liabilities
Payables 13 (5,102) (3,676) (4,955)
Lease liabilities (415) (491) (505)
(5,517) (4,167) (5,460)
Non-current liabilities
Lease liabilities - (404) (159)
Financing from loans (152) - -
Provisions (685) (326) (685)
(837) (730) (844)
Total liabilities (6,354) (4,897) (6,304)
Total net assets 21,343 23,229 30,268
Capital and reserves attributable to owners of the Company
Share capital 855 747 854
Share premium 133,675 118,598 133,555
Other reserve 5,731 4,162 4,629
Retained deficit (118,918) (100,278) (108,770)
Total equity attributable to shareholders
21,343 23,229 30,268
The above unaudited statement of financial position should be read in
conjunction with the accompanying notes.
STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 April 2025
Share capital Share premium Other reserve Retained loss
£000 £000 £000 £000 Total
£000
Balance at 1 November 2024 854 133,555 4,629 (108,770) 30,268
Loss after tax for the period - - - (10,148) (10,148)
Exercise of share options 1 120 - - 121
Equity settled share-based payments
Charged in the period - - 1,102 - 1,102
Balance at 30 April 2025 855 133,675 5,731 (118,918) (21,343)
For the six months ended 30 April 2024
Share capital Share premium Other reserve Retained loss
£000 £000 £000 £000 Total
£000
Balance at 1 November 2023 746 118,520 3,779 (91,960) 31,085
Loss after tax for the period - - - (8,318) (8,318)
Exercise of share options 1 78 - - 79
Equity settled share-based payments - - - - -
Charged in the period - - 383 - 383
Balance at 30 April 2024 747 118,598 4,162 (100,278) 23,229
For the year ended 31 October 2024
Share capital Share premium Other reserve Retained loss
£000 £000 £000 £000 Total
£000
Balance at 1 November 2023 746 118,520 3,779 (91,960) 31,085
Loss after tax for the year - - - (17,419) (17,419)
Issue of equity shares 105 14,810 - - 14,915
Equity settled share-based payments
Lapsed or exercised in the period 3 225 (609) 609 228
Charged in the period - - 1,459 - 1,459
Balance at 31 October 2024 854 133,555 4,629 (108,770) 30,268
The above unaudited statements of changes in equity should be read in
conjunction with the accompanying notes.
CASH FLOW STATEMENT
For the six months ended 30 April 2025
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Note Unaudited Unaudited Audited
Cash flows from operating activities
Loss before tax for the period (11,644) (9,456) (19,309)
Adjustments for:
Amortisation of intangible assets 8 439 40 81
Loss on disposal of intangible assets 8 - - -
Depreciation of right-of use-assets 9 240 237 470
Depreciation of tangible assets 10 1,348 949 2,043
Loss on disposal of tangible assets 10 - - -
Depreciation of decommissioning asset 10 - - -
Equity-settled payments 1,102 383 1,459
Interest received 5 (102) (146) (316)
Lease finance charges 5 15 23 41
Cash flows from operating activities before changes in working capital and
provisions
(8,602) (7,970) (15,531)
R&D tax credits received - - 2,461
(Increase)/decrease in restricted cash - (176) (176)
(Increase) in inventory 84 (2,246) (1,770)
(Increase) in receivables (1,091) (706) (5,506)
Increase/(decrease) in payables 164 (52) 1,227
Increase in provision 1,897 25 384
Cash absorbed by operating activities (7,548) (11,125) (18,911)
Cash flows from investing activities
Investment in Joint Venture - (625) (625)
Additions to intangible assets (3,156) (1,717) (4,443)
Purchase of plant and equipment (516) (1,582) (2,952)
Interest received 102 146 316
Net cash absorbed by investing activities
(3,570) (3,778) (7,704)
Cash flows from financing activities
Proceeds from the issue of share capital - - 15,792
Proceeds from the exercise of options 121 79 228
Cost of issue of Share Capital - - (877)
Financing from loans 151 - -
Lease payments (249) (231) (520)
Lease interest paid (15) (23) (41)
Net cash from financing activities 8 (175) 14,623
Net decrease in cash and cash equivalents (11,111) (15,078) (11,992)
Cash and cash equivalents at start of period/ year
15,374 27,366 27,366
Cash and cash equivalents at end of period/ year
4,264 12,288 15,374
The above unaudited statement of cash flows should be read in conjunction with
the accompanying notes.
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Details of the significant accounting policies are set out below.
a) Basis of preparation
These interim results for the six-months ended 30 April 2025 are unaudited.
They have been prepared in accordance with IAS 34 'Interim Financial
Reporting' in conformity with Companies Act 2006. These interim results have
been drawn up using the accounting policies and presentation consistent with
those disclosed and applied in the annual report and accounts for the year
ended 31 October 2024. The comparative information contained in the report
does not constitute the accounts within the meaning of section 435 of the
Companies Act 2006.
A number of new or amended standards became applicable for the current
reporting period. The Company did not have to change its accounting policies
or make retrospective adjustments as a result of adopting these standards.
The directors believe that whilst the interim accounts are correctly prepared
on a going concern basis, there is a material uncertainty with regards to
going concern given the Company's current cash position, the trading losses
being carried forward and the expectation that trading losses will continue
for the near future as the Company transitions from research and development
to commercial operations.
The directors are required to assess whether it is appropriate to prepare
these interim results on a going concern basis. In making this assessment
the directors need to be satisfied that the Company can meet its obligations
as they fall due for at least 12 months from the date of this report.
The directors make their assessment based on a cash flow model prepared by
management which sets out expected cash flows for the 12 months from the date
of this report.
The downside sensitivities applied to the cash flow forecasts primarily relate
to delays to development and delivery and/ or an overspend of cost of sales.
Having concluded that the Company remains a going concern, these interim
results have therefore been prepared on that basis.
2. SEGMENTAL ANALYSIS
Operating segments are determined by the chief operating decision maker based
on information used to allocate the Company's resources. The information as
presented to internal management is consistent with the statement of
comprehensive income. It has been determined that there is one operating
segment, which researches and develops fuel cell and fuel conversion
technologies. In the period to 30 April 2025, the Company operated mainly in
the United Kingdom. All non-current assets are in the United Kingdom.
3. REVENUE
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Unaudited Unaudited Audited
Rendering of services earned over time
Rental 17 8 25
Other revenue 0 400 3,977
Revenue 17 408 4,002
Being
Cah consideration 17 408 4,002
Consideration in kind 0 0 0
Revenue 17 408 4,002
Rental related to ongoing contract released overtime in accordance with IFRS15
to Acciona.
4. OPERATING COSTS
The operating costs consist of:
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Unaudited Unaudited Audited
Materials 2,265 1,350 4,576
Payroll (excluding directors) 3,676 3,719 8,253
Stock write off 2,867 - 5
8,807 5,069 12,834
Directors' costs 705 656 1,526
Other employment costs 624 1,106 865
Occupancy costs 511 417 461
Other administrative expenses 1,184 1,279 2,825
11,832 8,527 18,511
Amortisation of intangible assets 439 40 81
Depreciation of Right of Use assets 240 237 470
Depreciation of tangible fixed assets 1,348 950 2,043
Less depreciation of rental asset charged to cost of sales
(58) - (28)
Consideration in kind - - 0
Share based payments 1,102 383 1,459
Operating costs capitalised (3,140) (525) (4,403)
11,763 9,612 18,133
Occupancy costs include repairs and maintenance, utilities and lease
payments.
5. NET FINANCE INCOME
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Unaudited Unaudited Audited
Lease interest (15) (23) (41)
Exchange rate differences (19) (19) -
Bank charges (4) (9) (14)
Total finance cost (38) (51) (55)
Bank interest receivable 102 146 316
64 95 261
6. TAXATION
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Unaudited Unaudited Audited
Recognised in the statement of comprehensive income:
R&D tax credit - current period 1,495 1,138 1,293
R&D tax credit - prior year - - 597
Total tax credit 1,495 1,138 1,890
7. LOSS PER SHARE
The calculation of the basic loss per share is based upon the net loss after
tax attributable to ordinary Shareholders and a weighted average number of
shares in issue for the period.
Six months ended Six months ended
30 April 2025 30 April 2024 Year ended
Unaudited Unaudited 31 October 2024
Audited
Basic loss per share: pence 1.19 1.11 2.22
Diluted loss per share: pence 1.19 1.11 2.22
Loss attributable to equity Shareholders (£000) £10,148 £8,318 17,419
Weighted average number of shares in issue
854,865 746,759 784,682
Diluted earnings per share: There are share options and warrants outstanding
as at 30 April 2025 which, if exercised, would increase the number of shares
in issue. However, the diluted loss per share is the same as the basic loss
per share, as the loss for the period has an anti-dilutive effect.
8. INTANGIBLE ASSETS
Development Patents and Total
Costs Commercial Rights Intangible
£000 £000 £000
Cost
As at 1 November 2024 4,403 1,445 5,848
Additions 3,141 15 3,156
As at 30 April 2025 7,544 1,460 9,004
Depreciation
As at 1 November 2024 - 1,222 1,222
Charge for the financial period 361 78 439
As at 30 April 2025 361 1,300 1,661
Net book value
As at 1 November 2024 4,403 223 4,626
As at 30 April 2025 7,183 160 7,343
Development Patents and Total
Costs Commercial Rights Intangible
£000 £000 £000
Cost
As at 1 November 2023 - 1,404 1,404
Additions 1,691 27 1,718
As at 30 April 2024 1,691 1,431 3,122
Depreciation
As at 1 November 2023 - 1,140 1,140
Charge for the financial period - 40 40
As at 30 April 2024 - 1,180 1,180
Net book value
As at 1 November 2023 - 264 264
As at 30 April 2024 1,691 251 1,942
Development Patents and Total
Costs Commercial Rights Intangible
£000 £000 £000
Cost
As at 1 November 2023 - 1,404 1,404
Additions 4,403 40 4,443
As at 31 October 2024 4,403 1,444 5,847
Depreciation
As at 1 November 2023 - 1,140 1,140
Charge for the financial period - 81 81
As at 31 October 2024 - 1,221 1,221
Net book value
As at 1 November 2023 - 264 264
As at 31 October 2024 4,403 223 4,626
9. RIGHT-OF-USE ASSETS
Buildings Cars Total
£000 £000 £000
Cost
As at 1 November 2024 1,985 19 2,004
As at 30 April 2025 1,985 19 2,004
Depreciation
As at 1 November 2024 1,357 1 1,358
Charge for the financial period 237 3 240
As at 30 April 2025 1,594 4 1,598
Net book value
As at 1 November 2024 628 18 646
As at 30 April 2025 391 15 406
Buildings
£000 Cars Total
£000 £000
Cost
As at 1 November 2023 1,985 - 1,985
Additions - - -
Disposals - - -
As at 30 April 2024 1,985 - 1,985
Depreciation
As at 1 November 2023 888 - 888
Charge for the financial period 237 - 237
Disposals - - -
As at 30 April 2024 1,125 - 1,125
Net book value
As at 1 November 2023 1,097 - 1,097
As at 30 April 2024 860 - 860
Buildings Cars Total
£000 £000 £000
Cost
As at 1 November 2023 1,985 - 1,985
Additions 19 19
Disposals - - -
As at 31 October 2024 1,985 19 2,004
Depreciation
As at 1 November 2023 888 - 888
Charge for the year 469 1 470
Disposals - - -
As at 31 October 2024 1,357 1,358
Net book value
As at 1 November 2023 1,097 - 1,097
As at 31 October 2024 628 18 646
10.tangible fixed ASSETS
Leasehold Decommissioning Fixtures, Assets Under Construction Total
Improvements Asset fittings and £000 £000
£000 £000 equipment
£000
Cost
As at 1 November 2024 4,016 468 3,728 669 8,881
Additions 116 - 343 57 516
As at 30 April 2025 4,132 468 4,071 726 9,397
Depreciation
As at 1 November 2024 2,613 378 1,225 - 4,216
Charge for the financial period 641 49 658 - 1,348
As at 30 April 2025 3,254 427 1,883 - 5,564
Net book value
As at 1 November 2024 1,403 90 2,503 669 4,665
As at 30 April 2025 878 41 2,188 726 3,883
The Company has set up a decommissioning asset for the estimated cost of
removing the plant and equipment installed at the Stade site in Germany.
Notice was served to sever the contract in March 2025 and therefore there has
been an acceleration of depreciation of this asset to reflect the remaining
term of the contract.
Leasehold Decommissioning Fixtures, Asset Under construction Total
Improvements Asset fittings and £000 £000
£000 £000 equipment
£000
Cost
As at 1 November 2023 3,848 300 3,975 288 8,411
Additions 30 25 983 544 1,582
As at 30 April 2024 3,878 325 4,958 832 9,993
Depreciation
As at 1 November 2023 1,394 300 2,961 - 4,655
Charge for the financial period 603 25 321 - 949
As at 30 April 2024 1,997 325 3,282 - 5,604
Net book value
As at 1 November 2023 2,457 - 1,012 288 3,756
As at 30 April 2024 1,881 - 1,676 832 4,389
Leasehold Decommissioning Fixtures, Asset Under Construction Total
Improvements Asset fittings and £000 £000
£000 £000 equipment
£000
Cost
As at 1 November 2023 3,546 300 3,874 694 8,414
Additions 167 168 2,234 381 2,950
Disposals - - (2,483) - (2,483)
Transfer between categories 303 - 103 (406) -
As at 31 October 2024 4,016 468 3,728 669 8,881
Depreciation
As at 1 November 2023 1,394 300 2,961 - 4,655
Charge for the year 1,219 78 747 - 2,044
Disposals - - (2,483) - (2,483)
As at 31 October 2024 2,613 378 1,225 - 4,216
Net book value
As at 1 November 2023 2,152 0 910 694 3,282
As at 31 October 2024 1,403 90 2,503 669 4,665
11. INVENTORY
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Unaudited Unaudited Audited
Raw materials 3,344 1,118 1,755
Work in progress 54 1,792 641
Provision (2,345) (486) (448)
1,053 2,424 1,948
Inventory is valued per IAS2 as the lowest of cost or net realisable value.
The stock provision recognises the change in expected realisable value driven
by managements view on the current market condition.
12. RECEIVABLES
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Unaudited Unaudited Audited
Trade receivables 3,575 744 4,363
Accrued Income 1,737 - -
VAT receivables 462 506 8
Other receivables 37 12 312
Prepayments 913 675 2,053
6,725 1,937 6,737
There is no significant difference between the fair value of the receivables
and the values stated above
Most of the trade receivable balance is the balance of the sales to SHS
The accrued revenue represents the monies recognised for work undertaken under
the RDR but not invoiced
grant which was received in June 2025.
13. PAYABLES
30 April 2025 30 April 2024 31 October 2024
£000 £000 £000
Unaudited Unaudited Audited
Trade payables 739 1,381 1,826
Deferred revenue 3,494 1,423 1,804
Other payables 444 354 467
Accruals 424 518 857
5,102 3,676 4,955
The deferred revenue relates to non-refundable payments made under the
November 2021 contract with ABB E-mobility (£1,423k). As part of the
renegotiation of this contract in March 2023, it was agreed with ABB that this
balance would be earned against pre-agreed discounts over the sale of the
first ten units. The remaining (£2,071k) relates to grant income that is
treated as a liability according to IAS20 and is released as other income to
the income statement in line with amortisation of the associated development
asset.
14. INVESTMENT IN JV
The Company signed a Joint Venture Agreement (JVA) with Speedy Hire (SDY) plc
in November 2023 which resulted in the creation of Speedy Hydrogen Services
(SHS) Limited.
The Company has assessed the relationship with SHS under IFRS11: Joint
Arrangements and concluded that it is a joint venture. As the Company does
not control SHS, it has not been consolidated into the Company's results.
SHS is owned 50:50 by the Company and SDY, with both parties providing initial
funding via equity investments of £625,000. This investment, and any
further investments, will be accounted for on a cost basis.
In addition to the JVA with SDY, the Company signed a Supply & Maintenance
Agreement (SMA) with SHS under which it will supply goods, hydrogen fuelled
generators, and services. The SMA has been assessed under IFRS15: Revenue
from Contracts with Customers and the Company has concluded, amongst other
things, that SHS will be acting as principal in the purchase of generators
from the Company for onwards hire.
During the period no further transactions have occurred between SHS and AFC
Energy in line with the change of business plan for the financial year 2025.
15. PosT BALANCE SHEET EVENTS
On 4(th) June 2025 the Company announced the signing of a JDA to develop a
range of small to large scale highly efficient ammonia crackers for hydrogen
production. Successful completion of JDA milestones expected to result in
material AFC Energy revenues from 2027 onwards.
On 4(th) July 2025 the Company announced a joint venture with Industrial
Chemicals Group Limited (ICL) to produce and sell hydrogen at a market
disruptive price.
The Company will today announce the launch of a fundraise for approximately
£20m (gross) via a placing and subscription, including £0.5m by directors
and a retail offer of up to £5m (the "Fundraise"). Separate announcements
will be made in due course regarding the placing, the subscription and the
retail offer and the associate terms
16. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information contained in this interim statement does not
constitute accounts as defined by the Companies Act 2006. The financial
information for the preceding period is based on the statutory accounts for
the year ended 31 October 2024. Those accounts, upon which the auditors
issued an unqualified opinion, have been delivered to the Registrar of
Companies.
Copies of the interim statement may be obtained from the Company Secretary,
AFC Energy PLC, Unit 71.4 Dunsfold Park, Cranleigh, Surrey GU6 8TB, and can be
accessed from the Company's website at www.afcenergy.com
(http://www.afcenergy.com) .
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