REG - AFC Energy Plc - Interim Results <Origin Href="QuoteRef">AFEN.L</Origin> - Part 1

AFC EnergyAnnouncement

02/06/2016 07:18

RNS Number : 9428Z
AFC Energy Plc
02 June 2016
2 June 2016
AFC Energy PLC
("AFC Energy", "AFC" or "the Company")
Interim Results
AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce its interim results for the six-month period ended 30 April 2016.
Highlights 
Cash balance at 30 April 2016: 2.84 million (30 April 2015: 3.89 million) with a further 1.95 million of EU funding due to be received imminently
 Raised 3.6 million through a placing and offer for subscription
 Commissioning of KORE System and production of power at Stade, Germany
 Heads of Agreement entered with DNR Industries Ltd., part of the Dutco Group of Companies
 Receipt of 1.07 million from EU's FCH JU
 Strategic Partnership Agreement entered with plantIng GmbH
 Issued 2016 Strategic Milestones and Outcomes
 Appointment of Cantor Fitzgerald as Nominated Adviser (NOMAD) and Joint Broker
Adam Bond, CEO of AFC Energy, commented: 
"During the period we advanced our alkaline fuel cell technology to demonstrate power output of 204kW, at the Stade industrial facility in Germany. Following this success, we committed to a demanding work program and further milestones in 2016, against which the team is making sound progress in relation to technical/operational targets. In parallel, we are progressing the development of further strategic and technical partnerships for new power projects in our target markets."
For further information, please contact:
AFC Energy plc
Adam Bond (Chief Executive Officer)
+44 (0) 20 3697 1209
Cantor Fitzgerald Europe-Nominated Adviser and Joint Broker
Andrew Craig
Richard Salmond
+44 (0) 20 7894 7000
M C Peat & Co LLP-Joint Broker
Charlie Peat
+44 (0) 20 7104 2334
Lionsgate Communications-Public Relations
Jonathan Charles
Rachel Rigby
+44 (0) 20 3697 1209
About AFC Energy
AFC Energy plc has developed and successfully operated an alkaline fuel cell system ("KORE"), which converts hydrogen into "clean" electricity. AFC Energy's key project POWER-UPdemonstrated the world's largest operational alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany in January 2016. The Company is now looking to build upon an already established pipeline of commercial opportunities and drive the findings from the development phase of the technology into a technically optimised and commercially relevant fuel cell system. For further information, please visit our website:www.afcenergy.com
Chief Executive Officer's Report
Overview
In the 6 months ended 30 April 2016, AFC Energy has continued to make great strides forward in the development of its alkaline fuel cell technology platform. 
Key to this is the progress made in 2015 towards delivery of an ultimate 204kW at the Stade industrial gas facility in Germany in January 2016. The fast tracking of this development has now enabled AFC Energy to conduct a formal review of the individual fuel cell stacks and the whole of system Balance of Plant in an industrial setting to identify areas where the Company can enhance and improve as a precursor to delivery of a robust, reliable and commercially viable fuel cell system. Completion of Milestone 11 in January enabled our team to assess the optimal combination of technical, operational and commercial targets required in order to advance in 2016 towards commercial deployment of the fuel cell system. Our 2016 Milestones were announced in March, and I am pleased to report that the working groups are making excellent progress towards achievement of their respective targets by year end. The aggressive pursuit of our end target has not ceased and we continue to see the fruits of our labour in technical advancement of our fuel cell platform.
The growing opportunity for development of the global hydrogen economy remains abundantly clear - increasing demand for cutting edge technology that efficiently creates clean and sustainable energy. Our belief in this opportunity was vindicated by the support of our loyal shareholders in very volatile and challenging market conditions, during which we raised 3.6 million by way of a subscription and shareholder offer, which was several times oversubscribed, in January. The net proceeds of the offer enabled AFC to complete pre-commissioning activities for the POWER-UP project, in relation to 2015's Milestone 11, as well as support the short-term working capital requirements of the Company. 
In support of our commercialisation agenda, AFC Energy, in January 2016, appointed Cantor Fitzgerald as AFC's new NOMAD and Joint Broker. The firm not only provides AFC with vast international reach in its broking and research capabilities, but also a credible understanding of the clean energy industry to support our positioning with existing and prospective strategic and institutional investors. Cantor Fitzgerald has published initiation research on AFC Energy and the Board is working closely with Cantor Fitzgerald to broaden the Company's institutional investor base. 
Technical and Operations
Achieving the penultimate Milestone 10 in October 2015 demonstrated for the first time the capability of the KORE fuel cell system in Stade Germany, on a tier level (each of the three tiers comprising eight fuel cell cartridges, for a total of 24 cartridges in the KORE system), at an industrial scale, delivering power into the local grid. 
Following this, in January 2016, we completed our final Milestone 11, achieving a gross electrical output of 204kW from the KORE fuel cell system. The accelerated twelve month fuel cell development programme which created this result provided a number of significant technical "firsts" for the Company. This was the first time that all three tiers of the KORE fuel cell system had operated simultaneously, in parallel with each other. While the total power achieved was less than the nameplate 240kW, a maximum output of 11.7kW per stack was achieved, exceeding the 10kW nameplate capacity. The majority of the 24 stacks trialled achieved 10kW or more of power output. In addition, over 1.3MWh of power was generated and sold into the grid under the Power Purchase Agreement which was entered with the local power utility, Stadtwerke Stade. 
The trial of the KORE fuel cell system also generated a significant quantity of highly valuable technical and operational data, which has enabled the team to fully assess and identify further areas where enhancements can be made to optimise the fuel cell system. The second generation ("Gen 2") of our fuel cell system will incorporate many enhancements to improve the existing design. Work is now well underway internally and with our third party consultants to further accelerate the delivery of the next generation of fuel cell stack. 
The Stade facility will be utilised going forward to further test our technology developments. At the time of writing, incremental testing of several individual stack enhancements is underway at Stade. We plan to operate the plant intermittently during 2016.
Commercial Partnerships
The POWER-UP programme in Stade has been our main point of focus and its success would not have been possible without the involvement of our key partners. The system is located at an industrial plant owned by Air Products in Germany, an important partner of the Company in the POWER-UP programme. Engineering and design work associated with delivering the POWER-UP programme on site was supported by our engineering partners, plantIng and Artelia. The Power Purchase Agreement which we entered with the utility Stadtwerke Stade has enabled us to learn how to integrate and interface our KORE power plant with a modern, established power grid, with the inverter used to dispatch the power developed for AFC Energy by Siemens. 
While the market potential exists for AFC Energy's fuel cell systems across a range of different capacity sizes, including smaller scale systems, the Company's immediate focus remains firmly on large stationary systems in markets where positive environmental and fiscal conditions prevail.
In February, following Milestone 11, we entered a long-term strategic engineering partnership and services agreement with German consultancy, plantIng GmbH ("plantIng"). Since plantIng has provided engineering support and Engineering Procurement Construction Management services to AFC's POWER-UP project at Stade for well over a year, the firm already has a deep knowledge and understanding of AFC 's fuel cell technology. This new agreement provides for a significant investment by plantIng of their time and resources in accessing deployment opportunities that exist in Germany, Europe and internationally, for AFC's fuel cell. 
The scope of the agreement primarily includes: (1) assistance to AFC Energy in identifying and implementing improvements on the fuel cell Balance of Plant ("BoP"), so as to generate optimised designs, ranging from 240kW to initially 1MW hydrogen fuel cell projects; and, (2) undertaking feasibility studies in conjunction with AFC Energy for commercial fuel cell projects globally. The decision by plantIng to invest their own time into this optimisation exercise further demonstrates the market potential of the technology and the quality of the partners that wish to join us. PlantIng are further working with AFC Energy in the BoP design work for the 10kW and 1MW system currently underway. This work is progressing well with continued evidence of the new designs being available to AFC Energy on schedule. 
In addition, we continue to hold extensive discussions with other prospective strategic, technical and project-related partners for the development and international deployment of our fuel cell systems. 
2016 Strategic Milestones and Outcomes
While our 2015 milestones focused primarily on technical and project specific developments to support the POWER-UP project at Stade, in 2016 we are focusing on three strategic areas:
1. optimization of the design of our fuel cell stack and BoP;
2. product development of our power plants, ranging from 10kW to 1MW; and
3. secure value added strategic partnerships with recognised industrial and institutional groups, as well as commencing scoping studies and securing contracts for at least two fuel cell projects. 
The eight specific milestones which were announced earlier this year are designed to progress AFC Energy to its goal of becoming an industry leading, commercially relevant stationary fuel cell company, focusing on large industrial installations, while recognising the further potential for optimisation of the system capacity necessary to meet the demands of our future customers.
In addition, the Company aims to build upon an already established pipeline of commercial opportunities and drive the findings from the development phase into a technically optimised and relevant fuel cell system. Importantly, we are in dialogue with several new companies where strategic synergies exist to not only grow and improve the core technology platform, but also afford opportunities for new project development opportunities. To this extent, AFC Energy continue to aggressively pursue a number of strategic partnership opportunities and potential commercial projects. 
In order to facilitate the acceleration of potential commercial projects, it was decided to design and seek deployment of an entry-level single cartridge 10kW system before the end of 2016 and have available for deployment our larger systems in 2017. The 10kW system provides a lower barrier to a larger scale commercial deal without taking the higher cost associated with an initial larger fuel cell system. 
I wish to emphasise that AFC's prime objective continues to centre on the development and deployment of large-scale industrial fuel cell plants, given we expect stationary fuel cell applications to remain the largest sub-sector in a hydrogen economy.
Outlook
AFC now has a fuel cell cartridge capable of operating at or above its nameplate capacity and we are continuing the momentum generated in 2015 to confirm the longevity and availability of our fuel cell system, so as to meet industry demands for commercial deployment.
Following announcement of the 2016 Milestones in March, I am pleased to report that our working groups are making real solid progress towards achievement of their respective targets by year end.
I would like to thank all the staff and contractors working with AFC together with the FCH JU and the Board for their continued support and look forward to reporting back to shareholders as we achieve the 2016 Milestones. 
Adam Bond
Chief Executive Officer
2 June 2016
Financial Review
During the six months to 30 April 2016, AFC recorded a post-tax loss of 3.46 million (30 April 2015: 1.73 million profit). In the period, the Company continued to recognise grant income under the European Framework Programme 7 for Laser-cell, POWER-UP and Alkammonia projects. Direct labour and material costs associated with these projects were recognised in cost of sales. 
Cost of sales rose by 0.92 million to 2.07 million (30 April 2015: 1.15 million) as work neared completion at the POWER-UP site at Stade in Germany and fuel cell cartridges were manufactured for operations at Stade, but administrative expenses remained static, reflecting tight control of costs. There was a financial loss of 0.15 million (30 April 2015: 4.47 million gain), mainly arising from the final settlements received in respect of the Lanstead equity swap which terminated in April 2016. Over the full life of the equity swap, which commenced in October 2014, a net gain of 2.5m was realised.
The net cash inflow in the six months to 30 April 2016 was 1.08 million (30 April 2015: 0.97 million net outflow) as a result of the Company's careful control of operating and capital costs, the monthly settlements received from Lanstead, and the successful placing and offer for subscription which raised a total of 3.60 million net of costs.
The cash balance at 30 April 2016 was 2.84 million (30 April 2015 3.89 million).
The Board of AFC Energy does not intend to declare a dividend in respect of this period.
Statement of Comprehensive Income
For the period ended 30 April 2016
Six months to 30 April
Six months to 30 April
Year to 31 October
Note
2016
2015
2015
Unaudited
Unaudited
Audited
EU Grant income
763,204
736,145
2,262,506
Cost of sales
(2,072,480)
(1,145,404)
(4,846,933)
Gross (loss)
(1,309,276)
(409,259)
(2,584,427)
Other Income
80,164
7,881
51,080 
Administrative expenses
(2,583,185)
(2,536,944)
(6,112,856)
Operating (loss)
(3,812,297)
(2,938,322)
(8,646,203)
Financial (loss)/income
1g
(148,787)
4,472,563
3,294,272
(Loss)/profit before taxation
(3,961,084)
1,534,241
(5,351,931)
Taxation
3
500,429
198,242
569,706
(Loss)/profit for the period and total comprehensive loss attributable to owners of the Company
(3,460,655)
1,732,483
(4,782,225)
Basic and diluted (loss)/earnings per share 
4
(1.15) p
0.60 p
(1.66)p
All amounts relate to continuing operations.
,
Statement of Financial Position
As at 30 April 2016
Note
Six months to 30 April
Six months to 30 April
Year to 31 October
2016
2015
2015
Assets
Unaudited
Unaudited
Audited
Non-current assets
Intangible assets
5
360,524
330,281
338,176
Property, plant and equipment
6
99,596
507,858
116,328
Investment in associate
-
52,500
-
460,120
890,639
454,504
Current assets
 
Inventory and work in progress
-
144,809
219,421
Derivative financial instrument
-
4,796,571
1,308,859
Trade and other receivables
7
3,812,294
2,556,958
3,458,340
Cash and cash equivalents
2,837,130
3,889,830
1,756,445
Restricted cash
91,105
-
91,105
6,740,529
11,388,168
6,834,170
Total assets
7,200,649
12,278,807
7,288,674
Capital and reserves attributable to owners of the Company
Equity attributable to shareholders
Share capital
8
308,344
289,012
289,904
Share premium
37,604,267
33,640,089
33,947,857
Other reserves
2,772,061
1,992,145
2,207,441
Retained deficit
(34,290,742)
(24,217,962)
(30,830,087)
Total equity
6,393,930
11,703,284
5,615,115
Current liabilities
Trade and other payables
9
806,719
575,523
1,673,559
Total equity and liabilities
7,200,649
12,278,807
7,288,674
Cash flow statement
For the period ended 30 April 2016
Six months to 30 April
Six months to 30 April
Year to 31 October
2016
2015
2015
Unaudited
Unaudited
Audited
Cash flows from operating activities
Profit/(loss) before tax for the period
(3,961,084)
1,534,241
(5,351,931)
Adjustments for:
Depreciation and amortisation
72,577
125,850
278,291
Impairment of intangible asset investment
-
-
52,500
Loss on disposal of tangible assets
-
-
286,743
Equity-settled share-based payment expenses
564,620
98,323
216,202
Payment of shares in lieu of cash
85,850
310,939
331,000
Finance income
(900)
(2,702)
(5,775)
R&D tax credits receivable
-
(174,937)
(Gain)/loss on derivative financial instrument
149,687
(4,469,861)
(3,288,497)
Cash flows from operating activities before changes in working capital and provisions
(3,089,250)
(2,403,210)
(7,656,404)
R&D tax credits received
-
366,039
813,696
(Increase) in restricted cash
-
(91,105)
(Increase)/decrease in inventory and work in progress
219,421
12,239
(62,373)
(Increase)/decrease in trade and other receivables
146,475
778,137
(24,500)
(Decrease)/increase in trade and other payables
(866,840)
(555,765)
542,271
Cash absorbed by operating activities
(3,590,194)
(1,802,560)
(6,478,415)
Cash flows from investing activities
(Purchase) of plant and equipment
(35,901)
(13,234)
(36,845)
Additions to intangible assets
(42,292)
(62,241)
(98,980)
Proceeds of disposal of tangible assets
-
-
4,800
Interest received
900
2,702
5,775
Net cash absorbed by investing activities
(77,293)
(72,773)
(125,250)
Cash flows from financing activities
Proceeds from the issue of share capital
3,600,000
-
288,599
Cost of issue of share capital
(11,000)
-
-
Derivative financial asset
1,159,172
906,960
3,213,308
Net cash from financing activities
4,748,172
906,960
3,501,907
Net increase/(decrease) in cash and cash equivalents
1,080,685
(968,373)
(3,101,758)
Cash and cash equivalents at start of period
1,756,445
4,858,203
4,858,203
Cash and cash equivalents at end of period
2,837,130
3,889,830
1,756,445
Statement of Changes in Equity
As at 30 April 2016
Share
capital
Share
premium
Other
reserve
Retained loss
Total
Audited
Audited
Audited
Audited
Audited
Balance at 1 November 2014
285,684
33,332,478
3,032,472
(27,089,095)
9,561,539
Loss after tax for the period
-
-
-
(4,782,225)
(4,782,225)
Total comprehensive (loss) for the period
-
-
-
(4,782,225)
(4,782,225)
Issue of equity shares
4,220
615,379
-
-
619,599
Equity-settled share-based payments
-
-
(825,031)
1,041,233
216,202
Transactions with owners
4,220
615,379
(825,031)
1,041,233
835,801
Balance at 31 October 2015
289,904
33,947,857
2,207,441
(30,830,087)
5,615,115
Share
capital
Share
premium
Other
reserve
Retained loss
Total
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Balance at 1 November 2015
289,904
33,947,857
2,207,441
(30,830,087)
5,615,115
Loss after tax for the period
-
-
-
(3,460,655)
(3,460,655)
Total comprehensive (loss) for the period
-
-
-
(3,460,655)
(3,460,655)
Issue of equity shares
18,440
3,656,410
-
-
3,674,850
Equity-settled share-based payments
-
-
564,620
-
564,620
Transactions with owners
18,440
3,656,410
564,620
-
4,239,470
Balance at 30 April 2016
308,344
37,604,267
2,772,061
(34,290,742)
6,393,930
Share
capital
Share
premium
Other
reserve
Retained loss
Total
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Balance at 1 November 2014
285,684
33,332,478
3,032,472
(27,089,095)
9,561,539
Profit after tax for the period
-
-
-
1,732,483
1,732,483
Total comprehensive income for the period
-
-
-
1,732,483
1,732,483
Issue of equity shares
3,328
307,611
-
-
310,939
Equity-settled share-based payments
-
-
(1,040,327)
1,138,650
98,323
Transactions with owners
3,328
307,611
(1,040,327)
1,138,650
409,262
Balance at 30 April 2015
289,012
33,640,089
1,992,145
(24,217,962)
11,703,284
Share capital is the amount subscribed for shares at their nominal value.
Share premium represents the excess of the amount subscribed for share capital over the nominal value of these shares net of share issue expenses.
Other reserve represents the credit/debit to equity in respect of equity-settled share-based payments.
Retained loss represents the cumulative loss of the Company attributable to equity shareholders.
Notes forming part of the interim financial statements
1
Significant accounting policies 
Details of the significant accounting policies are set out below: 
a
Basis of preparation
b
The interim results for the six months ended 30 April 2016 are unaudited. They have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU.The 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 2015. The comparative information contained in the report does not constitute the accounts within the meaning of S240 of the Companies Act 1985 and section 435 of the Companies Act 2006. The accounting policies used in the interim statement are consistent with those used in the financial statements for the year ended 31 October 2015 and are in accordance with International Financial Reporting Standards. 
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and other sales taxes or duty. Revenue arising from the provision of services is recognised when and to the extent that the Company obtains the right to consideration in exchange for the performance of its contractual obligations. Licence income is recognised in accordance with the substance of the agreement. When a licence has the right to use certain technology for a period of time, this is usually recognised on a straight-line basis over the life of the agreement in accordance with IAS 18. 
c
Grants
The Company participates in three projects, LASERCELL, ALKAMMONIA and POWER-UP, which receive funding from the European Union. These grants are based on periodic claims for qualifying expenditure incurred by all the entities participating in each project consortium. The Company acts as coordinator for all three projects and submits claims and receives funding on behalf of the other participants in each project consortium. Grant funds of other participants are paid over to them as soon as they are received and only the grant funding specifically relating to the Company's activities is reflected in the statement of comprehensive income. The qualifying expenditure is shown in the statement of comprehensive income as cost of sales. Grants, including grants from the European Union, are recognised in the statement of comprehensive income in the same period as the expenditure to which the grant relates.
d
Research and Development costs
Expenditure on research activities is recognised in the income statement as an expense as incurred. Development expenditure does not meet the strict criteria for capitalization under IAS38 and has been recognised as an expense.
e
Intangible assets
Intangible assets that are acquired by the Company are stated at cost less accumulated amortisation and impairment losses.
Amortisation of intangible assets is charged using the straight-line method to administrative expenses over the following period:
- Patents 20 years
f
Property, plant and equipment 
Property, plant and equipment are stated at cost less accumulated depreciation and impairment charges. Depreciation is charged to the income statement within cost of sales and administrative expenses on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The estimated useful lives are as follows:
- Leasehold improvements 1 to 3 years
- Fixtures, fittings and equipment 1 to 3 years 
- Vehicles 3 to 4 years
g
Valuation of derivative financial asset 
The Company has placed shares with Lanstead Capital L.P. and at the same time entered into an equity swap agreement in respect of the subscriptions for which consideration was received monthly over an 18 month period which ended in April 2016. The amount receivable each month was dependent on the Company's share price performance and gains and losses arising on monthly settlements are reflected in the income statement in finance (loss)/income. At each period end the financial instrument was valued at fair value based on the share price of the Company at that date. The instrument is accounted for as fair value through profit and loss; any change in the fair value of the derivative financial instrument is reflected in the statement of comprehensive income in finance (loss)/income.
h
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable or recoverable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date together with any adjustment to tax payable in respect of previous years. 
Deferred tax assets are not recognised due to the uncertainty of the period over which they will be recovered.
i
Equity-settled share-based payments
The Company awards share options and warrants to certain Directors and employees to acquire shares of the Company. The fair value of options and warrants granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the Directors and employees become unconditionally entitled to the options or warrants. The fair value of the options and warrants granted is measured using the Black-Scholes or the Monte Carlo option valuation models, taking into account the terms and conditions upon which the options and warrants were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options and warrants that vest only where vesting is dependent upon the satisfaction of service and non-market vesting conditions or where the vesting periods themselves are amended by the introduction of new schemes and the absorption of earlier schemes by agreement between the Company and the relevant Directors and employees. Where options or warrants granted are cancelled, all future charges arising in respect of the grant are charged to the income statement on the date of cancellation.
j
Financial Assets
All of the Company's financial assets are loans and receivables. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets at fair value and comprise trade and other receivables and cash and cash equivalents.
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 that there is one operating segment, the development of fuel cells. In the period to 30 April 2016, the Company operated mainly in the United Kingdom and in Germany. All non current assets are located in the United Kingdom.
3
Taxation 
Six months to 30 April
Six months to 30 April
Year to 31 October
2016
2015
2015
Recognised in the income statement:
Unaudited
Unaudited
Audited
Research and development tax credit - current year
500,429
198,242
569,706
Total tax credit
500,429
198,242
569,706
4
Earnings/(loss)per share
Six months to 30 April
Six months to 30 April
Year to 31 October
2016
2015
2015
Unaudited
Unaudited
Audited
The calculation of the basic earnings/(loss) per share is based on the net loss after tax attributable to the ordinary shareholders of 3,460,655 (30 April 2015: profit of 1,732,483; 31 October 2015: loss of 4,782,225) and a weighted average number of shares in issue for the period 1 November 2015 to 30 April 2016 of 301,332,128 (six months to 30 April 2015: 287,151,393; year to 31 October 2015: 288,431,626).
Basic earnings/(loss) per share
(1.15)p
0.60p
(1.66)p
Diluted earnings/(loss) per share
(1.15)p
0.60p
(1.66)p
There are share options and warrants outstanding as at 30 April 2016 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.
5
Intangible assets
Patents
Unaudited
Cost
At 31 October 2014
748,113
Additions
62,241
At 30 April 2015
810,354
Retirements
(401,166)
Additions
36,739
At 31 October 2015
445,927
Additions
42,292
At 30 April 2016
488,219
Amortisation
At 31 October 2014
469,040
Charge for the period
11,033
At 30 April 2015
480,073
Retirements
(401,166)
Charge for the period
28,844
At 31 October 2015
107,751
Charge for the period
19,944
At 30 April 2016
127,695
Net book value
At 30 April 2016
360,524
At 30 April 2015
330,281
At 31 October 2015
338,176
6
Property, plant and equipment
Leasehold improvements
Fixtures, fittings and equipment
Motor Vehicles
Total
Unaudited
Unaudited
Unaudited
Unaudited
Cost
At 31 October 2014 
272,759
2,693,951
10,495
2,977,205
Additions
6,334
-
6,900
13,234
At 30 April 2015
279,093
2,693,951
17,395
2,990,439
Transfers
45,852
(45,852)
-
-
Additions
12,517
11,094
23,611
Disposals
-
(1,326,821)
(10,495)
(1,337,316)
At 31 October 2015 
337,462
1,321,278
17,994
1,676,734
Additions
-
35,901
-
35,901
At 30 April 2016
337,462
1,357,179
17,994
1,712,635
Depreciation
At 31 October 2014
240,104
2,117,457
10,203
2,367,764
Charge for the period
16,905
97,020
892
114,817
At 30 April 2015
257,009
2,214,477
11,095
2,482,581
Transfers
9,783
(9,783)
-
-
Charge for the period
22,740
97,862
2,995
123,597
Disposals
-
(1,035,277)
(10,495)
(1,045,772)
At 31 October 2015
289,532
1,267,279
3,595
1,560,406
Charge for the period
23,965
25,313
3,355
52,633
At 30 April 2016
313,497
1,292,592
6,950
1,613,039
Net book value
At 30 April 2016
23,965
64,587
11,044
99,596
At 30 April 2015
22,084
479,474
6,300
507,858
At 31 October 2015
47,930
53,999
14,399
116,328
7
Trade and other receivables
30 April
30 April
31 October
2016
2015
2015
Unaudited
Unaudited
Audited
Current
R&D tax credits receivable
1,218,452
619,278
718,023
EU grants receivable
2,342,625
1,074,564
2,513,395
Other receivables
251,217
863,116
226,922
3,812,294
2,556,958
3,458,340
 
8
Share capital
30 April
30 April
31 October
2016
2015
2015
Unaudited
Unaudited
Audited
Issued
308,343,943 Ordinary shares of 0.1p each
308,344
289,012
289,904
9
Trade and other payables
30 April
30 April
31 October
2016
2015
2015
Unaudited
Unaudited
Audited
Trade payables
421,217
211,232
1,066,600
Deferred income
228,020
-
115,698
Other payables
77,394
352,245
319,483
Accruals
80,088
12,046
171,778
806,719
575,523
1,673,559
Related-party Transactions
During the six months ended 30 April 2016:
- 20,100 (ex VAT) was invoiced by Locana Corporation Ltd (a company registered in England &
Wales) for consultancy services (April 2015:  20,891). Mr Tim Yeo is a Director and shareholder of Locana Corporation Ltd. At 30 April 2016, the sum owing to Locana Corporation Ltd was
3,350 (April 2015: 3,350).
- 68,155 was invoiced by Linc Energy Ltd (a company registered in Australia) for the services of Adam Bond as Director and CEO of AFC Energy plc (April 2015: 91,881). Linc Energy Ltd was, until 30 September 2015, a major shareholder in the Company. At 30 April 2016 the amount owing to Linc Energy Ltd was nil (April 2015: 29,610).
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 2015. 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.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
IR EALKFESKKEFF