REG - AFC Energy Plc - Trading Update for Year Ended 31 October 2025

AFC EnergyAnnouncement

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RNS Number : 3919G  AFC Energy Plc  06 November 2025

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6 November 2025

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

 

Trading Update for Year Ended 31 October 2025

 

Strategic and developmental progress in line with management's expectations

AFC Energy plc (AIM: AFC), a leading provider of hydrogen and clean power
generation technologies, is pleased to announce a trading update for the
financial year ended 31 October 2025 ("FY25").

John Wilson, Chief Executive Officer of AFC Energy said:

"Since joining the business 10 months ago, our focus has been on building a
business capable of disrupting our industry through utilising its proprietary
technology, to create significant shareholder value.  We have made
substantial progress in fulfilling this objective, evidenced by the
partnerships and agreements signed and developmental progress to date.

I am confident that 2026 will be a year of conversion of our growing pipeline
of opportunities to contractual orders and the beginning of sustained revenue
growth for our business, without the need for government subsidies."

 Highlights

·      Multiple fuel cell generator deployments through Speedy Hydrogen
Solutions joint venture

·      Successful completion of first phase of Joint Development
Agreement ("JDA") development with S&P 500 partner

·      Hy5 development on track and will provide the lowest cost bulk
hydrogen available to industrial customers, in the UK, by the end of calendar
year 2026

·      Next generation S+30 30kW liquid cooled fuel cell generators on
track for delivery in 2026 supported by our manufacturing partner, Volex Plc
("Volex"), at c.85% lower production costs than current variant

·      Joint Venture with Industrial Chemicals Group Limited ("ICGL") on
track to produce hydrogen for commercial use in the first half of calendar
year 2026, subject to permitting

·      Significant focus on commercial viability leading to substantial
business reorganisation, headcount and footprint reduction coupled with
creation of key business functions PMO ("Project Management Office") and
Commercial

·      As at 31 October 2025, the Company held unaudited cash, cash
equivalents and short term deposits (unaudited) of £25.3m (FY24: £15.4m)

·      Revenue (unaudited) of £107k due to strategic reset to
accelerate commercial viability, in the short term, as announced in March 2025
(FY24: £4m)

 

Outcome of strategic review

Following the over-subscribed fundraise in July 2025, the business has been
fundamentally restructured, following a strategic review, to ensure optimal
alignment with delivery of our objectives.  This has resulted in a net
headcount reduction of 17, a consolidated footprint, including the closure of
the previously leased Stade facility in Germany, and focus on reduction of all
costs.  This will lead to an annualised saving of c. £1.5m in FY26.

Commercial progress

Our leadership team has been strengthened through the appointment of a Chief
Strategy Officer, and post-year end, a Chief Commercial Officer to accelerate
conversion of our opportunity pipeline.  Following our revised pricing
strategy offering "tomorrow's price today," providing Total Cost of Ownership
("TCO") equivalence based upon our 2026/27 product set, we stimulated end
customer demand, resulting in multiple deployments of 30kW generators through
our Speedy Hydrogen Solutions joint venture.

The launch and development of our Hy5 decentralised portable cracker unit has
led to significant numbers of enquiries due to its ability to unlock the joint
challenges of hydrogen logistics and hydrogen pricing.  Our £10/kg((1))
onsite headline pricing is market disruptive in the UK (without the need for
government subsidy), where current pricing ranges between £40/kg and
£110/kg.((2))

We have successfully concluded the first phase of our JDA project with our
S&P 500 partner and have submitted our report pending discussion and
agreement on subsequent phases.

Operational progress

Our next generation 30kW fuel cell generator, with a c.85% reduction in cost
and >50% smaller footprint, continues to be developed within the timelines
previously announced.  Volex continues to support the manufacturability of
this product line and we expect our first revenues from these units in
calendar year 2026, following rigorous testing and certification required for
sale in the EU, US and MENA regions.

Similarly, the Hy5, decentralised portable cracker capable of producing 500 kg
of hydrogen/day, development remains on track and on budget.

ICGL's Port Clarence site has been selected for the relocation of AFC's pilot
cracker unit. We expect to produce low cost hydrogen for commercial use in the
first half of calendar year 2026, subject to permitting.  It is envisaged
that the first Hy5 unit will be commissioned at this facility providing the JV
with the ability to produce close to 1 tonne of hydrogen per day by the end of
calendar year 2026.

Hydrogen market backdrop

Over the past three months, the US clean energy market has seen a series of
developments that are expected to strengthen further the long-term demand for
fuel cells and hydrogen. Share prices of several listed hydrogen and fuel cell
companies have rebounded sharply, driven by growing expectations that these
technologies will play a key role in meeting the power needs of AI data
centres.

Several major data centre operators have now committed to integrating fuel
cell systems on-site to supply primary and back-up power systems for their
expanding facilities across the globe. This marks an unprecedented level of
commitment to fuel cells and highlights their growing appeal as a reliable,
distributed, commercially viable and scalable alternative to conventional
power generation sources. As production scales up, manufacturing costs are
expected to decline, improving the commercial competitiveness of fuel cells.
This unprecedented data centre infrastructure buildout and associated surge in
power requirements is also expected to drive demand for the supply of
affordable hydrogen. AFC Energy believes this market provides a tangible
future market opportunity for its fuel cell generator and ammonia cracker
systems, capable of producing low cost hydrogen without government subsidy.

((1 )) Subject to minimum term and take or pay provisions.

((2)) Based upon AFC's range of hydrogen delivered to site cost in 2025.

 

 

 

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)

 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 now deployable as electric vehicle chargers, off-grid
decentralised power systems for construction and temporary power with emerging
opportunities across maritime, data centres and rail 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, all expected to
be delivered at a commercially viable price point, without government
subsidies.

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