AFC Energy looks to capitalise on ‘unrealised value’ as losses widen
Specialist hydrogen developer AFC Energy has said it is “well-placed” to realise the true value of its technology offering despite losses growing in the 2023 financial year.
For the 12 months ending 31 October, the company posted a loss of £17.4m, up from £16.4m the year prior. The operating loss grew from £19.6m to £20m.
Revenue from customer products slumped 61 per cent to £227m while a £115m gross profit in 2022 swung to a £67m loss in 2023.
The firm said its 2023 strategy focused on market penetration and managed to secure “key agreements” to expand distribution channels for the fuel cell division, resulting in a £27m order book for its flagship 30kW S Series H-Power Generators and ancillary equipment.
Cash at the end of the period was also down from £40.2m to £27.4m.
In December, AFC Energy said it had conducted the largest ammonia-to-hydrogen modular cracker demonstration in the world and today confirmed that it would look to build on developing this technology for wider roll-out.
Similarly, the firm’s tie-up with tool distributor Speedy Hire, signed in November last year, will be a key focus for 2024.
Speedy Hydrogen Solutions Limited will take the delivery of £2m worth of 30-kilowatt Hydrogen fuel cell generators from AFC to customers across the UK. Today, the group said that it was targeting a growth in sales from the JV.
Additionally, an initial order from industrial equipment maker TAMGO will take AFC’s technology into the off-grid power solutions arena in Saudi Arabia.
Chief executive Adam Bond said the customer pull to replace diesel generators had never been stronger and that the firm was confident in a “robust commercialisation strategy” to take advantage of the opportunity.
“We continue to target further capital cost reductions, manufacturing scale up partners and newly announced international dealerships during 2024, giving us confidence in delivering contracted customer deployments and revenue growth,” he said.
“Together with our fuel processing division’s market leading modular ammonia cracking technology and the partners we are currently in discussion with who have expressed interest in the technology, we continue to believe the true value of this technology platform is not yet reflected in the Company’s value and as a Board, we are reviewing options to capitalise on this unrealised value.
He added: “We are well placed to build on the foundations set in 2023 and look forward to the successful deliveries of our new H-Power Generators into the hands of customers throughout the remainder of the 2024 calendar year.”