AFC Energy (AFC) Trading Update summary

Financial performance

• FY24 unaudited revenue reached approximately £4.0 million, slightly above market expectations, mainly from hydrogen generator sales to Speedy Hire Services.

• Cash and cash equivalents at year-end were £15.4 million, with net trade receivables less payables at £2.5 million.

• Cash burn for overheads was about £1.3 million per month, expected to reduce to £1.2 million per month in FY25 due to cost-saving measures.

• £2.7 million was received from the FY23 R&D tax credit, benefiting from an enhanced recovery rate.

Operational highlights

• Manufacturing capability was modernised and scaled to support initial hydrogen generator fleet production for the Speedy Hire joint venture.

• First sale under the TAMGO Distribution Agreement delivered a hydrogen generator and BESS into the MENA region.

• Initial deployments focused on trials and training, now progressing to live applications with leading construction firms.

• Generators demonstrated high efficiency, with a 30kW hydrogen unit able to replace a 100kW diesel generator in some cases.

• Awarded funding for Red Diesel Replacement project, developing new air-cooled and 200kW liquid-cooled generators for deployment in UK quarries in 1Q 2025.

Strategic initiatives and partnerships

• Hyamtec Division launched to accelerate ammonia cracking technology for localised hydrogen production, targeting industrial decarbonisation.

• Progress made with manufacturing partners Illuming and Zollner for fuel-cell stacks and key assemblies.

• Strong commercial pipeline developed with Speedy Hire and TAMGO, including rental, purchase, and "try and buy" options.

• Investments in on-site ammonia cracker facility and hydrogen storage systems to support reliable fuel supply.