AFC Energy ends year ahead of expectations

4th Nov 2024 09:03

(Sharecast News) - AFC Energy reported solid trading for the financial year just ended on Monday, underscoring growth in its hydrogen power solutions and expanding presence in the Middle East.

The AIM-traded firm said revenue for the 12 months ended 31 October reached £4m, exceeding market expectations, which it put down to hydrogen fuel-powered generator sales to Speedy Hire Services (SHS) for customer leasing.

At year-end, AFC held cash reserves of £15.4m and net trade receivables of £2.5m.

The company also announced strides in its production capabilities, scaling its manufacturing to support hydrogen generator output for the joint venture with Speedy Hire.

Demand for AFC's clean energy solutions was reflected in its first sale under the TAMGO distribution agreement, which introduced a hydrogen generator and battery energy storage system (BESS) to the MENA region, signalling a foothold in the rapidly-growing market.

AFC said its exclusive distributor TAMGO had ordered its first 45kVA H-Power System for Saudi Arabia.

The unit, incorporating AFC's S Series 30kW fuel cell generator, a 45kWh BESS, and a hydrogen pressure reduction station, would undergo localised operational trials before broader piloting with TAMGO's clients.

Further positioning itself in the decarbonisation space, AFC added that it had launched the Hyamtec division, focusing on its ammonia cracking technology.

The innovation aimed to advance local hydrogen production, with significant implications for industrial decarbonisation across multiple sectors.

"2024 has been a landmark year for AFC Energy - our performance reflects the solid progress we have made in expanding our reach and capabilities," said chief executive officer Gary Bullard.

"The recent expansion of our manufacturing capacity has enabled us to meet growing demand, including the delivery of an initial fleet of generators for our joint venture with Speedy Hire.

"This achievement, alongside advancements in our ammonia cracking technology within the new Hyamtec Division, underscores our commitment to driving decarbonisation across diverse industries."

Bullard said the company's hydrogen solutions had "resonated strongly" within key sectors, particularly construction, where clients were increasingly prioritising sustainable alternatives to diesel.

"As we look forward, we are focused on further scaling production, optimising operational efficiency, and strengthening strategic partnerships to accelerate growth.

"With our innovation-led approach, I am confident that AFC is well-positioned to lead in the transition to a clean energy future."

At 1018 GMT, shares in AFC Energy were up 20.99% at 9.8p.

Reporting by Josh White for Sharecast.com.