AFC Energy achieves record annual revenues

AFC Energy trimmed its losses in 2012 as the industrial fuel cell company delivered its highest annual revenues from operations.

The group said commercial customer sales, licence income and grant income drove results in the year to October 31st.

Commercial customer sales represented £0.26m of the total full-year revenue of £0.36m, mostly from UK trading.

Revenues and lower depreciation and impairment cut operating losses by £0.2m to £3.79m.

Results were also boosted by lower share based payments charges offsetting a modest rise in its own and European Union (EU) funded research and development expenditure, mainly resulting from increased technical and production staffing and system and cartridge builds.

Pre-tax losses fell to £4.15m - down from £4.34m the previous year.

"AFC Energy continues to make excellent technical progress. The results from both our laboratory and field trials give the board confidence in the company's future prospects," Chairman Tim Yeo said.

He said its joint venture with Industrial Chemicals, supported by the EU, provided an opportunity to exhibit the group's first commercial scale installation.

Industrial Chemicals has built Europe's newest chlor-alkali plant, designed to operate in conjunction with AFC Energy's fuel cell system. It is the largest fuel cell system announced for installation in the UK to date and is expected to generate approximately 1.0 megawatt - enough energy to power 500 homes.

"Electrode production is beginning to increase from our new facility and our new staff have integrated well into the AFC Energy team.

"The board looks forward to further technical progress and commercial success in the coming months and years."

Shares fell 2.19% to 33.50p at 11:10 Wednesday.