AFC Energy drops as losses grow

AFC Energy, the alkaline fuel cell company, has fallen 4% after revealing that its losses are growing.

The company says asset write downs, increased R&D spend and consultancy costs have contributed to the operating loss growing from £3,051,768 in 2010 to £4,390,192 in 2011.

The company argues its fuel cell technology, which is a re-engineering of the systems that keep the lights on during US and Russian space missions, is gaining worldwide acceptance.

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It was awarded a €405,000 grant from the European Union to carry on its research which aims at producing fuel cells that will compete with orthodox technologies like turbines.

The question facing AFC, though, is how its solutions will find their way to market.

Shares had fallen 4% by 10.24. Over the last 12 months the stock has dropped 51%.

BS