27th May 2015 10:01
LONDON (Alliance News) - AFC Energy PLC Wednesday said it swung to a pretax profit in the first half of the financial year as it continues to progress the development of "the world's largest alkaline fuel cell system" in Germany.
The developer of alkaline fuel cells focused on the industrial sector reported a pretax profit of GBP1.5 million in the six months ended April 30, swinging from a GBP2.3 million loss a year earlier, on the back of a GBP4.5 million gain from the revaluation of the amount receivable from shares it placed with Lanstead Capital LP.
The company placed shares with Lanstead and at the same time entered into equity swap and interest rate swap agreements, and receives the consideration for the agreements on a monthly basis. The amount received by AFC each month is dependent on AFC's share price performance. The GBP4.5 million gain in the period compared to none a year earlier.
Revenue rose in the first half to GBP736,145, but cost of sales continues to outstrip revenue at GBP1.1 million. A year earlier AFC reported revenue of GBP455,702 with a cost of sales of GBP566,097.
At the end of April, AFC had a cash balance of GBP3.9 million, slightly lower than the GBP5 million it had at the end of the first half last year.
"With AFC gearing up for the successful demonstration of its KORE system in Germany, the board is confident that the company is well placed to capitalise on this building momentum, and that the world leading technology we have developed will prove to be a turnkey solution in providing large-scale stationary power over the short to medium term across several global industries," said Chief Executive Adam Bond, who took up the role during the first half.
The KORE system is an alkaline fuel cell being developed in Stade, Germany as part of the European Union co-funded POWER-UP project. AFC is targeting the North and South East Asia, North America, the Middle East and North Africa with its KORE system.
"Once fully operational, this (KORE/POWER-UP) project will act as a real world reference project for our technology and the resultant data will also assist in our strategy for commercialisation. I would like to take this opportunity to thank the team at AFC for all their hard work in pursuing this aggressive timeline and making it possible," said the company in a statement.
AFC shares were up 4.4% to 40.70 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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