AFC Energy Share News (AFC)

LONDON (Alliance News) - AFC Energy PLC said Wednesday its 2017 loss narrowed on much reduced cost of sales as it prepares to focus on commercialising its fuel cell power technology.

For the year ended October 31, 2017, pretax loss narrowed to GBP5.5 million from GBP6.5 million the year prior. AFC did not generate any revenue in either year but did receive EU grant income. In 2017, grant income fell to GBP230,610 from GBP967,606 the year before.

Profit performance was helped by a huge fall in cost of sales. This fell to GBP397,113 in 2017 from GBP1.9 million in 2016.

Cash reserves stood at GBP6.7 million, up from GBP2.9 million the year prior. This was after its raised GBP8.1 million in early 2017 through a placing and open offer.

"In 2017 we completed our three-year plan with the deliverables we promised," AFC Chief Executive Officer Adam Bond said. "The funding put in place early in 2017 allowed us to enhance the 10kW fuel cell system design to support scaling-up of this modular design basis, complete technical milestones to deliver the longevity and reliability required for power plant application and develop the strategic partnerships to underpin the future commercial manufacturing and supply of fuel cells."

"With these targets met," Bond added, "AFC Energy is transitioning to commercial exploitation of the significant value in intellectual property that it has created; thereby becoming a key new entrant into the ever-growing clean energy revolution."

Shares in AFC were 8.9% higher at 11.14 pence on Wednesday.