(Sharecast News) - Hydrogen power technology company AFC Energy reported an improved year-end cash balance of £55.4m in its final results on Wednesday, up from £31.3m a year earlier.
The AIM-traded firm said investments in its workforce, product range, manufacturing and facilities resulted in an expanded operating loss of £10.40m for the year ended 31 October, compared to £4.6m in 2020.
Its net cash burn totalled £10.7m, which included a one-off investment in capital assets including office and facility upgrades.
AFC completed an oversubscribed fundraise of £36m before expenses during the year, which the directors said positioned it for near-term growth.
Looking ahead, AFC said "environmental and geopolitical drivers" would support diversification from incumbent fossil fuel imports to the UK and Europe.
The company said it expected 'S' series hybrid fuel cells to be deployed on customer sites in the coming months, while it expected the initial integrated system with its partner ABB to be operational by the end of the year.
Upstream hydrogen fuelling technologies were under development, with announcements expected later in the calendar year.
New announcements were also expected for lease deployments across UK construction sites.
AFC described "significant momentum" in the UK construction sector, following the removal of the red diesel subsidy.
"In 2021 we established a stronger platform for accelerating growth," said chief executive officer Adam Bond.
"We strengthened our balance sheet, increased our manufacturing capabilities, recruited a number of talented leaders and, most importantly, materially expanded our product range to offer solutions with reduced footprints and compatibility with a range of fuel sources.
"We are already seeing this feed through into an increase in contracted revenues."
Bond said the regulatory platform and political will to address climate change had "never been stronger", which would help to drive the transition away from traditional technologies.
"We are well-placed to continue to make large strides in 2022 towards our goal of displacing pollutant diesel generators for off- grid power as part of the global transition to net zero."
At 1318 GMT, shares in AFC Energy were down 3.06% at 35.92p.
AFC Energy (AFC)