(Alliance News) - AFC Energy PLC on Friday said the future is looking good after a steady performance in its first half and a successful fund raise this month.
The developer of hydrogen power generation technologies said its pretax loss in the first half ending April 30 was GBP2.1 million, flat from the year before.
Net cash inflow in the first half was GBP1.2 million, swinging from an outflow of GBP700,000 year on year. This was due to the company raising GBP4.1 million from the issue of shares before expenses.
AFC Energy's cash balance at April 30 was GBP2.5 million compared to GBP1.9 million the year prior, with an extra GBP4.0 million available from a bond facility. The company does not expect to draw from the facility however after a successful fund raise of GBP31.6 million, before expenses, this month.
The fund raise has significantly strengthened the balance sheet with growth capital from several leading institutions new to the register, AFC Energy said.
The raise will enable the company to increase its manufacturing capabilities, internal staffing and system deployment. AFC Energy also expects the fund raise to support its credentials in future industrial and strategic partnering which could provide the basis for a transformational underpinning of the business today and into the future, the company said.
Chief Executive Adam Bond said: "We anticipate that in the second half we will continue to make large strides forward benefiting from a wider technology platform, growing project pipeline across key target markets and new enquiries from strategic partners financed by a strengthened balance sheet.
These factors, together with the commitment of AFC Energy's management and staff, places the Company in a solid position for the realisation of its growth potential into 2020 and beyond."
AFC Energy shares were down 3.4% at 21.10 pence each on late Friday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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AFC Energy (AFC)