Last checked at 11 Mar 2010 08:08
The following replaces the Preliminary Results announcement released at 0700 under RNS number 4086i.
The eighth bullet point below has been amended to read "Cash balances at end February 2010 of £3.19 million"
All other details remain unchanged.
AFC Energy PLC
('AFC Energy' or the 'Company')
Preliminary Results for the year ended 31 October 2009
AFC Energy PLC (AIM: AFC), the low-cost fuel cell company, today announces its preliminary results
for the year ended 31 October 2009.
Highlights of the year
·; Successful trial of initial Alpha fuel cell system at Akzo Nobel in April 2009
·; Second chlor-alkali partnership signed with Ineos ChlorVinyls
·; Significant progress in both electrode specification and system design.
·; 5 further patents applied for
·; Technical and management team strengthened to support anticipated growth
·; Operating costs further reduced
Since the year end
·; £2.2 million raised through share placing and option/warrant conversions
·; Cash balances at end February 2010 of £3.19 million.
·; Heads of agreement signed with Linc Energy to exploit underground coal gasification
·; SuperGreen Power Station project initiated with WSP Group plc, CEL International and Air Products as confirmed world class partners
·; Agreement with Centrica plc for reservation of future capacity
Ian Balchin, CEO commented,
Our objective is to develop and commercialise an alkaline fuel cell system for the 21st century at a significantly lower cost than any other fuel cell system. We have made considerable technical progress this year and have deepened and widened our commercial relationships with key partners. Our Alpha system fuel cell will be further tested by both Akzo Nobel and Linc Energy during 2010 and we remain on track to deliver our first 50kW unit in 2011
Tim Yeo, Chairman added,
I am delighted that new management team has accelerated the technical and commercial development of the Company beyond R&D and towards revenue. I firmly believe thatAFC Energy is now fully equipped to prioritise and develop its many commercial partnerships during its next phase.
For further information please visit www.afcenergy.com or contact:
| AFC Energy plc | 01483 276726 |
| Tim Yeo, Chairman |
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| Ian Balchin, Chief Executive Officer |
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| David Marson, Finance Director |
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| Astaire Securities | 020 7448 4400 |
| Shane Gallwey |
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| Allenby Capital | 020 3328 5656 |
| Imran Ahmad |
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| Madano Partnership | 020 7593 4000 |
| Matthew Moth/Michael Evans |
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Chairman's Statement
Introduction
It is a pleasure to report the Company's substantial progress during the year to 31 October 2009. We have delivered a fuel cell system to our first commercial customer, AkzoNobel, and have built on that strong foundation with a range of additional, world class partnerships. These include, INEOS ChlorVinyls and, Waste2Tricity Ltd (which has entered into a relationship with Alter NRG Westinghouse.) Since the end of the financial year, progress has accelerated further and commercial relationships have been formed with Centrica, WSP Environment and Energy, CEL International, Air Products, Linc Energy and B9 Coal.
During the year the Company's technical progress accelerated significantly and was validated by the second independent review of AFC's technology by the Centre for Process Innovation (CPI) which we reported in November 2009. We delivered an Alpha fuel cell system to AkzoNobel's Bitterfeld site (chlor-alkali) in Germany in April 2009. Following installation, integration and load cycling tests, the first electricity was exported from this system to AkzoNobel's local grid during tests in June.
Strategy
The Company remains committed to developing and commercialising low cost alkaline fuel cell systems that generate clean electricity from hydrogen feedstocks that are widely available directly or indirectly, from many different sources.
The Company is addressing the chlor-alkali industry directly and will work with partner organisations to access additional markets. The Letter of Intent signed by the Company in August with INEOS ChlorVinyls achieves the goal set out in last year's report to seek additional customers from within the chlorine and chlorate industries.
The Company expects that, following an initial period of direct sales, it will move to a business model where it supplies fuel cell systems under an ESCO (Energy Supply Contract), a well established model which enables us to participate in a share of the revenue generated by our fuel cell systems rather than from the sale of capital equipment. This mechanism has the potential to enable a faster, more profitable roll out of the technology.
Partnerships
In February 2009 the Company formalised its agreement with Waste2Tricity Ltd for municipal energy from waste applications. Waste2Tricty is currently working with waste gasification operator, Alter NRG Westinghouse.
Since the year end the Company has become more closely involved in the Underground Coal Gasification ('UCG') sector, recognising it as the largest potential market that we have yet reported on for our low cost fuel cell technology. On 8th December 2009, AFC signed a binding Heads of Agreement with B9 Coal Limited and Linc Energy Limited (ASX: LNC), Australia's leader in clean coal technology. Since then we have configured and assembled an Alpha fuel cell system which is now ready for shipping to an operational UCG plant in Chinchilla, Australia, and for which our first payment has been received.
B9 Coal Limited also has an agreement with UCG developer, Thornton New Energy, who have rights to a major coal field under the Firth of Forth in Scotland.
The Company has also initiated its SuperGreen Power Station demonstrator project. This initiative will commence with the demonstration of a 50kW fuel cell system and, subject to commercial support, it will lead to a 1MW power station demonstrator.
Finance
During the year the Company has continued to implement a tight control on its operating expenditure whilst making modest investments in capital equipment and processes to reduce the overall development cost and timescale. Operating costs during the six months to 31 October 2009 were £160k on average, compared with £250k on average for the same period of the previous year.
A successful share placing was completed in December 2009, raising £2 million after expenses. We received strong support from our existing institutional shareholder base and welcomed new institutional and private investors. We remain grateful for the continued support of all our shareholders.
Operating Framework
Concerns about the high level of greenhouse gas emissions from traditional methods of electricity generation are increasing world wide. In the United States the Obama administration is addressing this issue far more urgently than its predecessor. In Europe efforts to develop low carbon methods of producing electricity are intensifying. In Asia similar work is under way.
This is an extremely favourable background for the Company's operations. Financial incentives for the use of our technology are likely to increase. Customers, actual and potential, are becoming more concerned about their carbon footprints as these come under closer scrutiny from governments, regulators, other businesses and the general public.
The Company is therefore well placed to contribute to the global shift to lower carbon technology.
Management and Board
During the year, we have reshaped the team working within the Company to match its objectives. In particular, we have made senior appointments in materials, modelling and production management. It is the intention of the Board to ensure that all staff receive share options in the Company to help ensure that the objectives of individuals are aligned with those of the Company and also to reward the value that is created.
Ian Balchin joined the Company during October 2008 as part time Managing Director. I am pleased that following his considerable efforts and positive contribution to the Company's progress he was appointed to the Board as Chief Executive Officer during November 2009.
Dr Gene Lewis, who was originally recruited to the Company at the end of 2008 as Chief Technical Officer, was appointed to the Board as Technical Director in July 2009. He has demonstrated significant technical achievements and under his leadership the Company's technical programme is now back on track.
David Marson was appointed to the Board as Finance Director in July 2009 having commenced work with the Company in November 2008. He has used his considerable experience to implement best practice and quality procedures which have significantly improved the Company's financial performance.
During the year Harry Epstein stepped down as a Non-Executive Director although he continues to be available to provide advice to the Company on supply chain matters and commercial opportunities.Mike Mangan, who has served as a Non-Executive Director since before the Company's admission to AIM will be retiring from the board in May 2010 although his technical skills will still be available to the Company as required.
Additionally Terry Walsh who has served as the Company's Commercial Director will leave the Board with effect from today to focus on the chlor-alkali sector.
I would like to thank all three of these for their hard work and help in bringing the Company closer to achieving its operating goals.
Since the recruitment of Ian Balchin, Gene Lewis and David Marson I am delighted that their commercial, operational and technical skills have been fully unleashed to accelerate the technical and commercial development of the Company beyond R&D and towards revenue. I firmly believe that AFC is now fully equipped to prioritise and develop its many commercial partnerships during its next phase. I look forward to reporting on this next year.
On behalf of our newly-strengthened Board, I wish to thank all the Company's employees for their continued efforts on behalf of shareholders, customers and, ultimately, the environment.
Tim Yeo
Chairman 10 March 2010
Operating and Financial Review
We believe that the successful commercialisation of AFC Energy's fuel cell system technology will be as important to a hydrogen economy in the 21st century as the internal combustion engine was to the petrochemical industry in the 20th century.
Introduction
Alkaline fuel cells are a proven technology that has been around for decades. AFC Energy is now developing 21st century alkaline fuel cell systems for generating clean electricity from hydrogen.
Our principal objective is to re-engineer alkaline fuel cells systems so that they are significantly more economic than any other fuel cell system. This will enable widespread adoption in a number of large industries. We have applied modern low-cost materials and processes, as well as computer aided design and value engineering methodologies, to radically reduce the cost of manufacture, operation and maintenance of this technology. Our projected manufacturing costs per kilowatt hour of installed capacity are on a par with conventional electricity generating technology.
Our initial target market is the surplus hydrogen generated by the chlor-alkali industry. This is hydrogen that currently has little or no economic value and is ideal for high-efficiency conversion into electricity and water in our alkaline fuel cell systems. During the year we successfully installed and tested our first fuel cell system at AkzoNobel's plant in Bitterfeld, Germany.
Technical Progress
AFC Energy has made significant and rapid technical progress under the leadership of its Technical Director, Dr Gene Lewis.
We have made some important changes to our technical team to further strengthen key areas such as materials, fluid modelling, value engineering and manufacturing.
Our development facility has been significantly upgraded during the year to improve the quality, quantity and throughput of development work. Iterative work on catalyst materials can now proceed around thirty times faster than it was at the start of the reporting period. We now have the capability to produce up to 1000 electrodes per day, depending upon the exact processing conditions. Our work focuses on non-precious metal catalysts using materials which can be less than 5% of the cost of platinum.
At the core of our system is the electrode cartridge, comprised of a stack of individual electrochemical cells. During the period we made significant progress with electrode materials and the technology for collecting the electrical current from the cells. The technical programme is continuous. However, we periodically consolidate our developments into a new generation of electrodes for use in the fuel cell system tests.
Since our fuel cell system is designed to be operated at less than 100 degrees centigrade we are able to choose from many low cost materials for its construction. This relatively low temperature of operation means that we generate water rather than steam as a by-product of the system and so no pressure vessels are required. This also enables us to keep construction costs low.
We have also developed a low cost method for ensuring that hydrogen (the smallest molecule) is sealed within the fuel cell system.
Alpha Fuel Cell System
The electrical power output of our small (less than a cubic metre) fuel cell system depends upon the number and composition of the electrodes used.
Alpha fuel cell systems are capable of automatic operation and remote monitoring. The performance of each individual cell can monitored remotely and maintenance can be scheduled to be carried out only when required.
We have demonstrated that an electrode cartridge can be replaced in 90 minutes. This is the elapsed time from stopping a working Alpha fuel cell system, replacing the cartridge and returning it to operating power again.
Large Scale Fuel Cell Systems
Feeding on the results of from the Alpha fuel cell system, work on the large-scale fuel cell system was started during the year in parallel with work on the Alpha fuel cell system. It is this larger system that will become the building block for multi-megawatt installations.
We are on track to deliver our first 50kW system to AkzoNobel during 2011. We will use sufficient electrodes to ensure that it meets the power specification.
The emerging design of the large scale fuel cell system lends itself to low cost mass assembly. Other than the possibility that we will manufacture electrodes, the assembly of fuel cell systems will be carried out by third parties. This should enable faster roll out and lower capital expenditure costs for the Company.
The design has also taken into account the need to minimise the time taken to carry out maintenance and the desire to minimise the carbon footprint in manufacturing the fuel cell systems. A large proportion of this system will be reusable and/or recyclable.
SuperGreen Power Station
This initiative will showcase our fuel cell systems, enable relationships to be built with partner organisations and raise the profile of the participating companies ahead of commercial roll out.
Initially, the SuperGreen Power Station will demonstrate a 50kW large scale fuel cell system in operation close to our development facility in Surrey, UK. To date confirmed partners in the project include WSP Energy and Environment, CEL International and Air Products. These organisations are respectively involved in planning and regulations, engineering and gas handling and supply.
Financial Highlights
During the early part of the year all aspects of the Company's operations were reviewed. We were able to improve operational efficiency and reduce costs whilst still accelerating the technical development programme. As a result of the review, our operating cash costs (excluding changes in working capital) in the year to 31 October 2009 were reduced to £1.9 million, compared with £2.6 million in the previous year.
A successful placing of 21,500,000 shares was completed in December 2009, raising £2 million after expenses and through which we have welcomed a number of new institutional and private investors. The Company received a further £167,000 in February 2010 as a result of the exercise of options and warrants issued in February 2007 as part of a pre-IPO fund raising.
Intellectual Property
We continuously review the intellectual property generated by our technical programme and apply for patent protection for significant inventions.
Since reporting last year, the Company has submitted 5 new patent applications covering inventions relating to low cost alkaline fuel cells.
Health and Safety
The health and safety of our employees and those we work with is regularly reviewed by and on behalf of the Board.
Commercial Outlook
Within our chlor-alkali target market we have made significant progress over the year. In addition to our contract with AkzoNobel we have entered into a letter of intent with INEOS ChlorVinyls to develop a hydrogen fuel cell project at its manufacturing complex in Runcorn, Cheshire, UK.
Whilst we anticipate selling the first few megawatts of power generating capacity, our intention is to move to an Energy Supply Company (ESCo) business model as soon as possible. Under the ESCo model, AFC Energy would obtain financing to build and supply fuel cell systems to a customer and then share the revenue generated by the installed equipment. Our financial modelling shows that there is a distinct benefit to the Company from doing this, especially as we expect, over time, that new generations of electrode cartridges will be increasingly lower cost per kilowatt hour of electricity generated and that we will be able to retrofit them to installed fuel cell systems.
The models show that our electrode cartridges only need an operational life of a few months for our fuel cells systems to become economic and that payback can be achieved in around 2 years from sales of electricity generated. In some applications the demineralised water and heat produced by the fuel cell system will also have a considerable value.
In summary, we believe that AFC Energy has the makings of a highly attractive commercial product.
To access other markets the Company will continue working with and though third parties. In this way we intend to harness the expertise and resources available from partner companies to accelerate the timescales for reaching new markets whilst improving the likelihood of success and minimising the distraction this causes the Company.
The second market opportunity that we have developed is with Waste2Tricity Limited, a company focused on the efficient conversion of municipal solid waste into electricity. During the year it has formed strategic relationships with AlterNRG Westinghouse and others. It is currently in the process of raising funds for the next phase of its commercial development. If successful, Waste2Tricity will purchase an exclusive UK licence for the Company's fuel cell technology for use in the conversion of waste into electricity. Whilst, this has taken slightly longer than originally envisaged, it is currently in discussions regarding some major commercial opportunities which have potential to generate revenue for the Company.
The third market opportunity is Underground Coal Gasification (UCG). We have also entered into contract a with B9 Coal Limited and Linc Energy (ASX:LNC). Linc Energy is a leader in the development of converting underground coal into synthetic gas for processing into diesel and/or electrical power. Linc Energy plans to install hundreds of megawatts of generating capacity over the next few years.
The carbon dioxide produced from power generation is relatively easy to capture and has the prospect of being pumped back underground to be stored in the caverns created when the coal is burnt out - offering the tantalising prospect of clean power from coal. Under the £200,000 contract, we are supplying Linc Energy with an Alpha fuel cell system for testing with hydrogen produced from the underground coal gasification process. Under the agreement Linc Energy also has the option to buy up to £2.3 million of new shares in the Company before the end of 2011.
Elsewhere, as commercial momentum builds we have begun to take orders reserving future production capacity. The first order in this regard is from Centrica plc for 250kW of capacity for use with a flagship project. We are also in discussions with many other global organisations about developing future markets.
I look forward to reporting our continued progress towards commercialisation and thank all those working for and with the Company for their support.
Ian Balchin
Chief Executive Officer
10 March 2010
Income Statement
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Note | Year ended 31 October 2009 £ | Year ended 31 October 2008 £ |
| Revenue |
| - | - |
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| Direct expenses |
| - | - |
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|
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| Gross profit/(loss) |
| - | - |
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| Other Income |
| 4,664 | - |
| Administrative expenses |
| (2,345,651) | (3,110,515) |
| Analysed as: |
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|
|
| Administrative expenses |
| (2,280,731) | (2,863,177) |
| Equity-settled share-based payments | 13c | (64,920) | (247,338) |
| Operating loss | 3 | (2,340,987) | (3,110,515) |
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| Financial income | 5 | 67,890 | 150,320 |
| Share of loss of Associate | 6a | (26,651) | - |
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| Loss before tax |
| (2,299,748) | (2,960,195) |
|
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|
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| Taxation |
| 219,220 | 308,427 |
| Loss for the year attributable to equity holders |
| (2,080,528) | (2,651,768) |
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| Basic loss per share | 7 | (1.63)p | (2.51)p |
| Diluted loss per share | 7 | (1.63)p | (2.51)p |
All amounts relate to continuing operations.
Balance Sheet
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Note | 31 October 2009 £ | 31 October 2008 £ |
| Assets |
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| Non-current assets |
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| Intangible assets
| 8 | 308,525 | 307,852 |
| Property and equipment
| 9 | 270,069 | 504,458 |
| Trade and other receivables | 6b | 124,849 | - |
|
|
| 703,443 | 812,310 |
| Current assets |
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| Work in progress |
| 123,740 | 123,740 |
| Trade and other receivables | 10 | 307,644, | 592,055 |
| Cash and cash equivalents | 11 | 1,868,601 | 3,610,204 |
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| 2,299,985 | 4,325,999 |
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| Total assets |
| 3,003,428 | 5,138,309 |
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| Equity and liabilities |
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| Equity attributable to ordinary shareholders |
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| Share capital | 12b | 127,683 | 127,683 |
| Share premium |
| 8,940,379 | 8,940,379 |
| Other reserve |
| 602,308 | 537,388 |
| Retained loss |
| (6,986,367) | (4,905,839) |
| Total equity |
| 2,684,003 | 4,699,611 |
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| Current liabilities |
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| Trade and other payables | 14 | 319,425 | 438,698 |
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| 319,425 | 438,698 |
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| Total equity and liabilities
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| 3,003,428 | 5,138,309 |
Cash Flow Statement
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Note | 31 October 2009 £ | 31 October 2008 £ |
| Cash flows from operating activities |
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| Loss before tax for the year |
| (2,299,748) | (2,960,195) |
| Adjustments for:
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| Depreciation and amortisation |
| 345,005 | 293,473 |
| Equity-settled share-based payment expenses | 13c | 64,920 | 247,338 |
| Finance income |
| (67,890) | (150,320) |
| Share of loss of associate |
| 26,651 | - |
| Cash flows from operating activities before changes in working capital and provisions |
| (1,931,062) | (2,569,704) |
| Corporation tax received |
| 463,721 | - |
| Decrease/(increase) in trade and other receivables |
| 38,411 | 54,198 |
| (Decrease)/increase in trade and other payables |
| (119,273) | 26,157 |
| Cash absorbed by operating activities |
| (1,548,203) | (2,489,349) |
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| Cash flows from investing activities |
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| Purchase of plant and equipment | 9 | (105,192) | (308,829) |
| Acquisition of patents | 8 | (18,820) | (25,478) |
| Disposal of plant and equipment |
| 12,722 | - |
| Loans to Associates |
| (150,000) | - |
| Interest received |
| 67,890 | 150,320 |
| Net cash absorbed by investing activities |
| (193,400) | (183,987) |
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| Cash flows from financing activities |
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| Proceeds from the issue of share capital |
| - | 4,400,000 |
| Costs of issue of share capital |
| - | (244,810) |
| Net cash from financing activities |
| - | 4,155,190 |
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| Net increase/(decrease) in cash and cash equivalents |
| (1,741,603) | 1,481,854 |
| Cash and cash equivalents at start of year |
| 3,610,204 | 2,128,350 |
| Cash and cash equivalents at 31 October | 11 | 1,868,601 | 3,610,204 |
2. Basis of preparation and accounting policies
These consolidated financial statements of AFC Energy plc have been prepared in accordance with International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs) and International Financial Reporting Interpretations Committee (IFRIC) interpretations (collectively 'IFRSs') as adopted for use in the European Union and as issued by the International Accounting Standards Board and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
3. Operating loss (2008: loss)
| This has been stated after charging:
| Year ended 31 October 2009 £ | Year ended 31 October 2008 £ |
| Depreciation of property and equipment | 326,858 | 276,972 |
| Research and Development expenditure | 932,085 | 1,288,107 |
| Amortisation of intangible assets | 18,147 | 16,500 |
| Equity-settled share-based payment expense | 64,920 | 247,338 |
| Auditors' remuneration - audit | 17,500 | 18,000 |
| Auditors' remuneration - other services | 7,330 | 3,965 |
4. Staff numbers and costs, including Directors
| The average number of employees in the year were: | Year ended 31 October 2009 Number | Year ended 31 October 2008 Number |
| Support, operations and technical | 20 | 22 |
| Administration | 4 | 4 |
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| 24 | 26 |
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| The aggregate payroll costs for these persons were: | £ | £ |
| Wages and salaries (including Directors' emoluments) | 1,013,576 | 1,137,699 |
| Social security | 112,532 | 103,703 |
| Equity settled share-based payment expense | 57,843 | 198,397 |
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| 1,183,951 | 1,439,799 |
5. Financial income
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| Year ended 31 October 2009 £ | Year ended 31 October 2008 £ |
| Bank interest receivable | 66,390 | 150,320 |
| Loan interest receivable | 1,500 | - |
6a. Investment in Associate
The Company acquired 25% of the share capital of Waste2Tricity Ltd (W2T) on 17 June 2009 for £2,500 by converting £2,500 of the £150,000 loan provided to W2T under an agreement of February 2009. The balance of the loan is repayable in full by 31 December 2010 and accrues interest at 0.5% above base rate. The loan is shown in Trade and Other Receivables> 1 year
The Company's share of the results of its associate was as follows:
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| Year ended 31 October 2009 |
| Revenue | - |
| Profit/(loss) | (26,651) |
| Assets | 7,236 |
| Liabilities | 18,685 |
The Company share of W2T losses if the shareholding had been acquired at 1 November 2008 would have been £51,449
6b. Loan to Associate
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| Year ended 31 October 2009 £ | Year ended 31 October 2008 £ |
| Loan to W2T, including accrued interest | 149,000 | - |
| Share of W2T losses after write off of investment | (24,151) | - |
| Loan at 31 October 2009 | 124,849 | - |
7. Loss per share
The calculation of the basic loss per share is based upon the net loss after tax attributable to ordinary shareholders and a weighted average number of shares in issue for the year. The diluted loss is calculated by including the weighted average number of options and warrants.
|
| Year ended 31 October 2009 | Year ended 31 October 2008 |
| Basic loss per share (pence) | (1.63)p | (2.51)p |
| Diluted loss per share (pence) | (1.63)p | (2.51)p |
| Loss attributable to equity shareholders | (2,080,528) | (2,651,768) |
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| Number
| Number
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| Weighted average number of shares in issue | 127,682,854 | 105,545,868 |
Diluted earnings per share
The diluted loss per share is the same as the basic loss per share, as the loss for the year has an anti-dilutive effect.
8. Intangible assets
|
| 2009 Patents £ | 2008 Patents £ |
| Cost |
|
|
| Balance at 1 November | 349,583 | 324,105 |
| Additions | 18,820 | 25,478 |
| Balance at 31 October | 368,403 | 349,583 |
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| Amortisation |
|
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| Balance at 1 November | 41,731 | 25,231 |
| Charge for the year | 18,147 | 16,500 |
| Balance at 31 October | 59,878 | 41,731 |
| Net book value | 308,525 | 307,852 |
9. Property and equipment
|
| Leasehold improvements
£ | Fixtures, fittings and equipment
£ | Total
£ |
| Cost |
|
|
|
| At 1 November 2007 | 126,592 | 510,207 | 636,799 |
| Additions | 20,400 | 288,429 | 308,829 |
| Disposals | - | (61,000) | (61,000) |
| At 31 October 2008 | 146,992 | 737,636 | 884,628 |
| Additions | 3,160 | 102,032 | 105,192 |
| Disposals | - | (133,289) | (133,289) |
| At 31 October 2009 | 150,152 | 706,379 | 856,531 |
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| Depreciation |
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|
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| At 1 November 2007 | 50,175 | 114,023 | 164,198 |
| Charge for the year | 43,970 | 233,002 | 276,972 |
| Disposals | - | (61,000) | (61,000) |
| At 31 October 2008 | 94,145 | 286,025 | 380,170 |
| Charge for the year | 49,113 | 277,745 | 326,858 |
| Disposals | - | (120,566) | (120,566) |
| At 31 October 2009 | 143,258 | 443,204 | 586,462 |
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| Net book value |
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|
|
| At 31 October 2009 | 6,894 | 263,175 | 270,069 |
| At 31 October 2008 | 52,847 | 451,611 | 504,458 |
10. Trade and other receivables
|
| 2009 £ | 2008 £ |
| Trade receivables | 4,579 | - |
| Other receivables | 254,195 | 524,917 |
| Prepayments | 48,870
| 67,138 |
|
| 307,644 | 592,055 |
11. Cash and cash equivalents
|
| 2009 £ | 2008 £ |
| Cash at bank | - | - |
| Bank deposits | 1,868,601 | 3,610,204 |
|
| 1,868,601 | 3,610,204 |
Cash at bank and bank deposits consist of cash. There is no material foreign exchange movement in respect of cash and cash equivalents.
12a. Authorised share capital
|
| 2009 Number | 2008 Number | 2009 £ | 2008 £ |
| Ordinary Shares of 0.1p | 700,000,000 | 700,000,000 | 700,000 | 700,000 |
12b. Issued share capital
|
| Number
| £
|
| At 1 November 2007 | 87,682,854 | 87,683 |
| Issue of shares on 21 May 20081 | 40,000,000 | 40,000 |
| At 31 October 2008 and 31 October 2009
| 127,682,854 | 127,683 |
|
|
|
|
140,000,000 ordinary shares with a par value of 0.1p per share were issued at 11p per ordinary share by way of a placing to UK investors. Gross proceeds from the issue amounted to £4,400,000.
13a. Share options
|
| Number of options
| Exercise price (p)
| Weighted Av. remaining contractual life |
| At 1 November 2007 | 7,379,660 | 10-23 |
|
| Options granted in the year | 144,000 | 23 |
|
| At 31 October 2008 | 7,523,660 |
|
|
| Options granted in the year | 6,600,000 | 3.13 |
|
| Options lapsed in the year | 3,978,670 | 10-23 |
|
| At 31 October 2009 | 10,144,990 | 3.13 - 22 | 7.4 yrs |
13b. Warrants
|
| Number of warrants
| Exercise price (p)
| Weighted Av. remaining contractual life |
| At 1 November 2007 and 31 October 2008 | 4,039,980 | 10-22 |
|
| Warrants granted in the year | 4,750,000 | 3.13 |
|
| At 31 October 2009 | 8,789,980 | 3.13 - 22 | 6.4 yrs |
13c. Equity-settled share-based payments charge
Share options
| Option price
(p) | Average grant date share price
(p) | Average expected volatility
(pa) | Average risk-free interest rate
(pa) | Average dividend yield
(pa) | Average implied option life
(years) | Average fair value per option
(p) | Amount expensed in the 2009 accounts £ |
| 10 | 9 | 46% | 4.4% | 0.0% | 3.5 | 2.5 | 15,478 |
| 22 | 20 | 46% | 4.4% | 0.0% | 3.5 | 6 | 15,536 |
| 23 | 21 | 46% | 4.4% | 0.0% | 3.5 | 6 | 1,849 |
| 23 | 14 | 46% | 4.4% | 0.0% | 3.5 | 2 | 323 |
| 3.13 | 3.13 | 113.8% | 4.4% | 0.0% | 3 | 2 | 18,246 |
|
|
|
|
|
|
|
|
|
| Adjustment for changes in assumptions in respect of vesting conditions
| - | ||||||
|
|
| ||||||
| Total charge for the year (2008: £156,319)
| 51,432 | ||||||
Warrants
| Warrant price
(p) | Average grant date share price
(p) | Average expected volatility
(pa) | Average risk-free interest rate
(pa) | Average dividend yield
(pa) | Average implied warrant life
(years) | Average fair value per warrant
(p) | Amount expensed in the 2009 accounts £ |
| 10 | 20 | 46% | 4.4% | 0.0% | 3.5 | 10 | 3,440 |
| 22 | 20 | 46% | 4.4% | 0.0% | 3.5 | 6 | (3,084) |
| 3.13 | 3.13 | 113.8% | 4.4% | 0.0% | 3 | 2 | 13,132 |
|
|
|
|
|
|
|
|
|
| Adjustment for changes in assumptions in respect of vesting conditions
| - | ||||||
|
|
|
|
|
|
|
|
|
| Total charge for the year (2008: £91,019)
| 13,488 | ||||||
|
|
|
|
|
|
|
|
|
| Total equity-settled share-based payment charge (2008: £247,338)
| 64,920 | ||||||
Expected volatility has been based on the historical volatility of share price returns over one year to the date of grant of the options and warrants. Vesting requirements are one year and three years for the exercise of warrants and options respectively. The weighted average contracted life is 3 - 3.5 years both for share options and warrants.
14. Trade and other payables
|
| 2009 £ | 2008 £ |
| Trade payables | 133,875 | 151,511 |
| Deferred income | 123,740 | 123,740 |
| Other payables | 31,723 | 38,461 |
| Accruals | 30,087 | 124,986 |
|
| 319,425 | 438,698 |
Publication of non-statutory accounts
The financial information contained in this preliminary statement does not constitute the Company's statutory accounts for the year ended 31 October 2009 but is derived from those accounts. The financial information for the preceding period is based on the statutory accounts for the year from 1 November 2007 to 31 October 2008. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies and those for 2009 will be delivered in due course on which the auditors intend to issue an unqualified audit report.
Copies of the interim statement may be obtained from the Company Secretary, AFC Energy plc, Unit 71.4 Dunsfold Park, Stovolds Hill, Cranleigh, Surrey GU6 8TB and can be accessed from the company's website at www.afcenergy.com