Thursday, 26 July 2012
Fuel cell technology is coming on leaps and bounds but price verses output is always going to be a issue.
The EFOY fuel cell generator is a German manufactured fuel cell generator that is ideal for caravans, camping and outward bound pursuits. So how much power do we need? You can work out your average power consumption roughly by working out how long your battery lasts from full charge. E.g If you have a 100Ah battery and it lasts 4 days normally then you are using 25Ah per day. 25Ah = 300Wh at 12V which means it would take 18.5 days to go through 5L of fuel. So take the Ah you use per day, multiply by 12 to get Watt hours. You will use 0.9L per 1000Wh. So you can work out how many litres per day.
Does not give off noxious gases (doesn’t burn the fuel it is a chemical reaction)
Gives off little heat
Can be used indoors
Is almost silent (noise is like a PC fan, but only when delivering the charge)
Only delivers power when your battery needs it, so it is very fuel efficient (a generator will burn fuel when not delivering any power)
Generators deliver direct power
Generators will give much more power
Generators are cheaper
Fuel is more difficult to get hold of but we can help with that!
3. It does not have an engine. There are “fuel cells” that burn methanol to turn a dynamo. These are quite clean and efficient engines but are not a fuel cell. A fuel cell works by reacting the methanol with platinum inside the stack. This chemical reaction gives off electric current, carbon monoxide (as much as a small child breathes out), heat and water. The only noise is a pump to draw the fuel onto the stack to begin the reaction, and a cooling fan which only runs when the unit is delivering power. The heat is very minor, not like an engine, but more like a computer.
RNS Number : 4245I
Ceramic Fuel Cells Limited
25 July 2012
Wednesday 25 July 2012
("CFCL" or the "")
Posting of Circular
Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of small generators that use fuel cell technology to convertinto electricity and heat for homes and other buildings, is pleased to announce that a circular containing details of the overseas offer of a maximum of EUR2.5 million has been posted today to qualifying participants outside of Australia and New Zealand and certain other territories.
The circular will shortly be made available on the Company's website at www.cfcl.com.au.
Please note that the overseas offer is not available to shareholders in Australia and New Zealand, and the circular is provided for information purposes only.
Separately, the Company has lodged a rights issue Prospectus with the ASX which is open to shareholders in Australia and New Zealand. The Prospectus is also available at www.cfcl.com.au.
For more information please contact: Ceramic Fuel Cells Limited Andrew Neilson Tel. : +61 (3) 9554 2300 Email : firstname.lastname@example.org Nomura Code Securities (AIM Nomad) Juliet Thompson Tel. : +44 (0) 207 776 Chris Golden 1200 Australian media enquiries Richard Allen Tel. : +61 (0) 3 9915 Oxygen Financial Email 6341 Public Relations : email@example.com UK media enquiries Mark Way Tel. : +44 (0) 7786 116 MW Research PR Email 991 : firstname.lastname@example.org German media enquiries Alex Seiler Tel. : +49 (0) 69 9218 Hering Schuppener Email 7454 Consulting : email@example.com
About Ceramic Fuel Cells Limited:
Ceramic Fuel Cells is a world leader in developing fuel cell technology to generateand low-emission electricity from widely available natural gas. Ceramic Fuel Cells has sold its BlueGen gas-to-electricity generator to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia, and the USA. Ceramic Fuel Cells is also developing fully integrated power and heating products with leading energy E.ON UK in the United Kingdom, GdF Suez in France and EWE in Germany.
The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).
This information is provided by RNS
The company news service from the London Stock Exchange
RNS Number : 3304I
Ceramic Fuel Cells Limited
24 July 2012
Tuesday 24 July 2012
Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of small generators that use fuel cell technology to convert natural gas into electricity and heat for homes and other buildings, today released its quarterly cashflow report for the period ended 30 June 2012.
The cashflow report is available at www.cfcl.com.au.
-- for FY12 is expected to be approximately AUD 6.7m (GBP 4.4m), an increase of 82 percent on FY11 revenue.
-- In total CFCL has received orders for 639 products (375 BlueGen units plus 264 integrated mCHP units). This is a 108 percent increase from the order book as at 30 June 2011.
-- During the June quarter we booked to revenue sales of 76 units, bringing the total sales for FY12 to 169 units.
-- In the month of June the shipped 42 units, the largest number of units shipped to date in a single month.
-- Net operating cash outflow for the June quarter was AUD 7.3m (GBP 4.8m). This is higher than previous quarters due to the timing of customer payments and increased production levels and inventory. We have reduced operating and we expect cash outflow to reduce significantly in the September quarter.
-- Cash on hand at 30 June was AUD 8.8m (GBP 5.8m). We are pursuing several options to raise capital, including a Rights Issue and Overseas Offer, announced today.
In June the Company had its highest sales month so far, delivering 42 units to customers. Payment for these sales is expected in the September quarter.
Receipts from customers for the June quarter was lower than the March quarter which included payment from E.ON UK for all of the 45 BlueGen units ordered in November 2011. The Company 15 of these units to E.ON UK in the March quarter and 30 in the June quarter. Earlier in the June quarter the Company also increased purchases of components to make BlueGen units, to be held in inventory and then delivered to customers.
These factors have led to a net operating cash outflow of AUD 7.3m (GBP 4.8m) for the June quarter, compared to AUD 4.9m (GBP 3.2m) in the March quarter.
The overall net cashflow for the June quarter after investing and financing activities was an outflow of AUD 7.8m (GBP 5.1m). This included AUD 0.4m (GBP 0.2m) for capital expenditure payments in relation to work on the large scale furnace in Germany. As reported in the shareholder update of 12 July, we expect this furnace to be operational during August 2012 without any more significant capital costs.
For the full financial year to 30 June 2012, cash receipts from customers were AUD 6m (GBP 3.9m), which was a 79 percent increase on FY11.
Revenue for FY12 is expected to be approximately AUD 6.7m (GBP 4.4m), an increase of 82 percent on FY11 revenue. (This is an increase of AUD 200k on the revenue estimate of AUD 6.5m in the shareholder update released on 12 July.) During the June quarter we booked to revenue sales of 76 units, bringing the total sales for FY12 to 169 units, compared to 61 units in FY11.
While revenue has grown strongly, it needs to increase faster to fund operating costs. We have reduced operating costs, including by reducing consultants' fees and reducing casual and contract staff, in line with our manufacturing strategy to progressively outsource assembly activities. We have also sharply reduced component purchases, and deferred or cancelled existing purchase orders.
As a result of these cut backs, we expect net cash outflow to be significantly lower in the September quarter.
As at 30 June 2012 the Company held cash of AUD 8.8m (GBP 5.8m). This includes AUD 2.2m pledged as security for bank guarantees, leaving unrestricted cash of AUD 6.6m (GBP 4.4m).
As announced in the shareholder update on 12 July, we are pursuing several options to raise additional capital to enable the Company to continue to fund its operations. These measures include a Rights Issue to Australian and New Zealand holders and an Overseas Offer to UK and European shareholders announced today. (Please refer to the separate announcement for further details.)
Fundraising for working capital and to maintain growth Rights Issue to raise up to AUD 13.8 million at six cents per share
RNS Number : 3305I
Ceramic Fuel Cells Limited
24 July 2012
Tuesday 24 July 2012
Ceramic Fuel Cells Limited
Fundraising for working capital and to maintain growth
Rights Issue to raise up to AUD 13.8 million at six cents per share
Overseas Offer to raise up to GBP 2 million at four pence per share
Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of small generators that use fuel cell technology to convert natural gas into electricity and heat for homes and other buildings, has launched a rights issue and overseas offer to existing investors to raise further working capital.
The Rights Issue is a non-renounceable 1-for-4 offer which seeks to raise up to AUD 13.8 million at an issue price of six cents per share. The Overseas Offer seeks to raise up to approximately GBP 2 million (being the pounds sterling equivalent of EUR 2.5 million) at an issue price of four pence per share. Eligible shareholders will receive either a Rights Issue prospectus or an Overseas Offer circular, as applicable, in due course. More details about the offers are set out below.
The funds raised will provide the Company with additional working capital required to continue to fund its operations and will assist the Company to increase volume production of its products.
The Company has increased its order book and revenue strongly over FY12. Revenue for FY12 is expected to be approximately AUD 6.7m (GBP 4.4m), an increase of 82 percent on FY11 revenue. In total CFCL has received orders for 639 units, a 108 percent increase from the order book as at 30 June 2011.
The Company has today also released its cashflow report for the June quarter via RNS and the Company's website, www.cfcl.com.au.
The issue of the shares under the Rights Issue and Overseas Offer will not require shareholder approval to disapply preemption rights.
The Rights Issue
-- The Rights Issue is a 1 for 4 non-renounceable rights issue offer to existing shareholders in Australia and New Zealand to subscribe for up to 229,870,625 new Ordinary Shares at six cents per share to raise a maximum of AUD 13.8 million (approximately GBP 9 million).
-- Participants in the Rights Issue will also be entitled to apply for additional Ordinary Shares to take up any shortfall created by other participants in the Rights Issue not taking up their full entitlements. The Board of CFCL also reserves the right to issue shares to third parties in the event of a shortfall.
-- The Rights Issue is not underwritten and the entitlement to participate in the Rights Issue cannot be sold.
-- A prospectus for the Rights Issue is expected to be lodged with ASIC and ASX today. The prospectus and application form for the Rights Issue will be sent to eligible shareholders in Australia and New Zealand on approximately 3 August and will also be available at www.cfcl.com.au.
-- The Record Date for participation in the Rights Issue is Wednesday 1 August 2012.
-- Eligible participants should consider the prospectus in deciding whether to acquire the applicable shares and will need to complete the application form that accompanies that document.
The Overseas Offer
-- A circular and application form relating to the Overseas Offer will be sent to existing Shareholders with registered in the United Kingdom and certain other jurisdictions into which the Company may lawfully extend the offer without the publication of a prospectus. Those shareholders entered on the register at 18:00 (London time) on Monday 23 July 2012 (the "Record Date") will be entitled to participate in the Overseas Offer.
-- Such qualifying shareholders will be able to apply for any number of new Ordinary Shares at four pence per new Ordinary Share but, if the aggregate amount raised under the Overseas Offer exceeds the pounds sterling equivalent of EUR 2.5 million, shareholders will be scaled back at the directors' discretion.
-- The circular and application form are expected to be to all qualifying shareholders on or about 25 July 2012.
-- The Overseas Offer will not be underwritten and the entitlement to participate in the Overseas Offer cannot be sold. The Overseas Offer will be subject to Admission occurring.
The purpose of the Rights Issue and the Overseas Offer is to raise further working capital to continue to fund the Company's operations and to assist the Company to increase volume production of its products.
In parallel, the Company is pursuing several other funding options to strengthen its balance sheet, allowing it to continue to expand production capacity, drive down manufacturing costs and increase sales towards achieving a cashflow positive position.
CFCL has commercialised its fuel cell technology into electricity generation products and is selling these products directly to customers and via distribution partners. Our BlueGen(R) product provides electricity and heat for hot water for homes and other buildings. Our core Gennex(TM) fuel cell module is also being integrated by our development partners into mCHP products which include a boiler for additional space heating.
Over the last year we have significantly increased sales and revenue.
We have now received cumulative orders for more than 600 units, an increase of more than 100 percent on the order book as at June 2011. We are now converting these orders into revenue and cashflow, with sales of 169 units booked to revenue in FY12. This has increased revenue from AUD 3.6 million in FY11 to approximately AUD 6.7 million in FY12, an increase of 82 percent.
Our products convert natural gas into electricity at up to 60 percent electrical efficiency, with up to an additional 25 percent of energy being recovered as heat. The Directors believe this electrical efficiency is higher than any other technology in the rapidly expanding market for small scale power and heating products.
We are currently adopting a focused strategy to get to a cashflow positive position as soon as possible. This focus is necessary and appropriate given the Company's resources. In the longer term there are many other opportunities to generate value from the Company's technology, either with the appropriate resources ourselves, or with new development partners. We believe there is a very large global market for the Company's products.
We believe the sales outlook for the coming financial year is positive, particularly in Germany. Revenue has grown strongly, however sales need to increase faster to fund operating costs. Sales have been slower than expected in part due to some State Government incentive schemes in Germany being announced but not yet implemented. In response, we are adopting more aggressive pricing to increase sales, as well as reducing operating costs.
The Board believes that raising funds through the Rights Issue and the Overseas Offer and other potential funding options is in the best interests of all shareholders and can place the Company in a strong position to capitalise on the significant global opportunities for its products. If there is limited take-up under the Rights Issue, the Company would have to secure other sources of funding to be able to continue operations as a going concern and may have to reduce operational and capital expenditure across all its facilities.
Further details of the use of funds, and the impact of the fundraising on the Company's operations and finances, will be set out in the Rights Issue prospectus and the Overseas Offer circular.
More information about the Company and our recent activities, including our announcements and financial reports, is available at the Company's website, www.cfcl.com.au.
Thursday, 12 July 2012
AFC Energy Plc Interim Results
RNS Number : 9604G
AFC Energy Plc
05 July 2012
5 July 2012
Embargoed until 07:00
AFC Energy PLC
AFC Energy PLC Interim Results
AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce its interim results for the six month period ended 30 April 2012.
- Installed two Beta systems, AFC Energy's second generation fuel cell technology, at AkzoNobel's chlor-alkali plant in Bitterfeld, Germany, and generating power.
- Beta+ system, engineered and optimised for volume production, commissioned and now installed for testing at Bitterfeld
- Technical and manufacturing teams strengthened
- Loan repaid by Waste2Tricity ("W2T") and received first fee instalment of commercialisation agreement
- Awarded grant as lead partner in prestigious EU-funded Project LaserCell - Cash outflow of GBP1.5million ( H1 2011: GBP1.7 million) - Cash balance at 30 April 2012: GBP4.49 million (30 April 2011: GBP3.65 million)
- Board strengthened by addition of Ian Williamson as chief executive and Sir John Sunderland as a non-executive director
Post Period achievements:
- Electrode life extended past three months for the first time, a major milestone for commercialisation of fuel cells for industrial applications
- Implemented Production Unit investment in preparation of increased production of fuel cells
- In June 2012 announced intention with Industrial Chemicals Limited ("ICL") to build UK's largest industrial fuel cell facility at ICL in Essex
Tim Yeo, Chairman of AFC Energy, commented:
"The year to date has been a period of very significant progress for the Company on its road to commercialisation under our new chief executive Ian Williamson. From generating industrial power using the Beta system and extending the life of our electrodes we have moved rapidly to deploy our Beta+ system for trialling on-site with AkzoNobel, our long-standing partner. The recent agreement with ICL is testament both to that evolution as well as the attractiveness of AFC Energy's commercial model. We are working with a number of high quality partners who recognise the potential that AFC Energy's fuel cell offers their businesses. We are fully focused on achieving our goal as quickly as possible and the Board continues to look to the future with increasing confidence".
For further information, please contact:
AFC Energy plc Ian Williamson, Chief Executive Ian Balchin, Deputy Chairman +44 (0)1483 276726 Luther Pendragon - Media PR Neil Thapar Leigh Marshall Alexis Gore +44 (0)20 7618 9100 MC Peat & Co. - Broker Charlie Peat +44 (0)20 7104 2334 Allenby Capital - Nominated Adviser Jeremy Porter James Reeve +44 (0)20 3328 5656
About AFC Energy
Founded in 2006, AFC Energy plc is re-engineering proven alkaline fuel cell technology to reduce the cost of electricity. Alkaline fuel cells have been used on US and Russian manned space missions for decades to provide electrical power and drinking water. By using modern materials, design tools and manufacturing processes at scale, AFC Energy is developing fuel cells that will compete with conventional technologies such as turbines for electrical power generation. Today, AFC Energy is pursuing opportunities in several sectors where hydrogen is readily available including the chlorine, clean coal and waste-to-energy industries as well as applications for distributed/back-up power. For further information, please visit our website: www.afcenergy.com.
The year to date has been a period of very significant progress for the Company on its road to commercialisation.
In late 2011 we installed two Beta Systems at our partner AkzoNobel's chlor-alkali production facility in Bitterfeld, Germany and began to produce electricity from them as part of a rigorous trial programme. In addition, we were able to obtain detailed data about the performance of our electrodes and systems to understand what design improvements would need to be incorporated into the commercial iteration of our system.
We were also delighted, therefore, when the electrodes designated for that commercial system - the Beta+ - passed through the barrier of three months continuous operation in May. The results of these laboratory trials were seamlessly incorporated into our industrial development programme and have been rapidly deployed at Bitterfeld.
We have been able to integrate all our latest developments into the Beta+ system, commission them at Dunsfold and install two units at Bitterfeld in accordance with the timescale agreed with AkzoNobel, whose continued support and encouragement we are grateful for.
This has been a period when our technical team have excelled themselves and we have further strengthened it with a small number of key recruits who have already had a positive impact.
In March, we announced that we would be investing in an additional production facility at Dunsfold, Surrey. We have employed a skilled team who will use this facility to begin to manufacture units in much higher volumes. Our assessment of appropriate automated equipment and systems for future scale-up continues to gather pace.
Waste2Tricity ("W2T") has been a partner since 2009 and in April exercised its right to exclusively represent AFC Energy in the UK until 2022 for the integration of fuel cells with hydrogen derived from the plasma gasification of municipal solid waste. W2T is involved in developing a number of projects, the largest of which has been its involvement with the 49MW Tees Valley Renewable Energy Facility, a project led Products.
The exercise of this right means AFC Energy receives a fee of GBP1 million, payable over four years of which GBP150,000 was received within the half-year.
AFC Energy is also the leader of a consortium of European companies on Project LaserCell, which is being supported under the EU's research funding scheme, FP7. This project is designed to develop innovative technologies to enhance high-volume production of alkaline fuel cells. AFC Energy's share of the non-refundable grant is EUR405,600.
AFC Energy remains in discussion with a number of other organisations in relation to future capacity, but there were no significant developments to report during the period.
Our work with AkzoNobel continues apace, as I have already mentioned. However, we have consistently stated our view that the chlor-alkali industry represents a very substantial opportunity for AFC Energy, so we were especially pleased to announce in late June, the project with ICL for a 1MW fuel cell facility at its new plant in Essex.
This is a tremendous validation of AFC Energy's technology and also confirms the potential economics of the ESCO (Energy Service Company) model which the Company proposes to follow, whereby ICL will provide its hydrogen and purchase power under a long term power purchase agreement and AFC Energy will own, operate and maintain the fuel cell system.
To date, 16 families of patents have been filed by the Company and are actively proceeding towards grant decision, which can take several years in each case. The Board is pleased to report that it has been awarded the grant of its first patent and is confident that it will secure the grant of additional patents relating to its core technology in due course.
The Company regularly reviews its technical developments to determine whether it has made patentable inventions.
Summary and Outlook
The year to date has been a period of very significant progress for the Company on its road to commercialisation. From generating industrial power using the Beta System and extending the life of our electrodes we have moved rapidly to deploy our commercial Beta+ system for trialling on-site with AkzoNobel, our long-standing partner. Under the direction of our new CEO, Ian Williamson, the technical and commercial teams at AFC Energy have done a great job. We have continued to strengthen and broaden the technical team with the highest quality personnel. The commercial team continue to open up markets and specific opportunities for the deployment of our fuel cell systems, in readiness for the availability of our large-scale product. We also took the opportunity to further strengthen our Board with the appointment of Sir John Sunderland.
We were delighted that the Centre for Process Innovation (CPI), a respected British technology innovation centre serving the chemicals, pharmaceutical, biotechnology and energy markets, once again independently verified the Company's progress and the recent agreement with ICL is testament both to that evolution as well as the attractiveness of AFC Energy's commercial model. We are fortunate to be working with a number of high quality partners who recognise the potential that AFC Energy's fuel cell offers their businesses. We are fully focused on achieving our goal as quickly as possible and the Board continues to look to the future with increasing confidence.
5 July 2012
In the period, the Company received its first income from the commercialisation agreement with Waste2Tricity ("W2T") and also recorded grant income under the European Framework Programme 7 for Project LaserCell. These revenues almost wholly offset a modest rise in R&D costs, arising from the further strengthening of the Company's technical team.
During the six months to 30 April 2012, post-tax losses were GBP1.90 million (30 April 2011: GBP1.83 million). Included within the post-tax loss is an accounting (non-cash) profit charge for options and warrants previously issued. On a like-for-like basis, excluding this charge, the post-tax loss was GBP1.50 million (30 April 2010: GBP1.46 million).
The net cash outflow from operating and investing activities in the six months to 30 April 2012 was GBP1.48 million (30 April 2011: GBP1.69 million). This reduced outflow reflects the receipt of GBP152,000 from W2T in full repayment of an outstanding loan, with interest, and a continuing focus on the effective use of the Company's cash.
The Company's cash balance at 30 April 2012 was GBP4.49 million (30 April 2011: GBP3.65 million).
The Board of AFC Energy does not intend to declare a dividend in respect of this period.
Statement of Comprehensive Income
For the six months ended 30 April 2012
Six months Six months Year to 31 to 30 April to 30 April October Note 2012 2011 2011 Re-stated GBP GBP GBP Unaudited Unaudited Audited Revenue 180,498 7,970 35,468 Cost of sales 28,500 - 27,498 Gross profit/(loss) 151,998 7,970 7,970 Other Income - - 3,996 Administrative expenses (2,296,936) (2,007,774) (4,402,158) Analysed as: Administrative expenses (1,898,844) (1,645,092) (3,711,686) Equity-settled share-based payments (398,092) (362,682) (690,472) Operating loss (2,144,938) (1,999,804) (4,390,192) Financial income 44,575 12,358 44,930 Share of profit/(loss) of - - - Associate ------------- ------------- ------------ Loss before taxation (2,100,363) (1,987,446) (4,345,262) Taxation 3 201,457 156,995 354,822 Loss for the period and total comprehensive loss attributable to owners of the Company (1,898,906) (1,830,451) (3,990,440) ------------- ------------- ------------ Basic loss per share 4 (1.04)p (1.06)p (2.26)p ------------- ------------- ------------ All amounts relate to continuing operations.
Statement of Financial Position
As at 30 April 2012
Note 30 April 30 April 31 October 2012 2011 2011 Re-stated Non-current assets GBP GBP GBP Unaudited Unaudited Audited Intangible assets 5 181,246 332,225 149,498 Property, plant and equipment 6 595,604 755,915 824,264 Investment in associate 2,500 2,500 2,500 ------------- ------------- ------------- 779,350 1,090,640 976,262 ------------- ------------- ------------- Current assets Work in progress 96,242 123,740 96,242 Trade and other receivables 7 786,485 771,299 734,684 Cash and cash equivalents 4,485,558 3,652,599 5,968,429 ------------- 5,368,285 4,547,638 6,799,355 ------------- ------------- ------------- Total assets 6,147,635 5,638,278 7,775,617 ------------- ------------- ------------- Equity and liabilities Equity attributable to shareholders Share capital 8 183,339 173,339 183,339 Share premium 18,966,789 15,044,217 18,966,789 Other reserves 2,218,577 1,492,695 1,820,485 Retained loss (15,620,011) (11,561,117) (13,721,105) ------------- ------------- ------------- Total equity 5,748,694 5,149,134 7,249,508 ------------- ------------- ------------- Current liabilities Trade and other payables 9 398,941 489,144 526,109 Total equity and liabilities 6,147,635 5,638,278 7,775,617 ------------- ------------- -------------
Cash flow statement
For the six months ended 30 April 2012
Six months Six months Year to to 30 April to 30 April 31 October 2012 2011 2011 Re-stated Cash flows from operating activities GBP GBP GBP Unaudited Unaudited Audited Loss before tax for the period (2,100,363) (1,987,446) (4,345,262) Adjustments for: Depreciation and amortisation 254,800 181,302 377,258 Loss on disposal of plant and equipment - - - Impairment of plant and equipment - - 30,000 Impairment of intangible assets - - 191,379 Equity-settled share-based payment expenses 398,092 362,682 690,472 Finance income (44,575) (12,358) (44,930) Share of (profit)/loss of Associate - - - ------------- ------------- ------------ Cash flows from operating activities before changes in working capital and provisions (1,492,046) (1,455,821) (3,101,083) Corporation tax received - - 258,076 Decrease/(increase) in trade and other receivables 149,657 (44,380) (40,516) (Decrease)/increase in trade and other payables (127,168) 112,660 149,625 ------------- ------------ Cash absorbed by operating activities (1,469,557) (1,387,542) (2,733,898) ------------- ------------- ------------ Cash flows from investing activities Purchase of plant and equipment (14,664) (294,299) (577,796) Acquisition of patents (43,225) (23,635) (43,094) Interest received 44,575 12,358 44,930 ------------- ------------- ------------ Net cash absorbed by investing activities (13,314) (305,575) (575,960) ------------- ------------- ------------ Cash flows from financing activities Proceeds from the issue of share capital - - 3,999,822 Share issue costs - - (67,250) Net cash from financing activities - - 3,932,572 ------------- ------------- ------------ Net (decrease)/increase in cash and cash equivalents (1,482,871) (1,693,117) 622,713 Cash and cash equivalents at the beginning of the period 5,968,429 5,345,716 5,345,716 ------------- ------------- ------------ Cash and cash equivalents at the end of the period 4,485,558 3,652,599 5,968,429 ------------- ------------- ------------
Statement of Changes in Equity
As at 30 April 2012
Share Share Other Retained Total capital premium reserve loss GBP GBP GBP GBP GBP Audited Audited Audited Audited Audited Balance at 1 November 2010 173,339 15,044,217 1,130,013 (9,730,665) 6,616,904 Loss after tax for the period - - - (3,990,440) (3,990,440) --------- ----------- ---------- ------------- ------------ Total recognised income and expense for the period - - - (3,990,440) (3,990,440) Issue of equity shares 10,000 3,989,822 - - 3,999,822 Share issue expenses - (67,250) - - (67,250) Equity-settled share-based payments - - 690,472 - 690,472 --------- ----------- ---------- ------------- ------------ Balance at 31 October 2011 183,339 18,966,789 1,820,485 (13,721,105) 7,249,508 --------- ----------- ---------- ------------- ------------ Share Share Other Retained Total capital premium reserve loss GBP GBP GBP GBP GBP Unaudited Unaudited Unaudited Unaudited Unaudited Balance at 1 November 2011 183,339 18,966,789 1,820,485 (13,721,105) 7,249,508 Loss after tax for the period - - - (1,898,906) (1,898,906) ---------- ----------- ---------- --------------- ------------ Total recognised income and expense for the period - - - (1,898,906) (1,898,906) Equity-settled share-based payments - - 398,092 - 398,092 ---------- ----------- ---------- --------------- ------------ Balance at 30 April 2012 183,339 18,966,789 2,218,577 (15,620,011)11 5,748,694 ---------- ----------- ---------- --------------- ------------ Share Share Other Retained Total capital premium reserve loss GBP GBP GBP GBP GBP Unaudited Unaudited Unaudited Unaudited Unaudited Balance at 1 November 2010 173,339 15,044,217 1,130,013 (9,730,665) 6,616,904 Loss after tax for the period - - - (1,830,451) (1,830,451) ---------- ----------- ---------- ------------- ------------ Total recognised income and expense for the period - - - (1,830,451) (1,830,451) Equity-settled share-based payments - - 362,682 - 362,682 ---------- ----------- ---------- ------------- ------------ Balance at 30 April 2011 173,339 15,044,217 1,492,695 (11,561,116) 5,149,134 ---------- ----------- ---------- ------------- ------------
Share capital is the amount subscribed for shares at their nominal value.
Share premium represents the excess of the amount subscribed for share capital over the nominal value of these shares net of share issue expenses.
Other reserve represents the credit to equity in respect of equity-settled share-based payments.
Retained loss represents the cumulative loss of the Company attributable to equity shareholders.
Notes forming part of the interim financial statements 1 Significant accounting policies Details of the significant accounting policies are set out below: a Basis of preparation The interim results for the six months ended 30 April 2012 are unaudited. The interim results have been drawn up using the accounting policies and presentation consistent with those disclosed and applied in the annual report and accounts for the year ended 31 October 2011. The comparative information contained in the report does not constitute the accounts within the meaning of S240 of the Companies Act 1985 and section 435 of the Companies Act 2006. The accounting policies used in the interim statement are consistent with those used in the financial statements for the year ended 31 October 2011 and are in accordance with International Financial Reporting Standards. The comparative period from 1 November 2010 to 30 April 2011 has been restated to reverse the previous equity accounting treatment in W2T. This has increased the prior year loss after tax by GBP4,580. b Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and other sales taxes or duty. Revenue arising from the provision of services is recognised when and to the extent that the Company obtains the right to consideration in exchange for the performance of its contractual obligations. c Development costs Development expenditure does not meet the strict criteria for capitalization under IAS38 and has been recognised as an expense. d Intangible assets Expenditure on research activities is recognised in the income statement as an expense as incurred. Other intangible assets that are acquired by the Company are stated at cost less accumulated amortisation and impairment losses. Amortisation of intangible assets is charged using the straight-line method to administrative expenses over the following period: Patents 20 years e Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment charges. Depreciation is charged to the income statement within cost of sales and administrative expenses on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The estimated useful lives are as follows: * Leasehold improvements 1 to 3 years * Fixtures, fittings and equipment 1 to 3 years * Vehicles 3 to 4 years f Leases Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant on the remaining balance of the liability. Finance charges are reflected in profit or loss. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term. Operating lease rentals are charged to income in equal annual amounts over the lease term. g Taxation Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable or recoverable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date together with any adjustment to tax payable in respect of previous years. Deferred tax assets are not recognised due to the uncertainty of the period over which they will be recovered. h Equity-settled share-based payments Certain employees (including Directors and senior executives) of the Company receive remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments ('equity-settled transactions'). The fair value is determined by an external valuer using an appropriate pricing model. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('the vesting date'). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company's best estimate of the number of equity instruments that will ultimately vest. The profit or loss charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance and/or service conditions are satisfied. Where the terms of an equity-settled award are modified, the minimum expense recognised is the expense as if the terms had not been modified. An additional expense is recognised for any modification, which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph. i Financial Assets All of the Company's financial assets are loans and receivables. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets at fair value and comprise trade and other receivables and cash and cash equivalents. 2 Segmental Analysis The Company operated in the period in one operating segment, the development of fuel cells, and in two principal geographic areas, the United Kingdom and Europe. Revenue was derived from a customer in the UK and from European grant. Six months Six months Year to 3 Taxation to 30 April to 30 April 31 October 2012 2011 2011 Re-stated GBP GBP GBP Recognised in the income statement: Unaudited Unaudited Audited Research and development tax credit - current year 201,457 156,995 354,822 Research and development credit - prior year adjustment - - - ------------- ------------- ------------ Total tax credit 201,457 156,995 354,822 Reconciliation of effective tax rates Loss before tax (2,100,363) (1,987,446) (4,345,262) ------------- ------------- ------------ Domestic rate of corporation tax 24.8% 27.7% 26.7% Tax using domestic rates of corporation tax 521,590 550,523 1,160,185 Effect of: Expenses not deductible for tax purposes 172,133 102,793 186,110 Research and development allowance (200,113) (133,126) (348,630) Research and development tax credit 201,457 156,995 354,822 Depreciation in excess of capital allowances 14,271 1,421 72,090 Losses surrendered for research and development 400,227 310,626 730,217 Other adjustments - - - Unutilised losses carried forward 135,072 267,547 520,398 ------------- ------------- ------------ Total tax credit for the period 201,457 156,995 354,822 ------------- ------------- ------------ 4 Loss per share Six months Six months Year to to 30 April to 30 April 31 October 2012 2011 2011 Re-stated Unaudited Unaudited Audited The calculation of the basic loss per share is based on the net loss after tax attributable to the ordinary shareholders of GBP1,898,906 (30 April 2011: loss of GBP1,830,451; 31 October 2011: loss of GBP3,990,440) and a weighted average number of shares in issue for the period 1 November 2011 to 30 April 2012 of 183,338,672 (six months to 30 April 2011: 173,339,207; year to 31 October 2011: 176,559,336). Loss per share (1.04)p (1.06)p (2.26)p ------------- ------------- ------------ Diluted loss per share The diluted loss per share is the same as the basic loss per share, as the loss for the six months ended 30 April 2012 has an anti-dilutive effect. 5 Intangible assets Patents GBP Unaudited Cost At 31 October 2010 397,711 Additions 23,635 ---------- At 30 April 2011 421,346 Additions 19,460 ---------- At 31 October 2011 440,806 Additions 43,225 ---------- At 30 April 2012 484,031 Amortisation At 31 October 2010 78,860 Charge for the period 10,261 ---------- At 30 April 2011 89,121 Charge for the period 10,808 ---------- Impairment 191,379 At 31 October 2011 291,308 Charge for the period 11,476 ---------- At 30 April 2012 302,784 Net book value At 30 April 2012 181,246 ---------- At 30 April 2011 332,225 ---------- At 31 October 2011 149,498 ---------- 6 Property, plant and equipment Leasehold Fixtures, Total improvements fittings and equipment GBP GBP GBP Unaudited Unaudited Unaudited Cost At 31 October 2010 184,009 1,254,278 1,438,286 Additions 26,025 268,274 294,299 At 30 April 2011 210,033 1,522,552 1,732,585 Additions 6,164 277,334 283,498 Re-classification - - - Disposals - - - -------------- --------------- ---------- At 31 October 2011 216,197 1,799,886 2,016,083 Additions - 14,664 14,664 At 30 April 2012 216,197 1,814,552 2,030,749 Depreciation At 31 October 2010 157,070 648,560 805,630 Charge for the period 10,542 160,499 171,041 At 30 April 2011 167,612 809,059 976,672 Charge for the period 10,725 174,422 185,147 Impairment - 30,000 30,000 At 31 October 2011 178,337 1,013,481 1,191,819 Charge for the period 9,574 233,750 243,324 At 30 April 2012 187,911 1,247,233 1,435,144 -------------- --------------- ---------- Net book value At 30 April 2012 28,286 567,318 595,604 -------------- --------------- ---------- At 30 April 2011 42,422 713,493 755,915 -------------- --------------- ---------- At 31 October 2011 37,860 786,404 824,264 -------------- --------------- ---------- 7 Trade and other receivables 30 April 30 April 31 October 2012 2011 2011 GBP GBP GBP Unaudited Unaudited Audited Trade receivables - 400 - Corporation Tax receivable 556,279 415,071 354,822 Other receivables 93,342 257,266 306,121 Prepayments 136,864 98,562 73,741 ---------- ---------- ----------- 786,485 771,299 734,684 8 Share capital 30 April 30 April 31 October 2012 2011 2011 GBP GBP GBP Unaudited Unaudited Audited Issued 183,338,762 Ordinary shares of 0.1p each 183,339 173,339 183,339 ---------- ---------- ----------- 9 Trade and other payables 30 April 30 April 31 October 2012 2011 2011 GBP GBP GBP Unaudited Unaudited Audited Trade payables 154,701 221,265 322,241 Deferred income 96,242 123,740 96,242 Other payables 115,074 63,562 36,075 Accruals 32,924 80,577 71,550 398,941 489,144 526,109 ---------- ---------- -----------
Post Balance Sheet Events
On 1 May 2012, the Company received a further GBP35,995 as the result of the exercise of 715,000 options and 400,000 warrants at a price of 3.13 pence per share. The new shares were admitted for trading on 1 May 2012.
During the six months ended 30 April 2012:
- GBP23,496 (plus VAT) was invoiced by Cornerstone Capital Ltd (a company registered in England & Wales) for services of Simon Hunt as a Director of AFC Energy plc (April 2011: GBP12,623). Mr Hunt is also a Director and shareholder of Cornerstone Capital Ltd. At 30 April 2012, the sum owing to Cornerstone Capital Ltd was nil (April 2011: GBP nil).
- GBP12,500 (plus VAT) was invoiced by Richards & Appleby Ltd (a company registered in England & Wales) for services of Mitchell Field as a Director of AFC Energy plc (April 2011: GBP2,083). Mr Field is also a Director and shareholder of Richards & Appleby Ltd. At 30 April 2012, the sum owing to Richards & Appleby Ltd was GBP2,083 (April 2011: GBP2.083).
- GBP40,379 (plus VAT) was invoiced by Hudson Raine Ltd (a company registered in England & Wales) for services including David Marson as a Director of AFC Energy plc (April 2011: GBP46,826). Mr Marson is also a Director and shareholder of Hudson Raine Ltd. At 30 April 2012, the sum owing to Hudson Raine Ltd was GBP7,742 (April 2011: GBP14,263).
- GBP62,000 (plus VAT) was invoiced by Cranwood Management Ltd (a company registered in England & Wales) for consultancy services (April 2011: GBP89,000). The company is owned by Adam White. Members of Mr White's family are nominated beneficiaries of the Age of Reason Foundation, which is a major shareholder in the Company. At 30 April 2012, the sum owing to Cranwood Ltd was nil (April 2011: GBP19,000)
- GBP13,400 (ex VAT) was invoiced by Locana Corporation Ltd (a company registered in England & Wales) for consultancy services (April 2011: GBP nil). Mr Tim Yeo is a Director and shareholder of Locana Corporation Ltd. At 30 April 2012, the sum owing to Locana Corporation Ltd was nil (April 2011: GBPnil).
- GBP152,500 was received from Waste2Tricity (a company registered in England & Wales)in full repayment, with associated interest, of a loan made to Waste2Tricity Ltd ("W2T") in 2009. A further GBP150,000 was received as the first instalment of a non-refundable appointment fee of GBP1 million payable under the terms of a Commercialisation Agreement with W2T announced on 11 April 2012. The Company owns a 25% share of Waste2Tricity. The Shareholders in Waste2Tricity include Adam White, Eturab Corporation and Ian Balchin. Members of the White family are nominated beneficiaries of the Age of Reason Foundation. Both the Age of Reason Foundation and Eturab Corporation are substantial Shareholders in AFC Energy. Ian Balchin's shareholding in Waste2Tricity was granted in lieu of payment for work done for Waste2Tricity before he was employed by AFC Energy.
Publication of Non-Statutory Accounts
The financial information contained in this interim statement does not constitute accounts as defined by the Companies Act 2006. The financial information for the preceding period is based on the statutory accounts for the year ended 31 October 2011. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the of Companies.
Copies of the interim statement may be obtained from the Company Secretary, AFC Energy PLC, Unit 71.4 Dunsfold Park, Cranleigh, Surrey GU6 8TB, and can be accessed from the company's website at www.afcenergy.com.
This information is provided by RNS