TIDMAFC
RNS Number : 9604G
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.
Key Highlights:
- 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
commercial 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.
Chairman's Statement
Overview
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.
Our Partners
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
by Air 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.
Intellectual Property
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.
Tim Yeo
Chairman
5 July 2012
FINANCIAL REVIEW
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 rate of interest 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.
Related-party Transactions
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
Registrar 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
