AFC ENERGY PLC

Earnings Release • Jul 8, 2013

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RNS Number : 7612I

AFC Energy Plc

08 July 2013

8 July 2013

Embargoed until 07:00

AFC Energy PLC

("AFC Energy" or the "Company")

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 2013.

Highlights for the half year to end April 2013

·      Electrode life extended past nine months for the first time

·      €6.1 million EU grant earmarked for the Power Up project with a Beta+ test system built and delivered for initial hydrogen purity trials 

·      Award of a further €1.96 million EU grant in connection with the Alkammonia project to develop ammonia-fed fuel cell systems

·      Acquisition of Diverse Energy Ltd's ("Diverse Energy") assets and intellectual property

·      Opening of office in South Korea in partnership with Intralink Ltd. and appointment of Robert Kelly as International Business Development Manager

·      Initiation of research relationship with Lancaster University

·      Initiation of developmental engineering relationship with Foster Wheeler

·      Cash balance at 30 April 2013: £8.90 million (30 April 2012: £4.49 million)

Tim Yeo, Chairman of AFC Energy, commented: "The Company has made further strong technical and commercial progress over the period. The investment from Ervington Investments in October 2012 has provided the financial resources to enable the Company to push forward with increased vigour on a number of fronts ranging from in-house production to international sales. As expected our costs are slightly up on last year, due to the increased scale of AFC Energy's development programme. We continue to maintain a tight rein on expenditure while developing important supplier and regional partnerships to underpin successful commercialisation of our fuel cells.  The Company is in a sound financial position and we look forward to reporting further material progress in the balance of the year."

For further information, please contact:

AFC Energy plc Ian Williamson, Chief Executive Ian Balchin, Deputy Chairman	+44 (0)1483 276726
Luther Pendragon - Public Relations Adviser Neil Thapar Alexis Gore Dan Wilson Craw	+44 (0)20 7618 9100
Peat & Co. - Corporate Broker Charlie Peat Allenby Capital Limited - Nominated Adviser Jeremy Porter James Reeve	+44 (0)20 7104 2334 +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 platinum free, advanced 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 first half of the year has again seen positive progress in a number of important areas.

The extension of electrode life in the laboratory past the nine month mark is very pleasing as it increasingly demonstrates that we have the ability to commercialise our intellectual property. There has also been progress in enhancing the power density of our electrodes, up over 60% year-on-year, significantly improving the effectiveness of the fuel cell. These improvements have been incorporated into the latest cartridge deployments to the Beta+ system trials and we continue to push for more power while maintaining longevity - the two key elements to a successful, commercialised product.

The low-cost production facility at Dunsfold used to manufacture the cells has been a great success over the past 12 months with a steady increase in volumes, aligned to our test programmes and married with consistency of product. Our eventual target is to have in-line production for much higher volumes and we will be looking further to automate the production process as the year progresses, which will enable our talented technical team to focus more of their time on enhancing the fuel cell technology rather than production.

Field testing of our systems continues at AkzoNobel ("Akzo"), where AFC Energy has two Beta+ test systems installed. This period has seen the Bitterfeld site undergoing some necessary refurbishment, reducing our ability to test.  However, despite these challenges progress has been maintained with the system providing invaluable data and information. With refurbishment of the site now complete, we are continuing our test programme with Akzo.

As stated previously, South Korea represents an attractive market, given the beneficial incentives available, which enhance and encourage the development of alternative energy systems. As announced in February, we have partnered with Intralink Ltd, an international consultant with widespread knowledge of Korea and the region and high level local business contacts, to pursue the opportunity. In addition, the recruitment of Robert Kelly to spearhead our international development, beginning in South Korea, is a coup for the Company given his extensive international experience and knowledge of the industry. While the longer term goal is to develop fuel cells which are economic without the need for any support, in the shorter term, the lucrative potential market in South Korea demands our attention.

The earmark of two grants in the period underscores the positive attitude towards fuel cell technology by governments - at least at EU level. Firstly, as part of its Power Up project, AFC Energy has been backed by a €6.1 million EU grant, providing financial support over a four year period, to build the world's largest alkaline fuel cell system in the UK.  The fuel cell facility will be installed in stages and eventually have enough electrical output to power 500 homes. A further €1.96 million EU grant is helping with the Alkammonia project. Ammonia is a rich source of readily available hydrogen and the project is centred on developing ammonia-fed alkaline fuel cells. This tied into AFC Energy's acquisition of the assets and intellectual property of Diverse Energy, a company with a proven track record in delivering ammonia fed fuel cell systems into markets such as the mobile phone mast power market. In addition one of the advantages of our recently announced link-up with Lancaster University is it allows us to better understand how alkaline fuel cells work with differing feedstocks, such as ammonia. The relationship with Lancaster University also helps us mitigate the need for additional test space at Dunsfold, although the Company continues to seek a longer term flexible solution to our facility requirements.

Finally, in April we announced a partnership with the global contractor Foster Wheeler to peer review the designs and concepts for our large scale 250kW systems. The initial reviews have already been undertaken and have yielded very positive results with no significant issues identified and the engineering design concepts endorsed. Eventually, following the experience of the first systems, both sides hope this will develop into a preferred partner relationship where Foster Wheeler will design and install full-scale fuel systems, based on AFC Energy technology, in a wide range of industrial and utility-scale applications.

Intellectual property

The Company's patent estate continues to grow. As we have been developing our larger system we have been able to identify a number of novel concepts which warrant protection. Our patents around the cartridge itself also continue to increase and become more specific as we now focus on other parameters which affect the longer term performance of our fuel cells. The Company currently has 23 families of patents applied for. This represents a 45% growth year-on-year.

Management and Board

Following the investment of £8.6 million from Ervington Investments, we were pleased to welcome Eugene Schvidler and Eugene Tenenbaum to the Board in January 2013.

Outlook

The Company has made further strong technical and commercial progress over the period. The investment from Ervington Investments in October 2012 has provided the financial resources to enable the Company to push forward with increased vigour on a number of fronts ranging from in-house production to international sales. As expected our costs are slightly up on last year, due to the increased scale of AFC Energy's development programme. We continue to maintain a tight rein on expenditure while developing important supplier and regional partnerships to underpin successful commercialisation of our fuel cells.  The Company is in a sound financial position and we look forward to reporting further material progress in the balance of the year.

Tim Yeo

Chairman

8 July 2013

Financial Review

During the six months to 30 April 2013, post-tax losses were £2.34 million (30 April 2012: £1.90 million). In the period, the Company continued to recognise income from its commercialisation agreement with Waste2Tricity ("W2T") and grant income under the European Framework Programme 7 Laser-cell project.

Operating costs rose by £0.46 million mainly as a consequence of the further strengthening of the Company's technical and manufacturing teams, commissioning of the manufacturing facility and increased costs associated with developing the Korean market.

The net cash outflow in the six months to 30 April 2013 was £2.03 million (30 April 2012: £1.48 million) reflecting the increase in operating costs. Increased capital expenditure was offset by receipts from the exercise of options and warrants.

The cash balance at 30 April 2013 was £8.90 million (30 April 2012: £4.49 million).

The Board of AFC Energy does not intend to declare a dividend in respect of this period.

Statement of Comprehensive Income

For the period ended 30 April 2013

		Six months to 30 April	Six months to 30 April	##### Year to 31 October
	Note	2013	2012	2012
		£	£	£
		Unaudited	Unaudited	Audited
Revenue		101,374	180,498	357,367
Cost of sales		38,362	28,500	27,498
Gross profit/(loss)		63,012	151,998	329,869
Other Income		-	-	4,071
Administrative expenses		(2,680,266)	(2,296,936)	(4,569,182)
Analysed as:
Administrative expenses		(2,295,393)	(1,898,844)	(3,980,578)
Equity-settled share-based payments		(384,783)	(398,092)	(588,604)
Operating loss		(2,617,254)	(2,144,938)	(4,235,242)
Financial income		60,964	44,575	79,887
Share of profit/(loss) of Associate		-	-	-
Loss before taxation		(2,556,290)	(2,100,363)	(4,155,355)
Taxation	3	214,252	201,457	361,030
Loss for the financial year and total comprehensive loss attributable to owners of the Company		(2,342,038)	(1,898,906)	(3,794,325)
Basic loss per share	4	(1.08)p	(1.04)p	(2.05)p
All amounts relate to continuing operations.				,

Statement of Financial Position

As at 30 April 2013

		Note	Six months to 30 April	Six months to 30 April	##### Year to 31 October
	Assets		2013	2012	2012
	Non-current assets		£	£	£
			Unaudited	Unaudited	Audited
	Intangible assets	5	249,801	181,246	207,512
	Property, plant and equipment	6	713,984	595,604	820,345
	Investment in associate		2,500	2,500	2,500
			966,285	779,350	1,030,357
	Current assets
	Inventory and work in progress		117,224	96,242	127,019
	Trade and other receivables	7	993,218	786,485	677,448
	Cash and cash equivalents		8,899,139	4,485,558	10,935,449
			10,009,581	5,368,285	11,739,916
	Total assets		10,975,866	6,147,635	12,770,273
	Capital and reserves attributable to owners of the Company
	Equity attributable to shareholders
	Share capital	8	221,449	183,339	217,299
	Share premium		27,360,501	18,966,789	27,221,606
	Other reserves		2,793,962	2,218,577	2,409,089
	Retained deficit		(19,862,468)	(15,620,011)	(17,515,430)
	Total equity		10,513,444	5,748,694	12,332,564
	Current liabilities
	Trade and other payables	9	462,422	398,941	437,709
	Total equity and liabilities		10,975,866	6,147,635	12,770,273

Cash flow statement

For the period ended 30 April 2013

	Six months to 30 April	Six months to 30 April	##### Year to 31 October
	2013	2012	2012
Cash flows from operating activities	£	£	£
	Unaudited	Unaudited	Audited
Loss before tax for the period	(2,556,290)	(2,100,363)	(4,155,355)
Adjustments for:
Depreciation and amortisation	243,193	254,800	456,832
Impairment of plant and equipment			-
Impairment of intangible assets			1,611
Equity-settled share-based payment expenses	384,873	398,092	588,604
Finance income	(60,964)	(44,575)	(79,887)
## Cash flows from operating activities before changes in working capital and provisions	(1,989,188)	(1,492,046)	(3,188,193)
Corporation tax received			354,822
Decrease/(increase) in trade and other receivables	(91,724)	149,657	32,667
(Decrease)/increase in trade and other payables	24,713	(127,168)	(88,400)
Cash absorbed by operating activities	(2,056,199)	(1,469,557)	(2,889,104)
Cash flows from investing activities
Purchase of plant and equipment	(123,096)	(14,664)	(438,583)
Acquisition of patents	(56,025)	(43,225)	(73,956)
Interest received	60,964	44,575	79,887
Net cash absorbed by investing activities	(118,157)	(13,314)	(432,652)
Cash flows from financing activities
Proceeds from the issue of share capital	138,045	-	8,712,937
Cost of issue of share capital	-	-	(424,160)
Net cash from financing activities	138,045	-	8,288,777
Net (decrease)/increase in cash and cash equivalents	(2,036,311)	(1,482,871)	4,967,020
Cash and cash equivalents at start of the period	10,935,449	5,968,429	5,968,429
Cash and cash equivalents at the end of the period	8,899,138	4,485,558	10,935,449

Statement of Changes in Equity

As at 30 April 2013

	Share capital	Share premium	Other reserve	Retained loss	Total
	£	£	£	£	£
	Audited	Audited	Audited	Audited	Audited
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	-	-	-	(3,794,325)	(3,794,325)
Total recognised income and expense for the period	-	-	-	(3,794,325)	(3,794,325)
Issue of equity shares	33,960	8,678,977	-	-	8,712,937
Share issue expenses	-	(424,160)	-	-	(424,160)
Equity-settled share-based payments	-	-	588,604	-	588,604
Balance at 31 October 2012	217,299	27,221,606	2,409,089	(17,515,430)	12,332,564

		Share capital	Share premium	Other reserve	Retained loss	Total
		£	£	£	£	£
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited
Balance at 1 November 2012		217,299	27,221,606	2,409,089	(17,515,430)	12,332,564
Loss after tax for the period		-	-	-	(2,342,038)	(2,342,038)
Total recognised income and expense for the period		-	-	-	(2,342,038)	(2,342,038)
	Issue of equity shares	4,150	138,895	-	-	143,045
	Share issue expenses	-	(5,000)	-	-	(5,000)
	Equity-settled share-based payments	-	-	384,873	-	384,873
	Balance at 30 April 2013	221,449	27,355,501	2,793,962	(19,857,468)	10,513,444

	Share capital	Share premium	Other reserve	Retained loss	Total
	£	£	£	£	£
	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)	5,748,694

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
b	The interim results for the six months ended 30 April 2013 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 2012. 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 2012 and are in accordance with International Financial Reporting Standards.  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. Licence income is recognised in accordance with the substance of the agreement. When a licence has the right to use certain technology for a period of time, this is usually recognised on a straight-line basis over the life of the agreement in accordance with IAS 18. Revenue based grants are recognised in the profit and loss account in the same period as the expenditure to which the grant relates.
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 the Income Statement on a straight-line basis 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.

3	Taxation	Six months to 30 April	Six months to 30 April	##### Year to 31 October
		2013	2012	2012
		£	£	£
	Recognised in the income statement:	Unaudited	Unaudited	Audited
	Research and development tax credit - current year	214,252	201,457	361,030
	Research and development credit - prior year adjustment	-	-	-
	Total tax credit	214,252	201,457	361,030
	Reconciliation of effective tax rates
	Loss before tax	(2,566,290)	(2,100,363)	(4,155,355)
	Domestic rate of corporation tax	23.8%	24.8%	24.8%
	Tax using domestic rates of corporation tax	608,397	549,254	1,030,527
	Effect of:
	Expenses not deductible for tax purposes	92,485	172,133	147,504
	Research and development allowance	(463,563)	(200,113)	(411,404)
	Research and development tax credit	214,252	201,457	361,030
	Depreciation in excess of capital allowances	16,898	14,271	39,228
	Losses surrendered for research and development	463,562	400,227	771,597
	Other adjustments	-	-	-
	Unutilised losses carried forward	498,975	135,072	483,604
	Total tax credit for the period	214,252	201,457	361,030

4	Loss per share	Six months to 30 April	##### Six months to 30 April	##### Year to 31 October
		2013	2012	2012
		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 £2,342,038 (30 April 2012: loss of £1,898,906; 31 October 2012: loss of £3,794,325) and a weighted average number of shares in issue for the period 1 November 2012 to 30 April 2013 of 217,861,421 (six months to 30 April 2012: 183,338,672; year to 31 October 2012: 185,298,945).
	Loss per share	(1.08)p	(1.04)p	(2.05)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 2013 has an anti-dilutive effect.

5	Intangible assets		##### Patents
			##### £
			Unaudited
	Cost
	At 31 October 2011		440,806
	Additions		43,225
	At 30 April 2012		484,031
	Additions		30,731
	At 31 October 2012		514,762
	Additions		56,025
	At 30 April 2013		570,787
	Amortisation
	At 31 October 2011		291,308
	Charge for the period		11,476
	At 30 April 2012		302,784
	Charge for the period		2,855
	Impairment		1,611
	At 31 October 2012		307,250
	Charge for the period		13,736
	At 30 April 2013		320,987
	Net book value
	At 30 April 2013		249,801
	At 30 April 2012		181,246
	At 31 October 2012		207,512

6	Property, plant and equipment	Leasehold improvements	Fixtures, fittings and equipment	##### Total
		##### £	##### £	##### £
		Unaudited	Unaudited	Unaudited
	Cost
	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
	Additions	-	423,917	423,917
	Re-classification	-	-	-
	Disposals	-	-	-
	At 31 October 2012	216,197	2,238,469	2,454,666
	Additions	5,315	117,781	123,096
	At 30 April 2013	221,512	2,356,250	2,577,762
	Depreciation
	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
	Charge for the period	8,667	190,510	199,177
	At 31 October 2012	196,578	1,437,743	1,634,321
	Charge for the period	9,029	220,427	229,456
	At 30 April 2013	205,607	1,658,170	11,863,777
	Net book value
	At 30 April 2013	15,905	698,080	713,984
	At 30 April 2012	28,286	567,318	595,604
	At 31 October 2012	19,619	800,726	820,345

7	Trade and other receivables	30 April	##### 30 April	##### 31 October
		2013	2012	2012
		£	£	£
		Unaudited	Unaudited	Audited
	Trade receivables	9,600	-	-
	Corporation Tax receivable	575,281	556,279	361,030
	Other receivables	408,337	230,206	316,418
		993,218	786,485	677,448

8	Share capital	30 April	##### 30 April	##### 31 October
		2013	2012	2012
		£	£	£
		Unaudited	Unaudited	Audited
	Issued
	221,448,544 Ordinary shares of 0.1p each	221,449	183,339	217,299

9	Trade and other payables	30 April	##### 30 April	##### 31 October
		2013	2011	2012
		£	£	£
		Unaudited	Unaudited	Audited
	Trade payables	176,856	154,701	185,365
	Deferred income	34,048	96,242	68,744
	Other payables	182,736	115,074	75,223
	Accruals	68,782	32,924	108,377
		462,422	398,941	437,709

Related-party Transactions

During the six months ended 30 April 2013:

-       £12,500 (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 2012: £12,500). Mr Field is also a Director and shareholder of Richards & Appleby Ltd. At 30 April 2013, the sum owing to Richards & Appleby Ltd was £2,083 (April 2012: £2.083).

-     £33,636 (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 2012: £40,379). Mr Marson is also a Director and shareholder of Hudson Raine Ltd. At 30 April 2013, the sum owing to Hudson Raine Ltd was £27,582 (April 2012: £7,742).

-     £72,000 (plus VAT) was invoiced by Cranwood Management Ltd (a company registered in England & Wales) for consultancy services (April 2012:£ 62,000). 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 2013, the sum owing to Cranwood Ltd was nil (April 2012: nil)

-     £16,750 (ex VAT) was invoiced by Locana Corporation Ltd (a company registered in England & Wales) for consultancy services (April 2012: £ 13,400). Mr Tim Yeo is a Director and shareholder of Locana Corporation Ltd. At 30 April 2013, the sum owing to Locana Corporation Ltd was £2,792 (April 2011: £nil).

-     £6,222 was invoiced by Eugene Tenenbaum for services as a Director of AFC Energy plc (April 2012: nil). At 30 April 2013, the sum owing to Eugene Tenenbaum was £1,667 (April 2012: nil).

-     £6,222 was invoiced by Eugene Shvidler for services as a Director of AFC Energy plc (April 2012: nil). At 30 April 2013, the sum owing to Eugene Shvidler was £1,667 (April 2012: nil).

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 2012. 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

The company news service from the London Stock Exchange

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