AFC Energy Plc, a leading provider of ammonia-based low-carbon hydrogen production and hydrogen-to-power solutions, has released its final audited results for the financial year ended 31 October 2025. The company reported significant strategic and operational progress, with a focus on commercial deployment of its proprietary technology to create shareholder value.
**Key Highlights**
1. **Financial Performance**
* Loss after tax of £22.2 million, including an increase in non-cash expenditure of £8.4 million.
* £25.3 million in cash, cash equivalents, and short-term investments at year-end, with current cash of £20.4 million as of 31 January 2026.
* £27.5 million successful oversubscribed placing to support development ambitions.
2. **Operational Achievements**
* Launch of the LC30 fuel cell generator, offering 85% lower cost, 20% more efficiency, and a substantially smaller footprint.
* Progress on the Hy-5 ammonia cracker, capable of producing 500kg/day of hydrogen, targeting sales at £10/kg.
* Strategic partnerships with Volex Plc for manufacturing and Industrial Chemicals Group Limited for low-cost bulk hydrogen production.
* Joint Development Agreements (JDAs) with S&P 500 and Komatsu Ltd partners for decentralized ammonia-to-hydrogen crackers.
3. **Strategic Focus**
* Shift towards commercial viability without government subsidies, targeting low-cost hydrogen power at scale.
* Establishment of a Project Management Office and commercial function to streamline operations and drive growth.
* Reorganization with reduced headcount and footprint, resulting in annualized savings of £1.5 million.
4. **Post-Period Developments**
* UK Environment Agency permit approval for hydrogen production from the pilot ammonia cracker, enabling revenue generation 3-4 months ahead of schedule.
* Joint Development Agreement with Komatsu Ltd for ammonia-fueled engine platform development.
5. **Business Priorities**
* Commercialization of LC30 and Hy-5 units, with a focus on pre-orders and Fuel as a Service (FaaS) offerings.
* Expansion into North American and European markets, with a refined go-to-market strategy.
* Continued development of fuel cell generators and crackers, with a focus on productization and patent applications.
**CEOs Statement**
John Wilson, Chief Executive Officer, emphasized the companys strategic reset, focusing on commercial viability and shareholder value creation. He highlighted the successful fundraising, cost-cutting measures, and technology validation through partnerships. Wilson expressed optimism for 2026, expecting sustained revenue growth and conversion of opportunities into contractual orders.
**Chairmans Statement**
The Chairman acknowledged the significant positive changes, including the appointment of a new executive team and strategic refocus. He praised the teams resilience and determination, positioning AFC Energy for a central role in the global transition to zero-emission power.
**Financial Review**
The financial review detailed the companys commercial pivot, development costs, and cash management. It highlighted the impact of strategic decisions on financial performance, including inventory write-downs and provisions for expected credit losses.
**Outlook**
AFC Energy remains well-positioned for 2026, with building commercial momentum and a growing pipeline of opportunities. The company aims to convert these opportunities into contractual orders, driving sustained revenue growth and shareholder value creation.
In summary, AFC Energys final audited results showcase significant progress in its strategic and operational goals, with a clear focus on commercial viability, technology development, and market expansion. The companys leadership expresses confidence in its ability to capitalize on the growing hydrogen economy and deliver long-term value to shareholders.
| Metric | FY25 (£'000) | FY24 (£'000) | Change (£'000) | Change (%) |
|---|---|---|---|---|
| Revenue | 125 | 4,002 | (3,877) | (96.9%) |
| Loss After Tax | (22,195) | (17,419) | (4,776) | 27.4% |
| Cash and Cash Equivalents | 25,317 | 15,374 | 9,943 | 64.7% |
| Total Debt (Lease Liabilities) | 160 | 664 | (504) | (75.9%) |
| R&D Investment | 11,702 | 9,512 | 2,190 | 23.0% |
| Trade and Other Receivables | 1,923 | 6,737 | (4,814) | (71.5%) |
| Trade and Other Payables | 5,630 | 4,955 | 675 | 13.6% |