http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

John Lewis and similar small volume potential customers.

I have been wondering why AFC had not updated us on interest shown by John Lewis which had been first mentioned a couple of years ago in a RNS and has not been mentioned since.

This is a reply to an e-mail sent to AFC, as usual with AFC they do reply promptly as best they can to investor questions.

'We have had a number of discussions with JLP in my time at AFC. The opportunity to provide power to these solutions is dictated more by the availability and cost of the hydrogen molecule than it is by the fuel cell. Costs for small sized steam methane reformers (SMR) have not declined in line with those of the available fuel cells and this is delaying the introduction of distributed energy systems to such markets as was contemplated by JLP.

AFC is looking for low cost options for such SMRs and we have a number of discussions underway with potential suppliers, however, to date we have not found units which we can place in this market and make commercial sense. In addition, the pull through for our technology from the delivery of systems into this market will be very minor, so it seems sensible to focus our limited resources on markets which can help deliver significant volume and therefore allow us to move down our cost curve. Having said all that, we remain in periodic contact with JLP and will discuss options with them should the situation change'.

Having explained the position, the update makes perfect sense as to why there has been no contracts with John Lewis and other potential small volume customers.

Greek

Thanks for the update Greekman - another bottom drawer jobbie!

Hi Skinny,

Yes, it looks like it.
AFC are still my main holding and I have very high hopes for them in the next 12 to 18 months although as said can't afford to hold forever if the sp continues its downward trend.

At 0930 hrs today I put a few more into my ISA via 'bed and ISA', the buy going in at 24.4p when the mid price was 24.75p .
The buy shows up as a sell, I wonder how many of the buy trades today and over last few days at well below mid price have shown as sells

I appreciate that buys are often shown as sells and vice versa when the trade is near to the mid price, but strange that a deal well below the mid price shows wrongly .

So 30 deals today and all recorded as sells, if anyone believes that then they should completely avoid share dealing.

Strange yet again, after all those sell trades yesterday the sp opens at .25p up and stays there after 8 sell trades today. Someone has suggested that a buyer is building a stake and I agree that the signs are there (now watch the sp fall to prove me wrong).

As a Yorkshireman our saying of 'the is now't so queer as folk' springs to mind, perhaps 'there is now't so queer as the AIM' is more apt here.

Good job I don't work for the BBC as I would be out on my ear after using language like that.

Yes - 'Yorkshireman' is a bit strong!

Lol

Skinny,

This is Not A Ramp,

Overheard by my friend's uncle's cousin's wife's sister, twice removed that, Roman Abramovich being disappointed that Chelsea FC failed to win the Premier League Trophy is selling the club and intends to buy AFC lock stock and fuel cells.

You too eh!

Petition to stop short selling.

Well worth a read.

http://epetitions.direct.gov.uk/petitions/62851

Directorate Change

AFC Energy, the industrial fuel cell power company, announces that Jane Dumeresque, Finance Director and Company Secretary, is leaving the Company by mutual agreement to focus on her other business interests. Jane will continue to support the Company during its search for a replacement.

Tim Yeo, Chairman of AFC Energy, said: "I would like to thank Jane for her contribution to AFC Energy's progress and wish her well for the future."

Jane Dumeresque said: "I have enjoyed my time at AFC Energy. The Company continues to make great strides and I wish them every success."

Nice bit of publicity posted on another site by Sieboldi,

http://www.theengineer.co.uk/channels/production-engineering/in-depth/stacking-up-making-hydrogen-fuel-cell-manufacturing-viable/1018749.article

Today's RNS.

Can only be good for AFC, plus yesterday there was an article in the Sunday Telegraph stating that our beloved rulers in the EU have stated that re cycling will have to increase by 50% by 2030.

As the UK is still below the present set target it is thought that most of this increase will need to be made by turning 'waste to energy', not just in the UK but world wide.

With today's World Hydrogen Energy Conference in Gwangju, Korea this is a great opportunity to sell AFC's Fuel Cell to a world that must be looking hard at, not just how they can produce more energy cheaper, but how to reduce waste at the same time.

I also feel that IW would not be pushing so hard if they were not closer to be able to full fill some orders earlier than we perhaps think, especially will this bit from the blog ' Over last couple weeks we've seen the KORE system begin to take shape with the new base plate and initial components now in place. On the production side, the extruder is up and running and being validated, which is a real game changer in terms of production ability for the company - it will now be possible to achieve in 5-10 minutes, what would have previously taken us a week to do manually'

So say we take the 10 mins as minimum and the extruder is running for only 8 hours per day, that means in an 8 hour day production is equal to 48 weeks under hand assembling days.

Everything is starting to come together nicelly, AFC is looking very good indeed.

Everything except the sp that is! :o)

Hi Kimoldfield,

Yes, it appears that no one at the moment is accepting anything until contracts start to flow, and after so long I don't blame them.

They need some new players :-)

Ask Roy Hodgson, he knows all about new players! :o)

Interim Results

Highlights

· Signed up Air Products as strategic partner for Power-Up, the 0.5MW project in Germany
· £1.2 million, non-refundable licence agreed with Waste2Tricity International (Thailand) Ltd
· First order for a fuel cell received from Powerhouse Energy Group plc (PHE)
· MOU signed to accelerate fuel cell uptake in Thailand
· MOU signed with Allied New Technologies, Florida
· Hazard and Operability Study (HAZOP) for KORE system completed by Foster Wheeler
· KORE system components on order
· Cash balance at 30 April 2014: £4.96 million (30 April 2013: £8.90 million)


Post period achievements

· Commenced assembly of the first KORE system
· Permitting required for site integration at Air Products, Stade has begun

If all plans come to fruition then the next 6 months is looking very good indeed.

I won't be one of those saying the sp will be X amount by Xmas, but surely if all plans do come together the sp must in six months be well on the way to being plus 50p and I hope that is a very underestimated figure.

What I would like to see is a second automated extruder being ordered, as it would be prudent for AFC to be in position to be able to full fill orders as they come in, that way they would be ahead of the game.

This would also show confidence in both their product and their ability to interest potential customers.

And again the sp drops, which as said before hows that nothing short of contracts will do for the market.