http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

AFC Energy Plc - Technological milestone
RNS Number:7319C
AFC Energy Plc
24 August 2007


AFC Energy plc


Technological milestone - successful operation of first fully scaled single cell

AFC Energy, ('AFC Energy' or the 'Company'), the low cost alkaline fuel cell
company, is pleased to announce that it has successfully achieved its second
technological milestone, the operation of a fully scaled single cell, within the
projected timescale described in the Admission Document.

The scaled cell electrodes are the same size as the electrodes from the first
prototype system measuring 150mm by 250mm. The scaled cell is now being tested
under specific harsh operating conditions, designed to demonstrate durability
and corrosion resistance of the system.

The successful development of the scaled single cell unit is another important
step towards full commercialisation during 2009. The next expected milestone is
the 500 hours operation of the scaled single cell scheduled for October 2007.
These tests have already begun with the scaled cell being exposed to constant,
transient and no load conditions.

The scaled single cell unit successfully demonstrates the generation of
electricity, using both cathode and anode electrodes, from hydrogen and oxygen.
The Directors continue to believe that AFC Energy's fuel cell will have a
conversion efficiency of approximately 60%.

Gerard Sauer, Chief Executive, said: 'AFC Energy remains on track with the
development of its low cost fuel cell. Excellent progress continues to be made
with the electrode and results from initial tests show that power performances
are very encouraging and catalyst degradation is minimal.

'AFC Energy continues to work closely on the development of its technology with
its customer Akzo Nobel which produces substantial amounts on hydrogen from the
production of chlorine. We look forward to delivering our first fuel cells to
Akzo Nobel during 2008.'


ends

Bugz,

Thought I would join you on this quiet thread. Not in yet, just watching and researching AFC after coming across the company a few weeks ago.
The idea looks good and with the Akzo Noble connection it could be the start of something big. As with most sky high or bust shares, I tend to look far deeper than blue chips.

Regards Greek.

After watching this share closely for several months, decided it was time to take a punt.
I just hope my small foray into AFC is not the kiss of death.

Re RNS.

Would like to know why and to whom the nil rate transfer was to, as this transfer could be a possible tax move, or a reward system tax loop hole or both.
Just curious as it is only a small amount in value terms. Any idea's anyone.

Fuel cell shares are useless. Look at CWR, ITM, CFU. All going down - AVOID

Hi Hlyeo,

It depends on what type of fuel cells. AFC are the only such company that are taking the actual fuel cell system to the fuel source. There may be others, so I stand to be corrected.
IMHO fuel cell shares have to be looked at as a medium to long term punt. They are not going to make anyone loads of cash overnight.
Oil can't last forever, so some company perhaps already out there will come up with the equivalent of the Holy Grail, so to speak. Obviously most will fail but not all.
Not one for widows and orphans as they say, but, for those willing to bet on fairly long odds that might just pay off.
No risk no gain!

Results out. Not much to say except everything appears to be proceeding as planned. Cash in hand appears sufficient at present flow, hopefully to last re expected time frame regarding other future contracts

What's with so many late trades.
6 plus with 1 (after hours trade that was reported pre market opening so understandable) of total 1,488,270 shares out of 17 trades. That's a very big percentage reported late. Obviously there will always be trades reported late but with a percentage of such proportions, how the hell can anyone get a true real time picture.
Yet another case of market shenanigans, or am I being my usual suspicious self.

I am a mushroom!

Probable seeing something in nothing, but AFC opened level and now just a tad up with no trades. After 7 days of no movement could some info be starting to leaking out.
Or am I straw clutching.

Ops, Almost as soon as I posted the sp moved to level and now closed down so do I eat humble pie and let the above post stand, or do I edit it out hoping no one saw it. I know I will do what Gordon Brown would do, wait till tomorrow and will think about making a possible decision then.

Bugz,

Received your E-Mail, Thanks and agree re AFC possible prospects.

Regards Greek

RNS.

And yet another stage reached in time re delivery of the system to Akzo (6 out of 6 cant be bad) and the system will be switched on and tested sometime in mid-September. No doubt if this system has a successful run in mid Sept then that will no doubt be the start of something big. I can't see anything but success as no doubt the system has been tested in as full a way as you possibly can when running a trial 'off site'.
Still a gamble but not that much, IMHO.

Clarification re previous RNS.
Is this the first hint that AFC are not being straight with what they say. OK may be just a slip but, it's not that hard to get it right, is it? The problem is company statements are like talking things over with the wife, if they catch you out just once,trust, well you know!
Although it looks like someone was so keen to let the world know that they pressed the go button on a release already written.
Lets just hope the word imminent means just that.

Just managed to read the bit that states, delivery intended tomorrow. On this site the clarification RNS was not fully readable for some unknown reason, via the Stockwatch Link. I could only read the previous one a few minutes earlier.
So no doubt tomorrow or Monday we will have the facts.

Looking at last few posts it looks as if I am the only one reading this thread.
Still here goes.

I have just sent the following E-Mail to AFC.

Re misleading RNS+amendment RNS.
I am a member of a share group holding AFC shares.
The amendment RNS used the word imminently. As this implies ready to take place or/and about to happen I feel that clarification of the situation is required. Whilst I except that delays can and do occur, shipment was expected to have been completed by end August. If there is a reason for none fulfillment of the expected order I respectfully submit that as a shareholder I have a right under LSE rules to be informed.

Buys/Sells of AFC shares were effected by both these RNS releases. END

Whilst I appreciate they can not under LSE rules give a selective answer to any individual, they might just clarify that a RNS will be forthcoming in the imminent (that word again) future.
I will obviously post any reply even if it is as expected none committal.

With no trades at yet today (not unusual) and a spread of 26.9% is someone privy to news not yet on general release.
The mm's obviously don't want trade, not buys anyway,and looking at todays drop which about 20 mins ago was 15% down are they trying to panic holders to sell so they can obtain shares for a big order in. Just a thought!.
I have a few examples of big sp rises or drops in companies of late just prior to RNS releases. And they try to tell us that there is a level playing field for all. Yer right!

No reply as yet to my e-mail,
If AFC do not release an RNS by close of business on Thursday 11th I intend to send a second request E-Mail stating the LSE RNS rules which I feel AFC have not adhered to, IE sp sensitive information RNS disclosure rules.
In my opinion if a RNS is released stating that by a certain date an achievement/target or similar is expected to be reached/passed then failure re this achievement warrants a further RNS stating the reason why.
See my post 1505 last Friday. As yet No reply has been received.

So delivery has been delayed. After that very misleading earlier RNS re delivery I feel that AFC have an explanation of why the initial RNS was issued. I am contacting them by e-mail to ask why it was issued, with the warning that if an explanation is not forthcoming I feel that the FSA should commence an investigation.
Someone is at fault and I want to know why.

I sent the following E-Mail at 1315 hrs today.

Re misleading RNS+amendment RNS+todays none delivery RNS.
I am a member of a share group holding AFC shares.
I except that delays can and do occur, and appreciate that todays RNS gives some clarification.
I still feel that an explanation re the release of the RNS stating delivery completed is required. I respectfully submit that as a shareholder I have a right under LSE rules to be informed as to why.
Many investors purchased shares on the issue of that RNS (delivery completed).

Whilst I appreciate that under LSE rules you can not give a selective answer to any individual, you can obviously clarify via a general release.

I would appreciate a reply as if a reply is not received or a clarification release is not issued I intend to contact the LSE/FSA in order to clarify if any rules have been breached.

Note. My last e-mail to you was ignored.

I received the following reply at 1335 hrs (perhaps they decided not to ignore this e-mail due to the mention of LSE/FSA).

Dear Mr

The erroneous early release of the statement was caused by a failure of process within our PR Agency, Madano and a revised statement was issued very soon afterwards, after legal issues and Stock Market regulations had been checked by our Brokers Blue Oar Securities.

It was a clear error of process and at no time was AFC involved in the issuing of erroneous statements to the Stock Market. The statement released today clarifies the position.

Regards
Christine

Be interesting to see what happens today re the opening spread and price.
I expect many smaller holders to bail out early on with some big buys later from those more privy than us re what is the true state of play.
If that does happen, reading between the line would make anyone suspicious.