http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Google - results.

Not sure if this is relivent tp AFC,[robablt not?

http://www.investegate.co.uk/Article.aspx?id=201202100700251701X

RNS Number : 2230X

AFC Energy Plc

13 February 2012

13 February 2012

AFC Energy PLC

("AFC Energy" or the "Company")

Independent Technology Review

'In field' trials demonstrating fuel cells' robustness

AFC Energy (AIM: AFC), a leading developer of low cost alkaline fuel cells, is pleased to announce that it has received a further positive independent review of its progress from Dr Jon Helliwell, Project Manager, Fuel Cell Applications at the Centre for Process Innovation ("CPI"). The CPI last carried out a review of the Company's technical activity in May 2011.

The CPI reports that there have been a number of important developments since the last review, which have given it further confidence that the performance targets agreed with AFC Energy's main customer will be achieved. In summary these developments are:

-- Established two Beta systems at a customer site in Germany and a third on its own site in Dunsfold. This is significant as AFC Energy is:

o demonstrating the robustness of its Beta-system outside the laboratory

o generating important operating data

o openly sharing data and planning progress with a prestigious partner

o delivering system enhancements in the field

-- Frozen system and electrode designs.
-- Separated its manufacturing and development activities demonstrating an increased maturity within the organisation which fits well with its desire to commercialise at the earliest opportunity.

-- Commenced a project in December, known as LASER-CELL, in which it is the lead of a consortium of European organisations (as announced on 1 December 2011).

-- Strengthened its management team through the appointment of Ian Williamson as CEO (as announced on 13 September 2011).

o Ian has a wealth of commercial experience in the hydrogen and energy fields and has established a clear plan for the business focussed on developing its commercial and production capability, whilst maintaining cost control.

AFC Energy provided Dr Helliwell with complete, unrestricted, access to all areas of the Company and its staff and he was able to examine each in detail. A version of the full CPI report, edited to remove confidential technical details, will be made available on the Company's website later today.

Dr Jon Helliwell, Project Manager, Fuel Cell Applications, CPI said:

"This has been an extremely important period for AFC Energy. I am highly encouraged by the operational and technical developments since the last review and I firmly believe the Company is now in a significantly stronger position.

"AFC Energy is highly likely to deliver low cost, modular fuel cell systems to the stationary power industry in accordance with its technology and commercialisation plans. The systems are simple, as they use clever engineering and elegant design to minimise cost and complexity.

"The cells themselves have been designed for manufacture and are capable of using a range of materials. The technology is no longer 'laboratory based' and in what has been a particularly exciting period for the Company, it is clearly starting to deliver the promise of its robust, low cost fuel cell systems."

Ian Williamson, AFC Energy's Chief Executive, said:

"We are delighted and encouraged that Dr Helliwell's review recognises the important milestones reached by the Company in the last few months and it is again a testament to the hard work of our development team.

"AFC Energy continues to optimise the performance of its Beta fuel cell system using the highly valuable data generated by the field trials currently underway and we remain firmly focussed on commercialising our fuel cell technology."

Not the news we were waiting for or expecting, IE the Akzo trial results, but this must be the next best thing.
As for a CPI, it looks 10 out of 10.

What with results out next Monday, looks to be an exciting end of month ahead.

As all know on here, I have had many a dig at AFC, for their 'Secret squirrel, treat like a mushroom attitude', but I do agree that the CPI is just that and nothing else.
Quite rightly,AFC had no input on how the CPI was worded, as any CPI that was not fully independent word be worth very little.
I look forward to AFC's updated web site and also the results, as I feel that they (results) must give us that bit more as to their progress on the Akzo trials.
Comments such as, progressing as expected will not be acceptable.

I feel the CPI timing of release would likely to be gauged for release near to the final test results.
I can't see much sense in AFC allowing access to the required data, say several weeks before the end of trials.
Now if these trials are near end, access to all the latest data would be very prudent indeed.
I appreciate that access would have to be timed to allow all data to be processed.
Perhaps the timing was a few days out.
Time as they say will tell, IE Next Monday!

Greekman - as you say - time, will indeed tell!

Preliminary Results and Notice of AGM

FY11 Highlights

· Installed first commercial-scale Beta System unit at Dunsfold, UK
· Installed two further Beta Systems with AkzoNobel at Bitterfeld, Germany
· Progressed with partners, including: AkzoNobel, John Lewis Partnership, Air Products, Waste2Tricity, N2telligence
· Made significant technological advancements, having frozen its system design, deployed it in the field and started to generate data that its customers can use.
· Increased activity on protection of intellectual property and registration of patents
· Completed a successful fundraising of £3.93m (net) in July 2011
· Cash as at 31 October 2011 £5.97m (31 October 2010: £5.35m)

Post Period Highlights

· Strengthened the Board through the appointment of Ian Williamson as Chief Executive Officer
· Generated first industrial power from Beta fuel cell system
· Bolstered the technical team with the recruitment of a renowned fuel cell scientist
· Awarded a grant of €405,600 as part of €2.9m European Union project "LASER-CELL"

Trying to look at this in the positive light that the RNS has been cast.
I do appreciate that there is so much they can't say, so won't give a list of moans.

I will though put one example of where I do think they could have been clearer.

Quote.......
Ian Williamson has ensured that the strategic plans have been set for the Company, having aligned the commercial and technical arms of the Company together via a set of business targets for the coming period. These are to etc, etc.

There then follows a list of targets, but 'No mention of dates, just for the coming period.

By period, does this mean the next quarter, the next reporting period, or what.

So reading between the lines, as we usually have to with AFC, I will stay invested for a while longer, but my confidence has been boosted by many sections, but not by parts of the RNS where I feel they could have been more open regarding time lines.

It's alright mentioning targets, periods and time lines, but unless they are accompanied by either actuals (difficult) or estimates of time then they don't really tell us anything.

Even with continuing R&D and ongoing field tests, surely they could have stated that commercial production is expected to start in ***** or by end of ***** roll out to an existing customer will commence.
Or perhaps an updated progress report will be released by end of *****.

As they haven't, it does lead to suspicions that things are taking longer than expected.
To take anything at face value is dangerous, to say the least!

So taking the pros and cons, I am fairly neutral regarding the RNS.

I think it will be seen in a negative light unfortunately.


Pre-tax loss of £4.3m for the year to the end of October - up from £3.0m last time.

Administrative expenses rose to £4.4m from £3.2m and operating losses increased to £4.4m from £3.0m.

I think without customers the operating loss was expected and bound to have increased, as was the administration expenses (due to increased R&D and the ongoing testing.
All this report required was defined or even estimated time lines.
Even if AFC were as restricted on releasing info as the RNS suggests, unless we get a big buyer today, I can only see the sp ending the day down.

You only have to look at the lack of posters on this thread to see the loss of interest in the company by PI's.

Still holding, but not my breath! Could be a while before we see anything really substantial. There again, you never know. I can neither be right nor wrong now!:o)

Dear Agony Aunt,

Several years ago, I became interested in a beautiful girl.
As someone who has been hurt in the past, I thought it prudent to find out as much as I could about her, before making any approach.
She was quite young, but she appeared to know where her future lay and also seemed determined to get there.
She also had a bit of money, which is always nice.
I decided to try my luck and we started to get together, nothing more than friends you understand.
After a while I became more interested, and we started to go steady. We even started to put money together toward our future.
It was soon obvious to me that I was smitten, and things started to really get serious.
It quickly became obvious to me that she could not be rushed, and that although I opened my heart to her (and my wallet) she gave me the impression there were things she was not telling me.
Just latterly she has become more secretive, and I get the impression she is only telling me enough to keep me sweet.
The more I push her to open up to me, the less she does so.
I still trust her, but obviously her secrecy is casting doubt on out relationship.
Trust should surely be a two way thing.
Just latterly our relationship has cooled, and I fear we are drifting apart, in fact I have become interested in a new girl that has moved into the neighborhood.

In fact we (not the new girl) have reached a point where we have agreed to hold a formal meeting in a few weeks where we hope to discuss our future together.
At this meeting I intend to be very forthright and blunt and I hope she will be the same.
If she isn't, I might just walk away.

I am still very fond of her but I am aware that the heart can over rule the head.
What should I do should she still hold back.

Worried of Hull.

Dear Worried,

What you have to ask yourself is, has anything changed.
Underneath, is she still the girl you fell for all those years ago.
From what you tell me, she appears to be growing into maturity, although she is obviously still not fully into adulthood.
As you say, you can't let the heart rule the head.
You have to decide, is this a two way relationship, or is she just out for what she can get.
I think it would be a shame if you split now, especially as you have agreed to a meeting to thrash things out.
My advice is to wait, just a while longer to see if things really develop, but I agree that things can't stay as the are.

Dear Agony Aunt,

Thanks for your advice. I will wait a while longer, although I must admit, that new girl is getting more and more attractive, so I might just start playing around a bit.
At least then I won't left completely high and dry if things don't work out.

Women and shares.
Who can understand either of them.

Very good analogy (well I hope it is!) :-)

Reading the Allenby report I have to agree with those who feel it is not looking very good.
The earnings estimates for the next 2 years, do nothing for the sp, except to knock it downward.
I am not blaming Allenby for this, as their only responsibility is to tell it how they see it.
Pity they did not have more foresight in their last couple of reports that were so way out as to be useless.
I am now more worried about AFC missing the proverbial boat, than not getting there at all.
I am as sure as I can be that the AFC Fuel Cell will go into production this year, but I now feel that sales will be nowhere need as high volume as we were all expecting.
I can see a slow roll out coming.
I know we have all been told, and the evidence has shown that AFC have no competitors in many areas where their technology is concerned, but whilst they are in the testing/none production mode the competition will not be standing idly by.
Strong patents or not, time is ticking by and patents are often infringed.
You only have to look at the number of patents infringements that James Dyson has had to challenge since his cyclone technology got onto the shelves.
At least he got commercial whilst constantly improving the technology.
The other threat is countries like China, a country that puts as much credence in none patent infringements as the Greek people do in paying taxes.
If the AFC system is as good as we all hope, I can't see their patents not being challenged.
Sure they may be as solid as any, but they will be infringed, even to the point of slight alteration, and the longer the none commercialization continues the more vulnerable to these challenges they will be.
Potential customers will as we have already seen start to accept second best, for the pure reason 'Its available'.
AFC management must move very soon or it won't just be the investors that will be saying, 'Why is it taking so long. Has anything gone or going wrong'.

I try and state things as I see them.
No matter how brilliant I think a company or its shares are doing, I think the best part of these BB's are when someone plays devils advocate, putting as many opposite views as they can.
This is with the proviso that they back their posts up with fact, figures or/and well argued views/opinions.
No doubt several on here put me in the de-rampers camp from my posts over the last few weeks.
The truth of the matter is, although I am not panicking (if I was, I would be out)
I admit to being decidedly nervous.
This is because of being in a not knowing period, which must be one of the worse for any investor,
As has been often said on here, either read posts and make your own mind up, or ignore said posts.
At the moment I do take refuge in those posts that tend to reiterate all the good points, and remind me why I invested in the first place, but I hope they do not blind me to the negatives either.
No the fundamentals and reason for investing have not changed, only my holdings that have grown since my first flutter in AFC.
I put far more positives on AFC than negatives, as the only negative I can put, is the lack of info re timescales and the like.
Funny how when money is at risk, we all tend to concentrate on a negative more than a positive.
I suppose the nearer we think we are to that winning line, the more we feel at risk of not reaching it.
Human nature I suppose.

The sp over the last week is not helping matters.

Greek - from your analogy above "Women and shares. Who can understand either of them."

Well I understand that chart!!!

Lol,

Well both have curves, I'm not sure I like the one in the chart though.

Excellent candle today.

I almost made a comment! ;o)

Repayment of Loan from Waste2Tricity

05 March 2012: AFC Energy plc (AIM: AFC), a leading developer of low-cost alkaline fuel cell technology for industrial applications, is pleased to announce that it has received £152,500 in full repayment with associated interest of a loan made to Waste2Tricity Ltd ("W2T") in 2009.