H-Power plc

AFC Energy reported a loss before tax of GBP 22.2 million, versus GBP 17.4 million in the prior year on a like-for-like bridge discussed by management. Revenue was negligible at GBP 100,000, down from GBP 4 million last year, largely because the business stopped making AR2 sales; gross margin was not stated. Development spend was GBP 11.7 million, of which GBP 5.2 million was capitalized, and the company recorded GBP 12.4 million of noncash items. Cash consumed before financing was GBP 15.4 million, down from GBP 26.6 million, and year-end cash was GBP 25.3 million. For FY26, management said R&D tax credits of about GBP 3.3 million are expected in June/July, LC30 CE marking is anticipated around August, customer deliveries from September/October, and only 15 LC30 units are committed through October 2026 at this stage.

John Wilson framed the quarter as a strategic reset aimed at making the hydrogen business commercially viable without subsidies. He said the company is building around two product lines: hydrogen production via ammonia cracking and power generation via fuel cells, with the key objective now being to convert pipeline into contractual orders. His tone was confident and somewhat promotional, emphasizing that the company has already delivered on the reset plan and that the technology is being validated through partnerships and early deployments.

Karl Bostock focused on the financial turnaround in cash discipline rather than top-line growth. He said the loss before tax of GBP 22.2 million included GBP 12.4 million of noncash items, while cash burn was cut to GBP 15.4 million from GBP 26.6 million and year-end cash was GBP 25.3 million. He also highlighted GBP 2.2 million of government grant funding, GBP 3.3 million of expected R&D tax credits in FY26, GBP 0.7 million of CapEx in the year, and cost reductions from headcount and property exits that should save under GBP 1 million and about GBP 0.5 million a year, respectively.

In Q&A, investors pressed on profitability, funding needs, Hy-5 timing, and manufacturing capacity. Management said the business needs revenues above costs, noted a fixed-cost cash burn of under GBP 1 million per month, and said it expects to be in good shape for the next 18 months, though by September 2027 it will need either a substantial order book or another fundraising event. They also said the LC30 uses 40 to 45 kg of hydrogen in 24 hours at full power, Hy-5 could be built at roughly one per week in Dunsfold, and preorders can be taken before CE certification.