Green Tech Breakthrough vs. Ukraine Fallout: AFC Energy Soars, Enwell Struggles

📈 Today's Key Themes

The London market is set for a mixed opening as contrasting forces shape investor sentiment. AFC Energy (#AFC) emerges as a beacon of innovation with an astounding 85% cost reduction in its hydrogen fuel cell technology, potentially revolutionizing the green energy sector. However, geopolitical tensions cast a shadow as Enwell Energy (#ENW) grapples with suspended operations in Ukraine, highlighting the ongoing impact of the war on energy companies. Meanwhile, smaller firms across various sectors face challenging conditions, underscoring the divergent fortunes within the market.

💡 Company Updates

Annual Results

Baillie Gifford UK Growth Trust (#BGUK) reported a resilient performance with a 7.1% NAV total return and a 13.6% share price total return, slightly underperforming its benchmark. The trust increased its dividend to 5.70p and maintained a focus on long-term UK growth investments. Despite the challenging environment, the trust's proactive measures, including increased buyback activity, have contributed to a narrowing discount of 10.5%. Strip Tinning Holdings (#STG) faces a grim outlook as its final results reveal widening losses and declining revenues for 2024. The company reported an operating loss of £3.397 million, more than double the previous year's figure, while revenue fell from £10.8m to £9.0m. With a cash balance of just £0.5m and £2.3m used in operating activities, liquidity concerns loom large for this automotive components manufacturer. CRISM Therapeutics (#CRTX) reported increased losses of £607,000 in 2024, up from £196,000 in 2023. Despite progressing towards clinical trials and receiving positive regulatory feedback, the biotech firm's financial strain is evident. The company's cash position has deteriorated rapidly, raising concerns about its ability to fund future operations without securing additional capital.

Half-Year Reports

Ground Rents Income Fund (#GRIO) faces significant headwinds as its half-year report reveals a 10.1% reduction in portfolio valuation to £56.8 million. The real estate investment trust's Net Asset Value decreased to £50.4 million (52.7p per share), while ongoing regulatory challenges in the leasehold sector continue to impact performance. The company has executed £9.2 million of asset disposals and reduced its loan balance, but dividends remain withheld due to a Modified Auditors' Report.

Other Updates

Gemfields Group (#GEM) successfully raised USD30 million through a fully underwritten rights issue. The prominent gemstone miner priced new shares at 4.22 pence, representing a modest 0.48% discount to the previous closing price. This capital raise aims to strengthen the company's balance sheet and fund growth initiatives, with only moderate dilution to existing shareholders. Phoenix Copper Limited (#PXC) has raised £500,000 through a discounted share placing at 4 pence per share, a 23.8% discount to the previous closing price. While the funds will provide additional working capital, the significant discount raises concerns about investor confidence and potential future funding needs as the company works to finalize a proposed $75 million placement of corporate copper bonds.

🎯 Leading Developments

AFC Energy's Green Tech Breakthrough

AFC Energy (#AFC) has achieved a game-changing 85% cost reduction for its 30kW hydrogen fuel cell generators, potentially transforming the economics of clean energy solutions. This dramatic improvement in cost-efficiency is complemented by plans for a strategic partnership with Volex Plc to support volume manufacturing. The adoption of low-cost stack technology and value engineering has been key to this breakthrough.

"AFC Energy's cost reduction achievement could be a pivotal moment for the hydrogen fuel cell industry, potentially accelerating the adoption of clean energy solutions across various sectors."

The market implications of this development are significant, as it could lead to increased competitiveness of hydrogen fuel cells against traditional energy sources. Investors will likely watch closely for signs of commercial traction and potential partnerships resulting from this breakthrough. Read more

Enwell Energy's Ukraine Crisis

Enwell Energy (#ENW) faces severe operational challenges due to the ongoing war in Ukraine. The company reported a 28% decrease in revenue to $44.9 million and a 10% fall in profit after tax to $23.7 million. Most critically, production licenses for its MEX-GOL, SV, and VAS fields have been suspended, directly impacting the company's core operations. Despite maintaining a strong cash position of $99.4 million, the geopolitical situation poses significant risks to Enwell's future performance and market valuation. The suspension of key production licenses underscores the vulnerability of energy companies operating in conflict zones and may prompt investors to reassess risk premiums for similar exposures. This development could have broader implications for the energy sector, particularly for companies with significant operations in geopolitically sensitive regions. Investors may seek increased risk disclosure and contingency planning from such firms. Read more

📅 Week Ahead

16 June 2025: Rolls-Royce Holdings plc (#RR.) Dividend payment date
16 June 2025: Barclays PLC (#BARC) Cancellation of listing on London Stock Exchange's ISM
16 June 2025: NextEnergy Solar Ord (#NESF) NextEnergy Solar Fund Full Year Results Presentation
16 June 2025: Deliveroo plc (#ROO) Court Meeting and General Meeting to approve the Scheme
17 June 2025: Ashtead Group plc (#AHT) to announce full year and Q4 results
17 June 2025: RWS Holdings plc (#RWS) Announcement of HY25 results
17 June 2025: Renishaw plc (#RSW) Annual Capital Markets Day
17 June 2025: Adriatic Metals PLC (#ADT1) Deadline for Dundee to announce firm intention to make an offer or that it does not intend to make an offer
18 June 2025: JPMorgan Indian Investment Trust plc (#JII) Half-year results announcement
18 June 2025: AO World plc (#AO.) Full Year Results Announcement
18 June 2025: BBGI Global Infrastructure S.A. (#BBGI) Delisting and cancellation of trading of BBGI shares on London Stock Exchange
18 June 2025: ICG Enterprise Trust PLC (#ICGT) Shareholder Seminar for institutional investors and research analysts
19 June 2025: XPS Pensions Group plc (#XPS) Full Year Results Presentation
19 June 2025: Cordiant Digital Infrastructure Ord (#CORD) Annual results publication
19 June 2025: JPMorgan European Discovery Ord (#JEDT) Annual results announcement
19 June 2025: NCC Group plc (#NCC) Publication of NCC Group's unaudited interim results
19 June 2025: Hargreave Hale AIM VCT Ord (#HHV) Publication of half-year results
19 June 2025: United Utilities Group PLC (#UU.) Capital Markets Day
20 June 2025: GSK plc (#GSK) FDA Decision on Shingrix Prefilled Syringe
20 June 2025: Intertek Group plc (#ITRK) Final dividend payment

View full calendar

Market Summary