By AFC Energy's (AFC:AIM) standards, a 4.6% gain to 40p is perhaps something of a modest uptick, at least when compared to the stock's relentless rise over the past year when some one-day advances more than doubled share price.
Admittedly the stock's price has come back significantly from its year-to-date high of 51.25p; achieved at the end of April. However, today's update from the industrial fuel cell company may re-energise (pardon the pun) share price momentum which since early January saw the stock advance 290%.
The latest update from a company with a share price very much driven by positive news feed concerns AFC's first 240kW KORE system at Air Products' Stade facility in Germany, with the company assuring investors that the POWER-UP schedule remains on track.
AFC's chief executive Adam Bond had this to say: 'We continue to make great progress towards the successful deployment of AFC's first KORE system in Germany in the second half of this year. '
Perhaps more importantly, a process hazard assessment of the KORE fuel cell module design using the Hazard and Operability (HAZOP) methodology has passed an independent and rigorous examination of its design safety functions.
Nevertheless, the risks remain high for investors and while this update is encouraging, it's worth bearing in mind that AFC is yet to turn a profit and most market-watchers would agree that it needs to continue providing clarity on the financials as different projects progress.
