Clean Air Power's annual revenues soar on Dual-Fuel sales

Clean Air Power reported a 73 per cent increase in annual revenue on Thursday, buoyed by sales of its Dual-Fuel combustion technology for heavy-duty diesel engines.

Clean Air Power reported a 73 per cent increase in annual revenue on Thursday, buoyed by sales of its Dual-Fuel combustion technology for heavy-duty diesel engines.

Revenue came to £7.94m for the year ended December 31st 2012, up from £4.59m the previous year.

Gross profit jumped by 37.5% to £3.52m from £2.56m.

The Dual-Fuel division was the main driving force as revenue increased by 101% to £6.64m from £3.30m as a rise in interest of European products resulted in a total of 300 sales compared to 70 in 2011.

An order for 49 Genesis-EDGE Dual-Fuel systems was delivered to Sainsbury, along with 27 to a major logistics organisation in the UK. An order was also received for 82 of the systems to HAM Cryonenica.

"The January 2012 European OEM [original equipment manufacturer] production commencement has seen Clean Air Power become a tier one system supplier under a Supply Agreement for an initial period up to July 2015," said Chief Executive Officer John Pettitt.

"This achievement has been complemented by commercial success in Europe with our Genesis-EDGE product including the delivery of 49 systems to Sainsbury's and further deliveries to other major fleet operators in the UK and Spain."

Cantor Fitzgerald said the results were in line with expectations. However, the analyst noted that project costs were slightly higher than previously guided.

"We will be revising our [fiscal year] 2013 numbers in due course," the broker said.

"We are currently expecting the company to report a small pre-tax loss but this is likely to prove too optimistic given the higher costs mentioned above, however EBITDA [earnings before interest, tax, depreciation and amortisation] is expected to remain positive. We reiterate our 'buy' stance and our target price of 25p, continued progress with both Genesis Edge and OEM sales are encouraging."

Shares plunged 13.48% to 9.62p at 08:44 Wednesday.

RD

Recommended

Improve your odds of investment success with these three stocks
Share tips

Improve your odds of investment success with these three stocks

Professional investor Tom Wildgoose of the Nomura Global High Conviction Fund highlights three of his favourite stocks.
2 Aug 2021
How to profit from pampered pets beyond the pandemic
Share tips

How to profit from pampered pets beyond the pandemic

Covid-19 has greatly boosted ownership. But the market had been expanding for years, and demographic, cultural and medical trends all point to long-te…
30 Jul 2021
Share tips of the week – 30 July
Share tips

Share tips of the week – 30 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Jul 2021
Robinhood is going public – should you invest?
US stockmarkets

Robinhood is going public – should you invest?

Online stockbroking app Robinhood is going public on the US stock exchange. Saloni Sardana looks at whether it's worth a punt.
29 Jul 2021

Most Popular

Why the UK's 2.5% inflation is a big deal
Inflation

Why the UK's 2.5% inflation is a big deal

After years of inflation being a financial-assets problem, it is now an “ordinary things” problem too, says Merryn Somerset Webb. But central banks st…
16 Jul 2021
The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism
Economy

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism

Russell Napier talks to Merryn about financial repression – or "stealing money from old people slowly" – plus how Asian capitalism is taking over in t…
16 Jul 2021
Cryptocurrency roundup: Twitter founder’s “DeFi” platform
Bitcoin & crypto

Cryptocurrency roundup: Twitter founder’s “DeFi” platform

In crypto this week: regulators are getting worried; Jack Dorsey’s bitcoin DeFi platform; and dogecoin’s co-founder lambasts cryptocurrencies.  Salon…
16 Jul 2021