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

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021