TIDMCAP
RNS Number : 2213S
Clean Air Power Limited
14 May 2009
+-------------------------------------+-------------------------------------+
| For immediate release | 14 May 2009 |
+-------------------------------------+-------------------------------------+
Clean Air Power Limited
("Clean Air Power" or "the Company")
Preliminary 2008 Results
Clean Air Power Limited (AIM:CAP) the developer of Dual-Fuel(TM) combustion
technology for heavy-duty diesel engines today announces its results for the 12
month period ended 31 December 2008.
Financial Highlights
* 38% increase in Group revenue to GBP6.47m, (2007: GBP4.70m). Gross profit margin
maintained at 46% (2007:43%).
* Gross profit increased 46% to GBP2.97m, (2007: GBP2.03m).
* Operating loss* reduced by 32% to GBP1.73m (2007:GBP2.54m).
* Loss for the financial period reduced by 19% to GBP2.34m (2007: GBP2.90m).
* Successful equity fundraising agreement reached providing GBP2.50m in 2008.
*Before non cash items including depreciation GBP0.12m, amortisation GBP0.40m,
impairment GBP0.11m and share-based payments GBP0.03m.
Operational Highlights
* Development of second demonstration Dual-Fuel(TM) vehicle, for the Volvo Group
for exhibition in the United States.
* Delivery of GBP2.90m Mitchell Corp order for vehicle systems in Australia.
* GBP0.50m order for further Dual-Fuel(TM) vehicle systems in Australia by
Mitchell Corp delivered in 2008.
* Delivery of GBP0.30m Genesis Dual-Fuel(TM) order for Robert Wiseman Dairies in
the UK.
* Sainsbury's launch 'Running on Rubbish' campaign using Clean Air Power's
technology.
* New intellectual property rights granted in key commercial regions.
* Significant positive progress made in manufacturer discussions.
* Very strong year for Emissions division; revenue increased to GBP1.05m (2007:
GBP0.19m).
Post Period End
* Letter of Intent with Volvo Powertrain (Volvo) to incorporate Clean Air Power's
Dual-Fuel(TM) technology with Volvo truck engines - key milestone for the
Company.
* Five 'Genesis' Dual-Fuel(TM) conversions sold to Sainsbury's.
* GBP0.90m orders received by Components division, due for delivery in 2009.
* GBP0.60m order received by Emissions division, due for delivery in 2009.
* On 6 February 2009, the fifth tranche of GBP0.50m was received under the
fundraising agreement with Endeavor Capital.
* In May 2009, a further GBP2.38m was raised from institutional investors,
including Endeavor Capital.
Results
+---------------------------+---------------------------+---------------------------+
| | Year Ended | Year Ended |
+---------------------------+---------------------------+---------------------------+
| | 31 December 2008 | 31 December 2007 |
+---------------------------+---------------------------+---------------------------+
| | GBP'000 | GBP'000 |
+---------------------------+---------------------------+---------------------------+
| | | |
+---------------------------+---------------------------+---------------------------+
| Group Revenue | 6,468 | 4,704 |
+---------------------------+---------------------------+---------------------------+
| | | |
+---------------------------+---------------------------+---------------------------+
| Operating Loss | (2,390) | (3,067) |
+---------------------------+---------------------------+---------------------------+
| Loss after tax | (2,339) | (2,900) |
+---------------------------+---------------------------+---------------------------+
| | | |
+---------------------------+---------------------------+---------------------------+
| Basic and diluted loss | (7.05p) | (10.8p) |
| per share | | |
+---------------------------+---------------------------+---------------------------+
Commenting on Clean Air Power's full year results and looking at Group
prospects, John Pettitt, CEO said:
"In 2008, Clean Air Power increased revenues by 38%, with all divisions showing
significant growth on the previous year. We made excellent progress towards the
company's main objective of manufacturer cooperation and were delighted to sign
a Letter of Intent with Volvo in January 2009. In these current challenging
times, with manufacturers having to work harder to generate truck sales we
believe that our technology offers manufacturers a real opportunity to
differentiate their product offering. "
For further details please contact
+-----------------------------------------------+---------------------------------+
| Clean Air Power | Tel: +44 (0)1494 527 110 |
| John Pettitt, Chief Executive | |
| Peter Rowse, Finance Director | |
| | |
+-----------------------------------------------+---------------------------------+
| Buchanan Communications | Tel: +44 (0)20 7466 5000, |
| Charles Ryland | Tel: +44 (0)20 7050 6500 |
| Ben Willey | |
| Ben Romney | |
| Canaccord Adams Limited | |
| Robert Finlay | |
| Guy Blakeney | |
| Bhavesh Patel | |
+-----------------------------------------------+---------------------------------+
+----------+
| Notes |
| to |
| Editors: |
+----------+
| |
+----------+
About Clean Air Power
Clean Air Power is the developer and provider of Dual-Fuel(TM) combustion
technology for heavy duty diesel engines. Dual-Fuel(TM) engines substantially
cut fuel costs and carbon emissions without sacrificing the original engine's
characteristic efficiency or reliability. Clean Air Power is well positioned to
assist corporations and governments to deliver on their environmental
commitments while at the same time reducing transport operators overheads.
Initially founded in the USA in 1991, around GBP40m has been invested in
developing the technology with the result that 63 patents are currently held or
pending. The holding company of the Group is based in Bermuda with operational
subsidiaries in the UK, the USA and Australia. The Group was admitted to the AIM
market of the London Stock Exchange in February 2006.
Further information on Clean Air Power is available at www.cleanairpower.com
Chairman's Statement
This year has seen an increase in sales for our flagship Dual-Fuel(TM) products
and also for our important supplementary divisions. We are very pleased with
this third consecutive year of sales growth since the
re-launch of the
company in 2006.
The Company achieved a significant milestone with the signature of the Letter of
Intent with Volvo in January 2009. This has the mutually agreed objective
whereby Volvo will offer their customers Volvo branded vehicles incorporating
Clean Air Power's technology.
In April 2008 the Company agreed a financing package with Endeavor Capital to
provide up to GBP5.0m gross proceeds for the Company between April 2008 and June
2009. GBP2.5m was received in 2008 under the package with a further GBP0.5m
received from Endeavor in February 2009. Today, the Company announced the
successful raising of a further GBP2.38m, from institutional investors,
including Endeavor Capital, thereby completing the terms of the finance package.
The funds raised will be used to further advance in-house product development,
provide working capital to support existing operations and to provide resources
for our manufacturer cooperation activity.
I would like to thank John Pettitt and the team for their efforts towards making
2008 a year of significant progress and making the first concrete steps towards
a formal collaborative agreement with Volvo.
Financial Results
The Group has enjoyed another good year in terms of progress with manufacturers
with regard to potential future revenues, and has also seen revenue growth from
all of its divisions. During the year, Group revenue was 38% higher than the
previous year at GBP6.47m (2007: GBP4.70m).
Gross profit for the year was GBP2.97m compared to GBP2.03m in the prior year.
The gross margin for the year was 46% (2007: 43%).
Operating losses for the year reduced to GBP2.39m (2007: GBP3.07m).
The retained loss for the year after interest and taxation was GBP2.34m (2007:
GBP2.90m).
The basic and diluted loss per share was 7.05 pence (2007: 10.8 pence).
Cash on hand at 31 December 2008 was GBP1.63m (2007: GBP1.81m) demonstrating
lower than expected cash burn for the year due to controlled spending.
The net assets of the Group at the year end totalled GBP4.45m (2007: GBP3.74m).
Net current assets at the year end amounted to GBP2.80m (2007: GBP2.75m) of
which GBP1.63m relates to cash balances (2007: GBP1.81m).
Business Review
In 2008 Clean Air Power increased revenues by 38% and reduced its net loss by
19% Along with sales growth of the core Dual-Fuel(TM) vehicle conversions the
Emissions and Components divisions also performed well in 2008. Most
importantly, significant progress with Volvo brought the ultimate goal of OEM
branded Dual-Fuel(TM) trucks being sold a great deal closer.
Clean Air Power has 3 commercial divisions; Dual-Fuel(TM) vehicles systems,
Components and Emissions Reduction systems.
1) Dual-Fuel(TM) vehicles systems
The core technology of the Group gives rise to Clean Air Power's patented
Dual-Fuel(TM) system which allows a diesel engine to run on a combination of
both diesel and natural gas, thereby generating significant reductions in NOx,
particulate and CO2 emissions as well as generating cost savings for the
operator.
2008 was a successful year for this division with revenues increasing by 10%.
The technology is currently available in two main variants; the interfaced
product currently marketed in Australia and the Genesis product marketed in
Europe. Both of these variants are reaching the end of their product life
cycles, a factor which limited the potential sales growth in 2008.
Interfaced vehicle system
In this solution our technology is interfaced with the manufacturer's
electronic engine management system. It requires the cooperation of the
manufacturer and maximises the benefits in terms of carbon emissions and fuel
cost savings. The current product offering is certified to EPA 02 and can be
fitted as an after-market solution to vehicles in the Australian and South
American markets. It is reaching the end of its product life cycle as it can no
longer be sold in the key US and European markets due to more stringent
emissions regulations. In order to access the important US and European markets
with an interfaced product, Clean Air Power will need to produce a new variant
of this product which complies with the latest engine emission regulations.
These historic product life cycle and emissions compliance issues are addressed
by the Volvo agreement, the objective of which is to commercialise our
technology by interfacing it on a Volvo Euro 5 certified truck. The platform for
the Dual-Fuel(TM) product will be the very latest Volvo Euro 5 13 litre truck
engine with the objective of 'future-proofing' the product until the next
European standards are likely to be issued.
In order to address the future US market needs the company will need to develop
and certify an engine with Volvo or another manufacturer to meet the US
emissions target levels. The current strategy envisages that a future US product
would be delivered under such a cooperation agreement with a major manufacturer
although potentially the company could develop and market its own engine to
address the US opportunity.
We expect up to 90% of the diesel normally used by the vehicle to be substituted
for gas on an interfaced product.
Sales of the current interfaced solution have increased this year, driven by the
desire to reduce both greenhouse emissions and fuel costs incurred by operators.
In 2008, 77 units were sold compared with 31 in 2007.
'Genesis' in- house vehicle system
The 'Genesis' system was developed specifically to be a retro-fitted product
which can be installed without the need for formal co-operation of the engine
manufacturers. The solution does not interface directly with the vehicles own
engine management system and around 50% of the diesel normally used by the
vehicle is substituted for gas. The emissions and fuel savings are therefore
lower than would be expected on a fully interfaced system, but still
considerable. Although the differential between diesel and gas prices has
recently been reduced the product continues to be commercially attractive and
has the benefit of the demonstrated reductions in carbon emissions.
To date Clean Air Power has developed the Genesis solution for both DAF and
Mercedes Euro 3 vehicles and is targeting major supermarket chains, logistics
companies, parcel carriers and local authorities for its 'Genesis' product. We
believe these types of organisation will appreciate the financial benefits of
converting its vehicles to gas whilst also understanding that they will be
reducing emissions of CO2.
During the first half of 2008 Clean Air Power completed the delivery of the
remaining 18 units of an order from Robert Wiseman Dairies, one of the country's
leading dairy product suppliers. This customer now has 22 Dual-Fuel(TM) vehicles
which are delivering excellent fuel and emissions savings. In August 2008,
following an initial successful trial, Sainsbury's Supermarkets Ltd began
operating one of its Mercedes Axor Euro 3 vehicles fitted with Clean Air Power's
Genesis product. This vehicle travels daily between Sainsbury's' distribution
centre near Bristol and their store in Dartmouth. Importantly the vehicle uses
biogas produced from landfill sites which is a 100% renewable fuel providing
even greater emissions savings than natural gas. Sainsbury's called this
initiative 'Running on Rubbish' and proceeded to order five Genesis Euro 3
conversions in February 2009.
The agreement with Volvo allows the Company to develop and sell a next
generation Genesis version of its product to be installed on Volvo FM13 Euro 5
13 litre trucks. This product was launched in April 2009.
Genesis was initially viewed as a transitional product for the Group. Its
objective was to bring the benefits of Dual-Fuel(TM) to operators in a current
market situation where none of the major truck manufacturers offer a
Dual-Fuel(TM) solution. Once the operators began to enjoy the financial and
environmental benefits of running vehicles on Dual-Fuel(TM), the Clean Air Power
strategy foresaw two outcomes: an increased demand for further Dual-Fuel(TM)
trucks from operators, and a demonstration of real market demand to assist Clean
Air Power in its negotiations with truck manufacturers.
Having achieved its initial objective of attracting the attention of major
manufacturers, leading to the Volvo agreement, the Genesis product continues to
offer good potential as a revenue generator. In the UK and European markets it
can continue to produce revenue in advance of the anticipated future revenues
resulting from manufacturer cooperation agreements. Importantly there may be
potential to sell variants of the Genesis product into markets in developing
countries for a number of years to come.
Manufacturer Developments
Our main strategic goal has been to work with vehicle or engine manufacturers to
reach an agreement whereby our Dual-Fuel(TM) technology is incorporated on their
vehicle as a standard option and develop it further with their full cooperation.
In this way the benefits of our technology and routes to market can be
maximised. The Group has been actively pursuing this route to market with a
number of such organisations and the signing of the Letter of Intent with Volvo
represents a significant leap forwards for the company.
The Letter of Intent covers the development and commercialisation of products
which will include Clean Air Power's technology and sets out the intention that
they will be marketed and supported by Volvo Trucks.The products will have the
Clean Air Power technology fully interfaced with the Volvo engine management
system and applied to Volvo's D13 engine. This will provide the opportunity for
greater levels of gas substitution than Clean Air Power's existing Genesis
system, with corresponding improved emissions and fuel cost reductions.
The Letter of Intent provides for certain milestones relating to gas
substitution levels, emissions compliance, performance and durability testing.
Clean Air Power is confident that these milestones will be achieved based on its
prior experience of developing its technology on Volvo and other manufacturers'
engines.
Work on the product development has been underway for some time. Clean Air Power
and Volvo engineers are working together to develop the products and the
agreement provides for Clean Air Power to receive revenue from Volvo during the
project. The first commercial products are anticipated to be available in 2010.
Once commercialised, it is envisaged that Clean Air Power will be supplying its
systems to Volvo who will arrange installation and take the lead in marketing
the product on new vehicles while Clean Air Power will support Volvo's activity
and may carry out some conversions on customers' existing Volvo vehicles
according to demand.In addition and under Clean Air Power's own responsibility,
the agreement provides that Clean Air Power will market its Genesis solution on
Volvo FM D13 Euro 5 vehicles from the second quarter of 2009 which will provide
a revenue opportunity for Clean Air Power in the period prior to the launch of
the final interfaced Volvo Powertrain product.
While we are delighted to have made such good progress with Volvo we continue to
discuss cooperation opportunities with other manufacturers as well.
2) Components Division
Clean Air Power manufactures a number of the components that are used in the
Group's Dual-Fuel(TM) technology and also sells these components for spark
ignited gas engines and certain other applications. Global demand for these
engines is increasing as part of the overall shift towards alternative fuels.
With sales mainly in Europe and the USA, strong margins and a customer base
including international vehicle manufacturers, this is an important supplement
to the overall Clean Air Power business.
2008 sales grew 40% from GBP1.48m in 2007 to GBP2.07m. In 2008 marketing efforts
have been increased for this division and we expect to continue this marketing
activity further in 2009 in order to improve awareness of our product offering.
The Company was pleased to announce in January 2009 significant new orders as
cultivation of existing customer relationships paid off. This business tends to
operate with long initial order lead times but thereafter receives regular
ongoing revenues once customers have specified one of our products into their
engines. Repeat orders can then be expected, often for the life of the vehicles
to provide for maintenance and servicing needs.
3) Emissions Reduction Division
This area of our business provides emissions solutions to very large stationary
diesel and natural gas engines such as those used in pumping stations. Our
current market is mainly in the USA and we provide a solution whereby the
emissions from large stationary diesel engines are reduced, using Selective
Catalytic Reduction technology and diesel particulate filtering, usually in
response to the requirements of local legislation.
The business is mainly project based with a few large scale contracts generating
the majority of the revenue, although the strategy is in place to also develop
revenue from smaller, more regular contracts.
2008 revenues increased with sales of GBP1.05m being 452% higher than the 2007
level of GBP0.19m. This improvement was mainly the result of refocusing of the
management team and marketing support which led to large contracts being won. In
January 2009 Clean Air Power announced a GBP0.64m order for this division due to
be delivered in the first half of the year.
Outlook
The sales growth generated during 2008 has been very encouraging. The Company
has retained all of its key staff since the 2006 IPO and our engineering and
operational teams have been strengthened in 2008. This ensures that the Company
is well placed to capitalise on the exciting opportunities for the year ahead.
The most important element of the Company's activity in 2009 is likely to be the
delivery of our obligations under the recently signed Letter of Intent with
Volvo. Engineering activity on the development of products, in conjunction with
Volvo, is already well under way and discussions have commenced regarding the
commercial details. It is anticipated that the Letter of Intent will be
superseded by a formal contract in the middle of 2009.
The Volvo agreement specifically covers 13 litre truck engines compliant with
Euro 5 emissions regulations although the Company believes its technology offers
potential solutions for a range of vehicles including heavy duty trucks, mid
range trucks and buses. The Company continues its discussions with other
manufacturers in order to deliver the best medium and long term market coverage
and growth potential.
In 2009 Clean Air Power has completed the development of a Genesis
Dual-Fuel(TM) solution for the UK and European market that can be retro-fitted
to a Volvo Euro 5 emissions compliant trucks. This in-house product is designed
to address the life cycle issue that affected the potential sales of the earlier
Euro 3 Genesis product. In 2009 the Company plans to launch an updated version
of its C15 product for Australia.
To date, in 2009 Clean Air Power has won two significant orders for our
components division based in San Diego, California. These total around $1.4m
(GBP0.96m) and form part of longer term agreements to supply these two customers
with goods totalling $3.8m (GBP2.6m) over the next three years.
The year ahead is expected to be challenging but exciting with expectations of
new product launches, formalisation of our Volvo agreement and an initial
agreement with another manufacturer as our key objectives but we are aware that
we are unlikely to escape entirely the general economic turmoil.
+--------------+
| CONSOLIDATED |
| INCOME |
| STATEMENT |
+--------------+
+----------+
| For |
| the |
| year |
| ended |
| 31 |
| December |
| 2008 |
+----------+
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| | | Year | Year |
| | | ended | ended |
+----------------+--------+----------+----------+
| | Notes | 31 | 31 |
| | | December | December |
| | | 2008 | 2007 |
+----------------+--------+----------+----------+
| | | GBP'000 | GBP'000 |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Revenue | 1 | 6,468 | 4,704 |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Cost | | (3,500) | (2,677) |
| of | | | |
| Sales | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Gross | | 2,968 | 2,027 |
| profit | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Administrative | | (5,212) | (4,933) |
| expenses | | | |
+----------------+--------+----------+----------+
| Share-based | | (32) | (161) |
| payments | | | |
| charge | | | |
+----------------+--------+----------+----------+
| Impairment | | (114) | - |
| charge | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Operating | | (2,390) | (3,067) |
| loss | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Loss | | (2,390) | (3,067) |
| on | | | |
| ordinary | | | |
| activities | | | |
| before net | | | |
| finance | | | |
| revenue | | | |
| and | | | |
| taxation | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Finance | | 52 | 171 |
| revenue | | | |
+----------------+--------+----------+----------+
| Finance | | (1) | (4) |
| costs | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Loss | | (2,339) | (2,900) |
| on | | | |
| ordinary | | | |
| activities | | | |
| before | | | |
| taxation | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Tax | | - | - |
| expense | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Loss | | (2,339) | (2,900) |
| for | | | |
| the | | | |
| financial | | | |
| period | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| Basic | 2 | 7.05p | 10.8p |
| and | | | |
| diluted | | | |
| loss | | | |
| per | | | |
| share | | | |
+----------------+--------+----------+----------+
| | | | |
+----------------+--------+----------+----------+
| All items dealt with in arriving |
| at operating loss above relate to |
| continuing operations. |
+----------------+--------+----------+----------+
+--------------+
| CONSOLIDATED |
| BALANCE |
| SHEET |
+--------------+
+----------+
| At 31 |
| December |
| 2008 |
+----------+
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| | | Notes | 31 | 31 |
| | | | December | December |
| | | | 2008 | 2007 |
+--------------+--------+--------+----------+----------+
| | | | GBP'000 | GBP'000 |
+--------------+--------+--------+----------+----------+
| Assets | | | | |
+--------------+--------+--------+----------+----------+
| Non-current | | | | |
| assets | | | | |
+--------------+--------+--------+----------+----------+
| Plant | | | 494 | 284 |
| and | | | | |
| equipment | | | | |
+--------------+--------+--------+----------+----------+
| Intangible | | | 1,161 | 715 |
| assets | | | | |
+--------------+--------+--------+----------+----------+
| | | | 1,655 | 999 |
+--------------+--------+--------+----------+----------+
| Current | | | | |
| assets | | | | |
+--------------+--------+--------+----------+----------+
| Inventories | | | 1,590 | 1,488 |
+--------------+--------+--------+----------+----------+
| Trade | | | 1,937 | 1,635 |
| and | | | | |
| other | | | | |
| receivables | | | | |
+--------------+--------+--------+----------+----------+
| Cash | | | 1,626 | 1,814 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+--------------+--------+--------+----------+----------+
| | | | 5,153 | 4,937 |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| TOTAL | | | 6,808 | 5,936 |
| ASSETS | | | | |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| Equity | | | | |
| and | | | | |
| liabilities | | | | |
+--------------+--------+--------+----------+----------+
| Equity | | | | |
| attributable | | | | |
| to equity | | | | |
| holders of | | | | |
| the parent | | | | |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| Ordinary | | | 24 | 15 |
| share | | | | |
| capital | | | | |
+--------------+--------+--------+----------+----------+
| Accumulated | | | (41,458) | (39,151) |
| loss | | | | |
+--------------+--------+--------+----------+----------+
| Other | | | 33,504 | 33,504 |
| reserves | | | | |
+--------------+--------+--------+----------+----------+
| Share | | | 11,231 | 8,982 |
| premium | | | | |
+--------------+--------+--------+----------+----------+
| Translation | | | 1,148 | 391 |
| reserve | | | | |
+--------------+--------+--------+----------+----------+
| Total | | | 4,449 | 3,741 |
| equity | | | | |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| Non | | | | |
| current | | | | |
| liabilities | | | | |
+--------------+--------+--------+----------+----------+
| Other | | | 3 | 7 |
| payables | | | | |
+--------------+--------+--------+----------+----------+
| | | | 3 | 7 |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| Current | | | | |
| liabilities | | | | |
+--------------+--------+--------+----------+----------+
| Trade | | | 1,710 | 1,750 |
| and | | | | |
| other | | | | |
| payables | | | | |
+--------------+--------+--------+----------+----------+
| Provisions | | | 646 | 438 |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| | | | 2,356 | 2,188 |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| TOTAL | | | 2,359 | 2,195 |
| LIABILITIES | | | | |
+--------------+--------+--------+----------+----------+
| | | | | |
+--------------+--------+--------+----------+----------+
| TOTAL | | | 6,808 | 5,936 |
| EQUITY | | | | |
| AND | | | | |
| LIABILITIES | | | | |
+--------------+--------+--------+----------+----------+
+----------------+
| CONSOLIDATED |
| CASH |
| FLOW STATEMENT |
+----------------+
+----------+
| For |
| the |
| year |
| ended |
| 31 |
| December |
| 2008 |
+----------+
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| | | Year | Year |
| | | ended | ended |
+------------------------+--------+----------+----------+
| Consolidated | | 31 | 31 |
| cash flow | | December | December |
| statement | | 2008 | 2007 |
+------------------------+--------+----------+----------+
| | | GBP'000 | GBP'000 |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Cash | | | |
| flows | | | |
| from | | | |
| operating | | | |
| activities | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Loss | | (2,339) | (2,900) |
| before | | | |
| taxation | | | |
+------------------------+--------+----------+----------+
| Adjustments | | | |
| for: | | | |
+------------------------+--------+----------+----------+
| Net | | (51) | (167) |
| finance | | | |
| income | | | |
+------------------------+--------+----------+----------+
| Depreciation | | 115 | 55 |
| of plant and | | | |
| equipment | | | |
+------------------------+--------+----------+----------+
| Amortisation | | 397 | 311 |
| of | | | |
| intangibles | | | |
+------------------------+--------+----------+----------+
| Impairment | | 114 | - |
| of | | | |
| intangibles | | | |
+------------------------+--------+----------+----------+
| Share-based | | 32 | 161 |
| payments | | | |
+------------------------+--------+----------+----------+
| Decrease/(increase) | | 75 | (334) |
| in trade and other | | | |
| receivables | | | |
+------------------------+--------+----------+----------+
| (Decrease)/increase | | (532) | 503 |
| in trade and other | | | |
| payables | | | |
+------------------------+--------+----------+----------+
| Decrease/(increase) | | 164 | (398) |
| in inventories | | | |
+------------------------+--------+----------+----------+
| Increase/(decrease) | | 208 | (369) |
| in provisions | | | |
+------------------------+--------+----------+----------+
| Other | | - | 12 |
| non-cash | | | |
| movements | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Net | | (1,817) | (3,126) |
| cash | | | |
| outflow | | | |
| from | | | |
| operating | | | |
| activities | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Investing | | | |
| activities | | | |
+------------------------+--------+----------+----------+
| Interest | | 52 | 171 |
| received | | | |
+------------------------+--------+----------+----------+
| Payments | | (320) | (226) |
| to | | | |
| acquire | | | |
| plant | | | |
| and | | | |
| equipment | | | |
+------------------------+--------+----------+----------+
| Payments | | (824) | (600) |
| to | | | |
| acquire | | | |
| intangible | | | |
| assets | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Net | | (1,092) | (655) |
| cash | | | |
| outflow | | | |
| from | | | |
| investing | | | |
| activities | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Financing | | | |
| activities | | | |
+------------------------+--------+----------+----------+
| Interest | | (1) | (4) |
| paid | | | |
+------------------------+--------+----------+----------+
| Proceeds | | 2,500 | - |
| from the | | | |
| issue of | | | |
| ordinary | | | |
| share | | | |
| capital | | | |
+------------------------+--------+----------+----------+
| Share | | (242) | - |
| issue | | | |
| costs | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Net | | 2,257 | (4) |
| cash | | | |
| (outflow)/inflow | | | |
| from financing | | | |
| activities | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Net(decrease)/increase | | (652) | (3,785) |
| in cash and cash | | | |
| equivalents | | | |
+------------------------+--------+----------+----------+
| Net | | 464 | (18) |
| foreign | | | |
| exchange | | | |
| differences | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Cash | | 1,814 | 5,617 |
| and | | | |
| cash | | | |
| equivalents | | | |
| at 1 | | | |
| January | | | |
+------------------------+--------+----------+----------+
| | | | |
+------------------------+--------+----------+----------+
| Cash | | 1,626 | 1,814 |
| and | | | |
| cash | | | |
| equivalents | | | |
| at 31 | | | |
| December | | | |
+------------------------+--------+----------+----------+
+----------------------------------------------------------------------------------+
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
+----------------------------------------------------------------------------------+
+----------------------------------------------------------------------------------+
| For the year ended 31 December 2008 |
+----------------------------------------------------------------------------------+
+-------------+---------+---------+-------------+----------+----------+---------+
| | Issued | Share | Translation | Other | Retained | Total |
| | capital | premium | reserve | reserves | earnings | equity |
+-------------+---------+---------+-------------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------+---------+---------+-------------+----------+----------+---------+
| Balance | 15 | 8,982 | 476 | 33,410 | (36,412) | 6,471 |
| at 1 | | | | | | |
| January | | | | | | |
| 2007 | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Translation | - | - | (85) | 94 | - | 9 |
| movements | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Total | - | - | (85) | 94 | - | 9 |
| income | | | | | | |
| and | | | | | | |
| expense | | | | | | |
| for the | | | | | | |
| year | | | | | | |
| recognised | | | | | | |
| directly | | | | | | |
| in equity | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Loss | - | - | - | - | (2,900) | (2,900) |
| for | | | | | | |
| the | | | | | | |
| year | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Total | - | - | (85) | 94 | (2,900) | (2,891) |
| income | | | | | | |
| and | | | | | | |
| expense | | | | | | |
| for the | | | | | | |
| year | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Share-based | - | - | - | - | 161 | 161 |
| payments | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Balance | 15 | 8,982 | 391 | 33,504 | (39,151) | 3,741 |
| at 31 | | | | | | |
| December | | | | | | |
| 2007 | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Translation | - | - | 757 | | - | 757 |
| movements | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Total | - | - | 757 | - | - | 757 |
| income | | | | | | |
| and | | | | | | |
| expense | | | | | | |
| for the | | | | | | |
| year | | | | | | |
| recognised | | | | | | |
| directly | | | | | | |
| in equity | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Loss | - | - | - | - | (2,339) | (2,339) |
| for | | | | | | |
| the | | | | | | |
| year | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Total | - | - | 757 | - | (2,339) | (1,582) |
| income | | | | | | |
| and | | | | | | |
| expense | | | | | | |
| for the | | | | | | |
| year | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Share-based | - | - | - | - | 32 | 32 |
| payments | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| On | 9 | 2,491 | - | - | - | 2,500 |
| issue | | | | | | |
| of new | | | | | | |
| shares | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Share | - | (242) | - | - | - | (242) |
| issuance | | | | | | |
| costs | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
| Balance | 24 | 11,231 | 1,148 | 33,504 | (41,458) | 4,449 |
| at 31 | | | | | | |
| December | | | | | | |
| 2008 | | | | | | |
+-------------+---------+---------+-------------+----------+----------+---------+
+--------+
| NOTES |
| : |
+--------+
+-------------+
| 1. |
| Segment |
| information |
+-------------+
| |
| For |
| management |
| purposes |
| the Group |
| is |
| organised |
| into |
| business |
| units |
| based on |
| their |
| products |
| and |
| services, |
| and has |
| three |
| reportable |
+-------------+
+---------------+-------------+------------+-----------+--------------+---------+
| | Year ended 31 December 2008 GBP'000 |
+---------------+---------------------------------------------------------------+
| | Vehicle |Components |Emissions | Adjustments | Total |
| |Conversions | |Reduction | and | |
| | | | |Eliminations | |
+---------------+-------------+------------+-----------+--------------+---------+
| Revenue | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Third | 3,350 | 2,070 | 1,048 | - | 6,468 |
| party | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Inter-segment | 1,528 | - | - | (1,528) | - |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Total | 4,878 | 2,070 | 1,048 | (1,528) | 6,468 |
| revenue | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Results | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Depreciation | (384) | (121) | (7) | - | (512) |
| and | | | | | |
| amortisation | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Segment | (2,397) | 207 | (45) | (155) | (2,390) |
| (loss)/profit | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | 51 |
| finance | | | | | |
| costs | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | (2,339) |
| loss | | | | | |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Assets | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Capital | 934 | 210 | - | - | 1,144 |
| expenditure | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Non-current | 1,399 | 260 | 11 | (15) | 1,655 |
| assets | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Current | 2,886 | 1,654 | 675 | (62) | 5,153 |
| assets | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Provisions | 537 | 35 | 94 | (20) | 646 |
+---------------+-------------+------------+-----------+--------------+---------+
| Operating | 1,486 | 524 | 366 | (20) | 2,356 |
| liabilities | | | | | |
| including | | | | | |
| provisions | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
+----------------------------------------------------------------------------------+
| 1. Inter-segment revenues are eliminated on consolidation. |
+----------------------------------------------------------------------------------+
| 2. Capital expenditure consists of additions to plant and equipment and |
| intangible assets. |
+----------------------------------------------------------------------------------+
| 3. Revenue from one customer amounted to GBP1,948,135 (2007: GBP1,270,080), |
| arising from sales related to the vehicle conversions segment. |
+----------------------------------------------------------------------------------+
| 4. Adjustments and eliminations relate to consolidation eliminations and Holding |
| Company items. |
+----------------------------------------------------------------------------------+
+---------------+-------------+------------+-----------+--------------+---------+
| | Year ended 31 December 2007 GBP'000 |
+---------------+---------------------------------------------------------------+
| | Vehicle |Components |Emissions | Adjustments | Total |
| |Conversions | |Reduction | and | |
| | | | |eliminations | |
+---------------+-------------+------------+-----------+--------------+---------+
| Revenue | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Third | 3,039 | 1,476 | 189 | - | 4,704 |
| party | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Inter-segment | 986 | 91 | - | (1,077) | - |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Total | 4,025 | 1,567 | 189 | (1,077) | 4,704 |
| revenue | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Results | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Depreciation | (321) | (34) | (11) | - | (366) |
| and | | | | | |
| amortisation | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Segment | (2,846) | 87 | (266) | (42) | (3,067) |
| (loss)/profit | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | 167 |
| finance | | | | | |
| costs | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | (2,900) |
| loss | | | | | |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Assets | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Capital | 746 | 75 | 5 | - | 826 |
| expenditure | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Non-current | 890 | 86 | 23 | - | 999 |
| assets | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Current | 4,207 | 729 | 143 | (142) | 4,937 |
| assets | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| Provisions | 421 | 18 | 40 | (41) | 438 |
+---------------+-------------+------------+-----------+--------------+---------+
| Operating | 1,873 | 280 | 76 | (41) | 2,188 |
| liabilities | | | | | |
| including | | | | | |
| provisions | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+-------------+------------+-----------+--------------+---------+
+----------------------------------------------------------------------------------+
| 1. Inter-segment revenues are eliminated on consolidation. |
+----------------------------------------------------------------------------------+
| 2. Capital expenditure consists of additions to plant and equipment and |
| intangible assets. |
+----------------------------------------------------------------------------------+
| 3. Adjustments and eliminations relate to consolidation eliminations and Holding |
| Company items. |
+----------------------------------------------------------------------------------+
+--------------+
| Geographical |
| Information |
+--------------+
+------------+----------+----------+
| | Year | Year |
| | ended | ended |
+------------+----------+----------+
| | 31 | 31 |
| | December | December |
| | 2008 | 2007 |
+------------+----------+----------+
| | | |
+------------+----------+----------+
| Revenues | GBP'000 | GBP'000 |
| from | | |
| external | | |
| customers: | | |
+------------+----------+----------+
| | | |
+------------+----------+----------+
| UK | 353 | 947 |
+------------+----------+----------+
| USA | 2,908 | 1,195 |
+------------+----------+----------+
| Australia | 2,515 | 1,705 |
+------------+----------+----------+
| Rest | 590 | 658 |
| of | | |
| Europe | | |
+------------+----------+----------+
| Rest | 102 | 199 |
| of | | |
| World | | |
+------------+----------+----------+
| | 6,468 | 4,704 |
+------------+----------+----------+
+----------------------------------------------------------------------------------+
| The revenue information is based on the location of the customer. |
+----------------------------------------------------------------------------------+
+--------+
| 2. |
| Loss |
| per |
| Share |
+--------+
+----------------------------------------------------------------------------------+
| Basic |
+----------------------------------------------------------------------------------+
+--------------+
| Basic |
| loss |
| per |
| share |
| is |
| calculated |
| by |
| dividing |
| net loss |
| for the |
| year |
| attributable |
| to equity |
| holders of |
| the parent |
| by the |
| weighted |
| average |
| number of |
| Common |
| Shares in |
| issue during |
| the year. |
+--------------+
| |
+--------------+
+----------+------------+------------+
| | 2008 | 2007 |
+----------+------------+------------+
| | | |
+----------+------------+------------+
| Loss | (2,339) | (2,900) |
| for | | |
| the | | |
| period | | |
+----------+------------+------------+
| Weighted | 33,188,963 | 26,905,479 |
| average | | |
| number | | |
| of | | |
| shares | | |
+----------+------------+------------+
| Basic | (7.05p) | (10.8p) |
| and | | |
| diluted | | |
| loss | | |
| per | | |
| share | | |
+----------+------------+------------+
+----------------------------------------------------------------------------------+
| The loss for the period and the weighted average number of ordinary shares for |
| calculating the diluted earnings per share for the period to 31 December 2008 |
| are identical to those used for the basic earnings per share. This is because |
| the outstanding share options would have the effect of reducing the loss per |
| ordinary share and would therefore not be dilutive. |
+----------------------------------------------------------------------------------+
3. Dividend Policy
In accordance with the Company's policy as set out in its admission document the
Company does not propose to declare a dividend.
4. Registered Office
Copies of this statement are available at the registered office of Clean Air
Power Limited at;
Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
5. Accounting Polices
The Group and Company's financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRSs) as adopted by the EU as
they apply to the financial statements of the Group for the year ended 31
December 2008.
The preliminary results for the year ended 31 December 2008 have been approved
by the Directors. Our auditors have issued an unqualified audit report on the
results for the year ended 31 December 2008. The financial information set out
above does not constitute statutory accounts within the meaning of section 240
of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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