TIDMCAP
RNS Number : 5626T
Clean Air Power Limited
30 September 2010
Clean Air Power Limited
("Clean Air Power" or "Company")
Interim Results for the year to 30 June 2010
For immediate release
30 September 2010
Clean Air Power Ltd (AIM:CAP), the developer of Dual-Fuel(TM) combustion
technology for heavy-duty diesel engines, today announces its results for the
six month period ended 30 June 2010.
Financial Highlights
· Revenue for the period: GBP2.3m (2009: GBP3.3m)
· Gross profit for the period: GBP1.3m (2009: GBP1.8m)
· Losses after tax for the period: GBP1.2m (2009: GBP1.0m)
· Gross margin for the period: 56% (2009: 53%)
· In September 2010, GBP2.25m was raised from institutional investors
including Credit Suisse, Fidelity, Henderson, Royal Bank of Canada and certain
other investors
Operational Highlights
· Supply and Development Agreements signed with Volvo Powertrain, a
subsidiary of AB Volvo, key milestone for the Company.
· Concept Development Agreement signed with Navistar Inc
· Concept Development agreement signed with Volvo Bus Corporation
· Concept Development agreement signed with a Global Construction
Manufacturer to develop Dual-Fuel(TM) Snowblower
· Euro 5 Volvo Genesis EDGE product launched June 2010
· Order received to deliver ten Genesis EDGE units ordered by HAM Group
("HAM") to be fitted on Volvo FM13 tractor units
· GBP0.60m order received by Emissions division, due for delivery in 2010
John Pettitt, Chief Executive of Clean Air Power said:
"The signature of the supply agreement with Volvo represents the achievement of
the Company's key objective set out at admission to AIM and provides the Company
with a springboard from which it can realise the full potential of its exciting
technology. Trading conditions in our sector have impacted these particular
results although we expect that these conditions will improve in the second half
of the year. The successful GBP2.25m fundraising in September 2010 has also
provided a firm base from which to support the launch of our Volvo products and
continue the development of our product for the US market with Navistar."
For further information, please contact:
Clean Air Power Ltd 01772 624499
John Pettitt
Peter Rowse
Buchanan Communications 020 7466 5000
Charles Ryland
Ben Romney
Charles Stanley Securities 020 7149 6000
(Nominated Adviser and Broker)
Russell Cook
Carl Holmes
Chief Executive's Statement
The first half of the year has seen the achievement of the Clean Air Power's
primary objective: the signature of the first major manufacturer supply contract
since the Company was relaunched and admitted to AIM . In addition to the Volvo
Powertrain agreement the Company has signed development agreements with Volvo
Bus Corporation and a major global manufacturer of construction equipment.
The Company is pleased to report that progress is being made across all
divisions. However, sales of our Components division have been lower than last
year due to a reduction in demand from a US government defence contractor and
delays in recognising revenue from our project based Emissions division. It is
expected that sales will improve in the second half of the year.
Clean Air Power has three commercial divisions; Dual-Fuel(TM) Vehicle
Installations, Components and Emissions Reduction systems.
1) Dual-Fuel(TM) Vehicle Installations
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 matter and CO2 emissions as well as generating fuel cost savings for
the operator.
The technology is currently available in two main variants; the interfaced
product, where Clean Air Power's technology is adapted to vehicles with the
manufacturers' cooperation; and the Genesis product, where the technology is
adapted and retro-fitted solely by Clean Air Power under its own brand.
The first half of the year has seen sales for this division reduce by 11%
compared to the period to 30 June 2009. This shortfall is due mainly to the 2009
revenue having been boosted by manufacturer' related engineering prototype
development activity, such activity not being repeated in 2010.
Genesis EDGE vehicle system
The 'Genesis' system was developed specifically to be a retro-fitted solution
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%-60% 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
economically attractive in the target markets.
The agreement with Volvo allowed Clean Air Power to develop its 'own brand'
Genesis solution for a Volvo FM 13 Euro 5 compliant vehicle. The newly improved
'Genesis Edge' variant was introduced in June 2010, delayed due to the intense
development activity that has taken place this year on the main Volvo
development project for the interfaced solution.
Manufacturer Developments: Interfaced vehicle system
In this solution our Dual-Fuel(TM) technology is interfaced with the
manufacturer's electronic engine management system and therefore requires their
cooperation and maximises the reduction of emissions and fuel cost savings. We
expect around 75% - 90% of the diesel normally used by the vehicle to be
substituted for gas on an interfaced product.
Clean Air Power's first interfaced products were developed with Caterpillar in
the US. These products have largely reached the end of their life cycle although
some are still sold in Australia. The Company's activity with Volvo and Navistar
is designed to apply our patented technology to develop solutions for current
and future vehicles.
The Company's main strategic goal remains to work with vehicle or engine
manufacturers to reach an agreement whereby our Dual-Fuel(TM) technology is
incorporated on their vehicles as a standard option and to develop it further
with their full cooperation. In this way the benefits of our technology and
routes to market can be maximised.
Volvo:
The new interfaced product that Clean Air Power has developed with Volvo will
feature on one of Volvo's latest Euro 5 compliant Volvo trucks. Euro 5
compliant vehicles can be sold throughout the European Union and Australia and
certain other markets across the world.
In July 2010, Supply and Development Agreements, initially for five years, have
been signed with Volvo Powertrain, a subsidiary of AB Volvo. This follows 3
years of close cooperation on a product development partnership and supersedes
the Letter of Intent signed in January 2009. Clean Air Power's OEM product will
be marketed and supported by Volvo Truck Corporation.
Incorporating Clean Air Power's Dual-Fuel(TM) technology into these truck
engines will deliver significant greenhouse gas emission reductions and fuel
cost savings compared with standard diesel engines. Additionally these
Dual-Fuel(TM) trucks are expected to be around 30% more energy efficient than
equivalent spark ignited natural gas engines. The engines can use natural or
bio-gas as the main fuel and can also operate solely on diesel, an important
feature as gas distribution systems face many years of development.
The testing in commercial operation will begin later this year and initially
take place in UK, Sweden and Thailand. Details for commercialisation will be
mutually agreed upon.
The contracts set out certain commercial and technical criteria that are to be
achieved including gas substitution levels, emissions compliance, performance
and durability testing before the product launch. 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.
Navistar:
In February 2010 Clean Air Power entered into a concept development agreement
with Navistar, Inc. ("Navistar") to develop a MaxxForce 13 Natural Gas/Diesel
Engine Program for the North American market.
The purpose of the development program is to utilise Clean Air Power's
Dual-Fuel(TM) combustion technology to deliver an engine that achieves the US
Environmental Protection Agency (EPA) 2010 emissions standard.
Subject to a successful Concept Ready Phase, which is expected during the fourth
quarter of 2010, it is intended that the agreement will then enter a second
stage known as the Implementation Ready Phase before entering the third
Production Ready Phase. This third phase will deliver a U.S. EPA 2010 certified
engine and Navistar and Clean Air Power are planning to seek US grant funding
for full production.
Focus in North America on using natural gas as a road fuel for heavy goods
vehicles is increasing and natural gas is being supported by grant funding from
various government departments including the Department of Energy.
Additionally, the Energy Bill, as proposed, aims to extend and increase
available subsidies for natural gas vehicles which would be worth more than Two
Billion Dollars.
2) Components Division
Clean Air Power manufactures a number of the components that are used in the
Group's Dual-Fuel(TM) technology. The Group sells these components for spark
ignited gas engines and certain other applications. Global demand for these
engines is increasing as customers are increasingly aware of the social and
economic drivers towards alternative fuels. With global sales, strong margins
and a customer base including international automotive manufacturers, this is an
important contributor to the overall Clean Air Power business.
This business is relatively mature and tends to operate with long initial order
lead times but thereafter receives regular recurring revenues from maintenance
and servicing requirements in addition to the initial demand for production.
Revenue for the Components Division of GBP1.12m to 30 June 2010 is considerably
lower than the GBP1.65m achieved during the same period in 2009 due to a
reduction in demand from a US government defence contractor although the demand
levels from other customers of the business remains generally healthy and in
line with the company's expectations.
3) Emissions Reduction Division
This area of our business typically provides solutions to very large stationary
diesel engines such as those used in pumping stations. Our current market is
the USA providing 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.
Historically this has been mainly a project based business with a few large
scale contracts generating the majority of the revenue. Order lead times for
this division are typically much longer than for the other divisions of the
Company.
While the core business remains, during 2010 the division expanded its market by
winning a significant order to supply Catalytic Converters for vehicles to
Emissions Solutions Inc. (ESI). These units will be used on 7.6L Natural Gas
Engines to control emissions to will deliver sub EPA '10 emission levels for
their truck and bus operating customers and has provided the Company with an
entry into a potentially very significant market.
This entry into the vehicle market represents a success in the division's
previously stated strategic objective to develop further revenue opportunities
from smaller, more regular contracts that provide more stable revenue streams.
The year to date sales of GBP0.3m are lower than the GBP0.6m achieved for the
same period to June 2009, however the division should see significant
improvement during the second half of 2010 following the contract win with ESI
and other orders confirmed for delivery in 2010 totalling GBP0.6m.
Financial Review
The six month period to 30 June 2010 has seen revenue decrease 30% to GBP2.3m
from GBP3.3m in the same period in 2009. This is due mainly to a reduction in
demand from a US government defence contractor and the timing of revenue in our
Emissions reduction division.
The gross profit of GBP1.3m earned to June 2010 is lower than the GBP1.8m up to
June 2009. The 2010 gross margin to date of 56% is higher than the 53% achieved
up until June 2009. The main cause has been the increased weighting of the
component and emissions businesses in the sales mix.
Operating loss increased to GBP1.2m representing a GBP0.3m increase on the
GBP0.9m loss for the same period in 2009. This has been mainly down to reduction
in sales of our components and emissions products.
The net result after tax for the period was a loss of GBP1.2m, a GBP0.2m
increase on the GBP1.0m loss for the same period in 2009. The basic loss per
share for the period was 2.1p (2009: 2.0p).
Gross receipts from the recent fundraising during September 2010 were GBP2.25m
compared with GBP2.9m during 2009. The cash position as at 30 June 2010 is
GBP1.3m compared to GBP2.9m as at the end of 2009.
Investments in fixed assets have increased to GBP0.6m for the period compared
with GBP0.4m in the first half of 2009. The majority of these amounts relate to
capitalisation of labour and expenses incurred in developing new products.
Outlook
The increase in the delta between natural gas and diesel prices and Natural Gas
initiatives in the US are encouraging operators to consider alternative options
to fuel their fleets of vehicles. These drivers coincide with the desire within
many organisations to reduce emissions from their transport operations. The
Company's existing and prospective new product offerings mean that we are well
placed to capitalise on the opportunities that arise as a result of these
factors.
The agreement of the Volvo contract improves the visibility of future revenues
with customer trials and product validation activity planned for the second half
of the year.
Our progress with Navistar brings the advent of a product for the important US
market much nearer and we aim to progress from the Navistar current concept
development towards a Implementation Ready Phase by the end of the year.
The revenue generated by our Emissions Division is expected to accelerate in the
second half of the year as we deliver the orders in hand while Components sales
are expected to remain relatively steady.
The anticipated commissioning of the LNG plant in Tasmania which, although later
than anticipated, is expected to provide the impetus for an uplift in Australian
sales.
.
The launch of our Genesis EDGE should facilitate improvements in sales of our
Dual-Fuel(TM) products and in the UK and Europe we aim to accelerate revenues by
rolling out this new product.
The recently announced fundraising coupled with progress in our manufacturer
relationships have strengthened our confidence in the medium to long term
prospects for the Company and we look forward to exploiting the full potential
of our technology over the coming years.
John Pettitt
Chief Executive
30 September 2010
+--------------+
| |
| INTERIM |
|CONSOLIDATED |
| INCOME |
| STATEMENT |
+--------------+
+--------+
| For |
| the |
| six |
| months |
| ended |
| 30 |
| June |
| 2010 |
+--------+
+----------------+--------+-----------+-----------+----------+
| | | Unaudited | Unaudited | |
| | | | | Audited |
+----------------+--------+-----------+-----------+----------+
| | Note | 6 | 6 | |
| | | months | months | Year |
| | | to | to | to |
| | | 30 | 30 | 31 |
| | | June | June | December |
| | | 2010 | 2009 | 2009 |
+----------------+--------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Revenue | 6 | 2,317 | 3,331 | 5,793 |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Cost | | (1,009) | (1,558) | (2,822) |
| of | | | | |
| Sales | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Gross | | 1,308 | 1,773 | 2,971 |
| profit | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Administrative | | (2,466) | (2,630) | (5,127) |
| expenses | | | | |
+----------------+--------+-----------+-----------+----------+
| Share-based | 8 | (46) | (18) | (105) |
| payments | | | | |
| charge | | | | |
+----------------+--------+-----------+-----------+----------+
| Impairment | | - | - | (55) |
| charge | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Operating | | (1,204) | (875) | (2,316) |
| loss | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Reorganisation | | - | (143) | (142) |
| costs | | | | |
+----------------+--------+-----------+-----------+----------+
| Finance | | 11 | 10 | 23 |
| revenue | | | | |
+----------------+--------+-----------+-----------+----------+
| Finance | | - | - | (1) |
| costs | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Loss | 6 | (1,193) | (1,008) | (2,436) |
| on | | | | |
| ordinary | | | | |
| activities | | | | |
| before | | | | |
| taxation | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Tax | 5 | - | (2) | - |
| expense | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Loss | | (1,193) | (1, 010) | (2,436) |
| for | | | | |
| the | | | | |
| period | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| Basic | | (2.14p) | (2.0p) | (4.75p) |
| and | | | | |
| diluted | | | | |
| loss | | | | |
| per | | | | |
| share | | | | |
+----------------+--------+-----------+-----------+----------+
| | | | | |
+----------------+--------+-----------+-----------+----------+
| All items dealt with in arriving at |
| operating loss above relate to continuing |
| operations. |
+----------------+--------+-----------+-----------+----------+
+---------------+
| INTERIM |
| CONSOLIDATED |
| STATEMENT OF |
|COMPREHENSIVE |
| INCOME |
+---------------+
+--------+
| For |
| the |
| six |
| months |
| ended |
| 30 |
| June |
| 2010 |
+--------+
+---------------+--------+-----------+-----------+----------+
| | | Unaudited | Unaudited | |
| | | | | Audited |
+---------------+--------+-----------+-----------+----------+
| | | 6 | 6 | |
| | | months | months | Year |
| | | to | to | to |
| | | 30 | 30 | 31 |
| | | June | June | December |
| | | 2010 | 2009 | 2009 |
+---------------+--------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------+--------+-----------+-----------+----------+
| | | | | |
+---------------+--------+-----------+-----------+----------+
| | | | | |
+---------------+--------+-----------+-----------+----------+
| Loss | | (1,193) | (1,010) | (2,436) |
| for | | | | |
| the | | | | |
| period | | | | |
+---------------+--------+-----------+-----------+----------+
| | | | | |
+---------------+--------+-----------+-----------+----------+
| Exchange | | 120 | (347) | (165) |
| differences | | | | |
| on | | | | |
| translation | | | | |
| of foreign | | | | |
| operations | | | | |
+---------------+--------+-----------+-----------+----------+
| | | | | |
+---------------+--------+-----------+-----------+----------+
| | | | | |
+---------------+--------+-----------+-----------+----------+
| Total | | (1,073) | (1,357) | (2,601) |
| Comprehensive | | | | |
| loss for the | | | | |
| period | | | | |
+---------------+--------+-----------+-----------+----------+
| | | | | |
+---------------+--------+-----------+-----------+----------+
| Attributable | | | | |
| to: | | | | |
+---------------+--------+-----------+-----------+----------+
| Equity | | (1,073) | (1,357) | (2,601) |
| holders | | | | |
| of the | | | | |
| parent | | | | |
+---------------+--------+-----------+-----------+----------+
+--------------+
| INTERIM |
|CONSOLIDATED |
|STATEMENT OF |
| FINANCIAL |
| POSITION |
+--------------+
+--------+
| |
| As at |
| 30 |
| June |
| 2010 |
+--------+
+--------------+--------+--------+-----------+-----------+----------+
| | | | Unaudited | Unaudited | Audited |
+--------------+--------+--------+-----------+-----------+----------+
| | | Note | 6 | 6 | |
| | | | months | months | Year |
| | | | to | to | to |
| | | | 30 | 30 | 31 |
| | | | June2010 | June | December |
| | | | | 2009 | 2009 |
+--------------+--------+--------+-----------+-----------+----------+
| | | | GBP'000 | GBP'000 | |
| | | | | | GBP'000 |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Assets | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Non-current | | | | | |
| assets | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Plant | | 7 | 305 | 393 | 337 |
| and | | | | | |
| equipment | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Intangible | | 7 | 1,560 | 1,162 | 1,140 |
| assets | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | 1,865 | 1,555 | 1,477 |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Current | | | | | |
| assets | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Inventories | | | 1,128 | 1,275 | 984 |
+--------------+--------+--------+-----------+-----------+----------+
| Trade | | | 1,211 | 1,897 | 1,540 |
| and | | | | | |
| other | | | | | |
| receivables | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Cash | | 4 | 1,290 | 3,336 | 2,938 |
| and | | | | | |
| cash | | | | | |
| equivalents | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | 3,629 | 6,508 | 5,462 |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| TOTAL | | | 5,494 | 8,063 | 6,939 |
| ASSETS | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Equity | | | | | |
| and | | | | | |
| liabilities | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Equity | | | | | |
| attributable | | | | | |
| to equity | | | | | |
| holders of | | | | | |
| the parent | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Ordinary | | | 33 | 33 | 33 |
| share | | | | | |
| capital | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Share | | | 14,083 | 14,043 | 14,048 |
| premium | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Translation | | | 1,103 | 801 | 983 |
| reserve | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Other | | | 33,504 | 33,504 | 33,504 |
| reserves | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Accumulated | | | (44,917) | (42,450) | (43,789) |
| loss | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Total | | | 3,806 | 5,931 | 4,779 |
| equity | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Non-current | | | | | |
| liabilities | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Other | | | 1 | 3 | 1 |
| payables | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | 1 | 3 | 1 |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Current | | | | | |
| liabilities | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Trade | | | 1,009 | 1,600 | 1,178 |
| and | | | | | |
| other | | | | | |
| payables | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Provisions | | | 388 | 529 | 392 |
+--------------+--------+--------+-----------+-----------+----------+
| Deferred | | | 290 | - | 589 |
| revenue | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | 1,687 | 2,129 | 2,159 |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| Total | | | 1,688 | 2,132 | 2,160 |
| liabilities | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| TOTAL | | | 5,494 | 8,063 | 6,939 |
| EQUITY | | | | | |
| AND | | | | | |
| LIABILITIES | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
| | | | | | |
+--------------+--------+--------+-----------+-----------+----------+
+----------+
| |
+----------+
| Director |
+----------+
+--------------+
| INTERIM |
|CONSOLIDATED |
| CASH FLOW |
| STATEMENT |
+--------------+
+--------+
| |
| For |
| the |
| six |
| months |
| ended |
| 30 |
| June |
| 2010 |
+--------+
+---------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+---------------------+-----------+-----------+----------+
| | 6 | 6 | Year |
| | months | months | to |
| | to 30 | to 30 | 31 |
| | June | June | December |
| | 20010 | 2009 | 2009 |
+---------------------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Cash | | | |
| flows | | | |
| from | | | |
| operating | | | |
| activities | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Loss | (1,193) | (1,008) | (2,436) |
| before | | | |
| taxation | | | |
+---------------------+-----------+-----------+----------+
| Adjustments | | | |
| for: | | | |
+---------------------+-----------+-----------+----------+
| Net | (11) | (10) | (22) |
| finance | | | |
| income | | | |
+---------------------+-----------+-----------+----------+
| Depreciation | 75 | 75 | 147 |
| of plant and | | | |
| equipment | | | |
+---------------------+-----------+-----------+----------+
| Amortisation | 243 | 275 | 601 |
| of | | | |
| intangibles | | | |
+---------------------+-----------+-----------+----------+
| Impairment | - | - | 55 |
| of | | | |
| intangibles | | | |
+---------------------+-----------+-----------+----------+
| Share-based | 46 | 162 | 105 |
| payments | | | |
+---------------------+-----------+-----------+----------+
| Decrease | 329 | 40 | 397 |
| in trade | | | |
| and | | | |
| other | | | |
| receivables | | | |
+---------------------+-----------+-----------+----------+
| (Decrease) | (169) | (108) | (532) |
| in trade | | | |
| and other | | | |
| payables | | | |
+---------------------+-----------+-----------+----------+
| (Increase)/decrease | (145) | 315 | 606 |
| in inventories | | | |
+---------------------+-----------+-----------+----------+
| (Decrease) | (4) | (117) | (251) |
| in | | | |
| provisions | | | |
+---------------------+-----------+-----------+----------+
| (Decrease)/increase | (299) | - | 589 |
| in deferred revenue | | | |
+---------------------+-----------+-----------+----------+
| Other | 26 | - | 10 |
| non-cash | | | |
| movements | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Net | (1,102) | (376) | (731) |
| cash | | | |
| outflow | | | |
| from | | | |
| operating | | | |
| activities | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Investing | | | |
| activities | | | |
+---------------------+-----------+-----------+----------+
| Interest | 11 | 10 | 23 |
| received | | | |
+---------------------+-----------+-----------+----------+
| Sale | - | - | - |
| of | | | |
| plant | | | |
| and | | | |
| equipment | | | |
+---------------------+-----------+-----------+----------+
| Payments | (27) | (25) | (33) |
| to | | | |
| acquire | | | |
| plant | | | |
| and | | | |
| equipment | | | |
+---------------------+-----------+-----------+----------+
| Payments | (594) | (393) | (748) |
| to | | | |
| acquire | | | |
| intangible | | | |
| assets | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Net | (610) | (408) | (758) |
| cash | | | |
| outflow | | | |
| from | | | |
| investing | | | |
| activities | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Financing | | | |
| activities | | | |
+---------------------+-----------+-----------+----------+
| Interest | - | - | (1) |
| paid | | | |
+---------------------+-----------+-----------+----------+
| Proceeds | - | 2,878 | 3,027 |
| from the | | | |
| issue of | | | |
| ordinary | | | |
| share | | | |
| capital | | | |
+---------------------+-----------+-----------+----------+
| Share | - | (201) | (201) |
| issue | | | |
| costs | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Net | - | 2,677 | 2,825 |
| cash | | | |
| inflow | | | |
| from | | | |
| financing | | | |
| activities | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| Increase/(decrease) | (1,712) | 1,893 | 1,336 |
| in cash and cash | | | |
| equivalents | | | |
+---------------------+-----------+-----------+----------+
| Effect | 64 | (183) | (24) |
| of | | | |
| exchange | | | |
| rates on | | | |
| cash and | | | |
| cash | | | |
| equivalents | | | |
+---------------------+-----------+-----------+----------+
| Cash | 2,938 | 1,626 | 1,626 |
| and | | | |
| cash | | | |
| equivalents | | | |
| at the | | | |
| beginning | | | |
| of the year | | | |
+---------------------+-----------+-----------+----------+
| Cash | 1,290 | 3,336 | 2,938 |
| and | | | |
| cash | | | |
| equivalents | | | |
| at end of | | | |
| period | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
| | | | |
+---------------------+-----------+-----------+----------+
+--------------------------------------------------------------------------+
| INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
+--------------------------------------------------------------------------+
+--------------------------------------------------------------------------+
| For the six months ended 30 June 2010 |
+--------------------------------------------------------------------------+
+---------------+---------+---------+-------------+----------+-------------+---------+
| | Issued | Share | Translation | Other | Accumulated | Total |
| | Capital | Premium | Reserve | Reserves | loss | Equity |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Balance | 24 | 11,231 | 1,148 | 33,504 | (41,458) | 4,449 |
| at 1 | | | | | | |
| January | | | | | | |
| 2009 | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Other | - | - | (347) | - | - | (347) |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Loss | - | - | - | - | (1,010) | (1,010) |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Total | - | - | (347) | - | (1,010) | (1,357) |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Issue | 9 | 3,013 | - | - | - | 3,022 |
| of | | | | | | |
| share | | | | | | |
| capital | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Transaction | - | (201) | - | - | - | (201) |
| costs | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Share-based | - | - | - | - | 18 | 18 |
| payments | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Balance | 33 | 14,043 | 801 | 33,504 | (42,450) | 5,931 |
| at 30 | | | | | | |
| June | | | | | | |
| 2009 | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Other | - | - | 182 | - | - | 182 |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Loss | - | - | - | - | (1,426) | (1,426) |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Total | - | - | 182 | - | (1,426) | (1,244) |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Issue | - | 5 | - | - | - | 5 |
| of | | | | | | |
| share | | | | | | |
| capital | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Transaction | - | - | - | - | - | - |
| costs | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Share-based | - | - | - | - | 87 | 87 |
| payments | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Balance | 33 | 14,048 | 983 | 33,504 | (43,789) | 4,779 |
| at 31 | | | | | | |
| December | | | | | | |
| 2009 | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Other | - | - | 120 | - | - | 120 |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Loss | - | - | - | - | (1,193) | (1,193) |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Total | - | - | 120 | - | (1,193) | (1,073) |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Issue | - | 35 | - | - | - | 35 |
| of | | | | | | |
| share | | | | | | |
| capital | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Transaction | - | - | - | - | - | - |
| costs | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Share-based | - | - | - | - | 65 | 65 |
| payments | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
| Balance | 33 | 14,083 | 1,103 | 33,504 | (44,917) | 3,806 |
| at 30 | | | | | | |
| June | | | | | | |
| 2010 | | | | | | |
+---------------+---------+---------+-------------+----------+-------------+---------+
+------------+
| NOTES |
| TO THE |
| INTERIM |
| FINANCIAL |
|STATEMENTS |
+------------+
1. CORPORATE INFORMATION
The interim condensed consolidated financial statements of Clean Air Power
Limited for the six months ended 30 June 2010 were authorised for issue in
accordance with a resolution of the directors on 30 September 2010. Clean Air
Power Limited is a public limited Company incorporated in Bermuda whose shares
are publicly traded.
All of the revenues and operating assets relate to the Group's principal
business activities, being vehicle conversion sales, sales of components and an
emissions reduction business. Revenue is stated net of value added tax.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The interim condensed consolidated financial statements for the six months ended
30 June 2010 have been prepared in accordance with IAS 34 Interim Financial
Reporting.
The interim condensed consolidated financial statements are presented in
sterling and all values are rounded to the nearest thousand (GBP'000) except
when otherwise indicated.
The interim condensed consolidated financial statements do not constitute the
report of the statements as defined under section 87A of the Companies Act 1981
and therefore do not include all the information and disclosures required in the
annual financial statements, and should be read in conjunction with the Group's
annual financial statements as at 31 December 2009, upon which the auditors
issued an unqualified opinion.
Accounting Policies
The accounting policies adopted in preparation of the interim condensed
financial statements are consistent with those followed in preparation of the
Group's annual financial statements for the year ended 31 December 2009.
3. RISKS AND UNCERTAINTIES
Management identify and assess risks to the business using a common model. The
Group has a number of exposures which can be summarised as follows: manufacturer
co-operation; in house product development; adaptation of core technology; gas
supply; regulatory framework; competition/intellectual property; additional
capital requirements; employees and trading risks. These risks and uncertainties
facing our business were reported in detail in the 2009 Annual Report and
Accounts and all of them are monitored closely by the Group. There have been no
significant changes in the Group's risk and uncertainty factors during the
review period, nor are any expected for the remainder of the year.
+-------------------------------------------------------------------------+
| 4. Cash and cash equivalents |
+-------------------------------------------------------------------------+
+------------------------------------------------------------+---------+---------+----------+
| | Unaudited | Audited |
| | 6 months | year |
| | to | ended |
| | 30 June | 31 |
| | |December |
+------------------------------------------------------------+-------------------+----------+
| | 2010 | 2009 | 2009 |
+------------------------------------------------------------+---------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------------------------+---------+---------+----------+
| Cash at bank and in hand | 1,290 | 3,336 | 2,938 |
+------------------------------------------------------------+---------+---------+----------+
| | 1,290 | 3,336 | 2,938 |
+------------------------------------------------------------+---------+---------+----------+
+-------------------------------------------------------------------------+
| 5. Income tax |
+-------------------------------------------------------------------------+
| The major components of income tax expense in the interim consolidated |
| income statement are: |
+-------------------------------------------------------------------------+
+------------------------------------------------------------+---------+---------+----------+
| | Unaudited | Audited |
| | 6 months | year |
| | to | ended |
| | 30 June | 31 |
| | |December |
+------------------------------------------------------------+-------------------+----------+
| | 2010 | 2009 | 2009 |
+------------------------------------------------------------+---------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------------------------+---------+---------+----------+
| Current taxation | | | |
+------------------------------------------------------------+---------+---------+----------+
| | | | |
+------------------------------------------------------------+---------+---------+----------+
| Overseas tax | - | 2 | - |
+------------------------------------------------------------+---------+---------+----------+
| Income tax expense | - | 2 | - |
+------------------------------------------------------------+---------+---------+----------+
+--------------------------------------------------------------------------+
| NOTES TO THE INTERIM FINANCIAL STATEMENTS |
+--------------------------------------------------------------------------+
+-----------+
| 6. |
| Segmental |
| analysis |
+-----------+
+----------+
| Revenue |
| by |
| business |
| segment: |
+----------+
+------------+
| For |
| management |
| purposes |
| the Group |
| is |
| organised |
| into |
| business |
| units |
| based on |
| their |
| products |
| and |
| services, |
| and has |
| three |
| reportable |
+------------+
| operating |
| segments |
| as |
| follows: |
+------------+
+-------------------------------------------------------------------------+
| The vehicle installations segment allows a standard diesel engine to |
| operate on natural gas without any major changes to the engine. |
+-------------------------------------------------------------------------+
+-------------------------------------------------------------------------+
| The components segment designs and delivers innovative hydraulic valves |
| and natural gas injector components for natural gas engines that enable |
| automotive and truck manufacturers to build low-emission gasoline, |
| natural gas and diesel vehicles that meet worldwide emissions |
| regulations. |
+-------------------------------------------------------------------------+
+-------------------------------------------------------------------------+--+
| The emissions reduction segment offers emissions reduction solutions | |
| that reduce regulated engine emissions by post combustion | |
| after-treatment of an engine's exhaust gasses. | |
+-------------------------------------------------------------------------+--+
| |
+-------------------------------------------------------------------------+--+
+---------------+---------------+------------+-----------+--------------+---------+
| | Unaudited 6 months to 30 June 2010 |
+---------------+-----------------------------------------------------------------+
| | Vehicle |Components |Emissions | Adjustments | Total |
| |Installations | |Reduction | and | |
| | | | |Eliminations | |
+---------------+---------------+------------+-----------+--------------+---------+
| Revenue | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Third | 930 | 1,120 | 267 | - | 2,317 |
| party | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Inter-segment | 118 | - | - | (118) | - |
+---------------+---------------+------------+-----------+--------------+---------+
| Total | 1,048 | 1,120 | 267 | | 2,317 |
| revenue | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Results | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Depreciation | (282) | (36) | (2) | 8 | (312) |
| and | | | | | |
| amortisation | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Impairment | - | - | - | - | - |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Segment | (1,133) | 34 | (175) | 70 | (1,204) |
| (loss)/profit | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | 11 |
| finance | | | | | |
| costs | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Tax | | | | | - |
| expense | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | (1,193) |
| loss | | | | | |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Assets | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Operating | 1,509 | 1,518 | 631 | (29) | 3,629 |
| assets | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Provisions | 246 | 44 | 106 | (8) | 388 |
+---------------+---------------+------------+-----------+--------------+---------+
| Operating | 1,036 | 432 | 227 | (8) | 1,687 |
| liabilities | | | | | |
| including | | | | | |
| provisions | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Other | | | | | |
| disclosures | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| Capital | 600 | 12 | 9 | - | 621 |
| expenditure | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+---------------+---------------+------------+-----------+--------------+---------+
| |
| |
| |
| |
| |
| |
| |
| NOTES TO THE INTERIM FINANCIAL STATEMENTS |
| 6. |
| Segmental |
| analysis |
| - |
| continued |
| |
+---------------------------------------------------------------------------------+
| |
+---------------+---------------+------------+-----------+--------------+---------+
+----------------+---------------+------------+-----------+--------------+---------+
| | Unaudited 6 months to 30 June 2009 |
+----------------+-----------------------------------------------------------------+
| | Vehicle |Components |Emissions | Adjustments | Total |
| |Installations | |Reduction | and | |
| | | | |Eliminations | |
+----------------+---------------+------------+-----------+--------------+---------+
| Revenue | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Third | 1,035 | 1,654 | 642 | - | 3,331 |
| party | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Inter-segment | 37 | - | - | (37) | - |
+----------------+---------------+------------+-----------+--------------+---------+
| Total | 1,072 | 1,654 | 642 | (37) | 3,331 |
| revenue | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Results | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Depreciation | (285) | (63) | (3) | 1 | (350) |
| and | | | | | |
| amortisation | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Impairment | - | - | - | - | - |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Segment | (885) | 226 | 33 | (249) | (875) |
| (loss)/profit | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Reorganisation | - | - | - | - | (143) |
| costs | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | 10 |
| finance | | | | | |
| costs | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Tax | - | - | - | - | (2) |
| expense | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Net | - | - | - | - | (1,010) |
| loss | | | | | |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Assets | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Operating | 2,451 | 2,997 | 1,103 | (43) | 6,508 |
| assets | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Provisions | 397 | 47 | 100 | (15) | 529 |
+----------------+---------------+------------+-----------+--------------+---------+
| Operating | 1,465 | 438 | 243 | (17) | 2,129 |
| liabilities | | | | | |
| including | | | | | |
| provisions | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Other | | | | | |
| disclosures | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| Capital | 412 | 6 | - | - | 418 |
| expenditure | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+----------------+---------------+------------+-----------+--------------+---------+
+-------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------+
+---------------------------+----------+---------------+------------+-----------+--------------+---------+
| | Unaudited 6 months to 31 December 2009 |
+--------------------------------------+-----------------------------------------------------------------+
| | Vehicle |Components |Emissions | Adjustments | Total |
| |Installations | |Reduction | and | |
| | | | |Eliminations | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Revenue | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Third party | 1,813 | 2,897 | 1,083 | - | 5,793 |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Inter-segment | 513 | - | - | (513) | - |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Total revenue | 2,326 | 2,897 | 1,083 | (513) | 5,793 |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Results | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Depreciation and amortisation | (674) | (89) | (5) | 7 | (761) |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Impairment | (55) | - | - | - | (55) |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Segment (loss)/profit | (1,660) | 86 | (153) | (589) | (2,316) |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Reorganisation costs | - | - | - | - | (142) |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Net finance costs | - | - | - | - | 22 |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Tax expense | - | - | - | - | - |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Net loss for the year | - | - | - | - | (2,436) |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Assets | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Operating assets | 2,051 | 2,463 | 974 | (26) | 5,462 |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Provisions | 265 | 47 | 100 | (20) | 392 |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Operating liabilities including | 1,489 | 435 | 256 | (20) | 2,160 |
| provisions | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Other disclosures | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| Capital expenditure | 795 | 5 | - | - | 800 |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | | | | | |
+--------------------------------------+---------------+------------+-----------+--------------+---------+
| | |
+---------------------------+----------------------------------------------------------------------------+
| | | | | | | |
+---------------------------+----------+---------------+------------+-----------+--------------+---------+
+-------------------------------------------------------------------------+
| NOTES TO THE INTERIM FINANCIAL STATEMENTS |
+-------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------+
+-------------------------------------------------------------------------+
| 7. Plant, equipment & intangible assets |
+-------------------------------------------------------------------------+
During the six months ended 30 June 2010, the Group acquired plant and equipment
with a cost of GBP26,707 (30 June2009: GBP25,000) (31 December 2009: GBP33,000).
Expenditure on product development for the six months ended 30 June 2010 was
GBP594,323 (30 June 2009: GBP393,000) (31 December 2009: GBP748,000) .
+--------------------------------------------------------------------------+
| 8. Share-based payment |
+--------------------------------------------------------------------------+
During the period the Group recognised GBP45,734 (30 June 2009: GBP17,836) (31
December 2009: GBP105,495) related to equity-settled share-based payments
transactions.
+-------------------------------------------------------------------------+
| 9. Going concern |
+-------------------------------------------------------------------------+
The Group's business activities, together with the factors likely to affect its
future development, performance and position are set out in the Chief
Executive's Statement and the financial position of the Group is described
within the statement of financial position .
In September 2010, the Company successfully agreed a GBP2.25m fundraising, from
institutional investors, including Credit Suisse, Henderson, Fidelity, Royal
Bank of Canada. As at the date of these accounts the Company has in hand either
cash or binding irrevocable commitments from all investors in relation to this
fundraising.
The Group has adequate financial resources together with long term relationships
with a number of customers and suppliers in different countries and industries.
As a result, the directors believe the Group is well placed to manage its
business risks successfully despite the current economic outlook.
After making enquiries, the directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the interim report and financial statements.
+-------------------------------------------------------------------------+
| 10. Related party disclosures |
+-------------------------------------------------------------------------+
The Group receives consultancy services from Hans Gunnar Folkesson, a
Non-Executive Director of Clean Air Power (Bermuda) Limited and Gary Ireson, the
Director of Clean Air Power Pty Ltd.
+-------------------------------------------------------------------------+
| The following table provides the total amount of transactions, which |
| have been entered into with related parties for the relevant financial |
| year. |
+-------------------------------------------------------------------------+
+---------------------------------------------+-----------+-----------+----------+
| Hans Gunnar Folkesson | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | year |
| | to | to | ended |
| | 30 June | 30 June | 31 |
| | | | December |
+---------------------------------------------+-----------+-----------+----------+
| | 2010 | 2009 | 2009 |
+---------------------------------------------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------------+-----------+-----------+----------+
| Services received from related parties | 6 | 14 | 21 |
+---------------------------------------------+-----------+-----------+----------+
| Amounts owed to related parties | - | - | - |
+---------------------------------------------+-----------+-----------+----------+
+---------------------------------------------+-----------+-----------+----------+
| Gary Ireson | Unaudited | Unaudited | Audited |
| | 6 months | 6 months | year |
| | to | to | ended |
| | 30 June | 30 June | 31 |
| | | | December |
+---------------------------------------------+-----------+-----------+----------+
| | 2010 | 2009 | 2009 |
+---------------------------------------------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------------+-----------+-----------+----------+
| Services received from related parties | 22 | 6 | 24 |
+---------------------------------------------+-----------+-----------+----------+
| Amounts owed to related parties | - | 2 | 13 |
+---------------------------------------------+-----------+-----------+----------+
NOTES TO THE INTERIM FINANCIAL STATEMENTS
11. Post balance sheet events
On the 29 September 2010, Clean Air Power closed a fundraising of GBP2.25m; this
increased the ordinary share capital to GBP44,319 by the creation of an
additional 18,000,000 Ordinary Shares with a nominal value of US$0.001 each and
a market price of 12.5 pence per share. The difference between the consideration
received of GBP2.25m less costs of around GBP0.1m, and the nominal value of the
shares GBP11,392 has been transferred to the share premium account. As at the
date of these accounts the Company has in hand either cash or binding
irrevocable commitments from all investors in relation to this fundraising.
+-------------------------------------------------------------------------+
| Report and Financial Information |
+-------------------------------------------------------------------------+
Copies of the interim report for the Company for the period ended 30 June 2010
are to be made available on the Company's website.
+-------------+
| CORPORATE |
|INFORMATION |
+-------------+
+---------------+
| Directors |
+---------------+
| Non-Executive |
| Chairman - |
| Rodney |
| Westhead # |
| " |
+---------------+
| President |
| & Chief |
| Executive |
| - John |
| Pettitt |
+---------------+
| Financial |
| Director |
| - Peter |
| Rowse |
+---------------+
| Non-Executive |
| Director - Dr |
| Ulrich Wöhr |
| * + # " |
+---------------+
| Non-Executive |
| Director - |
| Hans Gunnar |
| Folkesson * |
| + # (resigned |
| 4 August |
| 2010) |
+---------------+
| Non-Executive |
| Director - |
| Bernard Lord |
| + # " * |
+---------------+
| |
+---------------+
| * |
| Member |
| of the |
| Audit |
| Committee |
| + Member |
| of the |
| Remuneration |
| Committee # |
| Member of |
| the |
| Nomination |
| Committee " |
| Independent |
+---------------+
+-----------+
| Secretary |
+-----------+
| Evelou |
| Mosley |
+-----------+
+------------+
| Registered |
| Office |
+------------+
| Clarendon |
| House |
+------------+
| 2 |
| Church |
| Street |
+------------+
| Hamilton |
| HM11 |
+------------+
| Bermuda |
+------------+
+------------+
| Auditors |
+------------+
| Ernst |
| & |
| Young |
| LLP |
+------------+
| 100 |
| Barbirolli |
| Square |
+------------+
| Manchester |
+------------+
| M2 3EY |
+------------+
+------------+
| Solicitors |
+------------+
| Berwin |
| Leighton |
| Paisner |
| LLP |
+------------+
| Adelaide |
| House |
+------------+
| London |
| Bridge |
+------------+
| London |
+------------+
| EC4R |
| 9HA |
+------------+
+--------------+
| Nominated |
| Advisor |
| and |
| Stockbrokers |
+--------------+
| Charles |
| Stanley |
+--------------+
| 25 |
| Luke |
| Street |
+--------------+
| London |
+--------------+
| EC2A |
| 4AR |
+--------------+
| |
+--------------+
+------------+
| Registrars |
| and |
| Transfer |
| Office |
+------------+
| Capita |
| IRG |
| (Offshore) |
| Limited |
+------------+
| Victoria |
| Chambers, |
| Liberation |
| Square |
+------------+
| 1/3 |
| The |
| Esplanade |
+------------+
| St |
| Helier |
+------------+
| Jersey |
+------------+
+------------+
| Principal |
| Banker |
+------------+
| Royal |
| Bank |
| of |
| Scotland |
+------------+
| 8 |
| South |
| Parade |
+------------+
| Nottingham |
+------------+
| NG1 |
| 2JS |
+------------+
+----------------+
| Financial |
| Public |
| Relations |
+----------------+
| Buchanan |
| Communications |
+----------------+
| 45 |
| Moorfields |
| London |
| EC2Y 9AE |
+----------------+
INDEPENDENT REVIEW REPORT TO CLEAN AIR POWER LIMITED
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the 6 months ended 30 June
2010 which comprises the Consolidated Income Statement, the Consolidated
Statement of Comprehensive Income, the Interim Consolidated Statement of
Financial Position, the Consolidated Cash Flow Statement, the Consolidated
Statement of Changes in Equity and the related explanatory notes I to I1. We
have read the other information contained in the half yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with guidance contained
in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed
by the Independent Auditor of the Entity" issued by the Auditing Practices
Board. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company, for our work, for this report,
or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with International Accounting Standard 34,
"Interim Financial Reporting," as adopted by the European Union.
As disclosed in note 2, the annual financial statements of the company are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting," as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the 6 months ended 30 June 2010 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union.
Ernst & Young LLP
Manchester
29 September 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFFAAEIAFII
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