Clean Air Power Limited Trading Update (3673U)
December 02 2013 - 2:00AM
UK Regulatory
TIDMCAP
RNS Number : 3673U
Clean Air Power Limited
02 December 2013
2 December 2013
Clean Air Power Limited
("Clean Air Power" or the "Group")
Trading Update
Clean Air Power (AIM:CAP), the developer and global leader in
Dual-Fuel engine management systems for heavy duty vehicles, today
announces that demand for its Dual-Fuel(TM) products has resulted
in systems sold to date in 2013 and forward orders from customers
totalling over 400 units. This compares to 300 system sales during
the whole year ended 31 December 2012. The level of unit sales is
marginally behind current market expectations for the year, however
as a result of the different sales mix the reported loss for the
period to 31 December 2013 is now anticipated to be marginally
smaller than market forecasts.
The increase in sales and forward orders in 2013 has been
achieved despite constraints on expected production levels of
methane-diesel vehicles by our European OEM partner ahead of the
introduction of Euro 6 emissions standards in Europe in 2014.
Demand for our products is expected to continue to increase in 2014
due to interest from several large UK fleet operators and the
opening of a number of new natural gas refueling stations. In
addition, there will be an increased supply of vehicles available
to retrofit as a result of the high level of late Euro 5 vehicle
purchases made by operators ahead of the imminent change to Euro
6.
Clean Air Power has continued to make progress developing a
Genesis Edge Dual-Fuel product suitable for the important US
market. Two trucks installed with the US product have been
delivered to a global parcel company for trial and optimisation,
with a further eight to be delivered before the end of the year.
The high level of activity on the US project has generated a slight
increase in the level of grant revenue now expected in 2013 from
the Californian Energy Commission. However, largely due to
previously disclosed commissioning issues with a sub contractor's
test cells, the launch of the US product is now expected in the
second quarter of 2014.
Clean Air Power is also developing the large Russian market
where major gas supply companies are investing heavily in natural
gas refuelling infrastructure. In October, the Company exhibited at
GasSUF International Exhibition for Gas-Powered Vehicle
Technologies in Moscow where we were positively received and well
supported by the local sales organisation of a major European truck
manufacturer. One demonstration Dual-Fuel vehicle has already been
delivered and is operating in Russia with orders having been
received for three more demonstration units.
Our clear medium term goal remains to develop OEM relationships
and this strategy has been greatly benefited by the co-operation
agreement signed with Ricardo in September. In partnership with
Ricardo, discussions are on-going and tangible progress has been
made with major manufacturers and other partners to develop OEM
products in Europe, US and Japan.
John Pettitt, Chief Executive of Clean Air Power said:
"Growing demand for our Dual-Fuel(TM) products in Europe has
seen orders in 2013 significantly exceed those seen for the full
year 2012 and I am hopefully that orders will continue to rise in
what will be an opportunity rich environment in 2014. The long-term
trend towards the adoption of natural gas as a road transport fuel
around the world continues at pace and our strategy of developing
products for the markets of Europe, Russia and the US means that we
are well placed to service this rising demand."
For further information, please contact:
Clean Air Power Tel: +44 (0)1772 624 499
John Pettitt, Chief Executive
Peter Rowse, Finance Director
Citigate Dewe Rogerson Tel: +44 (0)20 7282 2867
Malcolm Robertson
Chris Gardner
Cantor Fitzgerald Europe Tel: +44 (0)20 7894 7000
David Foreman / Mark Percy (Corporate
Finance) Tel: +44 (0)20 7894 7632
David Banks/Paul Jewell (Corporate Broking)
Peat & Co Tel: +44 (0)20 3540 1721
Charlie Peat
Andy Cuthill
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 GBP50m has been
invested in developing the technology with the result that 65
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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