Clean Air Power Limited Trading Update (0849S)
September 19 2014 - 2:02AM
UK Regulatory
TIDMCAP
RNS Number : 0849S
Clean Air Power Limited
19 September 2014
19 September 2014
Clean Air Power Limited
("Clean Air Power" or the "Company")
Trading Update
Clean Air Power (AIM:CAP), the developer and global leader in
compression-ignited natural gas engine management systems for
heavy-duty engines, today provides an update on trading and its
outlook for the year ending 31 December 2014.
Whilst there have been some notable recent successes, including
the Letter of Intent announced 10 September 2014, current trading
has been very challenging. The introduction of Euro 6 emissions
standards in Europe at the start of 2014 means that opportunities
are now consolidating around a small number of operators who
continue to run large fleets of Genesis-EDGE compatible Euro 5
vehicles. Whilst the Genesis EDGE system continues to prove its
ability to generate attractive fuel savings in customer trials, it
is increasingly difficult to predict with any certainty the timing
or quantum of future orders in Europe.
The challenging European market coupled with unexpected
technical delays in achieving EPA certification and the first sales
of the US Genesis EDGE Dual-Fuel product mean that full-year
results are expected to be significantly below market
expectations.
John Pettitt, Chief Executive of Clean Air Power said: "Our
business is in a challenging transitional period in which our focus
is moving from a European market at the end of its product
lifecycle towards two new, sizable and attractive markets in Russia
and the US where we are preparing product launches. As we manage
this transition there will be a short-term impact on sales but the
long-term opportunity for Clean Air Power as a design, development
and delivery partner on OEM and Tier 1 compression-ignited natural
gas engine programs, remains significant. This potential was
demonstrated by the recent Letter of Intent with a global truck
manufacturer to commence the first phase of a production
development program for an engine for the South East Asian
market."
Enquiries:
Clean Air Power Tel: +44 (0)1772 624
499
John Pettitt, Chief Executive Officer
Neill Skinner, Chief Financial Officer
Citigate Dewe Rogerson Tel: +44 (0)20 7282
2867
Malcolm Robertson
Chris Gardner
Panmure Gordon Tel: +44 (0)20 7886
2500
Corporate Finance
Freddy Crossley / Atholl Tweedie
Corporate Broking
Tom Salvesen
Peat & Co Tel: +44 (0)20 3540
1721
Charlie Peat
Andy Cuthill
About Clean Air Power
Clean Air Power designs, develops and delivers
compression-ignited natural gas engines for heavy duty transport
applications. Clean Air Power's patented MicroPilot and
Dual-Fuel(TM) technology enables engines to run on natural gas
mixed with diesel (or any suitable combustion fuel) providing the
"spark" that ignites the gas. Substituting natural gas for diesel
cuts fuel costs, emissions of carbon, nitrous oxide and
particulates whilst retaining the original engine's power,
efficiency and reliability characteristics. Clean Air Power
operates in the US, Europe, Russia and Australia and has two
commercial divisions:
Dual-Fuel(TM) Vehicle Systems
Delivery of patented Dual-Fuel(TM) systems which include
fully-interfaced systems developed in partnership with truck
manufacturers and the Group's Genesis-EDGE system, developed
in-house as an after-market solution. Dual-Fuel(TM) is a type of
system that adapt diesel engines to run on a combination of diesel
and natural gas whilst retaining engine's basic infrastructure. The
Division sells systems to truck manufacturers for on-line assembly,
approved partners for after-market installation or direct to
customers through its own installation facilities. The Division
also undertakes design and development work for governments and
truck manufacturers on Dual-Fuel(TM) and next-generation
systems.
Components
Design and manufacture of innovative hydraulic valves, injectors
and filters for natural gas engines sold to truck manufacturers
around the world.
Initially founded in the USA in 1991, around GBP50m has been
invested in developing the technology with the result that 69
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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