LONDON (Alliance News) - Clean Air Power Ltd Friday said it plans to launch its dual-fuel products in the US and Russia after narrowing its losses in 2013, driven by strong demand for its systems.
The company, which develops dual-fuel combustion technology for heavy-duty engines, posted pretax losses of GBP2.0 million for the year, compared with a loss of GBP2.2 million, as revenue rose to GBP9.9 million from GBP7.9 million a year earlier.
Clean Air Power said revenue from its dual-fuel division rose 24% to GBP8.2 million in 2013 from GBP6.6 million, as it sold 387 dual-fuel systems compared with 300 in 2012. The majority of the 387 duel-fuel systems sales were in Europe.
The components division also performed well during the year, with demand growing for natural gas vehicles creating new customers for Clean Air's range of natural gas components such as injectors, shut off valves and filters.
"The recent order to supply natural gas injectors for a global truck manufacturer will further enhance the contribution from this division, and we intend to increase the marketing of these products to engine developers and original equipment manufacturer," the firm said.
Gross margin across the group was maintained at 44%.
Financially, the firm said "cash on hand" at the year-end amounted to GBP4.0 million, from GBP3.2 million. It also completed an equity fundraising in August, which raised GBP5.1 million.
Ervington Investments Ltd, whose beneficial owner is Russian oligarch and Chelsea FC-owner Roman Abramovich and businesswoman Zara Shvidler, committed to subscribe if necessary for the whole GBP5 million, but were scaled back due to significant institutional interest. They now each hold approximately 1.5% of the enlarged share capital of the company.
Looking ahead the company said it plans to launch its dual-fuel products in the US and Russia, "where domestic natural gas reserves provide a strong driver for adoption and where we believe there is latent demand."
The company did not propose a dividend.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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