tips29 May 2013 13:25
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Clean Air Power quadruples sales
By Andrew Bounds
News that Clean Air Power, whose kit allows large lorries to run on liquefied natural gas as well as diesel, quadrupled sales last year fuelled a near-20 per cent rise in its shares.
The Leyland-based business believes its hour has finally arrived after selling 300 systems in 2012, compared with 70 the year before. It already has orders for 100 more so far this year.
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Peter Rowse, chief financial officer, said LNG was becoming the alternative fuel of choice for big trucks, as it was cheaper and cleaner. The dual fuel system allows the security of diesel too.
“This is not technology of the future. It is on a production line already.”
Sainsbury’s, the supermarket, and DHL, the logistics business, are early adopters. CAP retrofits lorries while Volvo of Sweden installs its technology in new trucks.
Analysts at Edison estimate £16.9m sales for 2013, higher than its market capitalisation, and judge that an enterprise value/sales ratio of 0.9 undervalues the business. There could be another share price rise after results on April 4.
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