Clean Air Power, which develops Dual-Fuel combustion technology for heavy-duty diesel engines, has reported a 29 per cent increase in gross profit for the six months ending in June.
The Buckinghamshire-based group said that losses after tax were reduced to £1m from £1.2m compared to the same period a year earlier. The group also reported a 14 per cent increase in revenue to £3.3m, up from £2.9m in 2008, while gross profit rose to £1.8m.
However, sales in its vehicle conversion division were down by 53 per cent because of the end of the lifecycle of two products (the Euro 3 Genesis in Europe and the C-15 ADR80/01 in Australia) as well as difficult market conditions, which the group expects to continue into the second half of the year.
John Pettitt, chief executive of the group, said: ‘Clean Air Power continues to deliver improved sales and bottom-line results in spite of the global economic climate. We have taken action to improve and manage our cash position through the recent fundraisings and implementation of cost-control measures.’
The group claims that its cost-reduction initiatives have improved its outlook in the medium and long term. A letter of Intent from Volvo to incorporate the group’s Dual-Fuel technology into Volvo truck engines has also boosted prospects. The group believes that this will lead to a formal contract in autumn this year, with the first commercial products available in early 2010.
Pettitt added: ‘The company’s main strategic goal remains to work with vehicle or engine manufacturers to reach an agreement whereby our Dual-Fuel technology is incorporated on their vehicle 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.’