5th Sep 2013 09:49
LONDON (Alliance News) - Clean Air Power Limited Thursday said its pretax losses widened 61% in its first half as administrative expenses rose and the cost of sales increased at the company.
The dual-fuel engine technology company for heavy-duty vehicles said its pretax losses widened to GBP1.1 million from GBP672,000 for the six months ended June 30, as the year-earlier period benefited from a one-off gain of GBP0.8 million for engineering services delivered in 2010 to Navistar International Corp., a US truck and engine company.
The company said that despite a 7% increase in sales to GBP4.1 million from GBP3.9 million, the cost of those sales also increased to GBP2.1 million from GBP1.8 million, including a GBP100,000 increase in the amortisation charge of operations.
Clean Air Power also noted an 11% increase in its administrative costs to GBP3.1 million from GBP2.7 million, as staff costs and increased labour expenses were incurred in the development of new products.
The company said it completed a GBP5 million equity fundraising process in August by two new investors: Zara Shvindler and Ervington Investments Ltd., which is owned by Roman Abramovich.
"Increasing investment in infrastructure by major gas supply companies signals a recognition that natural gas vehicles will play an important part in the future of road transport. Our plans to develop markets in Europe, US and Russia means Clean Air Power is well positioned to benefit from this global trend," Chief Executive John Pettitt said in a statement.
Clean Air Power shares were up 0.06 pence, or 0.52% to 12.19 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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