Interim Results for the year to 30 June 2009

The six month period to 30 June 2009 saw revenue increase 14% to £3.3m from £2.9m in the same period in 2008.

The gross profit of £1.8m earned compared favorably with £1.4m up to June 2008, a 29% increase. The 2009 gross margin to date of 53% was higher than the 46% achieved up until June 2008. The main cause was the increased weighting of the component business in the sales mix with the inclusion of additional revenue derived from product development. This combination contributed to a reduction in the operating loss of 11% to £0.9m representing a £0.2m improvement on the £1.1m loss for the same period in 2008. 

Operating losses for the period improved to £0.9m (June 2008: £1.1m).

The retained loss for the period after interest and taxation was £1.0m (June 2008: £1.2m).

Cash on hand at 30 June 2009 increased to  £3.3m compared with £1.4m at 30 June 2008.

The net assets for the Group at 30 June 2009 totaled £5.9m (June 2008: £3.4m).

Net current assets at the 30 June 2009 amounted to £4.38m (June 2008: £2.3), of which £3.3m relates to cash balances (June 2008: £1.4m).

Financing:

On the 28th February 2006 Clean Air Power was admitted to the Alternative Investment Market of the London Stock Exchange (AIM) in London raising £10.6m. This was the final step in the re-launching of the company and followed a change in the executive management team and a restructure of the group under a Bermudan Parent.

In April 2008, the Company agreed a further financing package to provide up to £5.00m gross proceeds for the Company between April 2008 and June 2009.  Endeavor Capital Management LLC, a longstanding and major shareholder in the Company, at that time holding 18.5% of the Company’s shares, conditionally agreed to provide up to £4.65m of the new funds.  Between April 2008 and the conclusion of the fundraising in May 2009 the Company actually received a total of £5.38m from Endeavor and other investors under this financing package.  The funds raised will be used to further advance in-house product development, provide working capital to support existing operations and to provide resources for its manufacturer cooperation activity.