16/08/2007
Sales accelerated rapidly in the six months to June at Connecticut-headquarted CDT, which expects to see a frenzy of activity in London as companies gear up for the launch of a low-emission zone (LEZ).
Revenues rose 166% to US$1.5m (£735,000), helping curtail losses before tax 16% to $2.3m, as the group ‘consummated’ a number of licence agreements, including a worldwide deal with German car parts giant Bosch. This is very significant as CDT has only been making sales for the retro-fitting of emission-reduction technology and Bosch’s is the first license to target car manufacturers.
The company is cash rich after a placing and warrant issue, and marketing and other efforts are being ‘ramped up’ for the February enforcement of the London LEZ. With product approval gained, says executive vice-president Tim Rogers, the technology is already being sold directly into the London market. He believes companies with affected vehicles will ‘get quite panicky’ and the situation provides CDT with ‘a very good retro-fit opportunity’.
Rogers stresses that because the company’s intellectual property is ‘right in the middle of current legislative drivers’, the company is pushing in a number of directions to capitalise on the momentum. He identifies the roll-out of LEZs across Europe and pollution problems in Asian ‘mega cities’ as particular opportunities, adding that deals with corporate fleet operators in the UK are imminent too.
The shares have powered up 120% and 37% from GCI’s recommendations last year and may receive a boost from an imminent Nasdaq listing. If you got in early you might recoup a share of your spoils, but with Bosch buttressing long-term prospects and LEZs in the medium term, the investment appeal remains.
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