US-based emissions specialist Clean Diesel Technologies has just made its first quarterly profit and its order book is full to bursting in anticipation of the London low-emission zone (LEZ).

An upfront licence payment from NYSE-listed automotive supplier Tenneco pushed the figures into positive territory but, as chief executive Bernhard Steiner reminds, it won’t necessarily last: ‘We never said 2007 will be a profitable year and our top-line can be lumpy.’ The company’s model is to sell licences to companies and then receive upfront payments, monthly fees and royalties from sales.

The order book in London, in preparation for the introduction of the LEZ next February is ‘already more than we can handle’, admits Steiner, and 15 distributors around the city have signed up to take the business. Following London in introducing such zones will be Manchester, Birmingham, Glasgow and dozens of European cities.

Clean Diesel's joint listing on Nasdaq has been a boon and not added much extra costs, claims Steiner, who has been working with US brokers to sate demand for the shares there. He says, with big-name collaborators in place, the company is now well placed for growth in the US and Europe, where regulation is the driver.

The shares are showing a good profit, 200% on Growth Company Investor’s recommendation at 275p in March last year. Top-slice some but keep a handful as there should be a lot more to come in the long and short term.

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Clean Diesel Technology	AIM	£15.26m	187.50p	0.00p
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