Electric vehicle technology hopeful Metroelectric has signed a letter of intent with an unnamed German car-maker.

PLUS-quoted Metroelectric says the agreement is for the exclusive distribution of the German group’s electric cars in the UK and Ireland. Chairman Greg Collier says the company expects to finalise contract details in the next three weeks, with a demonstrator car available soon and production models from the fourth quarter of this year.

Advisers to the London-based company say the cars in question are more powerful than most other models now in the market. It is argued that they can go significantly further and faster than the usual run of such vehicles at present.

This could be good news for the company, whose shares have fallen from last year’s 1.5p float price to 0.375p now (with a 0.25p spread), valuing the company at a mere £600,000. One investor, R De Mendonca, recently sold his entire 5.7 per cent, but fans suggest that this German agreement could pave the way for recovery.

Growth Company Investor subscribers have full access to all our AIM and small-cap share recommendations. To subscribe today with a half-price offer, and gain immediate access to all the recommendations, click here.