29th Jun 2016 10:22
LONDON (Alliance News) - Torotrak PLC on Wednesday posted a widened annual loss due to restructuring costs and a big drop in revenue, but remains confident on the outlook for its key technologies.
Torotrak, which makes emissions reduction and fuel efficiency technology for vehicles, said its pretax loss for the financial year to the end of March was GBP14.3 million, significantly wider than the GBP8.4 million loss made a year earlier.
Revenue sunk to GBP1.2 million from GBP3.8 million, reflecting the end of its licence fee income from Allison Transmissions Inc. Revenue also declined due to a focus by the company on internally funded development programmes, which meant engineering services revenue more than halved.
Profit also was pulled lower by the reorganisation of the business, which involved job cuts, the elimination of cash bonuses and removal of other employee incentives in order to cut costs and shore up the group's financial position.
Torotrak said it continued to make progress on commercialising its V-Charge and Flybrid KERS technologies over the course of the financial year.
"I am delighted with the excellent results achieved in the independent technical validation of the advantages of our V-Charge supercharger compared to other advanced boosting solutions. This has created an excellent platform for licensing this technology into the mass passenger car market," said Adam Robson, Torotrak's chief executive.
"In KERS, we are confident that our technology will be adopted in the off-highway market, with encouraging discussions and opportunities to secure licensing arrangements," he added.
Shares in Torotrak were up 7.8% to 4.12 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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