5th May 2015 08:58
LONDON (Alliance News) - Turbo Power Systems Inc Tuesday expressed confidence in its performance for the remainder of 2015, as it posted a swing to a pretax profit in its first quarter.
In the quarter to end-March, the company posted a pretax profit of GBP29,000, swung from a pretax loss of GBP1.4 million a year before, as revenue rose to GBP4.1 million from GBP3.3 million. Gross margin improved to 41% from 15% a year before, which Turbo Power said was due to its focus on profitable contracts.
The company attributed revenue growth to new design projects signed during 2014, including a deal with UK Power Networks.
In February Turbo Power said it was mulling a potential sale of its business, and had appointed Lincoln International LLP to assist with this process. It noted Tuesday that it is a Canadian business corporation registered in Yukon, Canada, and is therefore not subject to the provisions of the UK takeover code.
It said there can be no certainty it will go ahead with any potential sale.
"The sustained recovery in the business is the result of initiatives implemented since 2012 and the culture of continuous improvement embraced by all employees at TPS. We are all proud of what has been achieved, whilst conscious of the focus we have to maintain on our strategic objectives," said Chief Executive Officer Carlos Neves in a statement.
"The current order book and the short term opportunities reaffirm the board's confidence in our performance for the rest of the financial year," Neves added.
Turbo Power Systems are trading up 0.5% at 0.373 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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