13th Mar 2014 12:31
LONDON (Alliance News) - Turbo Power Systems Inc. Thursday said it narrowed its losses in 2013, as it focused on improving margins and reducing its cost base.
The company, which designs and manufactures electric motors, generators and power electronics systems, posted pretax losses of GBP2.9 million for 2013, compared with a loss of GBP7.2 million, as revenue rose 21% to GBP19.0 million from GBP15.7 million a year earlier.
Turbo attributed the improved revenue performance to an increase in production volumes. In turn the company saw its order intake rise to GBP17.3 million from GBP7.1 million
The company undertook significant cost reduction measures during the year and as result research and product development costs decreased 26% to GBP2.9 million, from GBP3.9 million.
Overall Turbo said gross margins rose to 25% from 30%.
In a separate note, the firm said it has agreed a two-year extension of an existing loan agreement with TAO Sustainable Power Solutions Ltd, which will now be repayable on April 1, 2016. Tao holds 89.4% of the issued share capital of Turbo Power Systems
"Since the major structural adjustments were implemented and concluded in 2013, Turbo Power Systems is now actively pursuing exciting new projects with new customers to increase the diversity of both our customer base and our technology portfolio, with the right level of profitability," Chief Executive Carlos Neves said in a statement.
"We have a new sales team in place since year-end to drive this initiative forward, which coupled with our continued focus on operational efficiencies throughout the business, is a key part of the plan to further improve performance and achieve profitability," he added.
The stock was trading at 0.475 pence Thursday afternoon, down 0.025 pence or 5.0%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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