28th Jul 2016 11:33
LONDON (Alliance News) - Power products manufacturer Turbo Power Systems Inc said it saw a return to profit in its second quarter and said its results for the first six months of the year were in line with management expectations.
Turbo Power said it saw a return to profit in the second quarter, having swung to a loss in the first quarter of 2016. Year-on-year, pretax profit nearly tripled to GBP220,000 from GBP81,000, and order intake nearly doubled to GBP6.8 million from GBP3.7 million. Revenue decreased by 9% to GBP3.7 million, but total expenses also decreased by 9% to GBP1.4 million and cost of sales decreased.
In Turbo Power's first half of the year, there was a 22% fall in pretax profit to GBP86,000, from GBP110,000 in the first six months of 2015. Revenue decreased by 13% year-on-year to GBP7.1 million from GBP8.2 million. Turbo Power said the decrease in profit and revenue was due to delays in contract signings and the re-scheduling of past contracts.
The company said the first half results were in line with management expectations, and represented an "important milestone" in the challenges presented to the company, particularly following the uncertainty Brexit had created for the company's customers and suppliers.
"I remain confident that we will continue to deliver our commitments in 2016 and with the new orders received, and expected to be received, reinforce and refine the successful strategy of turnaround with limited resources," said Carlos Neves, Turbo Power's chief executive.
Shares in Turbo Power were down 23% Thursday at 0.115 pence.
By Lucy Heming; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.