3rd Aug 2015 08:46
LONDON (Alliance News) - Turbo Power Systems Inc Monday expressed "measured confidence" for the rest of its financial year as it posted a swing to a pretax profit in its first half, driven by revenue growth and an improved gross margin.
For the half year to end-June the company posted a pretax profit of GBP110,000, swung from a pretax loss of GBP2.3 million a year before, as revenue rose to GBP8.2 million from GBP7.5 million, and gross margin more than doubled to 42% from 17%.
The company said the improvement in gross margin reflected its "commitment to increase the profitability of both its current and new contracts."
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. On Monday it said that this process is ongoing, and further announcements will be made in due course as appropriate.
"The implementation of our strategy and decisions made over the past two years have driven this result. The clear focus on improving the quality of our portfolio, superior execution within design for manufacturing and the ongoing delivery of internal improvements are delivering the expected results whilst creating a solid foundation for our continued and sustainable growth," said Chief Executive Officer Carlos Neves in a statement.
"The strategy, current results and the short term opportunities re-affirm the board's measured confidence in our performance for the rest of the financial year," Neves added.
Shares in Turbo Power Systems were untraded Monday morning. It last closed at 0.345 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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