6th May 2016 08:13
LONDON (Alliance News) - Turbo Power Systems Inc on Friday said it swung to a loss in the first quarter of 2016 as revenue fell on the delayed signing of contracts, but the company expressed confidence for the rest of the year after securing a strong order book post period-end.
The power products manufacturer said it made a GBP136,000 pretax loss in the three months ended March 31, having made a GBP29,000 pretax profit in the first quarter of 2015, as revenue fell to GBP3.4 million from GBP4.1 million.
Turbo Power said order intake in the quarter rose to GBP2 million from GBP0.8 million, but that engineering design revenue decreased due to a delay in signing new contracts, while development revenue also took a sharp hit as it waits for new contracts to start up.
Since the period-end, order intake in April was GBP3.7 million, making a total of GBP5.7 million for the first four months of the year. Turbo Power said the order book now covers the anticipated production for 2016 and well into 2017.
"Our performance for the first quarter is in line with management expectations, despite the uncertainties about the ultimate outcome of the strategic review. I expect with great confidence that we will continue to deliver our commitments and with the new production orders received, to grow the business during 2016," Chief Executive Carlos Neves said in a statement.
Shares in Turbo Power were trading down 5.0% at 0.190 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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