13th May 2014 11:24
LONDON (Alliance News) - Turbo Power Systems Inc Tuesday said its losses widened in the first quarter of its new financial year, as revenues dipped lower and production volumes fell.
The company, which designs and manufactures electric motors, generators and power electronics systems, recorded a pretax loss of GBP1.4 million, higher than the GBP950,000 loss it reported a year earlier, due to lower production volumes and mix of product lines sold.
Total revenues in the quarter were GBP3.3 million, down from GBP3.8 million a year earlier, which the company said was as a result of a fall in production revenue, due to the completion of a current contract and the delay in receiving the follow-on order, which it said is currently under negotiation.
Turbo Power Systems also said Tuesday that it has won a new customer contract with UK Power Networks to supply a new design of electrical energy controller for trials on the electricity distribution networks in the London and Brighton areas.
"This contract is the company's first in the exciting low carbon initiatives market, and the company is optimistic of securing further contracts," the company said in a statement.
The project is part of UK Power Networks Flexible Urban Networks Low Voltage project, and will trial the innovative use of power electronics devices on low voltage distribution networks.
In a separate statement, the group also announced an extension to its existing loan agreement with TAO Sustainable Power Solutions (UK) Ltd, in order to provide support for its working capital requirements as it awaits collections from certain principal debtors.
It said that agreement extends the existing debt provided by TAO Sustainable Power Solutions to the company, by GBP0.40 million, bringing the total value of the company's borrowings to GBP9.89 million. TA/o holds 89.4% of the issued share capital of the company.
Turbo Power Systems shares were down 2.2% at 0.440 pence Tuesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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