Torotrak is today providing its Interim Management Statement for the period 1
October 2007 to 13 February 2008, focusing on the key areas of development since
the half-yearly report released on 27 November 2007.
We are pleased to confirm that, as a result of the timing of our licence
agreements and engineering programmes, the substantial weighting of our revenues
towards the second half of the year is materialising as predicted and, as a
result, our operating performance is in line with full year expectations.
On 19 December 2007, we announced that we had entered into a Licence Agreement
and an Engineering Development Agreement with a major European truck and bus
manufacturer. These two agreements have a combined value in excess of £7million.
More than half of this relates to licence income which is due to be paid prior
to 31 March 2008. The engineering programme to deliver prototype transmissions
for assessment in two types of our client's commercial vehicles, which is
expected to last for at least 3 years, has now commenced.
Infinitrak's programme of final testing and validation of off-tool examples of
the Twin Toroidal Transmission (TTT) described in our November half-yearly
report has continued. This has identified a small number of production
conformity issues on parts manufactured by external suppliers - none of which
relates to the core technology of the TTT unit - which are in the process of
resolution to ensure a high quality launch. Series production in limited
volumes, to support MTD's initial requirements, is therefore expected to
commence around Torotrak's year end but, irrespective of exact timing, still
within MTD's 2008 build season. Infinitrak is continuing to plan for a full year
of volume production and sales in Torotrak's next financial year, in line with
our expectations as reported in November 2007.
We are pleased to report that our Licence Agreement with Tata Motors Ltd is now
in the final stages of approval by the Indian Government, having been cleared by
the Indian Project Approval Board on 31 January 2008. Accordingly, Tata Motors
expects the licence to be concluded formally before 31 March 2008. We can also
confirm that we have begun work with Tata Motors' engineers to determine their
first development application.
We will provide a full report covering all of our markets and sectors in May
2008 when we announce our Preliminary Results for the year ending 31 March 2008.
For further information:
Dick Elsy, Chief Executive
Jeremy Deering, Finance Director
Torotrak Plc
Tel: +44 17 7290 0938
Simon Hudson
Lulu Bridges
Tavistock Communications
Tel: +44 20 7920 3150
