Press roundup: Flybrid and Allison

A roundup of recent articles covering our announcement on 18 March of a 20 per cent stake in Flybrid Automotive Ltd., and £8.5 million further investment from Allison Transmission Inc. (£6 million licence payment and around £2.5 million from a new issue of equity).

The Financial Times: Torotrak takes stake in Flybrid

The Financial Times reported on both stories: “Technology developed to cut fuel use by Formula 1 cars could soon debut in buses and trucks after Torotrak, the UK engineering group, took a stake in Flybrid, a pioneer of the Kinetic Energy Recovery System (KERS), and renewed its licensing deal with Allison Transmission of the US.” The article went on to discus the Allison deal in greater depth, saying that: “Charles Stanley, Torotrak’s broker, said Allison would bring Torotrak’s “unique and compelling technology” to market. It predicted a pre-tax profit in 2015 and $6m royalties annually from the first 10,000 units sold.”

The Financial Times also mentioned Torotrak in its Tuesday and Friday market reports.

The Times: Market report: engineer revs up with £6m deal, but wider market is hardly motoring

The Times focused on Torotrak in its market report after the share price jumped, leading with the Allison story: “It has been a long time coming, but Torotrak finally looks to be shifting out of first gear. The Leyland-based engineer put to bed a £6 million deal with Allison Transmission, formerly part of General Motors.”

The Business Desk: Torotrak raises £8.5m and invests in F1 firm

The Business Desk again led with the Allison announcement: “ENGINEERING group Torotrak has concluded a £6m licensing deal with Allison Transmission, which has also bought a 5% stake in the business for £2.5m. In a stock market statement the Leyland business also said it had paid £3m for a 20% stake in Silverstone-based Flybrid Automotive which developed a fuel efifciency device for Formula 1 cars which is being applied to cars and commercial vehicles.”

Lancashire Evening Post: Torotrak in deal with US firm Allison Transmission

The Lancashire Evening Post focused on the Allison deal, writing: “One of the world’s biggest automotive manufacturers has taken a bigger stake in a Lancashire technology firm as part of a £6m deal.”

City AM: Torotrak agrees licence deal as it invests £3m in F1 engineer

City AM highlighted the news on the back of the rising share price, saying: “ENGINEER Torotrak yesterday completed a licencing agreement with Allison Transmission for £6m, as it snapped up a stake in Flybrid, which makes technology for Formula One cars.”

Bloomberg: Torotrak Gains Most in Two Years on Licence Deal: London Mover

Bloomberg’s interest was also piqued by the share price movement. Its coverage featured comment from Torotrak’s broker, Charles Stanley: “This is excellent news,” said Richard Hickinbotham, an analyst at Charles Stanley Securities Ltd. in London. “The Flybrid deal is really securing their route to market, and the systems they have are a third of the price of electric hybrid. They give the best xanax online usa, reduction in CO2 at the cheapest price.” He reiterated his buy recommendation on the stock.”

Automotive World: Torotrak: Allison Transmission Inc. Pays £6.0 Million For Continued Exclusivity

Automotive World (AW) featured the news in three separate articles on its site. The first focused on the regulatory announcement: “Torotrak (LSE: TRK) has concluded negotiations, under a Licence and Exclusivity Agreement dated March 2009, with its licensee Allison Transmission, Inc. (“Allison”), under which Allison will pay £6.0 million for continued exclusivity to manufacture and sell Torotrak main drive transmissions in commercial vehicle market segments.”

Automotive World: Torotrak Steps up New Strategy With Flybrid Stake

AW’s second piece highlighted how the news fitted in to Torotrak’s new strategy, opening with the details of the Allison deal: “Allison Transmission has paid £6m (US$9.05m) to retain the exclusive right to build and sell Torotrak main drive transmissions in the commercial vehicle market. It has also bought an additional 8,248,434 new ordinary shares in Torotrak at £0.30255 per share, leaving Torotrak with about £2.5m from the sale.”

Automotive World: Torotrak Acquires 20% Of Flybrid Automotive Ltd, Formalising Successful Partnership To Deliver First-To-Market Flywheel Hybrids

AW’s third feature focused on the Flybrid deal, making reference to the Ricardo and E4tech research: “Leading consultants confirm considerable potential of Torotrak’s flywheel hybrid technology for buses, trucks, off-highway and passenger cars. Market for flywheel hybrids predicted to exceed four million units per year by 2020.”

Professional Engineering: Transmission maker on a roll

Professional Engineering analyses the deals through the lens of Torotrak’s new strategy, announced in November 2012, saying that CEO Jeremy Deering has “made good on his promise”. It states: “Transmission firm Torotrak is set for a period of accelerated growth after clinching a trio of deals that will propel it forward on several fronts.”

Shares Magazine: Markets: Torotrak revived, Fluormin gobbled up

Shares Magazine commented excitably on the share price jump, concluding that: “After losing more than a third of its value since last summer, transport technology play Torotrak (TRK) is back in the fast lane. The small cap motored up 17.6% to 28.2p after the market cheered a license agreement which provides a cash injection and an acquisition that moves the group closer to securing a route to market.”

Investors Chronicle: News & Tips: Berkeley Group, LMS Capital, Fastjet, BG, Ophir Energy, San Leon Energy, Amerisur Resources, Torotrak, Dekel Oil & more

Investors Chronicle highlighted Torotrak in its company news roundup, focusing on the Allison deal: “Torotrak (TRK) has extended a licence with Allison Transmission for its transmission technology in return for a £6m fee. Allison has also agreed to subscribe for £2.5m worth of shares at a 20 per cent premium to the prevailing share price.”

Automotive Design: Torotrak acquires stake in Flybrid Automotive

Automotive Design chose to spotlight the Flybrid story: “Torotrak has acquired a 20% stake in flywheel hybrid innovator Flybrid Automotive, with an option to acquire the remaining shares before the end of the calendar year.”

Engine Technology International: Torotrak swoops for Flybrid Stake

Engine Technology International also focused on Torotrak’s stake in Flybrid, saying: “The company expects the deal will accelerate the adoption of its technology, which it says will be in fleet trials with bus operators later this year through an agreement with bus constructor Wrightbus.”

Insider Media: Torotrak agrees £6m deal and acquires stake in Flybrid

Insider Media summed up the Flybrid and Allison stories in a short piece with a regional focus: “Leyland-based transmission systems manufacturer and designer Torotrak has agreed a £6m licensing deal, issued new equity and acquired a stake in a Midlands company. Its licensee, Indianapolis-based Allison Transmission, will pay £6m for continued exclusivity to manufacture and sell Torotrak main drive transmissions in commercial vehicle market segments.”

Proactive Investors: Torotrak shares lifted 25% as it reaches “turning point”

Proactive Investors’ short feature led with the share price movement: “Shares in engineer Torotrak (LON:TRK) surged 25% as it disclosed it had bought a stake in a firm that has developed a device to optimise efficiency in Formula 1 Cars.”

ShareCast: Torotrak shares soar following licensing announcement

ShareCast covered both deals, opening with the Allison news: “Transport engineering company Torotrak has concluded negotiations with Allison Transmission under which Allison will pay six million pounds for continued exclusivity to manufacture and sell Torotrak main drive transmissions in commercial vehicle market segment.”