Torotrak Full Year Results 2013

29 May 2013

Final Results for the Year to 31 March 2013

 

Highlights

Financial

  • Strong financial performance; revenue up 74 per cent to £7.5 million (2012: £4.3 million)
  • Profit after tax for the year of £0.03 million (2012: loss of £1.6 million)
  • £3.0 million investment for a 20 per cent strategic stake in Flybrid Automotive Ltd (“Flybrid”) with an option to acquire remaining 80 per cent; secures access to market-leading M-KERS technology
  • Key strategic partner Allison Transmissions Inc. (“Allison”), pays £2.5 million to subscribe for new shares in Torotrak, increasing its equity stake by more than 50 per cent to 13.06 per cent
  • Advance stage licensing inflows continues to self-finance the majority of Torotrak’s new product development, with positive operating cash flow generated over the last two financial years of £2 million
  • £8.9 million in cash balances at year end (2012: £10.5 million)

Operational

  • Allison commits £6.0 million for continued exclusivity rights to manufacture and sell Torotrak’s main drive transmissions principally for trucks and buses – an important milestone for the technology
  • Engagement with nine major car manufacturers confirms significant opportunities for Torotrak’s V-Charge technology, with second generation hardware now on test
  • Discussions progressing well with potential manufacturing partners for V-Charge
  • Volvo’s on-road tests confirm Torotrak Flybrid M-KERS technology delivers market-leading 25 per cent reduction in fuel consumption in a passenger car
  • M-KERS opportunities in passenger cars proving earlier and stronger than initially planned when acquiring Flybrid stake – discussions now commenced with potential Tier 1 manufacturers
  • On track to commence in-service M-KERS bus evaluations with Arriva from March 2014
  • Univance relationship progressing well and offering new business development opportunities for Torotrak’s core technology in Japanese market

Jeremy Deering, Torotrak’s CEO, commented: “The Flybrid investment and opportunity to acquire control, provides a catalyst for combined growth.  We expect to start manufacturing M-KERS units for the bus market from 2014.  Meanwhile, we are in active discussions with Tier 1 manufacturers about bringing both M-KERS and our variable engine boost product V-Charge to market to hit the 2015 to 2020 legislative window for CO2 reduction.

“With a pragmatic and diverse range of technologies, customers and partners; with our different routes to market and strategy to ensure we don’t rely exclusively upon any one of them; and with a strengthening and confident Torotrak team, we are now in a better position than ever to deliver sustainable growth in value for shareholders.”

For more information, please visit www.torotrak.com or contact:

Jeremy Deering, Chief Executive Simon Hudson Marc Milmo
Lulu Bridges Karri VuoriCarl Holmes
Torotrak Plc Tavistock Communications Charles Stanley Securities
Tel: +44 1772 900938 Tel: +44 20 7920 3150 Tel: +44 20 7149 6000

 

 

The full statement can be found here: Torotrak Full Year Results 2013.