Torotrak has announced strong results for the year ending 31 March, with revenue up 25 per cent following a series of major licensing deals.
The Leyland-based transmission company said that it had increased sales for the fifth consecutive year. Cash from operations was up 30 per cent to £15m and operating loss was down to £2.4m from £2.8m a year earlier. In addition, the group has a robust level of cash resources with £14,975 held in cash and bank deposits at year end, up from £11,549 at 31 March 2008.
According to Torotrak, the strong figures have been driven by a number of licensing deals over the past few years in areas covering the passenger car, agricultural tractor and commercial vehicle markets.
The group has also recently announced a major licensing deal with Allison Transmission. This deal is claimed to be the largest in corporate history and will allow the American transmission firm to use its Infinitely Variable Transmission (IVT) and Continuously Variable Transmission (CVT) technology in commercial vehicle applications. As part of the agreement, Allison has taken a nine per cent stake in Torotrak.
Looking ahead, Torotrak said it would be maintaining its strategy of focusing on commercial vehicle, outdoor power equipment, off-highway and automotive markets. The group is confident of delivering revenue growth and bottom-line improvement in the current financial year and said that its current license and engineering order book looked strong.
Dick Elsy, Torotrak’s chief executive, said the company’s transmission technology was attracting increasing global interest. He added: ‘The relentless pressure towards greater efficiency and lower environmental impact in all of our target markets is forcing companies to consider the adoption of more radical technologies and solutions.’
Chairman John Grant said: ‘We are pleased and proud to report another year of significant progress towards full commercialisation of our technology and business - a success for British technology and engineering at a time when good news has been in short supply in our related industries.
‘We have ended the year in a robust condition, financially strong and well positioned with a growing range of applications. These are encouraging signals on progress in what is an extraordinary tough climate for our current and potential customers.’