Turbo boost

Turbo Power Systems’ order book grew by 12 per cent in the second quarter to £28m following group restructuring action earlier in the financial year.

The West Drayton manufacturer of electric motors, generators and drives saw production and development income fall to £1.9m from £2m a year earlier. However, earnings before interest, tax, depreciation and amortisation (EBITDA) in the period rose to £80,000 compared with a loss of £2.04m in the second quarter of 2008.

Cash inflow for the period was at £60,000, compared with an outflow of £1.03m a year earlier. The group’s research and development tax credits for the first six months increased to £0.56m, which offset current spending by £0.46m.

The company attributes the figures to cost-reduction initiatives it undertook in 2008, which resulted in the company finishing the six months with an unrestricted cash balance of £0.64m and £1.12m related to performance bonds.

Paul Summers, chief executive of the group, said: ‘Overall, a positive set of results that demonstrate the benefits from the changes implemented over the last 12 months. It is very encouraging to see a positive EBITDA figure for the quarter, a figure we are determined to seek to further improve going forward.