Torotrak last week declined to comment on rumours that it is set to announce a significant deal with General Motors to exploit its Infinitely Variable Transmission technology.
The IVT system, a high-technology gearbox system for cars, is being developed for commercialisation.
The company admitted that it had completed a test rig contract for GM, which will produce a fleet of IVT equipped vehicles for testing. The contract is worth £470,000 initially.
Torotrak chief executive Maurice Martin said the company continued to aim for worldwide manufacturing agreements with a major car company.
‘We are in talks with the major seven, such as Mercedes, Honda and Toyota,’ he said, adding that a licensing deal with one of these manufacturers was set to be signed shortly. He would not say which company.
Torotrak, which spun out of BTG and floated on the stock market this year, reported an increased half-year loss of £1.869m. This compared with a loss of £651,000 in the same period last year.
Martin said this reflected a rise in total investment to £6.6m with development expenditure up at £2.3m, against £845,000 this time last year.
Torotrak shares were unchanged at 102.5p on the results.
Martin said: ‘Share price performance since demerger has been disappointing, but the board remains confident of achieving its ultimate goal of making the Torotrak IVT the standard transmission technology for the automotive industry by 2010.’