Torotrak, a developer of full traction drive technology, has posted a 25 per cent increase in revenues despite the automotive industry’s global difficulties.
The Lancashire-based firm reported revenues up from £3.7m to £4.6m with a growth in operating cash flow reaching £1m compared with £0.5m in 2008. Operating loss was reduced to £2.4m from £2.8m and cash resources increased by 30 per cent to £15m.
The results were boosted by a number of major contracts, notably with Allison Transmission, a supplier of automatic gearboxes, which made a strategic investment to become Torotrak’s largest single shareholder. With Tata Motors as an additional licensee, the group now claims to be in a strong position in its commercial vehicles market.
The group believes there will continue to be a strong interest in the development of solutions to improve efficiency and reduce fuel consumption. The introduction of a Kinetic Energy Recovery System (KERS) for F1 has contributed interest in Torotrak’s technology portfolio and the company said that it plans to continue strengthening this side of the business.
Looking ahead, John Grant, chairman, said: ‘We are maintaining our strategy of focusing on our identified core markets of commercial vehicles, outdoor power equipment, off-highway and automotive.
‘Although progress has not been, and is unlikely to be, smooth and continuous in each of these areas, this strategy has enabled us to pursue a diverse range of markets and customers while concentrating our resources on those opportunities that we believe to have the strongest commercial potential.
‘We are now working to build on the company’s current momentum, by continuing to develop our intellectual property portfolio, securing additional licensees in core markets and by ensuring that development programmes with our partners are delivered successfully and on time.’
Dick Elsy, chief executive, added: ‘While the economic environment has been extremely challenging, Torotrak has succeeded in three key areas: in gaining more customers; in strengthening our financial resources; and in delivering a strong forward order book to continue our business growth towards full commercialisation.’