AGM 2010 and Tech Talk

Just a gentle reminder that it is the AGM taking place next week on the 29th of July 2010
More information here: http://torotrak.com/content/401/AGM-2010-details.aspx


The annual report is available here for those who have not yet read it: 
http://torotrak.com/pdfs/annreps/Torotrak%20Annual%20Report%202010_final_for%20web_22%2006%2010.pdf


With promises of a launch of the quieter transmission from Infinitrak in MTD lawnmowers almost for a year now, and the possible news of the KERS unit being fitted to a Jag anytime soon as part of the TSB project there should be something for everyone, or just a sausage roll.


Progress with Allison and their standardised IVT transmission - and where they stand on licenses as well as the news on the current testing rigs for the European bus & truck manufacturer should be covered.


Additionally new partnerships as Rotrak for superchargers will be a topic of interest too. From the books it looks like TRK have put all the money in (even if it is as a loan - which seems a bit shakey) - but there is a nice photo of the CAD model on the website now.


Tech Talk
If you're interested the traditional pre-AGM tech talk has been arranged on this topic:
Subject... "The application of Toroidal Variable Auxiliary Drives (TVAD's) to super chargers"
Speakers... Roger Stone & Chris Brockbank
Time... 7:30pm on Wed 28th July
Location... http://www.hunterslodgemotel.co.uk/


Seeing as the preliminary results stated they are going to try to focus on shareholder value (and in one comment say that the shareholders to date therefore have not been getting any), it will be an interesting AGM to see if director salaries, royalties and licenses are going to be addressed as well as if more investment in joint ventures is the new flavour of the board. 


The main concern is if the funds in the coffers are starting to burn holes in the boards pockets and they are getting jumpy. If there is excess money left in the coffers then a share-buy-back scheme might be the fastest way to deliver shareholder value. One other suggestion has been to get another licensee to purchase shares in the company - which is all well and good - but that is only likely to result in another share issue and dilution of shareholder value. Heaven forbid, they could even issue a DIVIDEND. But I've not got any hopes up.


Analysis of the preliminary report showed the short to medium term future of Torotrak is in the hands of Allison Transmissions - all outcomes are good - as long as they keep their current license - not continuing at all would obviously be bad. Some people seem to be holding out for Allison to take up all their global exclusivity options and more in terms of power rating - and anything else is bad news - which I can't agree with - as long as they are bringing their transmission to market that's great. If they are focussing on one solution at a time to get it to market and make it work in time for the emissions legislation that will hit - brilliant. The only bad news is if they stop all development - which for a company which owns 9% of TRK - is on the "highly unlikely" side of the scale.


Some news of Carraro would be welcomed, and any other tractor projects. We don't hold anything out for news on TATA, but to still be flagged as under concept studies for commercial vehicles (see page 7 of the annual review) after all this time - and allow to be named - would suggest it's not the flaming torch of shareholder value it once was.


Summary
Torotrak are a company in flux. They started out as an academic research project and after targeting the much maligned SUV market (which collapsed before TRK got there) have diversified around in both application and size. Scaleability is being explored, but so is the business model of licensing and partnership because in today's tough times of austerity - there isn't a single car manufacturer project listed on the page 7 diagram. How do TRK get people to invest in their technology and commit to getting it to market ? Buying a seat on the JV board seems to be the current idea - but is that really going to get enough voting rights to make things happen ?


Perhaps at some point, TRK need to design a standardised transmission for a product that needs a CVT (scooters perhaps), find a customer who will put them in (and buy them!), and get a subcontractor to make them and sell them at a profit. Then and only then will Torotrak have real control over their destiny, at the moment they are just spectators, just like us shareholders. As such the JV with Rotrex will be watched with great interest.

Preliminary results: First full year profit achieved

Preliminary results announcement for the year ended 31 March 2010

Full details available here: http://www.torotrak.com/Resources/Torotrak/Documents/Prelim_results_2010_FINAL.pdf

Operating Profit and Profit after Tax both achieved.

Financial highlights

•  Revenue growth of 66% and above break even in profit after tax
•  Robust cash resources of £13.1m at year end
•  Three-year cumulative positive operating cash flow of £0.4m, considerably ahead of expectations set at the time of the 2007 Placing & Open Offer
• Strong level of licensing and engineering orders

Operational highlights

• Refreshed strategy increases emphasis on lead customer programmes and energy efficiency solutions to tackle CO2 emissions
• Commercial vehicle prototype transmissions built and on rig tests, with lead programmes progressing well
• Second Allison contract payment of £3.75m received in March 2010
• Infinitrak's second transmission completing field tests prior to production release
• 15% stake in Rotrex acquired and Rotrak joint venture established to develop and commercialise new technology to assist with engine downsizing

For further details go and read the whole report (linked above)

Before I comment any further I'm going to wait for the reports and information gained from the TPSA representative meeting held with Dick Elsey on Wednesday. Hopefully there will be more information on the positive direction of the new strategy, and the closure of the old strategy and clear end milestones of projects related to it- one of which will be the Allison licensing decision next year.

Key to all this is that we have to wait to see the result of the Commercial transmission projects and the Allison transmission license which combined has had 55% of the companies resources working on it through 2010. Crunch time is in 2011 when Allison have to make a decision on their licensing rights.Watch that space...

Along with a new business strategy we seem to have a new entente cordial with potential investors and shareholders. I for one look forwards to the new focus on communication and information from Torotrak: "our task will be to point to the progress and milestones that inform shareholders of the increased prospects, confidence and proximity to recurring royalties and production earnings." - N.B. Please employ someone who can write with clarity and a positive outlook when you do (I hear that Alastair Campell is looking for a job.)

More news as it happens - There is going to be a tech talk on Superchargers before the next AGM, I'll post details here as before.

May The Craftsman Zero Turn 42 inch 22 hp Model 28933 Rest In Peace

As you know - I'm not posting a great deal on this blog as the majority of content is automated  and it keeps things ticking over as an information route.

Every now and again there are some nuggets of information I want to draw attention to and this is one of them:

May The Craftsman Zero Turn 42 inch 22 hp Model 28933 Rest In Peace

Given the technical success of the product and the twin-torroidal transmission, (TTT) in the Infinitrak range of products with MTD as the manufacturer, this news is either indicative of the continuing recession in the USA (which is tip-toeing it's way out) or the continued market positioning of the TTT as luxury just being too luxury for too many people.

One cannot fault the pedigree of the product, the market review (as can be read in the link above) however it seemed to be continually reviewed and measured in the wrong ride-on mower category because of it's zero-turn capabilities. The marketing appears to have been off target for the key customers if this is the case - if the experts can't even pigeon-hole it correctly what chance have the salesmen ?

Moving on - in other news we draw closer to the Jaguar project and their installation and adaptation of the Flybrid flywheel solution. Slide 14 - system as installed is the one to look at. on the link here:
http://www.climate-change-solutions.co.uk/pictures/content482/4-1_martin_dowson_-_fuel_cell_conf_v2.pdf

New Scientist  magazine also recently highlighted the torotrak transmission credentials in their recent article here:
http://www.newscientist.com/article/dn18769-green-machine-rethinking-internal-combustion-engines.html

as references to the technology become more and more public mainstream, hopefully the technology will also start to become more visible in the public domain - a million miles on from the acedemic and industry publications which previously held so much information and hope.

Until the Year end announcements or further RNS's, that's it from me. Hopefully there will be some dilligent forward looking statement on the situation with Sears and Infinitrak sometime soon (explaining that the single torroidal transmission is the reason why...)

Enjoy the spring weather !