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.