Turbo Power Systems reduces FY losses after tightening costs

13th Mar 2014 09:45

Technology developer Turbo Power Systems gave investors some welcome news on Thursday, reporting a 21 per cent increase in full-year revenue alongside a reduction in overall net losses.Predominantly as a result of better controlling costs, profitable projects and increased margins on certain contracts, the group posted a loss of £2.9m for the 12-month period, down from £7.2m a year earlier. Turnover rose to £19m, from £15.7m in 2012, while order intake climbed to £17.4m (2012: £7.1m) as the company built on the objective to win and deliver profitable contracts. Total expenses were reduced to £8.6m from £10.8m the previous year.The group also said it had negotiated a later repayment date for its loan from TAO Sustainable Power Solutions, its parent undertaking. The loan - on which it said it "remains critically dependent" - has been rescheduled to April 1st 2016, marking a two-year extension. It also continued to focus on improving its gross margins, up from 25% in 2012 to 30% in 2013. "Since the major structural adjustments were implemented and concluded in 2013, Turbo Power Systems is now actively pursuing exciting new projects with new customers to increase the diversity of both our customer base and our technology portfolio, with the right level of profitability. "We have a new sales team in place since year-end to drive this initiative forward, which coupled with our continued focus on operational efficiencies throughout the business, is a key part of the plan to further improve performance and achieve profitability." Looking ahead, he added that he felt "measured confidence" about the group's 2014 performance. NR