Turbo Power Systems shares rocket as revenues rise

Turbo Power Systems shares soared in early Monday trading after the company announced an increase in revenues for 2012.

Turbo Power Systems shares soared in early Monday trading after the company announced an increase in revenues for 2012.

The firm, which designs and manufactures power solutions for aerospace, rail and industrial sectors, saw revenues grow 9.0% year-on-year to £15.7m.

The business benefited from government investments in infrastructure and rail and from demand for its products in oil and gas, defence and aerospace.

However, the firm reported a loss before interest, tax, depreciation, amortisation and stock compensation of £6.3m, compared to a loss of £5.1m a year earlier, due to investment in headcount and restructuring of the senior management team.

As a result the group reduced its headcount from 235 in July to 176 in December, following a structural review of the company.

The order intake for the year came to £7.1m, a considerable drop from the £23m reported the previous year, as the company focused on securing higher margin contracts.

Nevertheless, operating cash outflow jumped to £7.4m from £6.3m.

Net indebtedness reduced to £5.2m from £7.5m through the May 2012 stock conversion by the company's subsidiary TAO Sustainable Power Solutions and the issue of £2.0m of new A-Shares.

Newly appointed Chief Executive Officer, Carlos Neves, said: "The year has been one of considerable change. During the second half we have focused on reducing our cost base, seeking to win contracts with attractive margins whilst entering into negotiations on current contracts to improve our terms.We have also leveraged our investment in operational capability, functional management, and infrastructure.

"I am pleased to report that the markets in which we operate are either stable or growing, while new opportunities in the rail, defence and oil & gas sectors are exciting and should provide the business with opportunities for sustaining revenue growth."

Shares were up 82% at 1.0p by 09:57.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020