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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published