Turbo Power Systems soars on 7.7m-dollar rail order

Shares in Turbo Power Systems(TPS) advanced sharply on Thursday after the AIM-listed engine and generator manufacturer received a further purchase order from Bombardier Transportation worth 7.7m dollars.

The company announced an initial contract with Bombardier Transportation in January 2007, in support of its contract with the Chicago Transit Authority, worth over $14.2m to supply auxiliary power units for its fleet of metro subway cars.

The agreement included a number of phased extension options, the company said.

Bombardier Transportation said it had now activated the last of these options, being a follow-on order to TPS for further auxiliary power units, which were expected to be fulfilled during 2013 and 2014.

Carlos Neves, TPS Chief Executive Officer, said: "We are delighted that Bombardier Transportation has chosen to activate this option. Before this extension, we have already supplied over 300 units and are pleased to be providing more."

He added: "Whilst this purchase order was included in our expectations for 2013 and 2014, it is very pleasing to have reaffirmed our relationship with Bombardier Transportation and to have received the validation that it gives to the equipment that we supply."

TPS' share price was up 46.67% to 0.55p at 09:14 on Thursday.

MF