Torotrak looking to raise £13.8m

LANCASHIRE automotive technology specialist Torotrak has announced a near £14m fundraising to help it commercialise its innovations as it admitted to “disappointing” financial results.

The company, based near Preston, has had a new chief executive, Adam Robson since April, says the fundraising will allow the company  to “build a platform for growth.”

He said: “My focus as chief executive is to commercialise the group’s technology, delivering value to Shareholders on the significant investments made.

In the year to the end of March, Torotrak’s revenues increased from £3.5m to £3.8m, but operating losses surged from £4.7m to £8.4m.

In terms of the refinancing, Torotrak has launched a subscription, firm placing, placing and open offer to raise approximately £13.8m before costs, subject to approval by shareholders.

It has also restructured the terms of the Flybrid acquisition agreement, reducing the potential cash payable under the earn-out by £10m and converting £1.8m of the vendor loan notes into a five year term loan.

Robson added:  “I am pleased that we have launched the fund raise, restructured the Flybrid acquisition agreement as, together with the implementation of the reorganisation, this will create a platform for financial stability and growth. The executive management team is completely focused on commercialising the group’s technologies, building on the progress made in the last year on bus KERS and V-Charge in particular.”

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