Losses up to £14.3m and job cuts at bus technology firm

LOSSES have almost doubled to £14.3m leading to job cuts and the slashing of bonus payments at Preston-based Torotrak, a developer and supplier of emissions reduction and fuel efficiency technology in vehicles.

Preliminary results for the listed company which specialises in the use of ground-breaking KERS technology for buses and V-Charge to boost the power of smaller engines for cars show in the year to March 31, revenue fell to £1.2m from £3.8m.

During the year, a significant proportion of the Group’s engineering resources were deployed on key internally funded development programmes such as bus KERS and V-Charge, the company said.

This focus on self-funded projects resulted in a reduction in engineering services revenue from £2.8m to £1.1m.  Gross profit for the year was £0.1m (2015: £2.0 million), due largely to the reduction in revenues.

The company said: “As part of the reorganisation implemented earlier in the year, the group has successfully delivered a £1.8m (22%) reduction in net cash operating costs to £6.3m. 

“This reduction has been achieved through a combination of a headcount reduction, elimination of cash bonuses and removal of other employee incentives.

“After deducting intangible asset amortisation (know-how) costs of £0.8m (2015: £0.8m) and exceptional costs of £6.1m (2015: £0.4m) the operating loss for the year was £14.3m (2015: £8.4m).”

The exceptional charge for the year included a £0.7m cash restructuring cost, non-cash costs of £5m (2015: £Nil) relating to the renegotiation of  agreement to acquire Flybrid and a £0.4 m (2015: £Nil) provision against the diminution in the long term value of the investment in Rotrex A/S.

Chief executive Adam Robson said: “Since my appointment in April last year, the Group has made good progress against its strategic objectives to commercialise its technology. 

“The journey has included a number of challenges but I am pleased with all that we have achieved and I am confident that we have built the platform to deliver value from our technology portfolio, following the restructure and reorganisation of the business which was completed last year.”

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