Torotrak cuts board and exec pay
TOROTRAK, the Lancashire vehicle transmission specialist, is to reduce the size of its board and cut executive pay in a bid to cut costs by 25%.
It is also changing its engineering and commercial delivery structure in a way it said will be “better aligned” to support customers. The changes have been triggered by a move from wider technical development to a tighter focus on supporting key customers, said the firm.
Two of the firm’s six directors – commercial director James Batchelor, pictured 
right, and non-executive David Mackay – will retire on March 31. Finance director Jeremy Deering will oversee the firm’s commercial activities.
In a statement the company said the new board structure will reflect a more integrated approach to engineering and business development. Torotrak expects the move to save between £1.6m and £1.9m a year and cost £600,000 to implement.
Chief executive Dick Elsy, pictured below, said: “We are entering an exciting and demanding new stage in Torotrak’s development, where we are prioritising our engineering resources on our key customers to drive our technology through to commercialisation.
“This sharper strategic focus also puts more emphasis on developing high value client relationships and partnerships in place of widespread business development.”
Torotrak, which is listed on the FTSE techMark All Share index, supplies two main customers – US-based Allison Transmission and an unnamed major European truck and bus manufacturer.
In an interim management statement, also issued this morning, the firm said all parts of the business were operating as planned.
