Torotrak shifts focus in pursuit of ‘aggressive’ growth

ENGINEERING group Torotrak is switching its strategy to target “aggressive, accelerated growth”.

The Leyland-based company, which is developing innovative gearless traction drive system, has previously worked on a model of licensing its technology.

But new chief executive Jeremy Deering now wants the business to supply its own products.

The move came as the company reported strong figures for the six months to September 30. Pre-tax profit were up to £1.4m, up from a £2m loss last time.

This was on the back of stronger revenues – up from £807,000 to £4.7m. This was largely down to licence payments of £3.9m from commercial partners.

Me Deering said: “Torotrak’s strategy to develop and then licence its core technology has built a business that benefits from material early-stage cash payments and a strong base of partners and licensees.

“The time is now right to adjust that approach to one of more aggressive, accelerated growth in order to capitalise on the substantial opportunity ahead that will allow us to introduce our clean technology into mainstream commercial and passenger vehicles worldwide.

“Our strategy now is to build growing, underlying earnings through our own capability to supply products containing our technology, supported by an advanced engineering services business of increasing scale. Licensing income will continue to represent a material additional layer of value, but not one upon which our business growth depends.”