Torotrak’s sales step up a gear
TOROTRAK, the Lancashire vehicle transmission specialist, has seen its key commercial arrangements pay off after half-year sales rose by 42%.
The Leyland-based company two main customers are US-based Allison Transmission and an unnamed major European truck and bus manufacturer.
In a half-year report it said these partnerships were behind the sharp rise in sales. But development costs of £2.5m helped push the firm to a pre-tax loss of £1.8m – a slight improvement on a £2m loss last time.
The company has been working on innovative transmission systems which require less energy and reduce Co2 emissions.
In May it bought a 15% stake in Danish engineering business Rotrex and launched a UK-based joint venture called Rotrak. The new business is exploiting opportunities associated with the downsizing of engines, a growing trend in the automotive sector.
Chief executive Dick Elsy said: “Our strong and continued progress in the main-drive transmission programmes with our two lead commercial vehicle customers has reinforced our confidence in proceeding towards production design and subsequent material value through future per unit royalties.
“We have also made rapid progress with our industry partners in the development of our new energy efficiency solutions, flywheel hybrids and variable drive superchargers, to service the growing demand for C02 reduction technologies across the whole automotive industry.
“Whilst in development phase, early results are encouraging and this, combined with the enormous legislative pressures faced by the vehicle manufacturers, gives us confidence that there is considerable value to be pursued in these high volume markets.”
