Newspaper article The Journal (Newcastle, England)

Losses Widen despite a Strong Third Quarter; RESULTS

Newspaper article The Journal (Newcastle, England)

Losses Widen despite a Strong Third Quarter; RESULTS

Article excerpt

Byline: ROBERT GIBSON robert.gibson@ncjmedia.co.uk

GATESHEAD-BASED power solutions company Turbo Power Systems looks set to report widening year-on-year operating losses for 2014, despite a pick-up in performance during the third quarter.

Financial results show order intake increased 86% in the three months ended September 30, compared to the previous three months, rising from PS3.33m to PS6.21m.

Revenue, meanwhile, grew 3%, from PS4.16m to PS4.29m, while gross profit rose 56% to PS1.28m, compared to PS820,000. The company also managed to reduce its quarter-on-quarter net loss by 94%, from around PS900,000 to PS50,000.

However, figures for the nine months to September 30 show an overall year-on-year revenue reduction of 17% to PS11.75m.

The company's operating loss before other operating income, meanwhile, increased 30% to PS2.1m, compared to PS1.61m the year before.

On the positive side, total expenses improved 26%, dropping from PS6.31m to PS4.67m, while cash out-flow from operations dropped 30% to PS2.1m.

Established around 30 years ago, Turbo Power Systems designs and manufactures innovative power solutions, its products being based on its core technologies of high speed motors and generators, as well as electronics, which are sold into sectors such as aerospace and rail.

Existing customers include blue chip companies such as Bombardier Transportation, Daikin Applied and UK Power Networks, with whom the business secured a major contract in the third quarter to supply prototypes for a groundbreaking electrical energy controller design for trials in London and Brighton.

Recently, TPS has been concentrating on focused research and development, bringing more integrated products to customers and creating a culture of cost consciousness, eliminating excess.

During the second half of last year, it consolidated operations to the Gateshead site and, between September 2013 and September 2014, there has been a 22% reduction in headcount, with employee numbers dropping from 155 to 121. …

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