Turbo Power Systems expects to break-even for full-year

Turbo Power Systems told investors it expected to break even for the year and that it had received various “expressions of interest” from potential buyers of the company.

The manufacturer of high-performance electric motors and generators said operating profits in terms of earnings before interest and tax would end the year flat, versus a 2014 loss of -£1.7m.

As a result of the strategic review which was under way, the company had received expressions of interest from potential acquirers, although they had all been priced at a “substantial discount” to the share price, the company said in a pre-close trading statement.

Linked to the above, on 12 November its majority shareholder, Tao Sustainable Power Solutions (UK), said it would waive its entire outstanding loan of £10.5m and accrued interest of £1.9m, “for the potential benefit of all TPS shareholders”.

Nevertheless, the company said its sales would show a decline of 11.2% to £13.5m.

Its full-year results included a one-off provision of £0.5m linked to a warranty repair for a fault within motor units delivered to a customer between 2013 to 2015.

At the end of the reporting period cash on hand stood at £0.5m.

As of 16:20 shares in Turbo Power Systems were 10.0% higher at 0.28p, giving the AIM-listed engineering outfit a market capitalisation of £15.04m.