Friday, 16 December 2016

Outlook dims Torotrak's off-highway prospects

Torotrak plc has noted today that a further deterioration in the trading outlook for the global off-highway market could affect the timing of its target to secure an initial licence for Flybrid KERS technology.
Further to the interim statement dated 29 November 2016, the Group has been notified by a prospective licensee that a further deterioration in the trading outlook for the global off-highway market could delay the completion of our current licence negotiations with them.
Following this notification, Torotrak now considers the time required to secure this first licence will take longer than previously expected, occurring during the financial year ending March 2018 rather than in the current financial year as originally planned. 
Torotrak shares are at a five-year low this morning.
Adam Robson, chief executive of Torotrak said; "The Board believes that this potential licence in the off-highway sector will be delivered but its timing is now looking like unfortunately moving into the next financial year. This likely delay in securing the first KERS licence reflects the unexpected further challenges facing the off-highway industry.”
“However, we remain confident that the sector offers a significant commercial opportunity for the KERS technology. We also continue our discussions with potential OEM and Tier 1 partners for the commercialisation of V-Charge in the passenger car market in line with the outlook included in the interim results statement," added Robson.


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