Torotrak plc, well
known for the paucity of late of vital shareholder information, is expected to
make a statement later this month about Flybrid Automotive.
The founders of Flybrid Automotive are looking to
extricate themselves from what appears on the surface to be the debris of
Torotrak Plc.
Flybrid developed a name for itself through its
flywheel technology (and patents) – a means of absorbing energy which, at a
later stage can be released as a device to improve fuel economy, or boost power
output.
In a statement, Torotrak plc, a developer and supplier
of emissions reduction and fuel efficiency technology for vehicles, announces
that, further to the announcements on 28 November 2017 and 1 December 2017, the
Board has received notification that Jonathan Hilton and Douglas Cross have
filed an application for administration for Flybrid Automotive Limited.
application is listed for hearing on 15 December 2017.
The Board meet with its administration advisers to
consider if any value can be generated from its assets or whether the Company
should to be put into administration.
The Company will make further announcements in due
course.
It may be recalled that Hilton has recently completed
a year as president of the UK’s Institution of Mechanical Engineers.
Hilton joined the Institution as a young member in
1982 when he started his engineering career with Rolls-Royce military engines
group at Leavesden, Hertforshire. Completing the Rolls-Royce undergraduate
training scheme and graduating from the Hatfield Polytechnic, Jon took a first
appointment in helicopter engine design.
His passion for engines led him to Formula One and in
1991 he moved to Cosworth where he rose up the ranks from engine designer to
chief engineer of the F1 programme by the end of 1997. In 1998 Jon moved to the
TWR Arrows team as chief engineer of the F1 Engines group and here he built up
a team of skilled engineers to design and develop F1 engines for TWR.
In early 2003, Hilton moved, along with the whole of
his F1 engines team, to Renault F1 where he formed the UK based engine division
for the team. As technical director Engine Division, Hilton was involved with a
successful period for the team, which won driver’s and constructor’s Formula One World Championships in 2005 and 2006.
In January 2007, Hilton with former Renault F1
colleague Doug Cross, formed a new engineering company called Flybrid
Automotive to develop high-speed flywheel based hybrid systems for automobile
application.
As managing director, Hilton ran the company providing
direction for all activities and with prime responsibility for commercial
aspects of the business until January 2014, when Torotrak PLC acquired the
company. Hilton occupied a non-executive role as deputy chairman of the parent
company.
Hilton has held various official posts at the
Institution including chairman of the Midland Region, chairman of the
Automobile Division and chairman of the Formula Student organising committee.
Two years ago, in August 2015, following a period of “resetting the strategic focus of the fgroup to commercialise its technology”, new Torotrak chief executive officer Adam Robson saw Torotrak’s key markets as being bus, off-highway and passenger car with KERS (kinetic energy recover systems) and V-Charge appearing to take centre stage compared with the company’s original focus of development, namely infinitely variable transmissions (IVTs). Hmmm.
Two years ago, in August 2015, following a period of “resetting the strategic focus of the fgroup to commercialise its technology”, new Torotrak chief executive officer Adam Robson saw Torotrak’s key markets as being bus, off-highway and passenger car with KERS (kinetic energy recover systems) and V-Charge appearing to take centre stage compared with the company’s original focus of development, namely infinitely variable transmissions (IVTs). Hmmm.
Interestingly,
it is understood Flybrid Automotive Ltd cost Torotrak plc of the order of £11 million in 2014 with a potential further £15 million should performance targets be met.
Unsecured loan notes of £1.8m, were given as part of the deal, and were
repayable subject to certain commercial targets being met. It is possible these
form part of the current dispute.
A few FTSE companies show their shareholders utter disdain by failing to correctly 'reward' them; Torotrak plc is certasinly one of them.
It now remains to be seen what happens to the technology, know-how and patents stored within Torotrak – and the value placed upon them.
