Turbo Power Systems, the Gateshead-based manufacturer of electric motors and generators has narrowed pre-tax losses to £2.31m during 2014
The London Stock Market listed firm reined in losses from £2.85m in 2013 as revenue fell 20% to £15.7m.
In February The Journal reported the firm was considering a sales of the business and a note to shareholders today confirmed that a strategic review of the business was underway — led by Canadian investment bank, Lincoln International LLP.
A statement from the firm read: “In the meantime there can be no certainty that any potential transaction will proceed, or as to the terms of any such transaction. The company may discontinue the strategic review process at any time.”
In response to lower revenue Turbo Power Systems (TPS) shed 17 jobs during 2014 and reduced research and development costs by 40% to £1.91m.
The second half of the year bore a swing into operating profitability of £0.26m, up from a loss of £1.92m in the first half.
Carlos Neves, chief executive officer, said: “We are pleased to announce that TPS returned to pre-tax profitability in the quarter, and reported a return to operating profit for the half year.
“We continued to implement our strategy of bidding for profitable production and development contracts, whilst maintaining a disciplined and considered approach to costs which has resulted in a reduction in our total expenses by 14% quarter-upon-quarter and significantly improved the level of cash flows from operations.
“We continue to see opportunities available where TPS’s excellence in the manufacture of innovative designs and its ability to implement new ideas are valued by our customers.”