Thursday, UK based power solutions maker Turbo Power Systems Inc. (TPS.TO, TPS.L) posted a wider loss in fourth quarter, adversely affected by stock and goodwill write-offs, and said it would reduce further workforce in 2009.
The company's fourth-quarter net loss and comprehensive loss totaled GBP 3.15 million or 1.0 pence per share, compared to a loss of GPB 1.58 million or 0.5 pence per share in the prior year quarter.
The latest quarter results were severely hurt by reducing the carrying value of goodwill, and obsolete stock at the year-end besides the charges incurred for restructuring.
Underlying net loss for the latest quarter, excluding charges, would have been GBP 1.46 million. The company stated, diluted earnings per share figures have not been provided, as the loss in each period would be anti-dilutive.
Quarterly total revenues dropped to GBP 1.93 million from the previous year's revenue of GBP 2.91 million, reflecting the completion of several rail contracts and the reduction in demand from National Rail Equipment Co.
Paul Summers, CEO, said, During 2008 Turbo Power Systems has undertaken some significant steps in strengthening the position of the business. The transitioning of programmes from development to production in the fourth quarter has reduced the spend on R&D and now provides the business with a solid base for 2009 and beyond.
Further, Turbo Power Systems noted that it has reduced jobs during the second half of the year and would also eliminate further workforce in 2009.
Spending on new product development has been reined in and the agreed transfer of one of the company's aerospace programmes to its customer markedly reduced Turbo Power's exposure in 2008 and beyond. The company added that it has retained the ability to operate in the aerospace market, but in strategic review it concluded that other markets would take higher priority.
For the full year, the company reported a net loss and comprehensive loss of GBP 9.56 million or 3.0 pence per share, compared to a loss of GBP 6.42 million or 2.1 pence per share in 2007.
Annual revenues for 2008 decreased 28% to GBP 7.78 million from GBP 11.0 million reported in the previous year, primarily due to a reduction in production volume on existing rail programmes of GBP 4.30 million as several contracts completed.
Summers added, Our markets are bearing up well in the current climate and are still providing the business with growth opportunities.
Turbo Power shares, which have been trading between C$0.01 and C$0.09 in the past 52 weeks, closed Wednesday's trading session at C$0.02 on TSX. TPS.L is currently trading at 0.95p, down 0.07p or 7.32%.
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