LONDON (ShareCast) - Gearbox designer Torotrak has narrowed full year losses, but warned that the delay in the start of Infinitrak production plus softening demand in the US is likely to result in significantly lower than expected Infinitrak sales for the current year

Profit before tax for the year ended 31 March 2008 was trimmed to £2.4m from £3.2m the year before as revenue jumped 37% to £3.7m.

The firm said it has contained operating costs at 2007 levels, which has cut the operating loss by 26% to £2.8m.

“Whilst it is very encouraging to have delivered a year of positive operating cash flow, earlier than planned, this achievement needs to be seen in the context of our three year plan, where the substantial initial licence payments secured during this year are likely to be balanced by lower levels of cash inflow next year,” said the group.

“Overall, our objective is to generate sustainable and recurring positive operating cash flow from the year ending 31 March 2010 onwards.”

“Although we are approximately one year behind our original production plan, achieving our first sales in this market through our joint venture, Infinitrak, is a major milestone,” added boss Dick Elsy.

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