Companies: TRK   

Richard Elsy, new chief executive of the fuel-saving gearbox hopeful, says the company has at least five years cash in the bank to support itself until royalties come in from its Infinitely Variable Transmission (IVT) development. IVT enables significant fuel savings as well as providing 'a refined drive experience', according to the new boss. Torotrak's strategy is to generate royalties via the sale of IVT equipped vehicles by car manufacturers - it is working with automotive industry partners to develop products ready for a market launch. Elsy became chief executive on 1 January and has held senior positions at Jaguar, Rover and BMW. Part of the team that drove Jaguar Cars' growth over the past few years, he has a proven track record driving new products to market. He claims Torotrak will bring in income, before royalties start, from selling engineers time and expertise working on applications for customers. 'We can do this because the car industry is already working on IVT and recognises us as the centre of excellence for this technology' he roars. In the half to September, pre-tax losses narrowed to £3m (£4.1m) and period end cash was £19.2m. Evolution Beeson Gregory forecasts losses of £7.5m for the current year to March, followed by a £7.4m deficit for 2004. Risky, but prospects have improved with Elsy on board. Hold.