October 24, 2006
Turbotec
Products PLC ("Turbotec" or "the Company") provides the following trading
update ahead of announcing its interim results for six months to 30
September 2006. The Company's interim results are expected to be released
on the 7th November 2006.
The
Company has seen encouraging sales growth from both new and existing
customers, however the effect of significant increases in raw material
costs will result in profitability that will fall short of expectations
for the year.
The
Company is working on a number of initiatives to increase prices to
recover more of the material cost increases during the balance of this
fiscal year. Recent pilot orders received from new high volume users are
at higher than normal selling prices and they will gradually improve our
margin mix during 2007. In addition, the Company is also implementing
further lean manufacturing initiatives to reduce costs and improve
efficiencies.
Turbotec
is currently in the process of adding technical and marketing staff to
support new product lines including heat reclamation, ahead of its launch
in the first calendar quarter of 2007. Testing of the new ENVIRO-PAKTM residential/ light commercial unit is continuing and development work has
also started on the ENVIRO-TEMPTM Commercial heat recovery unit. The Company continues to see growth in the
Water Source Heat Pump market and is aggressively marketing its line of
Pool-SafeTM titanium heat exchangers to targeted major OEM's for Swimming Pool Heat
Pump applications.
Given all
the ongoing internal improvement programs and vigorous efforts in our
market place that are currently being pursued, the Board remains confident
in the future prospects of the business for the existing and new product
lines.
ABOUT TURBOTEC
Turbotec
is the holding company for Turbotec Products Inc, ("TPI") an established,
profitable, specialist engineering business, based in Windsor,
Connecticut, USA.
TPI's
business is the design, manufacture and marketing of technologically
advanced heat exchangers and value added metal tubing, components and
systems for a range of industries including the heating, air conditioning
and refrigeration industries.
Through its proprietary manufacturing processes TPI is able to convert
mill purchased metal tubing into special purpose spirally fluted
(twisted), grooved and coiled tubes and components that are sold to its
customers for use in their end products.
