Ormeau racing tech company revs it up 52.5%

ORMEAU motoring technology company PWR Holdings has raced to give shareholders a boosted dividend after posting a half-year net profit 52.5 per cent higher than the same time last year.

PWR, which makes highperformance cooling systems used in Formula 1 and V8 race cars and military vehicles, reported $3.1 million net profit for the six months to December 31, on revenue of $24.76 million, which was up 21.6 per cent on last year.

The company said the 16.6 per cent of the revenue boost was organic, coming from its increased penetration of the motorsports market in Europe.

Favourable foreign exchange movements also contributed 5 per cent. PWR said the revenue growth had come with a 55 per cent improvement in operating cash flow compared to the previous year due to its efficient working capital utilisation.

The company said profit for the same time last year had been impacted by one-off costs and adjusting for those, the net profit had still increased by 15.7 per cent this financial year.

Managing director Kees Weel said new machinery acquired by the company was fully operational.

“PWR is now well positioned operationally and financially for its anticipated growth in FY20 which will be driven by the application of current and new technologies to new and existing business segments including micro matrix and cold plate technologies,” he said.

The company last year revealed it was in discussions with Mercedes AMG on providing its technology to the F1power Project One hypercar.

Last week it won a $1.095million grant to purchase a 3D CT scanner, which it hoped would increase its competitiveness and allow it to introduce 3D printing to its production.

PWR IS NOW WELL POSITIONED OPERATIONALLY AND FINANCIALLY FOR ITS ANTICIPATED GROWTH IN FY20