Traction Technology admits it won’t generate cash for the foreseeable future.
This is because the diesel electric hybrid engine systems developer says that the hybrid bus it is developing with Optare will be completed later than expected. That means that the anticipated order for 10 hybrid engine systems won’t happen this year. There will be some deliveries to customers this year but most potential business won’t materialise until next year. Trials of hybrid buses by Transport for London have been delayed.
Costs are being reduced but Traction‘s cash will run out in a couple of months. That means that Traction will need to raise cash, change its strategy or close or sell the business.
This comes at a time when Traction’s Generation 3 TRIBRID power pack trials are going better than expected.
Traction shares slumped 6.25p to 5.5p, valuing the company at £2m.
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