Torc Us Through 2005

I don't think the sale and lease back is dependent on the other things you mentioned. At the current burn rate, cash lasts until the end of the next financial year, March 2006. Anticipated break even is around March 2008 since a bankable deal won't provide royalties until the transmissions roll off the production line three years later, and it will take a similar length of time for offhighway transmission volume to build up to 50,000 per annum, if the fast followers join in. That leaves March 2006 to March 2007 to be funded by the sale and leaseback of the land, and a bit of a hole still for financial year 2007-2008: maybe some cheap shares being issued? I said when the shares were 125p in about January 2004 that if I was running the company, I would have issued some new shares. If Torotrak had done that, they could be buying the shares back at a lower price now.

Things are looking good for genuine 4x4 applications - eg farmers' vehicles that needs a special low speed gearbox for driving offroad - as IVT offers about a $200 saving, by eliminating said extra 2-speed gearbox. So far, nobody on the thread seem to have determined what the size of the market is for these 2-speed units, which is a shame, as that is a useful step in putting a valuation on Torotrak shares.