Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

British automotive company Cosworth eyes New York IPO in 2019

Published 07/06/2018, 23:27
© Reuters. FILE PHOTO: An engine of British engineering company Cosworth is seen in a Lotus race car during race demonstration at the Offene Rennbahn cycling track in Zurich's Oerlikon suburb
GM
-
PSHG_p
-
7267
-

By Joshua Franklin

NEW YORK (Reuters) - Cosworth, the British automotive engineering company famous for the engines it once made for Formula One racing teams, plans an initial public offering (IPO) in New York as early as next year, Chairman Kevin Kalkhoven said on Thursday.

Cosworth has broadened its focus in recent years from manufacturing engines to providing powertrain and electronics technology. Products include car software, data analytics and sensors for autonomous and assisted driving.

The stock market floatation would follow Cosworth showing sales from new contracts for hybrid engines and sensor technologies.

"We will be able to demonstrate our new product revenue and profit potential in real terms after the close of the first quarter in 2019," Kalkhoven told Reuters in a telephone interview.

"It's at that time that we will look to go public," said Kalkhoven. The Australian bought Cosworth from Ford Motor Co in 2004 with Gerald Forsythe, when the two were co-owners of the Champ Car World Series.

He spoke after Northampton-based Cosworth reported a backlog of over $440 million (£327.7 million) from long-term contracts through to 2026. The company also said it was profitable last year, with record revenue of $72.5 million.

The company also said it is making a "significant investment" in its first U.S. manufacturing centre in the Detroit area.

Kalkhoven said the cost of the initial installation of the manufacturing equipment will be $50 million and the centre will be staffed with at least 100 scientists, engineers and researchers.

Cosworth says it has relationships with the likes of GM (N:GM), Aston Martin, Honda (T:7267), Haitec and Porsche (DE:PSHG_p).

© Reuters. FILE PHOTO: An engine of British engineering company Cosworth is seen in a Lotus race car during race demonstration at the Offene Rennbahn cycling track in Zurich's Oerlikon suburb

(The story was refiled to add a missing word in paragraph 6)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.