Orbital lifts profit to $1.5m

Engine technology developer Orbital Corporation Ltd has reported an increase in net profit after tax to $1.3 million for the year to June 2007, up from $0.5 million in the previous year.

The Balcatta-based company lifted revenue 32 per cent to $15.2 million, with an increase in engineering services income to $12.5 million offsetting a reduction in royalty and licence income.

The main operational development during the year was Indian company Bajaj commencing production of an autorickshaw using Orbital's direct injection technology.

The result included the $0.6 million cost of settling a dispute with Coles Group Ltd over a research and development syndicate.

Orbital said it had achieved a significant improvement in cash flow from its operations, with a net outflow of minus $0.2 million.

It had $11.3 million cash on hand at 30 June, mostly being the proceeds of an $8.8 million capital raising.

Chief executive Dr Rod Houston said this "has put Orbital in a better position to pursue growth opportunities both inside and outside our current core business".