Investors Chronicle > Feb 27, 2004 > Article Antonov shares move up on gearbox deal. Investors Chronicle, Feb 27, 2004 Antonov, the automotive transmission developer, has signed a breakthrough deal that should mean its gearboxes are fitted in small cars by next year. Its shares gained 21 per cent to 35p. The deal is with an unnamed car components manufacturer, which in turn has agreements to install the transmissions with two car makers, one of which is in the `big five`. Its immediate focus will be on getting Antonov`s technology ready for mass production. The deal marks an impressive turnaround for Antonov, which last July said that results of tests on a prototype transmission hadn`t lived up to expectations. Antonov has developed a lighter alternative to standard automatic transmission systems, allowing automatic drive as an option in small cars for the first time. David Bovell, Antonov`s finance director expects to take a royalty of around \$20-\$30 per Antonov transmission sold. Volumes are unlikely to be high in the first year of production. But Mr Bovell says that ultimately, " it doesn`t make sense for manufacturers to produce volumes of less than 350,000." Antonov must still raise more money. However, with revenues now more visible, Mr Bovell says this could be through debt rather than fresh equity. ICView - Antonov finally has its chance to show that its product can be a mass-market success. If it takes it, more lucrative deals should follow. The shares are a speculative buy.
QADSAN
Zurück
