Executive Summary
Corac (LON:CRA) is an engineering and technology company patenting and developing solutions related to turbo machinery including oil free “air” bearings, shafts and high speed motors for various applications. The company currently employs approximately 40 members of staff predominantly engineers. Although the technology is not yet proven, the company reports that a number of companies have shown an interest. [1]
Company History
The company was incorporated in 1996 and is based at Brunel Science Park, Uxbridge. Middlesex.
It was admitted to AIM on 4 July 2001.
Current Events
On 2 February 2009 the company raised £1m net of expenses by means of a private placing. [2]
Business Model
Products/Services
- The company ‘s Downhole Gas Compressor (DGC) technology can increase the production of gas recovery by using a combination of it’s gas bearing, shaft and motor technologies. Trials of the DGC have been in place since 2007. Eni have committed to first field trail in Southern Italy which is targeted for the last quarter of 2009. The company have a joint development relationship with Baker Hughes and there is growing market interest from other Gas majors. Corac’s Industrial Air Compressors, (which are oil free) are mainly used within the food and beverage industry. These are achieving approximately 18% more efficiency with running costs being considerably reduced and the risk of oil contamination being removed. The company is also currently focusing on turbo-boosting. The third main application of the company’s technology is high pressure, non-contacting dry gas seals, the intellectual property rights to which were sold for a lump sum plus royalties in 2007, the royalties being commuted for a final lump sum in late 2008.
- The company established a joint development relationship with Baker Hughes the global oil ND GAS ENGINEERS (NYSE) in October 2008 which the company believes is key to their future marketing, and field support, and will provide further opportunities fir the technology.
- Further, the company has a joint development agreement with Fu Sheng , the Taiwanese air compressor manufacturer and distributor [3]
Segments/Customers
Production/Operations
Distribution/Routes to Market
Market & Competition
Market Share
Main Competitors
Smith International Inc
Plexus Holdings plc
TESCO Corporation Inc
Dril-Quip Inc
Weatherford International Ltd
Natural Gas Services Group Inc
Competitive Strengths and Weaknesses
Management
Executive Chairman – Professor Gerry Musgrave aged 66…
