Ormeau-based PWR Holdings reveals discussions with Mercedes on providing technology to the F1-powered Project One hypercar

IT’S the $4.4 million hypercar which uses the same engine as Lewis Hamilton’s Formula One ride. And a Gold Coast company with clients including Ferrari, Audi, Bentley is now chipping in with some vital technology

ORMEAU-based PWR Holdings has revealed it is in discussions with Mercedes AMG on providing its technology to the F1-power Project One hypercar.

The car, which is powered by the same engine as Lewis Hamilton’s F1 ride, is priced at $4.4 million and is the first of the German maker’s road cars to use its F1 hybrid engine technology.

PWR develops and builds cooling systems for Formula 1 and V8 race cars, and military vehicles.

Its clients include Ferrari, Audi, Bentley, Ford, Land Rover, Volksvagen, Porsche and many more blue-chip car companies.

Lewis Hamilton presents the new concept car Mercedes AMG Project one at the Internationale Automobil-Ausstellung last year. Photo: Thomas Lohnes/Getty Images

It has been looking to diversify its income base by tapping into emerging technology.

Investors responded positively to the news this morning, contained in the company’s address to shareholders filed with the ASX this morning for its annual meeting held in Sydney today.

Shares rose 5.5c, or 1.5 per cent, in early trade to $3.60, which is close to its 12-month high of $3.75.

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The meeting was held at the Red Bull facility due to PWR’s connection to the Red Bull Racing F1 team since 2009.

Managing director Kees Weel and chairman Teresa Handicott addressed shareholders on the development of and investment in new technology.

Mercedes-AMG Project One hypercar that transplants the Formula 1 powertrain into a road car.

The company, which has no debt, has invested $8.8 million in state-of-the-art equipment including $2.5 million on a 3D printer and $2 million on a CT scanner.

Ms Handicott said it has developed a new product called Micro Matrix, which she said will lead to incremental revenue growth.

“As with most of our products, our IP (Intellectual property) resides in the manufacturing process which we believe provides us with a significant advantage over our competitors,” she told shareholders.

She said the full benefits of the OEM (original equipment manufacturer) programs will be evident from next financial year.

“Other opportunities being pursued include battery cooling and electronics cooling whose applications in multiple industries are diverse and include aerospace and military.”

PWR made revenue of $51.9 million in FY18, a 7.8 per cent increase on the previous year.

It logged pre-tax earnings of $16.3 million, citing stronger sales at consistent margins; constant costs despite higher sales volumes; and the largely neutral impact of foreign exchange rate movements.