Corac up on new compression system

Corac, the engineering technology company, has risen sharply in morning trading after revealing reduced losses and emphasising the potential of its recent purchase of Wellman Hunt Graham and Wellman Defence. A new design for a modular compression system also appears to have boosted hopes for the firm.Revenues for 2011 were £0.32m, broadly in line with the consensus forecast of £0.34m, while losses before tax were less than expected at £5.67m (consensus £6.16m).Corac has, up until recently, been a research outfit so the losses are not unexpected; total R&D spend for the year was £3.35m as the group continued to develop high speed compressor and power electronics.The post-period purchase of the Wellman companies for £10.75m ought to be a major boost to Corac, as the purchase comes with established clients and revenues.The new compression system announced today has led to patent applications for "14 new inventions" with the firm saying it will develop the product "in collaboration with a number of energy industry operators".By 10:38 the shares had gained 7.7%BS