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LONDON (Alliance News) - Pressure Technologies PLC on Tuesday said it swung to a loss in its recently ended financial year as revenue fell by a third amid ongoing softness in its oil and gas end markets.
The company, which makes high-pressure systems for energy, defence and industrial gas customers, said it made a pretax loss of GBP359,000 for the year to October 1, compared to a GBP1.1 million profit a year before.
Revenue dropped 33% to GBP35.8 million from GBP53.8 million the year before. Revenue from the company's oil and gas business nearly halved and, for the first time in the company's history, contributed less than half its total revenue.
This was only partially offset by the company's smaller alternative energy and defence-facing businesses, and Pressure said the year was spent trying to cut costs to maintain margins in its oil and gas arm while building up the order books for its other divisions.
The problems meant the group decided to scrap its final dividend and, given it also decided against paying an interim dividend, it will make no payout for the 2016 financial year. It paid out 8.40 pence the prior year.
Pressure said there remains good potential for its alternative energy arm. However, the 2016 financial year was "frustrating", amid contract delays and legacy costs which hurt revenue and profit in the unit.
Pressure said it intends to continue diversifying away from oil and gas markets and remains confident in its medium- and long-term prospects.
Shares in Pressure were down 7.3% at 146.05p on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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