LONDON (Alliance News) - Pressure Technologies PLC on Tuesday reported a decline in revenue in the first half of its financial year, hit by decline in orders in the Alternative Energy division.
The industrial valve manufacturing company said its pretax loss widened in the six months ended March to GBP5.0 million from GBP2.6 million reported for the same period a year earlier.
Revenue also fell to GBP13.6 million from GBP17.7 million, due to a lower opening order book in the Alternative Energy division, which totalled GBP5.0 million compared with GBP14.0 million in financial 2017.
Meanwhile, revenue in the company's manufacturing division increased by 10% on a like-for-like basis. Reported revenue grew 11% to GBP10.8 million from GBP9.7 million the prior year.
Administrative expenses rose 10% year-on-year to GBP5.5 million from GBP5.0 million.
Looking ahead, Pressure Tech said financial performance has been subdued due to customers delaying placement of new orders. The company decided to sell its Engineered Products division to Pryme Group Ltd on Thursday last week. Its remaining Precision Machined Components and Cylinders Units will continue to focus on components supply.
"Dynamics in the defence and oil & gas markets are showing considerable momentum, so the outlook for our Manufacturing division is encouraging, but time dependent," said Chief Executive John Hayward.
"There is significant potential in Alternative Energy, and the board is considering a number of strategic options for this division that will hopefully increase market opportunities and lead to enhanced shareholder value," added Hayward.
The stock was trading 4.3% lower at 130.10 pence per share on Tuesday.
Pressure Tech (PRES)