LONDON (Alliance News) - Pressure Technologies PLC Tuesday said pretax profit was flat at GBP1.3 million in its first half as higher revenues were offset by costs, expenses and acquisition charges.
But the high-pressure engineering technology company increased its interim dividend and said it expects full-year revenue and underlying operating profit to be ahead of market expectations.
Pressure Technologies said revenue increased 21% to GBP19.9 million for the 26 weeks ended March 29 from GBP16.4 million in the previous year's 26 weeks ended March 30.
The company said its revenues increased as its Cylinders division was buoyed on by a 23% increase in sales from its Chesterfield Special Cylinders operations while its Engineering Products division was the most improved performer during the year, with sales up 33%.
In response, Pressure Technologies increased its interim dividend by 8% to 2.8 pence per share from 2.6 pence the previous year.
However, the company said its Alternative Energy division reported a small loss during the period, due to the timing of sales coming through, but said progress on existing contracts is proceeding to plan and the division is on track to meet market forecasts for the full year.
Pressure Technologies said its cost of sales increased to GBP13.9 million from GBP11.7 million, administrative expenses increased to GBP3.8 million from GBP3.3 million, and it paid out GBP718,000 in acquisition costs after buying Roota Engineering in the UK and GTM Manufacturing in the US during the period.
The company said its net cash at the end of the period was GBP10.5 million after a recent fundraising of GBP16.7 million.
It said it saw order book growth of 59% in the half year, providing a positive outlook for its second half.
Pressure Technologies said that based on its acquisitions and order book growth, it now expects its full-year revenue and underlying operating profit, before acquisition costs and related amortisation, to exceed current market forecasts.
"The Group has had a busy and exciting six months. We have delivered strong trading performances in all three divisions, whilst completing two acquisitions and a very successful fundraising," Chairman Alan Wilson said in a statement. "The prospects for further growth are very encouraging and tangible."
Pressure Technologies shares were up 0.8% to 650.21 pence during early trading on Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Pressure Tech (PRES)