Pressure Technologies on track for FY

Sheffield based oil and gas equipment supplier Pressure Technologies said it was on track to meet full year expectations despite a decline in half year profit. The group's forward order book, while much reduced, stretches into early 2011 and it starts the second half the financial year with orders totalling £11.4m.Pre-tax profit fell to £1.5m in the 26 weeks to 3 April 2010 from £2.4m the same time a year before. Revenue fell to £9.7m from £12.7m before as it weathered the recent downturn. Looking ahead the group said it is on target to meet market expectations for the full year and is "well positioned to manage the cycle and to gear-up rapidly when the upturn comes."Pressure added that the current problems in the Gulf of Mexico have created uncertainty worldwide and will, almost inevitably, lead to a slowdown in development of deepwater fields in US waters in the short term. The board expects that the impact on other areas for major offshore deepwater development such as South America and West Africa will be limited.Chairman Richard Shacklady said, "This has been a very demanding six months for management and employees. Whilst we are pleased to have made progress in our diversification strategy, the long order book visibility which the group has enjoyed in recent years has reduced significantly with the downturn in oil and gas activity. Customers in this sector are now placing orders much nearer the required delivery dates. This presents new challenges for the group, it said. The interim dividend has been increased 9% to 2.4p per share.