(Alliance News) - Pressure Technologies PLC on Tuesday swung to interim profit following sharp revenue growth amid a management restructuring.
In the 26 weeks to March 31, the high pressure systems manufacturer recorded a pretax profit of GBP89,000 compared to a GBP1.5 million loss the year before.
The company's revenue in the first half increased 59% to GBP14.5 million from GBP9.1 million.
The revenue growth in the period reflects its Chesterfield Special Cylinders business doubling its revenue to GBP7.7 million and the phasing of defence projects which were ramped up in the second half of 2018.
Pressure Technologies' Precision Machined Components unit saw a 29% growth in revenue to GBP6.8 million from "growing momentum" in the oil and gas market.
"Our results for the first half of the year reflect the delivery of major defence contracts and improving conditions in the oil and gas sector. We are pleased with the growth in our order book and the increasing diversity of our customers and products," said Chief Executive Chris Walters.
Pressure Technologies administrative expenses increased 28% to GBP3.7 million from GBP2.9 million the year before.
The company did not propose an interim dividend in the period. Pressure Technologies has not paid a dividend in either of the past two financial years.
"I am pleased with the progress we have made over the past six months in what has proved a very busy period, one that signals a return to profitability for the group," said Walters. "The sale of our Alternative Energy division, which completed in June 2019, was a key milestone. We now have a clear strategic focus and are making good progress with the management, operational and cultural changes that will help accelerate organic growth and performance improvements in target markets."
Chair Neil MacDonald added: "The board is confident that the performance for the full year will be in line with management expectations. Operational management changes, clear strategic focus for the remaining divisions and improving market conditions all underpin the board's confidence in the outlook for the group."
Shares in Pressure Technologies were down 8.3% Tuesday at 122.00 pence each.
Pressure Tech (PRES)