Member Info for Adastra

A quick synopsis for those looking at this company with a view to investment. Looking at this page it looks like an AIM start-up beginning in March 2025...WRONG. This is a company that morphed out of Pressure Technologies with provenance and resilience going back 125yrs.

In 2023, the Pressure Technologies Board identified the PMC division as non-core and initiated a divestment process. The sale of the PMC division was completed in October last year with its sale to Raghu Vamsi, an Indian based machining specialist. This transaction significantly strengthened the Company’s balance sheet and marked a shift in strategic focus to the development and growth of its sole trading division, Chesterfield Special Cylinders Limited.

The completion of this strategic divestment allows the company to focus it's resources on the development and growth of Chesterfield Special Cylinders in defence and hydrogen energy markets and in the provision of through-life inspection, testing and recertification services over the medium and longer term

On 21 March 2025 Pressure Technologies plc was renamed Chesterfield Special Cylinders Holdings plc hence the fact that graph only extends for 3 months. Pressure Technologies was founded on its leading market position as a designer and manufacturer of high pressure systems serving the global energy, defence and industrial gases market which is now where CSC has focussed all its skills and flexed its 125yr provenance and reliability.

That is precisely why imo it is £100m company in the making. DYR - focussed, trusted, seasoned BoD, 3 divisions in growth fields, very high-barrier-to-entry specialist in construction certification and revalidation of all pressurised gas systems, big contracts looking at H2 2025 and beyond. Debt-free.

I'll still pick up more here....can't imagine why anyone would sell into a H2 that has so many inflection promises and contract sign-offs. £1 is not a long way off if the positives align in H2.

Facts:

CSC is a key player in a very high barrier-to-entry segment of specialised engineering.

It has 125yrs of provenance and experience in the safe supply, storage and maintenance of pressurised gases used in a variety of applications.

It is sole supplier of system integrity management compliance for the UK armed forces and provides same for other countries eg Australia, Spain, USA.

CSC is actively involved in the BP Aberdeen hyrogen hub construction.

CSC is a prime candidate included in government HAR1 and HAR2 schemes for hydrogen storage throughout UK.

Integration Management Services provides the certification, operation and re-validation for pressurised gas systems under legally required H&S protocols.

Defence:Hydrogn:Integrity Management Systems

.....giving 3 specifically defined areas of expertise and evening out income streams into the future.

Why am I seeing this as a £100m MCap company that would be a perfect fit into multiple bigger players let alone a nice little tuck-away???

Chesterfield Special Cylinders (CSC) has over a century of industry knowledge and expertise and is a world-leading provider of bespoke, high-pressure gas containment solutions and services. It is one of only five companies globally which can compete for ultra large cylinder contracts.

Its not just Naval contracts. CSC provides

comprehensive solutions for civil and defence aircraft. CSC provides critical systems for breathing air, emergency escape, fuel tank inerting, and tyre inflation across civil and defence aircraft. Engineered to meet demanding operational needs, its gas systems deliver safety and reliability, ensuring performance at every altitude.

It is also actively involved in advanced solutions for space exploration

Supporting space missions with robust pressurised gas containment systems, CSC enables life support, fuel storage, and mission-critical equipment. Built to withstand extreme conditions, CSC solutions ensure consistent performance and reliability under challenging parameters.

After much research and looking at near event triggers, this has to be one of the most overlooked and undervalued stocks on the market. Given the fact that 3 major players hold 56% and they are holding that stock tightly there is imo only one way this can go. The squeeze is getting acute and the price should respond accordingly. All three divisions - Defence, Hydrogen and IMS - are on a roll with substantial contracts in place and in process. The hydrogen hub at Aberdeen with BP and HAR roll-outs have excellent potential. All in all CSC has all the components of £100m company in the making which could come far quicker than investors expect. Quality and exclusivity with high barrier to entry - great attributes for a £14m current MCap.

Demand for these is tightening daily - now a request for any size purchase is going N/T. That bodes really well for a progressive rise throughout H2. With a little N/T premium imo for a very good future.

Resource management at CSC is key. It has a fully qualified complement of staff able to address all three divisions of Defence, Hydrogen and Integrity Management Services. It is a lean and efficient company able to deploy staff quickly, having taken on trainees recently to achieve the necessary skills envisaged as business grows. The BoD are seasoned and realistic; not over-promising and under-performing. The divestment of PCM has allowed management to focus on the 3 growth drivers of the business with increasing contracts and work in all three. H2 dhould cement their guarded optimism and I would definitely recommend an in-depth re-read of the interims combined with research on just how big the potential is here. The fact that CSC is in such a specialist, highly qualified and certified industry with a huge barrier to entry is the key. There are only a handful of global players able to provide what CSC is qualified to do. Health and safety is the driver in pressurised gas storage and component supply. Ongoing certification, inspection and revalidation of pressurised gas installations is legally mandatory. CSC Integrity Management Services is the key UK player.

In a move that will shake up the global auto industry, Toyota has just unveiled a water-powered engine powered by hydrogen created through electrolysis — emitting only water vapor! No lithium. No charging stations. Just pure disruption.

With this bold move, Toyota isn’t just competing with EVs — they’re declaring the end of the battery era.

Couldn't resist buying a few more for the ISA at this level having reread my research. Excellent value imo.

Three influential holders control 56%. Free float of shares is small so this little gem can fly as people slowly realise what solid foundations can achieve here. The future truly is very, very exciting.

Solid floor established. All three divisions of CSC on the up and in must-have fields for any progressive portfolio without undue exposure to one. Lots of newsflow to drop in H2 so time to chill, enjoy the summer and watch ones assets grow.

ALL hydrogen projects rely on the safe, secure certificated and validated storage of pressurised gas. Chesterfield Special Cylinders is one of the very few exclusive companies that can manufacture and provide that compliance.

No wonder the management is comfortable that H2 will out-perform. Funding for HAR1 was expected in H1 but has drifted into H2. The secured funding and relevance to CSC should not be under-estimated. Alongside good forward traction for Defence and IMS, this should really transform the outlook for CSC and push it into one of the real growth stocks of the second half of the 2020's and beyond. As H2 progresses that realisation should propel it comfotably towards the £1 a share level imo.

The amount of green money ready to flow into hydrogen storage is an eye-opener. Hydrogen storage cylinders will become increasingly required and CSC is already involved and in a sweet spot. The electricity generated by offshore wind farms at non-peak/overnight time can be effectively used to electrolyse seawater into Hydrogen and Oxygen cheaply and effectively. Ready availability of ionised seawater plus onsite electricity means highly efficient fuel generation at very low environmental cost.

HAR1, short for Hydrogen Allocation Round 1, is a UK government initiative that offers financial support for low-carbon hydrogen production, including projects that utilize electrolytic hydrogen. This round aims to help the UK achieve its net zero targets and decarbonize various sectors, particularly those that are hard to electrify.

Key aspects of HAR1:

Funding:

HAR1 provides funding through both the Net Zero Hydrogen Fund (NZHF) for capital expenditure and the Hydrogen Production Business Model (HPBM) for revenue support.

Projects:

It supports 11 green hydrogen projects, totaling 125 MW of capacity, with a potential to unlock up to £11 billion of private investment and create over 12,000 jobs by 2030.

Impact:

The projects are expected to play a crucial role in reducing emissions, particularly in sectors where decarbonization is challenging, and contribute to meeting the UK's Net Zero targets.

Goal:

HAR1 aims to kickstart the low-carbon hydrogen economy in the UK, helping to achieve the government's target of having up to 1 GW of electrolytic hydrogen production capacity by 2025.

Future:

The UK government has also launched the second hydrogen allocation round (HAR2) to further support low-carbon hydrogen production.

In essence, HAR1 is a significant step towards developing a hydrogen economy in the UK, contributing to the country's net zero goals and fostering economic growth through low-carbon hydrogen production.

Discussion boards are full of individuals who proport to know more than the BoD, the promise of multibaggers with no substance or income. It has always been refreshing to see good research and validated reasoning from a small quarter who enjoy highlighting anomalies. It's been very helpful to me over the years and certainly gave me a leg up in the early years. Nice to give something back.

Pressure Tech was actually ahead of the curve for green technology. The world was focussed on oil and gas when it geared up to supply and was a victim of global lassitude during the early 2000s. That led to disappointment as governments delayed and cancelled environmentally sound projects. The playing field has totally changed with the mass adoption of wind farms and the likes of BP Aberdeen Hydrogen gas hub etc. Europe is rapidly gearing to Hydrogen fuelled commercial and rail transport rather than battery power. This all plays directly into strengths of CSC.

Defence contracts have been lumpy in the past but current commitments and significantly raised budgets favour CSC as the sole validation and recertification contractor for UK armed forces. Add in the contracts with Australia Canada, US navies and others and it starts to look a very compelling company to invest in.

Not just IMS. Hydrogen storage cylinders will become increasingly required and CSC is already involved and in a sweet spot. The electricity generated by offshore wind farms at non-peak/overnight time can be effectively used to electrolyse seawater into Hydrogen and Oxygen cheaply and effectively. Ready availability of ionised seawater plus onsite electricity means highly efficient fuel generation at very low environmental cost. Ideas in action from CSC.

Totally disagree with pump and dump - that's for the cloud cuckoo brigade. Surely if you've dyor and read mine you'll realise that H1 figures were going to be deck clearing after disposal and reorganisation. CFC I'd now a lean focussed business with 3 distinct income streams via Defence, Hydrogen and IMS. I've discussed each in turn, their contracts, sticky revenue and potential to surprise on the upward side. I agree the current MCap (which is way below my inferred realistic level) does expose it to p&d but most consumate investors are savvy enough to spot that this is solid and not one of the many smoke-and-mirror stocks. The underlying strengths of the 3 divisions will certainly show by the close of H2 and I would hope that enough people realise that earlier rather than later. On all fronts this has a lot going for it and frankly I'd be surprised if the three holders with a joint 56% aren't discussing realisation here. The prospects look excellent and not reliant on a single division of the company any one of which could really motor and blow the current MCap out of the water. As I repeat DYOR and make your own informed investment decisions. The same criticism was levelled at Chemring and Qinetic when I said they were grossly undervalued last month. I'm in here and comfortable.

Makes me smile that RCF and ALRT with no provenance and little evidence to make solid investment decisions on have both appreciated in last month massively like CHG and QQ.

RCF has risen from £20m to £28m MCap and ALRT from £2.5m to £5m MCap. Chesterfield is lagging them both but is far more solid and predictable. It's time is close.

My posts regarding excellent value at 390 and 409 were made on May 12th/13th for Qinetiq and Chemring for the record. Just DMOR and posted resulting conclusion.

Thanks. I highlighted Qinetiq (QQ.) at 390p and Chemring (CHG) at 409p as both being well undervalued on fundamentals. Both have risen 'significantly' in less than 4 weeks. This is much smaller but it's embedded and must have defence credentials have yet to be realised. It truly is below the radar and I can easily see this hitting £1+ very easily as the qualities become more widely evident.