Last checked at 4 Jun 2015 07:00
4 June 2015
Pressure Technologies plc
Update on Trading and Notice of Interim Results
The Board of Pressure Technologies plc ("Pressure Technologies" or the "Group") today announces an update on trading.
Whilst the price of crude oil has partially recovered from its recent lows, there has been a further slowdown in recent weeks in the release of capital projects in the oil and gas market. This has resulted in a material deterioration in the immediate prospects for the Group's Precision Machined Components and Engineered Products divisions. These weak market conditions are now expected to continue into the next financial year when they will also impact the results of the Cylinder Division.
The planned restructuring exercise in the Alternative Energy Division has now been completed but the division has experienced delays in securing new orders which will impact its performance in the current year.
The combination of these factors means the Board now expects that the results for the current and next financial year will be materially lower than market forecasts.
The Board remains confident in the medium-term prospects for the Group as the well documented issues in the oil and gas market have been confined to a general delay in capital spend rather than loss of market share. Prospects for the Alternative Energy Division remain exciting, albeit subject to timing issues beyond its control. The Group and all of the divisions are well positioned to capitalise quickly on any improvement in market conditions.
A fuller update will be given in the Group's Interim Results Statement for the six months ended 28 March 2015, which will be published on 16 June 2015.
For further information, please contact:
Pressure Technologies plc John Hayward, Chief Executive James Lister, Group Finance Director
| Tel: 0114 257 3616 www.pressuretechnologies.com |
Tavistock Communications Keeley Clarke / Simon Hudson
| Tel: 020 7920 3150
|
Charles Stanley Securities (Nomad and broker) Philip Davies | Tel: 020 7149 6000 |
COMPANY DESCRIPTION
Company description - www.pressuretechnologies.com
With its head office in Sheffield and its origins going back to 1897, Pressure Technologies is a growing, profitable, dividend paying, AIM listed, leading designer and manufacturer of speciality engineering solutions for high-pressure systems serving large global markets. The company is building a highly profitable group of companies, specialising in technology for the containment and control of liquids and gases in pressure systems through a combination of organic initiatives and acquisitions.
Pressure Technologies has four divisions, Precision Machined Components, Cylinders, Engineered Products and Alternative Energy, serving four markets: oil and gas, defence, industrial gases and alternative energy.
Precision Machined Components
· Al-Met, Mid Glamorgan, acquired in 2010 www.almet.co.uk
· Roota Engineering, Rotherham, acquired in March 2014 www.roota.co.uk
· Quadscot, acquired in October 2014 www.quadscot.co.uk
Cylinders
· Chesterfield Special Cylinders, Sheffield, IPO cornerstone in 2007 www.chesterfieldcylinders.com
· Kelley GTM Manufacturing, Amarillo - 40% stake acquired by the Group in December 2013 www.kelleygtm.com
Engineered Products
· Hydratron, Manchester and Houston, acquired in 2010 www.hydratron.co.uk
Alternative Energy
· Chesterfield BioGas, Sheffield, founded in 2008 www.chesterfieldbiogas.co.uk
· Greenlane, acquired in October 2014 www.greenlanebiogas.com