Sale of Hydratron Limited

RNS Number : 6835Q

Pressure Technologies PLC

07 June 2018

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

7 June 2018

 Pressure Technologies plc

("Pressure Technologies" or the "Group")

Sale of Hydratron Limited

Pressure Technologies plc (AIM: PRES), the specialist engineering group is pleased to announce that it has today agreed the sale of Hydratron Limited ("Hydratron") (the "Disposal"), which comprises the Group's Engineered Products Division, to Pryme Group Limited for an initial cash consideration of £1.1 million (less costs and retentions).  Additional consideration of up to £2.25 million may become payable in cash contingent on Hydratron's trading performance for the twelve month period to 31 May 2019.

The prolonged downturn in the oil and gas market impacted Hydratron more so than the Group's Precision Machined Components Division. Whilst successful steps have been taken to re-align the business with its core markets and establish the foundations for future growth as the oil market improves, the Board has nevertheless concluded that Hydratron will be better served as part of a group that can immediately enhance its critical mass and market position. For the financial year ended 30 September 2017, Hydratron reported a loss before tax of £0.47 million on revenues of £3.85 million and had net assets of £2.53 million.

The proceeds of the Disposal will be used to reduce the Group's debt.

For further information, please contact:

Pressure Technologies plc John Hayward, Chief Executive Officer Joanna Allen, Chief Financial Officer Keeley Clarke, Investor Relations	Tel: [phone] www.pressuretechnologies.com
Cantor Fitzgerald Europe (Nominated Adviser and Broker) Philip Davies / Will Goode	Tel: [phone]
Tavistock
Simon Hudson	Tel: [phone]

COMPANY DESCRIPTION

Company description - www.pressuretechnologies.com

With its head office in Sheffield, Pressure Technologies was founded on its leading market position as a designer and manufacturer of high-pressure components and systems serving the global energy, defence and industrial gases markets. Today it continues to serve those markets from a broader engineering base with specialist precision engineering businesses and has a worldwide presence in Alternative Energy as a global leader in biogas upgrading.

Pressure Technologies has three divisions, Precision Machined Components, Cylinders and Alternative Energy, serving four main markets: oil and gas, defence, industrial gases and alternative energy.

Precision Machined Components - www.pt-pmc.com

●     Al-Met, Mid Glamorgan, acquired in 2010 www.almet.co.uk 

●     Roota Engineering, Rotherham, acquired in March 2014 www.roota.co.uk 

●     Quadscot, Glasgow, acquired in October 2014 www.quadscot.co.uk 

●     Martract Limited, Barton-on-Humber, acquired in December 2016 www.martract.co.uk 

Cylinders

●     Chesterfield Special Cylinders, Sheffield, IPO cornerstone in 2007 and includes,  CSC Deutschland Gmbh, which is based in Dorsten, Germany and Chesterfield Special Cylinders Inc. which is based in Houston, USA www.chesterfieldcylinders.com 

Alternative Energy

●     Greenlane Biogas, Vancouver, Canada and Sheffield, UK; acquired in October 2014 www.greenlanebiogas.com 

 

END

 

 

DISLDLFBVQFZBBQ