Trading Update

RNS Number : 9815A

Pressure Technologies PLC

10 February 2011

 



TRADING UPDATE

The Board of Pressure Technologies plc (the "Group") issues the following trading update ahead of the Group's AGM, which is being held today at 10.30 hours in Sheffield.

First quarter trading was in line with the Board's expectations, following an anticipated slow start to the year due to a lack of orders for the deepwater rig market.   As stated in our Annual Report 2010, we expect a stronger performance in the second half to offset this.

Since the start of the year, activity in the deep water oil rig market has begun to return.  Chesterfield Special Cylinders ("CSC") has secured orders on three oil rig projects for delivery in the current financial year and there are signs of this market accelerating into 2012.  The pipeline of enquiries, across all sectors of the cylinder business, is strong.

Our Engineered Products Division is performing as expected with strong demand in the energy sector.  Hydratron, which was acquired in October 2010, has been relocated to new premises and is starting to enjoy the benefits of consolidation onto a single site.

Chesterfield BioGas has won orders for two compressed natural gas filling stations for vehicle refuelling and is in discussions with a number of large utility companies for "biogas to grid" ("BtG") upgrade projects.  The rapid growth in the BtG market hinges on the Department of Energy and Climate Change's confirmation of the level of the Renewable Heat Incentive ("RHI").  This is due to be announced by the end of March 2011.  We anticipate that this will catalyse the conversion of potential projects into firm orders.  Lead times on BtG projects, however, are considerable, so this announcement will have little impact on the Group's performance in the current financial year.

As in previous years, our financial results are subject to the timing of the receipt of orders at CSC for delivery in the fourth quarter.  Given delivery lead times, we will have a clearer view on the likely full year result by mid April 2011 and will provide a further trading update at that time.

The Board remains confident of a return to organic growth in the medium term and aims to strengthen the Group further with niche acquisitions as opportunities arise.

For further information, please contact:

Pressure Technologies plc John Hayward, Chief Executive James Lister, Group Finance Director	Tel:  [phone] www.pressuretechnologies.co.uk
Rawlings Financial PR Limited Catriona Valentine	Tel:  [phone] www.rawlingsfinancial.co.uk
Fairfax IS PLC Nominated Adviser and Broker Simon Bennett Ewan Leggat	Tel: [phone]

Company description:

Pressure Technologies is an AIM listed, leading designer and manufacturer of speciality engineering solutions for high pressure systems serving large global markets.

The Group's largest subsidiary, Chesterfield Special Cylinders Limited ("CSC") designs, manufactures and offers retesting and refurbishment services for a range of speciality high pressure, seamless steel gas cylinders for global energy and defence markets. The business is conducted under the "Chesterfield" brand which is a long established name in the cylinders and specialised pressure vessel market.  

Chesterfield BioGas Limited was formed in November 2008 following the signing of a co-operation agreement with Greenlane^® Biogas Limited, the world leader in biogas upgrading from raw biogas to vehicle quality fuel, gives Pressure Technologies exclusive rights to market Greenlane^® equipment in the UK and Eire.  Chesterfield BioGas provides turnkey solutions for the cleaning, storage and dispensing of biomethane, produced from waste water treatment and anaerobic digestion of organic waste.

In 2010, the Engineered Products Division was formed following the purchase of Al-Met Limited ("Al-Met") and the Hydratron group of companies ("Hydratron").

Al-Met is a niche manufacturer of specialised, precision engineered valve wear parts used in the oil and gas industries, which was acquired by Pressure Technologies in February 2010.  Its products are used in high-pressure choke and flow control valves, designed to regulate flow volumes in extremely demanding applications in the subsea and surface oil and gas industries.  The business, which was established in 1985, has developed a leading edge capability in precision machining carbides, high grade stainless steels and super alloys. 

Hydratron acquired on 15 October 2010, designs, manufactures and sells a range of air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs.  Hydratron has sales and manufacturing companies in Altrincham, UK, and Houston, USA and a spread of third party distributors in key locations around the world.    Formed in 1981, Hydratron has since established itself as a leading supplier of quality high pressure equipment to the oil and gas industries.  The full range of Hydratron products may be viewed at www.hydratron.co.uk.

 

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