Trading Update

RNS Number : 8856W

Pressure Technologies PLC

07 February 2012

 



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.

The year has started positively for the Group's largest division, Chesterfield Special Cylinders ("CSC"). The increase in activity in the deep water oil rig market, which began in the fourth quarter of the 2010/11 financial year, has, as forecast, continued into the 2011/12 financial year and our forward order book has strengthened considerably. CSC has secured orders for cylinders on nine drillships for the current financial year, two of which have been delivered. Market conditions for deep water oil and gas and the general oil services sector remain strong. We also continue to make progress in the development of the trailer and in-situ inspection markets. Business confidence at CSC remains high and activity should be ahead of market expectations for this division in the current financial year.

As announced on 18 January 2012, Chesterfield BioGas has won an order to supply a biogas upgrader on a project in Stockport. The Board's expectation was for two upgrader projects in 2011/12 and, although a number of projects are at an advanced stage of the tendering process, it is unlikely that any further orders won this financial year can be delivered in the year. There are a number of potential vehicle refuelling and trailer projects that are likely to reduce any shortfall in activity.

As expected, Hydratron is driving growth in the Engineered Products Division and order books have strengthened in both the UK and USA. This is underpinned by continued optimism in the global wellhead and controls markets led by the USA, which is aiming to become energy self-sufficient by 2030.

As a result of the size of the Group's order books and the immediate pipeline, the Board is confident of achieving market forecasts for the current financial year.

For further information, please contact:

Pressure Technologies plc John Hayward, Chief Executive James Lister, Group Finance Director	Tel:  [phone] www.pressuretechnologies.co.uk
Tavistock Communications Catriona Valentine Keeley Clarke	Tel:  [phone]
Fairfax IS PLC Nominated Adviser and Broker Simon Bennett Ewan Leggat Stuart Gledhill	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 is organised into three divisions: Cylinders, Engineered Products and Alternative Energy.

Cylinders: 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.

Engineered Products: This division comprises 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.

Alternative Energy: 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. This gives Pressure Technologies exclusive rights to market and manufacture Greenlane® equipment in the UK and Eire. Chesterfield BioGas provides turnkey solutions for the cleaning, storage and dispensing of biomethane for injection into the gas grid or use as a vehicle fuel.

 

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