Pressure Technologies PLC Trading Update (3680P)

TIDMPRES

RNS Number : 3680P

Pressure Technologies PLC

31 August 2017

31 August 2017

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.

Pressure Technologies plc

("Pressure Technologies" or the "Group")

Trading Update

Pressure Technologies (AIM: PRES), the specialist engineering group, today announces an update on recent trading and expectations for the year ending 30 September 2017.

Our manufacturing divisions continue to perform well, aided by a stabilised and increasing order load in the Precision Machined Components ("PMC") and Engineered Products ("EP") Divisions and a solid defence order book in the Cylinders Division. The oil market is experiencing some increase in confidence as the majors have adapted to be profitable in the lower oil price environment. The increase in orders in PMC is evidence of this as is the receipt of an order in Cylinders for a drillship project for delivery in 2018, the first for three years. At this stage in the financial year, with five weeks of trading remaining, we anticipate that collectively the manufacturing businesses will at least meet current market expectations.

As highlighted in the interim statement released in June, the result for the year for the Alternative Energy Division ("AE") is dependent on order intake in the second half. Whilst the division will report a significantly improved performance over the financial year 2016, it is now apparent that customers have pushed back decision dates on projects. As a consequence of this slippage and cost overruns on certain European projects, AE will post a result below market expectations.

Notwithstanding the positive news that the manufacturing divisions are performing strongly and that cash flow is being well controlled, the Board expects that it will report results materially behind market expectations for the current financial year.

Looking ahead, the predicted order load for PMC and the defence contracts already secured by Cylinders gives the Board confidence that market expectations for financial year 2018 for our manufacturing divisions will be exceeded. The 2018 outturn for AE relies on contracts which are still in negotiation. The Board is conscious of the impact that timing has on forecasts and believes a prudent approach to 2018 is appropriate. However, the order pipeline remains strong particularly in North America as this large market comes to understand the economic and environmental benefits of using waste for energy.

The Board continues to be confident in the medium to long term prospects for the Group underpinned by a stabilising oil market, strong defence contracts and a growing global market in waste to energy solutions for which AE under the Greenlane brand is a world leader in biogas upgrading.

The audited preliminary results for the year ending 30 September 2017 will be announced on Tuesday 12 December.

For further information, please contact:

 
 Pressure Technologies plc               Tell: 0114 257 3622 
  John Hayward, Chief Executive           www.pressuretechnologies.com 
  Joanna Allen, Group Finance Director 
  Keeley Clarke, Investor Relations 
 Cantor Fitzgerald Europe (Nominated     Tel: [phone] 
  Adviser and Broker) 
 Philip Davies / Will Goode 
 Tavistock                               Tel: [phone] 
  Simon Hudson 
 

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 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 four divisions, Precision Machined Components, Engineered Products, Cylinders 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, Glasgow, acquired in October 2014 www.quadscot.co.uk 
   --     Martract Limited, Barton-on-Humber, acquired in December 2016 www.martract.co.uk 

Engineered Products

   --     Hydratron, Manchester, acquired in 2010 www.hydratron.com 

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, Sheffield, UK; Vancouver, Canada and; Auckland, New Zealand acquired in October 2014 www.greenlanebiogas.com

This information is provided by RNS

The company news service from the London Stock Exchange

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August 31, 2017 02:01 ET (06:01 GMT)