Pressure Technologies Share Discussion Threads

[cerrito] 08/2/2019 16:05

Moral of the story is do not hold shares that begin with P;as a holder of PFC I am well aware of the litigation risks and so was the market.
The poor man at PRES died so long ago that I and I suspect the market did not factor it in and given the general illiquidity of the share I am pleasantly surprised it did not fall more.
Am suspending judgement till after Tuesday.

[arthur_lame_stocks] 08/2/2019 14:18

Well I suppose they'll kind of base it on the size of the company as well as the extent of the failings. I can't imagine they'd actually want to bankrupt them.

[arthur_lame_stocks] 08/2/2019 14:06

Will there ever be a reason to be optimistic about this company? I thought they got a good price for Greenlane given that it never made any money and it fixed the balance sheet. But how much could a HSE fine come to?

[jeevsje] 16/1/2019 07:20

Creative meeting to be held next week. Should get a good rally once the sale goes through. Improving business with a significant reduction in debt after Greenlane sale.

[arthur_lame_stocks] 10/1/2019 09:14

The last time I listened to a Questor tip was L Gardner and that one worked out bloody well, not.

[cerrito] 09/1/2019 20:13

Note that this appeared in yesterday's Telegraph Questor
quote
Update: Pressure Technologies
Our highly risky turnaround call in August on micro-cap stock Pressure Technologies is off to a shaky start but the precision engineering firm is making some progress.

The proposed sale of its biogas operation for £11.1m is a big step forward as it will simplify the business and help reduce its £6.7m net debt to further cut risk. Note also how the transaction price compares with the group’s £17.2m market value.

Full-year results last month did show the expected £3.1m loss but with orders at the core manufacturing operations up by between 36pc and 54pc year on year it may be that the worst is behind the firm. The oil and gas industry is leading the way here, as hoped, although the latest slide in crude prices must be watched.

This turnaround story is taking longer than expected but if earnings do hit bottom this year the shares could start to roll.

Questor says: hold

Ticker: PRES

Share price at close: 95p

[wilmdav] 12/12/2018 11:37

Please see edit to my post 1875 above.

[cockerhoop] 11/12/2018 15:32

Hard to know regards cylinders because of the long term nature (to 2023) of the orderbook. I think Dreadnought was delayed so a larger proportion than anticipated of that work will drop into 2019. The Type 26 Frigate should also make 2019 revenue.

[dangersimpson2] 11/12/2018 13:11

Thanks Pat, yes you are right - missed that it was a subtotal in the segmental reporting not a separate division. I think that does mean my 10% is a bit low for the Cylinders growth given order book growth of 36-54% for manufacturing. Given we know PMC has 54% order book growth then I think Cylinders must have 36% order book growth.

Do you think 20% would be reasonable for Cylinders revenue growth given a 36% increase in order book?

This would give 10p EPS (at normalised tax) - maybe 11-12p actual reported with tax losses and lower interest charges due to debt repayment.

Still interesting but maybe not the no-brainer it looked with my faulty segmental analysis!

[cerrito] 11/12/2018 12:11

Many thanks for those analytics, Wilmdav

[wilmdav] 11/12/2018 12:02

Here is my usual exercise, showing results in graphic form.
Click on sheet tabs at bottom of screen to see bar charts.
Look especially at H2 results which are so much better than H1.



Edit 12/12/18: H1-18 figures for adjusted profit and eps include those from Hydratron which was disposed of on 07/06/18. Full year 2018 figures exclude Hydratron figures which complicates calculations for figures for H2-18. Entries for H2-18 have been temporarily removed. It might be a few days before I have another go at it.

[cockerhoop] 11/12/2018 10:55

Mark,

You've created a separate division for manufacturing when it actually comprises the Cylinder & PMC divisions combined.

Cylinder Division was highly profitable in H2 after breakeven H1 on higher turnover.

Increased orderbook in PMC not really apparent in H2 revenues so would expect a steller H1 19.

[dangersimpson2] 11/12/2018 10:24

If the order book growth turns into revenue growth in 2019 this, combined with the sales of AE division could be transformational for the group:


Rev 2018 £m GM % GP £m OpP £m SG&A £m Finance £m Net Profit £mCylinders 9.942 35% 3.511 1.099 2.412 0.015 1.084PMC 11.225 33% 3.694 1.501 2.193 0.008 1.493Manufacturing 21.167 34% 7.205 2.600 4.605 0.023 2.577Alternative Energy 11.078 22% 2.405 -0.502 2.907 -0.006 -0.496Central 0.030 -1.551 1.581 0.377 -1.928Total 53.412 16.845 3.147 13.698 0.417 2.730 Growth Rev 2019 £m GM % GP £m OpP £m SG&A £m Finance £m Net Profit £mCylinders 10% 10.936 35% 3.862 1.450 2.412 0.015 1.435PMC 24% 13.919 33% 4.581 2.388 2.193 0.008 2.380Manufacturing 36% 28.787 34% 9.799 5.194 4.605 0.023 5.171Central 0.030 -1.551 1.581 0.377 -1.928Total 53.642 18.271 7.480 10.791 0.423 7.057 After Tax 5.717 Shares 18,196,351 EPS pence 31.4



24% OB book for PMC is the rolling figure from the results, 36% for manufacturing is the bottom end of the range mentioned, 10% is just a guess for cylinders.

These figures are pre-exceptional which we could see more of due to corporate activities, but probably not significant. Other exceptionals tend to be non-cash like goodwill write down.

Think the MM's made a mistake marking this down on open. Not helped by then not making any volume available through the RSP.

Thoughts on these figures from those who know the company better?

[cerrito] 11/12/2018 09:14

I opened up the results with a certain amount of dread, fearing the worst and kitchen sinking by the new CEO. These fears are unfounded.
I too am more confident but am hesitating to buy more as I feel I have enough exposure to oil and gas suppliers.
I was interested in the emphasis of the CEO on personnel matters, which would suggest this he saw as a problem area- there was of course the tragic death some years back; also their capex requirements ; as a TPG shareholder in their comments on the Dreadnought programme and the overseas defence market generally; as an ITM shareholder on the hydrogen market and refuelling stations.
Good to see comments on bank covenants; that said I will be more comfortable when they get the AE sale proceeds on and can reduce the RCF.
The sober reality is there is a long way to go before we can think of dividends.
Ps
As and when I have the time need to understand why they sold Hydraton if they are thinking of doing more acquisitions.

[arthur_lame_stocks] 11/12/2018 08:12

Mainly due to amortisation and exceptionals, the operating profit from the 3 remaining divisions actually totalled about £5m, the balance sheet will soon be fixed if the disposal goes as planned and the outlook is promising.

I'm more confident now about these than I have been for some time.

[opodio] 11/12/2018 07:20

● Reported basic loss per share* of (13.9)p (2017: (4.0)p)




NASTY

[arthur_lame_stocks] 10/12/2018 22:37

I'm hoping the ongoing businesses are at least profitable when they report tomorrow, even if only marginally.

[cerrito] 10/12/2018 20:54

On balance a good deal but did not expect the sp's reaction to be so healthy.
To me makes the management of the group simpler and the business more predictable. As you say A_L_S, good to reduce the debt. They have a stake in the future with the share holding and the repayment of the loan.
Have not bothered to work out any hit to the Goodwill as we will learn tomorrow.
I see that the company was bought for £6m cash and £6.4m in deferred payment but have not had time to see if these were paid.
We need to remember that this does increase the oil and gas concentration; also I see another Canadian company in this space Xebec had had a good few months.

[arthur_lame_stocks] 10/12/2018 07:14

Not sure whether this is good news or not.



I guess it fixes the balance sheet and gets rid of the ongoing losses. It'll be interesting to see what the price does today.

[fillipe] 03/12/2018 15:19

Politicians visiting any company .... so often a bad omen.

f

[cerrito] 02/12/2018 13:17

PUGUGLY, for my sins I am still here; based on what has happened in the last two years we will get the annual figures w/c Monday week December 10.
Bracing myself for the worst; went to the main corporate website and there was a news item from last week of a Minister visiting the main site but no news on orders. Greenlane have a much improved website but no news on orders.

[pugugly] 16/11/2018 16:13

Looks as though the £ barrier about to be broken - No support visible. £1.00 now bid..