Pressure Technologies Share Discussion Threads

[cerrito] 03/7/2023 16:25

FWIW, VSA Capital have released a note with a 12 month target price of 84p.
They forecast PBT this FY as a negative £0.4m and next FY at a positive £0.9m

[arthur_lame_stocks] 28/6/2023 06:36

Don't think it's fat bottomed yet.

[volsung] 28/6/2023 06:35

Under Pressure

[cerrito] 27/6/2023 10:29

Singers have reduced the tp from 60p to 50p citing supply chain issues,and question marks on integrity management and hydrogen.
Reduced ebitda and revenue issues for this year and next.

[40 fathoms] 27/6/2023 09:46

Microcap mood is dismal indeed, not much fun to be had these days.

[cerrito] 27/6/2023 09:16

Fair question about why today I regret not selling some at 42.
Partially the mood over the whole microcap market has darkened and we are now about to enter the summer doldrums and I do not see a catalyst to lighten the mood. The trading results were pretty much as I expected and as I say have no firm views one way or the other on the non sale of PMC.
The delay in sorting out the banking has not helped nor the continued talk of supply chain issues and increasingly I ask myself if we have a business that can generate a sustained return on capital, especially given the cycilatity of PMC.

[my retirement fund] 27/6/2023 08:46

What a sham!

[40 fathoms] 27/6/2023 07:46

@Cerrito - As always you make good points and I note that you feel you should have sold at 42p. Can I ask why ? i.e. what you were expecting from the interims but have not seen ?

For me and it is not across the board, but on balance my expectations have been exceeded.

[cerrito] 27/6/2023 07:31

Quite a lot to take in.
Too bad no IMC type event although FD will say he needs to concentrate on getting new bankers and an auditor.
Given the saga of getting the accounts out no real surprise that Grant Thornton resigned and other companies have had issues with them. Still a bit spooky. Also naughty that Grant Thornton resigned more than a month ago and this is the first we have heard of it.
Of course given all the BS I noted in the AR about relationships with private investors can one believe a word they say? I hope I can believe the comments that the newish COO had improved the production process.
Best thing for me was comment that healthy order situation for PMC continued in April and May.
Note that they are talking about full year adjusted Ebitda in the £2.2/£2.5m range. This compares to the Singers May 2023 forecast of adjusted Ebitda of £2.2m for this year. Good for them in being so explicit and good that there has been the improvement. That said, do not wish to be a party popper but minimal profit with buoyant trading conditions.
Not really surprised that they could not find buyer /s for PMC given that three units are a bit small and at this time I have no real view one way or the other.
Going Concern statement and a reminder that on the Naval contract how a subcontractor delay can throw your cash flow projections hay wire sobering reading.
Not sure why Lloyds taking such a hard line but given the current situation with the banks, not an optimal position, even if as they say they have good property assets.
Will they need another equity issue? Possible but for me unlikely.
All in all as of writing this regret that did not sell at about 42 and I hope that our Swedish Investor does not loose patience.
Ps
Noted that they used £0. 5m of the fund raise for new milling machinery for PMC. Great but is lack of financing precluding necessary investing in upgrading equipment?

[baner] 27/6/2023 07:22

My guess is the PMC outlook has improved quite a bit and should underpin a much higher value than the bids received, most likely based on historic performance. PT no longer need to sell, so better retain for a stronger EPS going forward.

[40 fathoms] 27/6/2023 06:48

hard to know if the bids were decent, however we can certainty conclude that they were not acceptable.

[1c3479z] 27/6/2023 06:39

did the oil equipment sub PMC fail to attract decent bids, I wonder?

[40 fathoms] 27/6/2023 06:17

I am pretty happy with my first scan of the interims, plenty of progress, plenty to like, still a few areas of uncertainty that needs to be cleared up in the second half

My initial take is the interims are for business that is in much better shape than our current 15 million market cap would suggest. At 40p per share we are on a forecast P/EBITDA of below 8x for this year.

[40 fathoms] 25/6/2023 03:13

At this point I am not too worried about the growth they will see over the next 4 or 5 years in the Hydrogen space, especially given revenue will be coming essentially from zero. As you say they and many others worked out long ago that hydrogen as a fuel was never going to work for cars. Its usage will be in lorries, trains and other commercial vehicles. In addition CSC will find customers in the transport of Hydrogen and on site storage, both electrolysis and industrial applications.

@cerrito - I think all of the points you make are excellent, I would probably add one additional point and one additional thought. I think the integrity management is going to be very interesting. On a go forward basis it should contribute meaningfully to profit, although it will never be a large component of revenue. Secondly, from a longer term Military contract perspective, I think there is a much larger market than just Dreadnought, they also provide to Type 26 Frigates, the French Barracuda Class which in addition to its pipeline is set to win a number of new customs in the near future. In addition with BAe essentially winning the AUKUS new sub build they will be very well placed to win work there, although this is long-term.

As for being too small to justify a listing, I think that is to be determined and it will very much depend, as you say, on how the hydrogen business develops.

When all is said and done I think currently at 40p per share, there is nothing in the price for CSC. Essentially, we are trading at or below the disposal value of the PMC division and Medowhall site.

[darrin1471] 22/6/2023 17:49

Motive fuels (ITM patnership) have closed 2 hydrogen car refuelling stations.


"Motive Fuels is in a consultation phase until further notice."

Motive fuels still run the Birmingham hydrogen bus refuelling station.

"Shell also announced the closure of three car hydrogen refuelling stations in the UK and the cancellation of two additional stations in order to focus on enabling net zero
targets for HGVs"

Hydrogen cars are uneconomic compared to EV. Hydrogen HGVs and buses look a better bet until battery technologies improve. Still a very big market.

[cerrito] 22/6/2023 10:06

Have stalled in going through the AR and have only got to page 19.
Page 4 Chair's statement
He refers to the growing market for hydrogen storage and transportation but does acknowledge that progress in H1 FY23 ie to end March has been slow. Do not wish to be a party pooper but my understanding is that ITM have closed 2 of their hydrogen refuelling stations.-referenced on page 14.
Good that PMC returned to profitability (undefined) at end of Q2 ie March and but they have had buoyant market conditions and costs taken out.
Reminded me of the long drawn out EY project to come up with financing facilities to replace the Lloyds facilities and we are told to expect that this month.
Reminded me that in April 22 they appointed a COO and that IMJ was a sensible move.
Ended by saying that they remain confident for meeting FY 23 market expectations without saying what they understand them to be. I note that Singers have revenue forecast for this FY23 as £30m and PBT at £0.2m.
Page 6
Interested to read in comment on their relationship with stakeholders, in the shareholder section they say they often host or attend events for new and existing private investors. What BS. They have not had a private shareholder AGM for some time and IMC. Does not encourage one to read the rest of the section
Page 10
Reminded me that they on November 15 last year announced the potential opportunity to divest PMC, which they described as non core so perhaps we should get some news soon. In the AR they said progressing as planned-cannot really say any more.
On page 11 they talk about cost savings as just have CSC but I continue to ask myself if CSC solo will be big enough to justify a listing. I fret that CSC will be too reliant on the Dreadnought project and hydrogen storage.
Page 14
Reminded me that CSC had exposure to the Oil and gas market, especially offshore vessels.
Page 16
Discussion on CSC noting that their O&G sales last year were £1m and that they should have got to a good start to the year driven the postponed deals.
Page 17
Good to read that end of April closing order book was a record £ 7.6m.
Page 19
Given that the increased activity they are talking about will have working capital implications and as of September the Lloyds facility reduces to £ 0.9m good that they had the fund raise.

[40 fathoms] 15/6/2023 01:00

Looking forward to your views on the AR. As you have said if you take the message embedded in it at face value then things are looking very positive indeed. The major constraining factor seems to be access to sufficient levels of working capital, luckily the freehold property and the PMC division can help in this regard.

The PMC units can be sold individually. I keep nibbling but with a bit more clarity I would turn more aggressive.

[cerrito] 14/6/2023 14:21

This has been out of sight out of mind for me over recent weeks but the news of the GM prompted me to look at the AR and will shortly post some comments on that.
In the meantime we should brace ourselves for some activity here.
We will presumably and hopefully have the interims by month end and hopefully an IMC session.
We may or may not have news on what is happening to PMC. I do ask myself if there is one buyer who will buy all 3 divisions but my understanding, which may be wrong, is that it can be sold off division by division. Finally we are promised by month end the results of the protracted EY study on replacing the Lloyds facility.
In the AR they are very gung-ho on current prospects but even after the share price retreat since they are back on AIM having difficulty pressing the buy button.

[cerrito] 26/5/2023 12:39

PG has done very nicely thank you with the share price and depending on what he regards as his base currency perhaps picked up a bit on the FX.
His reasons for selling well understood and perhaps we need to brace ourselves for further selling.

[zipstuck] 24/5/2023 09:09

cant trade this online at HL

[cerrito] 23/5/2023 18:35

ALS
I will be in a better position to answer your question when we have the interims but I would not have thought so.

[darrin1471] 23/5/2023 18:34

Richard Staveley has a history of selling off the parts. It is in his interests to maximise returns on PMC although he has added PRES at a low price.

[arthur_lame_stocks] 23/5/2023 17:59

I wonder if PMC will get sold for a knockdown price now its returned to profit just to raise enough working capital to keep the lights on at CSC. After shareholders have absorbed years of losses there.

[darrin1471] 23/5/2023 13:59

I hope these Hydrogen busses are being made in the UK. Wrightbus in Northern Ireland was bought by Jo Bamford (Grandson of JCB founder)out of administration and make hydrogen busses. Jo Bamford also formed Ryze Hydrogen who are involved in the production and distribution of hydrogen.