Pressure Technologies slips into the red

PRESSURE Technologies said today it remains “resilient” in managing its way through a protracted downturn in its key markets and will continue to pursue further acquisition targets.

The group, which acquired Altrincham-based high pressure equipment specialist Hydratron in October, posted a loss of £300,000 for the 26 weeks to April, compared with a profit of £1.5m last time.

Revenue was up at £10.3m from £9.7m in 2010, while it said it has maintained a “strong” balance sheet of £2.7m net cash after the Hydratron acquisition, compared to £5.2m the year before.

Pressure Technologies acquired Hydratron, which designs and manufactures a range of air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs, in October for £3.3m, of which £800,000 is deferred.

Hydratron, along with Cardiff-based Al-Met which it acquired in February 2010, now forms the group’s engineered products arm. The company said demand for the division’s products had recovered strongly and opportunities in the US oil industry should be realised in the second half.

A continued upturn in deepwater oil and gas market is expected through 2012 but lower sales are expected in defence markets.

Chairman Richard Shacklady said: “The group’s order books are recovering and we enter the second half in better shape than six months ago. Our cylinder business is likely to have a more gradual recovery than the sharp rebound experienced in the engineered products businesses.

“The board will continue to pursue further acquisitions that fit our strategy and enhance the overall business. Our balance sheet remains robust with significant cash balances remaining after the costs of acquisitions and R&D and an unused working capital facility.

“Pressure Technologies is proving resilient in managing its way through a protracted downturn in its key markets and with sound financial management transforming itself into a stronger and better balanced business.”