Pressure Technologies’ order book still strong
PRESSURE Technologies has said that its “substantial” forward order book stands at an impressive £21m despite weakening markets.
The Sheffield-based manufacturer of gas storage vessels used in the shipping, oil and defence industries, said that medium to long term prospects remain strong despite the current economic storm.
Acquisitions and new product development are set to provide exciting growth opportunities with interest in Pressure Technologies’ biogas products “very healthy”.
Profit before tax for the six months ended March 28 were unchanged at £2.4m. Revenue rose to £12.7m from £11.7m for the same period 2008. Basic earnings per share of 15.5p (2008, 15.0p)
Richard Shacklady, chairman of Pressure Technologies, said: “I am pleased to report that the group is displaying its resilience and has achieved a solid set of results for the first half of the current financial year, despite the global economic crisis and some weakening in our key markets.”
He said trading in the firm’s main market – the oil and gas sector – was broadly in line with the corresponding half year period in 2008 with sales in this sector representing around 79% of total revenues.
“It is pleasing to note that our two major customers now account for less than 70% of total group revenues (2008, 74%), as business with other customers has grown successfully,” he continued.
Recent weakening of the oil and gas market has had no impact on orders for delivery in the current financial year.
However, Pressure Technologies said that while its order book remained substantial, there was no doubt that order visibility in the oil and gas sector had been reduced with lead times shortening as customers delay decisions to the last possible moment.
Since the half year end, it failed to secure £4 million of oil and gas contracts relating to the 2010 financial year.
This was due to protectionist policies in South East Asia. It said that the loss of business in 2010 will be partially offset by contract wins in its new biogas division.
Activity in the export defence markets increased significantly meanwhile with the value of orders delivered in the period under review rising by 50%.
Sales to the aerospace sector improved by25% but there was a distinct reduction in future orders placed during the first half, as a result of UK defence budget cuts on spares and cutbacks in executive jet building.
The industrial gas trailer and refurbishment business continues to develop positively with sales doubling in the first half.
Pressure Technologies is the holding company for Chesterfield Special Cylinders (CSC).
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 has been conducted under the Chesterfield brand, which is a long established name in the cylinders and specialised pressure vessel market.
