Profit warning at Pressure Technologies
PRESSURE Technologies today said it expects its annual results to be below expectations with growth in its Chesterfield Special Cylinders business not expected to come through until later in 2011.
In a trading update this morning, Sheffield-based Pressure Technologies said: “The board believes that the group is likely to deliver results below expectations for the year ending October 1, 2011.
“Growth in 2012 will come principally from our engineered products division and our biogas operations, with growth in CSC not expected to come through until later in the year when the deep water oil rig market firms up.”
The gas cylinder manufacturer said CSC had started to see an increase in activity in its principal market of deep water oil rigs and drillships.
“However, this increase has been slower than previously anticipated and will have an adverse effect on 2011 profits as the lead times of quoted projects now extend beyond the end of this financial year and stock build in the fourth quarter will be lower than expected,” Pressure said.
It said its engineered products division, which supplies into the wider oil and gas sector, was performing in line with expectations as demand continued.
It is also confident about the prospects for its Chesterfield BioGas division, which provides services for the cleaning, storage and injection into the gas grid of biomethane, produced from waste water treatment and anaerobic digestion of organic waste.
It also sells a range of Compressed Natural Gas (CNG) filling stations for CNG powered vehicles.
