Confidence high at Pressure Technologies
STRONG growth in defence sales has helped Pressure Technologies achieve a small profits rise and pursue acquisition targets with “vigour”.
The Sheffield-based manufacturer of gas storage vessels used in the shipping, oil and defence industries, reported that pre-tax profits for the year ended October 3 had risen to £5.1m from £5m for the same period 2008.
The firm said revenue increased to £26.2m from £23.7m with basic earnings per share standing at 32.1p.
It said that a substantial order book containing significant higher added value defence contracts for Chesterfield Special Cylinders (CSC), of which Pressure Technologies is the holding company, had helped boost performance.
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.
Chesterfield BioGas has also raised its market profile and has project quotations in hand of £10m spread over three years.
The division was formed in November last year following the signing of a co-operation agreement with Greenlane Biogas – the world leader in biogas upgrading from raw biogas to vehicle quality fuel.
Chesterfield BioGas will provide turnkey solutions for the cleaning, storage and dispensing of biomethane, produced from waste water treatment and anaerobic digestion of organic waste.
Richard Shacklady, chairman of Pressure Technologies, said: “I am pleased to report that the group has continued to thrive and progress its diversification strategy, despite the worst market and financial turbulence experienced for over 20 years.
“Our secure market position and strong balance sheet are enabling us to actively pursue relevant, realistically priced acquisition targets.”
Pressure Technologies said that it was actively exploring niche product opportunities in the global energy markets in particular offshore oil and gas.
The firm has also appointed a corporate development manager to work full-time on the firm’s search for good acquisition opportunities.
“We have a clearly defined shortlist of targets and are pursuing these with vigour,” it said in a statement.
In line with Pressure Technologies’ business growth strategy CSC had been split into two product group – ultra large and small cylinders – a move which the company said would aid both businesses.
Investment in research and development is continuing with the board believing organic development of new technologies is key to the group’s future success.
Its reputation for new product development has led to a number of major projects being secured in the last financial year including a research project with Sheffield University on corrosion rates for different grades of steel used in naval cylinders.
