Pressure Technologies announces £4.5m share placing

Pressure Technologies, the specialist engineering group, has announced a placing to raise £4.5m as it looks to capitalise on a strengthening oil and gas market.

The company said the placing will strengthen its balance sheet and enable it to invest in its manufacturing divisions, and  identify and capitalise on the opportunities for both organic and non-organic growth.

“As highlighted in the interim results for the six months to 1 April 2017, and the trading update announced at the end of August, the group’s three Manufacturing Divisions: Precision Machined Components, Engineered Products and Cylinders are emerging from a sustained period of retrenchment and re-organisation arising from the oil and gas market downturn.

“Precision Machined Components and Chesterfield Special Cylinders are beginning to experience an uplift in activity, stemming from increased confidence in the oil market, providing a stabilized and increasing order load, together with strong defence contracts stretching into the medium term. Engineered Products has been stabilised but is still experiencing reduced levels of demand due to continued low investment in capital equipment in the oil market.

“The board believes that the upward trajectory in sales revenue and profits, underpinned by the benefits of restructuring, should continue across these divisions with market and product development across several areas providing the momentum to maintain this progress.”

“The Board believes that the placing will provide a number of benefits and stems in part from the strong support of the company’s long standing institutional shareholders.”