Robust trading for listed engineering group
Sheffield-headquartered engineering group Pressure Technologies has seen its Group revenue rise by 34% to £28.3m (2018: £21.2m).
The business has released its 2019 preliminary results for the year ended 28 September 2019, which also include a reported loss before tax of £0.5m (2018: loss £1.7m) and gross profit up 27% to £9.2m (2018: £7.2m).
Working capital increased by £2.2m to £7.4m (2018: £5.2m).
The company attributed its improved trading performance to UK and export defence contracts and increasing momentum in the global oil and gas market.
And it highlighted strategic progress made with the divestment of its non-core operations, recovery of profitability and organic growth in both its divisions.
Chris Walters, chief executive of Pressure Technologies, said: “I am pleased with the significant improvement in trading performance this year.
“We have made important management and operational changes within the business over the course of the year.
“I am pleased with the way our teams have responded during this transitional period and encouraged by the progress we have made with organisational development and culture that is key to delivering sustainable growth.
“Order backlog and delayed output increased working capital during the year, but I am confident this will unwind early in the new year as the backlog is cleared and operational initiatives take effect, delivering shorter lead times, improved margins and recovering cash flows.
“Good strategic progress and the favourable conditions in core markets underpin our confidence in the outlook for 2020 and beyond.
“Both divisions hold strong order books with reduced customer concentrations and have recently posted record contract wins from an increasingly diverse and buoyant sales pipeline.”
