Losses fall at engineering business

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Pressure Technologies, a Sheffield-based specialist engineering business has said in the 52 weeks to 2 October it saw revenues fall by £400,000 but reduced its losses by two thirds.

The group, which operates across two divisions – Chesterfield Special Cylinders (CSC) and Precision Machined Components (PMC) noted the improved performance which saw losses of £0.8m over the period compared to £2.4m in 2020, was attributed to a strong performance in defence, nuclear and hydrogen energy markets.

It added however that these success which included a revenue increase at CSC to £18.6m were offset by “difficult trading conditions in the oil and gas market, supply chain disruptions and the delay of Integrity Management deployments from the second half of the year into FY22 and FY23.”

These challenges impacted PMC’s activity with it seeing revenues drop by over 50% to £6.4 million and operating losses more than double to £1.7m.

The business noted that cost-saving measures completed in February have helped to minimise losses and conserve cash, and that it was benefitting from improvements in operational efficiency and competitiveness as a result of previous investments in equipment, systems and people.

Having seen the benefits of the net zero agenda through its CSC division which is offering safe secure hydrogen storage solutions, the
engineering business has also diversified its PMC business into the offshore wind market with the first order for wind turbine components and specialised fittings for UK defence projects which are being worked on within the group.

Looking ahead the business said its focus “remains on the recovery of profitability and cash generation”.

Adding that the board has been encouraged by recent increases in order intake and by efficiency and margin gains achieved from operational improvements. This coupled with its customers reporting a stronger outlook for the oil and gas market in 2022 means it stated that the board remain cautious regarding the pace of recovery for PMC but believe it is well placed to deliver an improved performance in FY22.

Alongside the trading update the company also noted that its chairman and non-executive director, Sir Roy Gardner plans to step down before the next AGM in March 2022. Since being appointed to the role in January 2020 Sir Roy has overseen the strengthening of the Board and the successful £7.5 million fundraising in December 2020, providing the Group with the resources to capitalise on opportunities in the hydrogen energy market and accelerate growth in Integrity Management services.

A process to find his successor has now been initiated to ensure a smooth handover and Sir Roy will continue to support the Company in an advisory role.

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