Engineering group apologises for audit problems that caused share suspension

Chris Walters

Pressure Technologies chair Nick Salmon has apologised for the late publication of the manufacturer’s annual results.

Auditors found problems with how it had been reporting profits. The issue, which relates to the timing of costs with certain contracts but not the overall profitability, caused Pressure Technologies’ shares to be suspended.

The problems arose at a time when Pressure Technologies did not have a CFO in post. James Locking left at the end of February, in a move announced in November, while his replacement Steve Hammell joined at the start of this month.

Salmon said: “I apologise for the delay in issuing these FY22 results.

“Late in the auditor’s review of the financial statements, it was determined that the accounting methodology adopted in Chesterfield Special Cylinders since FY19 for large, multi-year naval contracts with a specific customer was incorrect in respect of the timing of cost and profit recognition.

“The correction of this error impacted the previously reported results for FY21, which have been restated, and also reduced operating profit for FY22 below our previous expectations, albeit with a corresponding increase in the expected profit contributions from these contracts in FY23 and FY24.”

Two people have joined the board as of today – new chief financial officer Steve Hammell and Harwood Capital representative Richard Staveley.

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