Improved market conditions boost performance at engineering group
Specialist engineering group, Pressure Technologies, has reported a group revenue rise of 29% to £32m (2022: £24.9m) in its 2023 full year results.
The group also recorded a reported loss before tax of £1.1m (2022: loss of £4m).
Sheffield-headquartered Pressure Technologies operates across two divisions – Chesterfield Special Cylinders (CSC) and Precision Machined Components. (PMC)
It notes FY23 was a year of significant progress for the group with market conditions and order intake improving considerably alongside delivery of operational improvements, enabling a return to profitability in both divisions.
Chris Walters, chief executive, said: “Significantly improved performance in FY23 reflects the strong defence order book in Chesterfield Special Cylinders and the continued recovery of oil and gas market trading conditions in Precision Machined Components.
“In Chesterfield Special Cylinders, the order book reached the highest level on record following an £18.2m contract award to supply air pressure vessels for a major UK naval new construction programme.
“In Precision Machined Components, the recovery of order intake levels was very strong in the year facilitating a return to profitability for the division.
“In light of these improving conditions, the Board decided to divest PMC and launched the sale process in December 2023.
“We are targeting completion of the sale in the third quarter of FY24, with the sale proceeds to be used to repay the new term loan recently arranged with two of our major shareholders and to fund development of CSC in the hydrogen energy market.”
Pressure Technologies adds that its bank borrowings were reduced by £1.5m in the year to £900,000 (2022: £2.4m), facilitated by its improved trading performance and a fundraising of £2.1m (net of expenses) in December 2022.
The Board expects the group’s full-year FY24 revenue and adjusted EBITDA to be in-line with current market expectations of £34m for revenue and £2.1m for adjusted EBITDA.
