Strong forward orders boosts Pressure Technologies
PRESSURE Technologies said it was on track to meet market expectations despite a drop in pre-tax profits.
The Sheffield-based firm, which is the holding company for speciality high pressure steel gas cylinder manufacturer Chesterfield Special Cylinders (CSC), said that while its forward order book was “much reduced” it stretched into early 2011.
The firm is entering the second half of its financial year with order totalling £11.4m.
In June, Pressure Technologies announced a major order with Chesterfield BioGas from Centrica worth £600,000.
CBG will supply Centrica with one of the UK’s first biogas upgrading plants for the production of clean biomethane from waste for direct injection into the national gas grid.
Pre-tax profits for the 26 weeks ended April 3 were £1.5m compared to £2.4m for the same period 2009.
Revenue slipped from £12.7m to £9.7m while basic earnings per share fell from 15.5p to 9.6p.
Pressure Technologies said that it maintains a strong balance sheet following the £2.3m acquisition of Al-met in February.
Activity within CSC, which services offshore oil and gas, remained subdued throughout the period although an upturn is expected next year despite an anticiapted slowdown in the development of deepwater fields in US waters following the Gulf of Mexico disaster.
Richard Shacklady, chairman of Pressure Technologies, said: “This has been a very demanding six months for management and employees.
“While we are pleased to have made progress in our diversification strategy, the long order book visibility which the group has enjoyed in recent years has reduced significantly with the downturn in oil and gas activity. Customers in this sector are now placing orders much nearer the required delivery dates. This presents new challenges for the group.”
He added: “However, independent sector forecasts, as well as our own research indicate that that the future prospects for the sector and therefore the group remain strong.”
