Pressure improves profits as expansion continues

PRESSURE Technologies, the Yorkshire company which manufactures gas storage vessels used in the shipping, oil and defence industries, today said it was in a prime position to take advantage of the global demand for energy.

The Sheffield-based firm, which is the holding company for Chesterfield Special Cylinders, is planning to broaden its business base through acquisitions, organic growth and by diversifying into new areas.

Its diversification strategy includes exploiting opportunities it believes will be presented in the commpressed biogas sector in the UK. Compressed biogas is cleaned methane, captured from waste water treatment and the anaerobic digestion of other organic waste, held at high pressure for use as a vehicle fuel or injected into the gas grid.

The company, which floated on the stock market last year, believes there is “huge potential” in this area.

Richard Shacklady, chairman of Pressure Technologies, said: “Our forward order book has been maintained at £18m and stretches well into 2009 giving the group good forward visibility.

“There is also a pipeline of further large tenders still outstanding. The world demand for energy is such that offshore oil and gas exploration and production has to go into deeper waters, up to 9,000 feet above seabed, which requires semi-submersible rigs and drillships. Our customers lead the world in the type of drilling rig technology required to reach these depths. 

“This reaffirms the validity of the group strategy and the board remains confident of delivering substantial year on year growth.”

Mr Shacklady was speaking as Pressure today revealed it had increased pre-tax profit to £2.4m in the six months to March 29 compared to £0.7m over the same period the previous year.

Revenues were up to £11.7m from £7.3m, while operating profit increased from £0.8m to £2.3m.

Mr Shacklady said the company, which aims to grow into a £40m turnover business within the next four years, had made £10m of its revenues over the interim period through exports – a record figure for the firm.

Pressure designs and produces high pressure cylinders which can operate at pressures up to a thousand times that of the atmosphere. Its products are used in aeroplanes, submarines and oil and gas rigs.

Chesterfield Special Cylinders can trace its history back to 1897.

Pressure has secured business from a number of multi-national industrial gases customers, outsourcing their road trailer fleet refurbishments and winning long-term contracts under its overseas naval business banner.

It is also looking to develop new materials and internal coatings for cylinders.

Pressure also announced a maiden interim dividend of 2p per share.