Pre-tax profits almost treble for Pressure Technologies
MANUFACTURER Pressure Technologies this week said it has considerable optimism for the future after its half year results show pre-tax profit has almost trebled.
The Sheffield-based business, which runs engineered products, cylinder and alternative energy divisions, announced revenue was up 30% at £16.4m (2012: £12.6m) and reported a pre-tax profit of £1.33m (2012: £0.46m) for the period to March 30 2013.
Pressure Technologies said the primary driver for the overall growth in sales and profits was its cylinders division – Chesterfield Special Cylinders. Chesterfield Special Cylinders is a global market leader in the design and manufacture of speciality high pressure, seamless steel gas cylinders for the offshore oil and gas, defence, industrial gases and alternative energy markets and retesting and refurbishment services.
Chairman, Alan Wilson, said: “The continued recovery in our offshore oil and gas activity, coupled with strong activity in defence, resulted in significant sales and profit growth that was ahead of our expectations.
“We have seen the benefit of our move to focus on more complex, higher value added opportunities and the provision of services, such as in-situ testing, into this market.”
The South Yorkshire business said overall market conditions within its dominant sector, offshore oil and gas, remain buoyant and global exploration and production spending is expected to reach a record US$644bn in 2013 – up 7% on the previous year.
Mr Wilson said he believes opportunities across all the group’s markets are good. The engineered products division Al-Met is a niche manufacturer of specialised, precision engineered valve wear parts used in the oil and gas industries, acquired by Pressure Technologies in 2010 and its alternative energy division Chesterfield BioGas Limited was founded in November 2008.
Mr Wilson said: “Our ongoing investment in new products and services will broaden our customer spread and ensure that the group is well positioned to deliver further growth.
“Alongside our focus on organic growth, we have explored a number of acquisition opportunities in the first half. As yet, none have fulfilled the board’s risk versus reward criteria and further opportunities are being evaluated.
“The interim results show the benefits of the board’s diversification strategy and these, combined with on-going opportunities, give us considerable optimism for the future.”
Pressure Technologies also announced today that Neil MacDonald has been appointed to the company’s board as non-executive director.
Mr MacDonald was group finance director of South Yorkshire seal manufacturer, AES Engineering, until September 2012, when he resigned to take up the role of Master of the Company of Cutlers in Hallamshire. He remains on the board of AES as a non-executive director.
