Record results for confident Pressure Technologies
PRESSURE Technologies said it is planning a major investment strategy over the next two years and is on the lookout for acquisition targets as it announced record results this morning.
The Sheffield-based business, which runs engineered products, cylinder and alternative energy divisions, saw group sales for the full-year reach a record £34.4m, up from £30.4m in 2012, which yielded a pre-tax profit of £2.9m (2012: £1.8m), giving a return on sales of 8.4%.
The company said its balance sheet continues to strengthen on the improved trading results, with a year-end net asset value of £17.5m (2012: £16.1m), £4.0m of net cash (2012: £2.7m) and no bank debt.
Alan Wilson, chairman of Pressure Technologies, said: “We have begun the current financial year with an order book 37% higher than last year, so the prospects for a further improvement in performance are very promising. We also continue to develop new products and services across the group and are planning major capital expenditure over the next two years to expand capacity, improve productivity and quality and increase profitability.
“In parallel with growing our core businesses, the board continues to evaluate earnings enhancing acquisitions which complement and add value to our existing portfolio.
“I view the year ahead with much enthusiasm and look forward to presenting further evidence of the group’s ability to capitalise on the opportunities which lie ahead.”
Pressure Technologies said overall conditions in its largest market, oil & gas, were favourable during the year with the global demand for oil increasing by 1.2%, while regulatory changes in the UK resulted in its Alternative Energy Division securing large orders for biogas upgrading equipment for delivery in the current financial year.
“This is the breakthrough we had anticipated and much credit is due to the board and management for their vision and perseverance in this venture,” the company said.
Chief executive John Hayward said: “The year under review has been another good year for the group and one in which we have made significant progress in all three divisions. The group has continued to improve profitability, whilst at the same time improving the quality of these earnings through a better balance of performance across its divisions.
“Looking to the current year, there is significant growth potential for the Engineered Products and Alternative Energy divisions. The Cylinder Division has a fantastic opportunity to develop its service offerings, in particular in-situ testing, and this gives the board confidence for further progress in the year. All operating divisions of the group are expected to be profitable and we look forward to updating shareholders as the year progresses.”
The group said that as a result of the solid balance sheet and positive trading outlook, the board is continuing its progressive dividend policy and is recommending a final dividend of 5.2p per share (2012: 5.0p), giving a total of 7.8p per share for the year; a 4% increase on last year.
