Pressure warns of tough trading conditions

ENGINEERING group Pressure Technologies said recent “tough” conditions may impact on its results this year.

The Sheffield group said that despite starting the year with a strong order book, caution expressed in its 2014 financial results has proved “well founded”, as the group’s divisions experienced a tougher business environment in the year-to-date.

It blames “significant and sustained” weakness in the global oil price which has led oil companies to materially reduce capital spending on new projects.

“Although oil prices have somewhat stabilised in recent weeks, the widely reported marked deterioration in confidence in the sector, has prompted the board to carry out a full review of prospects across the group,” Pressure said.

“Whilst the board remains confident of the medium-term opportunities for the group, it considers that expectations for the current financial year should be revised downwards as part of a prudent response to market conditions.”

It said it has “every confidence” that as market conditions improve, the group is well placed to take advantage of the opportunities that will inevitably arise.