Drop into the red puts Pressure on engineering firm
THE downturn in the oil and gas sector hard hit Sheffield engineering business Pressure Technologies hard, causing it to drop into the red.
The company returned pre-tax losses of £359,000 for the year to 1 October 2016, down from pre-tax profits of £1.1m in the same period last year.
In September, its Engineered Products division’s US manufacturing facility was closed, leading to a major drop in revenue to £35.8m for the year, from £53.8m in 2015.
For the first time in the group’s history, less than half its revenues (43%) came from the oil and gas sector.
Its alternative energy division also had a “frustrating year” following contract delays and legacy costs which adversely impacted its bottom line, but despite this, Pressure Technologies said it was an “exciting area of growth”for the company.
Post year-end it acquired Martract Limited for £4.3m as it continues its refocus away from oil and gas.
Earlier this year a profit warning prompted a share price crash, falling 47% in April this year. However the board said it remains “confident” in the medium to long-term prospects for Pressure Technologies.
John Hayward, chief executive, said: “The year has seen both the rebuilding of our Alternative Energy Division, following its restructuring in 2015, and the completion of the restructuring of our Manufacturing Divisions.
“The Group is far more resilient, with Manufacturing Divisions now structured to be profitable in the current market and an Alternative Energy Division on the brink of a breakthrough to sustainable revenues and profits.
“Significant progress in diversification has been made in the Cylinders Division and we continue to seek out new products and markets for the EP and PMC Divisions. The acquisition of Martract Ltd in December 2016 will assist with this process.”
