Pressure Technologies PLC Trading Update (3680P)
August 31 2017 - 2:01AM
UK Regulatory
TIDMPRES
RNS Number : 3680P
Pressure Technologies PLC
31 August 2017
31 August 2017
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THE
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Pressure Technologies plc
("Pressure Technologies" or the "Group")
Trading Update
Pressure Technologies (AIM: PRES), the specialist engineering
group, today announces an update on recent trading and expectations
for the year ending 30 September 2017.
Our manufacturing divisions continue to perform well, aided by a
stabilised and increasing order load in the Precision Machined
Components ("PMC") and Engineered Products ("EP") Divisions and a
solid defence order book in the Cylinders Division. The oil market
is experiencing some increase in confidence as the majors have
adapted to be profitable in the lower oil price environment. The
increase in orders in PMC is evidence of this as is the receipt of
an order in Cylinders for a drillship project for delivery in 2018,
the first for three years. At this stage in the financial year,
with five weeks of trading remaining, we anticipate that
collectively the manufacturing businesses will at least meet
current market expectations.
As highlighted in the interim statement released in June, the
result for the year for the Alternative Energy Division ("AE") is
dependent on order intake in the second half. Whilst the division
will report a significantly improved performance over the financial
year 2016, it is now apparent that customers have pushed back
decision dates on projects. As a consequence of this slippage and
cost overruns on certain European projects, AE will post a result
below market expectations.
Notwithstanding the positive news that the manufacturing
divisions are performing strongly and that cash flow is being well
controlled, the Board expects that it will report results
materially behind market expectations for the current financial
year.
Looking ahead, the predicted order load for PMC and the defence
contracts already secured by Cylinders gives the Board confidence
that market expectations for financial year 2018 for our
manufacturing divisions will be exceeded. The 2018 outturn for AE
relies on contracts which are still in negotiation. The Board is
conscious of the impact that timing has on forecasts and believes a
prudent approach to 2018 is appropriate. However, the order
pipeline remains strong particularly in North America as this large
market comes to understand the economic and environmental benefits
of using waste for energy.
The Board continues to be confident in the medium to long term
prospects for the Group underpinned by a stabilising oil market,
strong defence contracts and a growing global market in waste to
energy solutions for which AE under the Greenlane brand is a world
leader in biogas upgrading.
The audited preliminary results for the year ending 30 September
2017 will be announced on Tuesday 12 December.
For further information, please contact:
Pressure Technologies plc Tell: 0114 257 3622
John Hayward, Chief Executive www.pressuretechnologies.com
Joanna Allen, Group Finance Director
Keeley Clarke, Investor Relations
Cantor Fitzgerald Europe (Nominated Tel: 020 7894 7000
Adviser and Broker)
Philip Davies / Will Goode
Tavistock Tel: 020 7920 3150
Simon Hudson
COMPANY DESCRIPTION
Company description - www.pressuretechnologies.com
With its head office in Sheffield, Pressure Technologies was
founded on its leading market position as a designer and
manufacturer of high-pressure systems serving the global energy,
defence and industrial gases markets. Today it continues to serve
those markets from a broader engineering base with specialist
precision engineering businesses and has a worldwide presence in
Alternative Energy as a global leader in biogas upgrading.
Pressure Technologies has four divisions, Precision Machined
Components, Engineered Products, Cylinders and Alternative Energy,
serving four markets: oil and gas, defence, industrial gases and
alternative energy.
Precision Machined Components
-- Al-Met, Mid Glamorgan, acquired in 2010 www.almet.co.uk
-- Roota Engineering, Rotherham, acquired in March 2014 www.roota.co.uk
-- Quadscot, Glasgow, acquired in October 2014 www.quadscot.co.uk
-- Martract Limited, Barton-on-Humber, acquired in December 2016 www.martract.co.uk
Engineered Products
-- Hydratron, Manchester, acquired in 2010 www.hydratron.com
Cylinders
-- Chesterfield Special Cylinders, Sheffield, IPO cornerstone in
2007 and includes, CSC Deutschland Gmbh, which is based in Dorsten,
Germany and Chesterfield Special Cylinders Inc. which is based in
Houston, USA www.chesterfieldcylinders.com
Alternative Energy
-- Greenlane Biogas, Sheffield, UK; Vancouver, Canada and;
Auckland, New Zealand acquired in October 2014
www.greenlanebiogas.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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