Final Results

Pressure Technologies PLC
30 January 2008


                           Pressure Technologies plc


                              Preliminary Results


                          Year Ended 30 September 2007



Highlights

                                                    2007         2006
                                                               (as
                                                            restated)
                                                   £'000        £'000   % change

Turnover                                          15,124        8,170       85%

Operating profit before exceptional costs          1,907        1,056       80%

PBT                                                1,409          839       68%

PAT                                                  957          565       69%

Basic earnings per share                            11.1p         7.7p      44%

Adjusted earnings per share                         15.8p         9.7p      63%
(excludes exceptional costs and FRS25 finance
charge)



• Sales revenues increased by 85% as a result of increased
demand from the oil & gas sector


• Record year end order book of £18 million (2006: £11 million)


• No signs of slowdown with strong sales prospects and customer
forecasts


• Record operating profits, 46% ahead of analyst expectations
for 2007 set at the time of the IPO


• Growth is all organic.



Company description


Pressure Technologies plc ('PT') acts as a holding company for Chesterfield
Special Cylinders Limited ('CSC') and Chesterfield Pressure Systems Group
Limited ('CPSG') the former holding company for CSC. CSC designs, manufactures
and offers testing and refurbishment services for a range of speciality high
pressure, seamless steel gas cylinders for global energy, defence and industrial
gases markets. The business is conducted under the 'Chesterfield' brand which is
a long established name in the cylinders and specialised pressure vessel market.

Based at Meadowhall, Sheffield Pressure Technologies listed on AIM in June 2007.
The Company's vision is to grow the business through a mixture of organic
growth, diversification and acquisition of complementary business to achieve a
£40 million turnover business within five years.




Chairman's statement


Following our successful listing on AIM in June 2007, it gives me great pleasure
to present our first preliminary results as a public company.


Financial Highlights: The year ended 30th September 2007, resulted in a further
period of sustained high growth in our business. Continued strong demand from gl
obal energy markets and increased penetration of overseas defence and aerospace
sectors enabled the Group to continue its strong upward momentum. Turnover
nearly doubled to £15.1 million compared with £8.2 million achieved in 2006.

Operating profit before exceptional items at £1.9 million was nearly double the
2006 level of £1.1 million. Pre-tax profits before operating exceptional items
increased to £1.9 million compared with £0.8 million in 2006. As well as volume
growth, the benefits of the business relocating to the Meadowhall, Sheffield
facility in 2005 continue to positively impact manufacturing performance.

The net proceeds from flotation were £5.4 million, of which £1.2 million has
been invested into working capital to support organic growth and our strong
balance sheet provides significant flexibility to capitalise on further
opportunities.

As indicated at the time of flotation, no dividend will be paid for year ended
30th September 2007. We can confirm our intention to declare a dividend for the
six months interim period to 31st March 2008.


Strategy: We continue to implement a business growth programme based on
penetration of key growth sectors, notably global energy and high pressure gases
markets, establishing a presence in new niche sectors, and an increased focus on
acquisition of businesses which offer synergistic benefits in related niche
sectors. During 2007, we consolidated our supply position in the global offshore
oil and gas market. Significant progress was made in the UK gas trailer
refurbishment market and we plan to develop this sector further during 2008. We
also have a number of initiatives underway in the Compressed Natural Gas and
Biogas sectors which offer significant potential for our products in Continental
Europe.

During the year £0.4 million of exceptional costs were incurred as a result of
extensive due diligence on an unsuccessful overseas acquisition. Other
acquisition targets, which will enhance our business, are being actively
pursued.


The Board and Corporate Governance: As previously reported, Nigel Luckett joined
the Group in April 2007 and we increasingly benefit from his wisdom and
experience. It is our intention to further strengthen the Board this year with
the appointment of a further Non-Executive Director.

The Board has established Audit and Remuneration Committees chaired by Nigel
Luckett and a Nomination Committee chaired by myself.

We have also developed what has become an increasingly active corporate website
for disseminating information to our investors.


People: Pressure Technologies' supportive culture helps to motivate all our
employees to succeed and it is our employees who have helped to deliver a set of
excellent results for the year and I am grateful for their contribution. As a
result of their efforts it was notable that the business lost less than 48 hours
output during the period when the factory was flooded in the storms of mid 2007.

It is appropriate to acknowledge the continued commitment and support of the
Operational Directors of our subsidiary, Chesterfield Special Cylinders, ably
led by our Chief Executive John Hayward since the MBO in 2004.

I would also like to thank our shareholders and investors who recognising our
potential have supported us through the year.


Prospects: The Group finished 2007 in excellent financial condition, with
buoyant conditions in each of our key market sectors and a forward order book of
over £18 million, a record for any year end. These factors, when combined with
our strategic initiatives, make the Board confident of delivering further
progress in the year ahead.


Richard L. Shacklady

Chairman

30 January 2008



Consolidated profit and loss account

For the year ended 30 September 2007
                                                Note      2007            2006
                                                                 (as restated)
                                                         £'000           £'000

Turnover                                                15,124           8,170
                                                           
Cost of sales                                          (11,237)         (5,504)
                                                       ------------------------

Gross profit                                             3,887           2,666

Selling and administration expenses                     (1,980)         (1,610)
                                                        -----------------------

Operating profit before exceptional costs                1,907           1,056

Exceptional administration costs                          (530)              -
                                                          --------------------

Operating profit after exceptional costs                 1,377           1,056

Interest receivable                                        116              15
Interest payable                                           (84)           (232)
                                                           --------------------

Profit on ordinary activities before taxation     2      1,409             839
Taxation on profit on ordinary activities                 (452)           (274)
                                                          ---------------------

Profit for the financial year                              957             565
                                                          --------------------

Earnings per share - basic                        4       11.1p            7.7p

Earnings per share - adjusted                     4       15.8p            9.7p
                                                      
                                                            ===            =====



• All the above results are from continuing operations.


• Gross profit increased by 46% to £3,887,000 (2006: £2,666,000)
giving a gross margin percentage of 25.7% (2006: 32.6%). This reduction in gross
margin percentage was due to changes in mix with a higher proportion of product
manufactured from bought in semi-finished forgings.


• Selling & Administration costs increased by 23% to £1,980,000
to support business growth. Operating profit margins before exceptional costs
decreased marginally from 12.9% to 12.6% as a result of the mix change and
overhead cost increases.



Consolidated cash flow statement

For the year ended 30 September 2007

                                                  Note     2007           2006
                                                                   (as restated)
                                                          £'000          £'000

Net cash (outflow)/inflow from operating           6a      (609)         1,146
                                                           -------------------
activities
                                                                         
Returns on investment and servicing of finance
Interest received                                           116             15
Interest paid                                               (84)           (87)
                                                            -------------------
                                                                             
Net cash inflow/(outflow) from returns on
investments                                                  32            (72)
                                                             ------------------
and servicing of finance

Taxation paid                                              (176)             -
                                                           --------------------

Investing activities
Purchase of tangible fixed assets                          (428)          (381)
Proceeds from sale of tangible fixed assets                   9              -
                                                             -----------------
Net cash outflow for capital expenditure and
financial                                                  (419)          (381)
                                                           --------------------
investment

Net cash (outflow)/inflow before financing               (1,172)           693

Financing
Issue of ordinary share capital (net of expenses)         5,541              -
Loan repayments                                    6c      (437)           (97)
                                                           --------------------

                                                                               
Net cash inflow/(outflow) from financing                  5,104            (97)
                                                          =====================
                                                                      

Net increase in cash                               6c     3,932            596
                                                         ======================



• Cash flow generated from operations was an outflow of £609,000
(2006: inflow £1,146,000) as the increase in trading required a large increase
in working capital and also due to the exceptional operating costs incurred in
the year.


• Capital expenditure cash payments amounted to £428,000 (2006:
£381,000) with expenditure targeted on improvements to the efficiency of the
ultra-large finishing line and the replacement of subcontract manufacture of
fittings & adaptors by in-house manufacture. The full year effect on profits of
this expenditure will not be realised until 2008.





Consolidated balance sheet

As at 30 September 2007

                                                    Note    2007          2006
                                                                   (as restated)
                                                           £'000         £'000

Fixed assets
Tangible assets                                            1,774         1,557
                                                          ---------------------

                                                           1,774         1,557
                                                          ---------------------

Current assets
Stocks                                                     4,550         1,281
Debtors                                                    3,155         3,366
Cash at bank and in hand                                   4,930           998
                                                          ---------------------

                                                          12,635         5,645

Creditors: amounts falling due within one year            (5,790)       (4,898)
                                                          ---------------------

Net current assets                                         6,845           747
                                                          ---------------------

Total assets less current liabilities                      8,619         2,304

Creditors: amounts falling due after more than one          (513)       (1,191)
year
Provisions for liabilities                                  (241)         (216)
                                                            -------------------

Net assets                                                 7,865           897
                                                           ====================

Capital and reserves
Called up share capital                                      567           220
Share premium account                                      5,341             -
Profit and loss account                                    1,957           731
Other reserves                                                 -           (54)
                                                           ---------------------

Equity shareholders' funds                           5     7,865           897
                                                           ====================





Notes


1 Basis of preparation


The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 September 2007 or 2006. The financial
statements for the year ended 30 September 2007 will be the first set of
financial statements for the company. The financial information set out in this
announcement is derived from those accounts which will be delivered to the
Registrar of Companies following the Company's annual general meeting.


This financial information has been prepared under the historical cost
convention and in accordance with applicable UK accounting standards and the
Companies Act 1985. The group will adopt International Financial Reporting
Standards as adopted in the EU for the first time in the financial statements
for the year ending 30 September 2008 and the interim financial statements for
the period ending 31 March 2008.


Pressure Technologies Limited ('PT') was incorporated on 2 March 2007. On 21 May
2007 PT entered into a share for share exchange with the shareholders of
Chesterfield Pressure Systems Group Limited ('CPSG') pursuant to which PT
acquired the entire issued share capital of CPSG. As the shareholders of PT
after this transaction remained the same as those previously in CPSG, no change
of control took place. The transaction was a reorganisation of an existing
entity and accordingly the transaction has been accounted for as a group
reconstruction with both the net assets of PT and CPSG being recorded at book
value. The consolidated balance sheet presents consolidated information as if
the group existed in its current form at 30 September 2006 and 30 September 2007
and the consolidated profit and loss account and consolidated cash flow
statement reflect two years trading for the group.


2 Profit on ordinary activities before taxation


Profit on ordinary activities before taxation is stated after charging/
(crediting):
                                                     2007                 2006
                                                    £'000                £'000
Depreciation of tangible fixed assets:
Owned assets                                          203                  120
Profit on disposal of fixed assets                     (1)                   -
Amortisation of negative goodwill                       -                  (17)
Amortisation of grant received                        (12)                 (14)
Loss on foreign exchange transactions                  12                   27
Operating lease rentals:
Land and buildings                                    344                  259
Machinery and equipment                                 8                    7
Exceptional operating items                           530                    -
                                         ================   ==================
                                                                          

The charge for exceptional operating items comprises costs relating to the
Group's flotation on AIM of £125,000 (2006: £nil) and costs relating to a
prospective overseas acquisition of £405,000 (2006: £nil).


3 Prior year adjustment


Within the documentation prepared for the Group's admission to AIM in June 2007,
certain adjustments were made to the Group's results which have been fully
reflected within these financial statements by way of a prior year adjustment.
In addition, a finance charge and other reserve has been recognised in respect
of the 'A' Ordinary Shares to restate these shares at their fair value. These
shares were converted to Ordinary Shares during the year and consequently the
prior year adjustment has been reversed through reserves during the year ended
30 September 2007. As a result of these adjustments, opening net assets at 1 Oct
ober 2005 have been reduced by £448,000, comprising a reduction in opening
profit and loss reserves of £247,000, share capital of £147,000 and other
reserves of £54,000 to take account of the following:-


1. The write off of costs previously capitalised and the resulting adjustment to
   depreciation - £240,000

2. Charge to account for a rent free period under a property lease - £82,000

3. The recognition of deferred consideration on a previous acquisition which had
   previously been expensed - £44,000

4. The impact of the above on the amortisation of negative goodwill - £100,000
   and taxation - £55,000

5. The reclassification of 'A' Ordinary Shares from equity to debt and
   measurement of that debt at its fair value in accordance with FRS25 
   'Financial Instruments: Disclosure and Presentation' - £325,000


The above adjustments have reduced reported profit for the year ended 30
September 2006 by £216,000.



4 Earnings per share

Basic earnings per share has been calculated in accordance with FRS22 which
requires that earnings should be based on the net profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares in
issue during the year. The calculation of basic earnings per share is based on
the profit for the year of £957,000 (2006: £565,000) and on the weighted average
number of shares in issue during the year of 8,615,812 (2006: 7,333,620). At the
year end there were 11,333,620 shares in issue.

Adjusted earnings per share are stated after adding back operating exceptional
items totalling £530,000 less related taxation of £129,000, giving an adjusted
EPS of 15.8p (2006: 9.7p after adjusting for the notional interest payable
arising from the classification of 'A' Ordinary Shares as debt in that year
£145,000).

Diluted earnings per share has not been prepared as there were no options or
similar instruments in place at 30 September 2006 or 2007 that would have had a
dilutive effect upon the weighted average number of shares in issue during the
year.


5 Reconciliation of movements in equity shareholders' funds

                                                       2007               2006
                                                                   (as restated)
                                                      £'000              £'000
Profit for the financial year                           957                565
Shares issued in share-for-share exchange                 -                  -
Reclassification of 'A' ordinary shares                 147                  -
Proceeds of share issue (net of costs)                5,541                  -
Release of financial liability                          323                  -
                                                       -----------------------

Net change to shareholders' funds for year            6,968                565

Equity shareholders' funds at 1 October (as             897                332
                                                       -----------------------
restated)

Equity shareholders' funds at 30 September            7,865                897
                                                      ========================

                                                                         
Equity shareholders' funds at 1 October 2006 have been restated from £1,561,000
to £897,000 to reflect the prior year adjustment as set out in note 3 (1 October
2005 restated from £780,000 to £332,000).


6 Notes to the consolidated cashflow statement

a. Reconciliation of operating profit to net cash (outflow)/inflow from
operating activities:
                                                              2007        2006
                                                             £'000       £'000
Operating profit                                             1,377       1,056
Depreciation of fixed assets                                   203         120
Amortisation of negative goodwill                                -         (17)
Profit on sale of tangible fixed assets                         (1)          -
Increase in stock                                           (3,269)       (347)
Decrease/(increase) in debtors                                 211      (2,291)
Increase in creditors                                          870       2,625
                                                               ----------------

Net cash (outflow)/inflow from operating activities           (609)      1,146
                                                              ================



b. Reconciliation of net cash flow to movement in net funds/(debt)
                                                         2007             2006
                                                        £'000      (as restated)
                                                                         £'000
Increase in cash                                        3,932              596
Cashflow from decrease in debt                            437               97
                                                          ---------------------
                                                           
Decrease in net debt from cash flow                     4,369              693
Reclassification of 'A' ordinary shares as equity         470                -
Net debt at 1 October                                    (229)            (922)
                                                         -----------------------

Net funds/(debt) at 30 September                        4,610             (229)
                                                       =========================



c. Reconciliation of net cash outflow to movement in net funds/(debt)

                        1 October     Non cash movement  Cashflow  30 September
                              2006                                        2007
                      (as restated)
                             £'000               £'000     £'000         £'000
Cash at bank and in
hand                           998                   -     3,932         4,930
Bank loans                    (757)                  -       437          (320)
'A' Ordinary shares           (470)                470         -             -
                              -------------------------------------------------
                                 
Net funds/(debt)              (229)                470     4,369         4,610
                              =================================================





AGM


The Annual General Meeting will be held at Tankersley Manor Hotel, Barnsley, on
9th April 2008 at 10.00am. Copies of the Report and Accounts and formal notice
of the AGM will be posted to shareholders at least 21 clear days before this
date, and will be available on our website : www.pressuretechnologies.co.uk .



Contacts:


Pressure Technologies plc

John Hayward Chief Executive 0114 242 7506

                             07711 891186


Brewin Dolphin Investment Banking

Neil Baldwin Director        0113 241 0130



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