Notice of Results and Trading Update

RNS Number : 1437R

Pressure Technologies PLC

23 October 2013

 



                                                                                                                                                                        23 October 2013

Pressure Technologies plc

(AIM: PRES)

Notice of Results and Trading Update

Pressure Technologies plc (the "Group") is pleased to announce a positive trading update following a strong close to the year ended 28 September 2013.

Trading in the second half of the financial year was strong in both the Cylinders and Engineered Products divisions.  The Cylinders division was buoyed by increased demand in the oil and gas sector and a growth in naval defence projects, when compared to 2012, resulting in a better than expected end to the financial year just finished.  

In the Engineered Products Division, Hydratron UK delivered a major improvement in sales and profits in the second-half, after a slow start to the financial year.  Hydratron Inc, which is based in Houston, Texas, was brought under the direct control of Hydratron UK in May this year and has since been making positive headway in the important US Oil and Gas market.  Al-Met continued to grow in line with the increased building of subsea trees for the deep water oil and gas market.

As a result of these various factors, the Group now expects that the results for the year ended 28 September 2013 will be ahead of market expectations.  The preliminary results will be announced on Tuesday, 3 December 2013.

Looking ahead to 2014, the Board is expecting further progress in all areas of the Engineered Products Division.  Whilst Cylinders is expected to experience a well flagged reduction in margins, arising from aggressive pricing by its Asian competitors, the Directors expect to see a continuation of the high levels of activity in other areas of oil and gas highlighted earlier in the year.

As previously announced, the Alternative Energy Division has secured two large orders for its biogas upgrading systems which will be delivered in 2014 and there is a pipeline of potential follow on orders.

Accordingly, the Board is pleased to begin the new financial year on a positive footing and looks forward to updating shareholders as the year progresses.

For further information, please contact:

Pressure Technologies plc John Hayward, Chief Executive James Lister, Group Finance Director	Tel: [phone] www.pressuretechnologies.co.uk
Tavistock Communications Catriona Valentine / Keeley Clarke	Tel: [phone]
Charles Stanley Securities (Nomad and broker) Philip Davies / Carl Holmes	Tel: [phone]

Company description

Pressure Technologies is an AIM listed, leading designer and manufacturer of speciality engineering solutions for high pressure systems serving large global markets. The Group is organised into three divisions: Cylinders, Engineered Products and Alternative Energy.

Cylinders

Chesterfield Special Cylinders is a global market leader in the design and manufacture of speciality high pressure, seamless steel gas cylinders for the offshore oil and gas, defence, industrial gases and alternative energy markets and retesting and refurbishment services.

The company has unparalleled industry knowledge, gathered over the last 100 years' trading. As a trusted supplier with unrivalled expertise, Chesterfield Special Cylinders plays an integral role in the project design and engineering process, working closely with its customers on design solutions for high pressure systems.

The core activity of Chesterfield Special Cylinders is the design and manufacture of Air Pressure Vessel systems for oil rig motion compensation systems and deepwater offshore platforms. This is closely followed in importance by activity in the naval market. Chesterfield Special Cylinders provides cylinders for a wide range of applications in submarines and surface ships to a significant proportion of the world's navies.

The company's product and process knowledge has led, in recent years, to an expansion from manufacturing into value added services, making full use of expertise in the business. Chesterfield Special Cylinders has developed a number of service offerings for the inspection and revalidation of cylinders including a novel "in-situ" testing service, which is driven by a new BSI standard for the inspection of hard to reach/impossible to move gas tubes.  Chesterfield Special Cylinders is the only company capable of delivering this strict new testing regime worldwide.

More information is available on the company's website www.chesterfieldcylinders.co.uk.

Engineered Products

This division comprises Al-Met Limited ("Al-Met") and the Hydratron group of companies ("Hydratron").

Al-Met is a niche manufacturer of specialised, precision engineered valve wear parts used in the oil and gas industries, acquired by Pressure Technologies plc in 2010. Its products are used in high-pressure choke and flow control valves, designed to regulate flow volumes in extremely demanding applications in the subsea and surface oil and gas industries. The business, established in 1985, has developed a market leading capability in precision machining carbides, high grade stainless steels and super alloys. More information is available on the company's website www.almet.co.uk.

Hydratron designs, manufactures and sells a range of air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs. The business, which was also acquired in 2010, operates out of two locations situated in the UK and USA. Hydratron also has an extensive network of distributors in key locations around the world. Formed in 1981, Hydratron has established itself as a leading supplier of quality high pressure equipment to the oil and gas industries. The full range of Hydratron products may be viewed at www.hydratron.co.uk.

Alternative Energy: 

Chesterfield BioGas Limited was founded in November 2008, following the signing of a co-operation agreement with Greenlane® Biogas Limited, the world leader in biogas upgrading, which gives Pressure Technologies exclusive rights to market and manufacture Greenlane® equipment in the UK and Eire.

Chesterfield BioGas provides turnkey solutions for the cleaning, storage and dispensing of biomethane for injection into the gas grid or use as a vehicle fuel. In 2010, Chesterfield BioGas installed the UK's first biogas upgrader supplying biomethane to the national grid at a Thames Water site in Didcot.  A second upgrader was delivered in October 2012.

For more information visit the company's website www.chesterfieldbiogas.co.uk.

 

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