News blog

Pressure Technologies

• BY: Andrew Hore |
• POSTED: 16/06/2013 |

High-pressure, seamless steel gas cylinders and engineered products manufacturer Pressure Technologies produced strong growth in revenues and profit in the six months to March 2013 and orders continue to improve.

Revenues were 30% higher at £16.4m, while pre-tax profit jumped from £456,000 to £1.33m.

The vast majority of profit is contributed by the core cylinders business, where demand from the deepwater oil and gas platforms market. The naval market is also expanding. The alternative energy division made a reduced loss thanks to one order, although potential orders suggest that it will move into profit. The regulatory decision about allowable oxygen levels in biomethane in the UK gas grid could unlock delayed contracts.

The engineered products division made a lower interim contribution in the first half but management believes that this will be the largest contributor in 12 months time on the back of significant spending on deepwater projects and new product development. The division is also expected to grow market share.

Net cash was £2.7m at the end of March 2013, after spending £500,000 on last year’s final dividend. The interim dividend is 4% higher at 2.6p a share.

At 173p a share, Pressure Technologies is valued at £19.7m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2013_45.pdf