Pressure Technologies (AIM: PRES), the specialist engineering group, announces its interim results for the 26 weeks to 30 March 2019.
● Group revenue up 59% to £14.5 million (2018: £9.1 million)
● Gross profit up 73% to £5.0 million (2018: £2.9 million)
● Adjusted operating profit** at £1.3 million (2018: loss £(0.1) million)
● Reported profit before tax of £0.1 million (2018: loss £(1.5) million)
● Reported basic earnings per share of 1.6p (2018: loss (5.5)p)
● Adjusted operating cash inflow*** of £0.7 million (2018: outflow £2.2 million****)
● Net banking facility debt of £7.9 million (£8.4 million at 31 March 2018; £5.7 million at 29 September 2018)
*All results presented are for continuing operations. Prior period income statements have been restated to exclude discontinued operations
**before M&A costs, amortisation and exceptional charges
***before exceptional cash costs
****including cash flow from discontinued operations
● Period of transition for the Group, led by Chief Executive, Chris Walters and his team, including operational management changes and progress made with organisational development and culture.
● Alternative Energy division divestment completed post period end, enabling focus on core specialist engineering activities in target markets.
● First delivery by Chesterfield Special Cylinders of customer orders for innovative projects in the emerging hydrogen energy sector.
● Growth continues in Integrity Management services, especially in-situ deployments, and the outlook for this high-margin area remains strong
● Restructuring and new leadership of the Precision Machined Components division will underpin the strategy for organic growth and drive operational efficiencies, cost savings and improved margins.
● Strategy review undertaken in March, confirming strategic focus areas and objectives that will deliver phased growth and create value over the next five years.
● Investment in new equipment of £0.6 million across the two divisions, with a further £2.7 million planned for this calendar year.
Chris Walters, Chief Executive of Pressure Technologies commented: "I am pleased with the progress we have made over the past six months in what has proved a very busy period, one that signals a return to profitability for the Group.
The sale of our Alternative Energy division, which completed in June 2019, was a key milestone. We now have a clear strategic focus and are making good progress with the management, operational and cultural changes that will help accelerate organic growth and performance improvements in target markets.
Our results for the first half of the year reflect the delivery of major defence contracts and improving conditions in the oil and gas sector. We are pleased with the growth in our order book and the increasing diversity of our customers and products.
I have confidence in the outlook for the Group as we approach the next phase of our strategy."