Pressure expects strong growth as order book jumps 59 per cent

The Sheffield-based group reported order book growth of 59 per cent and said the prospects of further growth are “very encouraging and tangible”.

Pressure Tech, which counts the Royal Navy and the US Air Force among its customers, reported a 21 per cent increase in revenue to £19.9m in the six months to March 29.

The group’s chief executive John Hayward said: “There is a lot of confidence in oil and gas. On the defence side there is a large submarine programme going on in Europe.

“The general market dynamics look good and the majority of customers say it is set to carry on.”

He added that the £13.5m acquisition of Roota Engineering in March has gone well and business is bedding down. “We’re buying them some new equipment to expand their capacity,” he said.

Pressure Tech is keen to expand Rotherham-based Roota, which it sees as an excellent fit with its Al-Met business, which also supplies the oil and gas market.

The plan is to double the size of the business in the next five years and take on more people.

Analyst Richard Hickinbotham, at Charles Stanley, said: “The group has delivered a strong first half performance.

“The order book has grown 59 per cent since the year end, with increases in all divisions.

“Roota Engineering, which was acquired in March, is performing well and will provide significant earnings enhancement through the second half.”

Pressure Tech said that overall market conditions for its three divisions, particularly in the oil and gas market, are expected to remain positive for the foreseeable future.

The price of Brent crude oil has been relatively stable during the period and the IMF predicts that the world economy will grow by 3.7 per cent during 2014.

The company said that both these factors will encourage investment.