Pressure Technologies confident despite profits slump

The Sheffield company said pre-tax profit for the six months to April 3 fell to 1.5m, compared to 2.4m in the same period last year.

Revenue fell to 9.7m from 12.7m during a "demanding" period.

The firm, which is the holding company for Chesterfield Special Cylinders, said however, it was on target to meet expectations for the full year and said it had a strong balance sheet with 5.2m in net cash after the acquisition of niche manufacturer Al-Met, which took place earlier this year.

Its diversification strategy was also boosted by Chesterfield BioGas' success in winning a 600,000 order from British Gas-owner Centrica.

Richard Shacklady, chairman of Pressure Technologies, said: "This has been a very demanding six months for management and employees.

"Whilst we are pleased to have made progress in our diversification strategy, the long order book visibility which the group has enjoyed in recent years has reduced significantly with the downturn in oil and gas activity.

"Customers in this sector are now placing orders much nearer the required delivery dates. This presents new challenges for the group.

"However, independent sector forecasts, as well as our own research, indicate that that the future prospects for the sector and, therefore, the group remain strong.

"Our balance sheet is robust; the group is well positioned to manage the cycle and to gear-up rapidly when the upturn comes."