Pressure Technologies seeks acquisitions

SPECIALIST engineer Pressure Technologies said its order books were recovering, after it suffered a half year pre-tax loss.

The Sheffield-based company said it was positioned to enjoy a better trading performance in the second half of the year, with activity in the offshore oil and gas sector improving. It is also seeking acquisitions.

In the 26 weeks to April 2 2011, the company posted a pre-tax loss of £300,000, compared with a pre-tax profit of £1.5m in the same period last year.

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Revenue was £10.3m compared with £9.7m recorded in the corresponding period the year before.

The company said its diversification strategy had progressed with the acquisition of Hydratron for £3.3m of which £800,000 is deferred.

A continued upturn in the deepwater oil and gas market is forecast through 2012 but lower sales are expected in defence markets.

Richard Shacklady, the chairman of Pressure Technologies, said: “The group’s order books are recovering and we enter the second half in better shape than six months ago. Our cylinder business is likely to have a more gradual recovery than the sharp rebound experienced in the engineered products businesses.

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“The board will continue to pursue further acquisitions that fit our strategy and enhance the overall business. Our balance sheet remains robust with significant cash balances remaining after the costs of acquisitions and R&D (research and development) and an unused working capital facility. The financial strength and prospects facilitates supporting the dividend to shareholders.

“Pressure Technologies is proving resilient in managing its way through a protracted downturn in its key markets and with sound financial management transforming itself into a stronger and better balanced business.”