Sheffield-based Pressure Technologies faced challenging economic climate during 2022
Pressure Technologies, which has announced its preliminary results, said it had secured a robust order book and a strengthened executive team which underpinned the board’s confidence in meeting market expectations for this financial year. Overall group revenue for the year to October 1 2022 was £24.9m, compared with £25.3m the previous year, and the adjusted operating loss for the year was £2.6m. Pressure Technologies, which is headquartered in Sheffield, has two divisions, Chesterfield Special Cylinders and Precision Machined Components.
Nick Salmon, the group's chairman, said: “ FY22 (full year 2022) was a challenging period for the group, as results were impacted by a combination of defence contract delays, operational and supply chain disruption and slower than expected recovery in the oil and gas market. The group incurred increased operating losses for the full year, as performance in the second half fell significantly below the level anticipated. I am pleased to say that market conditions have improved considerably in FY23, and we have made significant operational improvements to ensure that the group benefits from strong orderbooks in both divisions.
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Hide AdHe added: “I apologise for the delay in issuing these FY22 results. Late in the auditor's review of the financial statements, it was determined that the accounting methodology adopted in Chesterfield Special Cylinders since FY19 for large, multi-year naval contracts with a specific customer was incorrect in respect of the timing of cost and profit recognition.
He added: “The correction of this error impacted the previously reported results for FY21, which have been restated, and also reduced operating profit for FY22 below our previous expectations, albeit with a corresponding increase in the expected profit contributions from these contracts in FY23 and FY24. These corrections and restatements impact the timing of profit recognition over the life of the contract, but do not change overall contract profitability, nor do they affect the value or timing of future cash flows.”