Specialist engineering group Pressure Technologies secures 'strong order intake' over last year

The group is expected to report full year revenue of approximately £32m, representing like-for-like growth of 28 per cent with an expected adjusted EBITDA (earnings before interest, taxation depreciation and amortisation) of around £2m.

In a statement, the company said: “This performance was driven by group order intake of approximately £43m in the year, a 72 per cent increase on prior year, supporting an order book of approximately £21m at year-end, providing much improved visibility of forward revenue. The expected adjusted EBITDA is slightly below the guidance issued in June 2023 due to the slippage of revenue from a small number of projects into the first quarter of FY24.”

"Chesterfield Special Cylinders (CSC) is expected to report revenue of approximately £21m with a strong performance in the second half of the year driven by activity on a major UK defence contract secured in February 2023, underpinned by recent operational improvements.”

Precision Machined Components (PMC) is expected to report revenue of approximately £11m, which is an increase of 57 per cent on the previous year.

Chris Walters, Chief Executive of Pressure Technologies plc, commented: "Strong order intake in both divisions and recent operational improvements have driven a more consistent performance in the second half of FY23 (full year 2023) which has enabled a return to much improved levels of profitability. We continue to see opportunities for further margin improvement in both divisions.

“Global defence programmes present strong opportunities for Chesterfield Special Cylinders and we remain well positioned to transition into the developing hydrogen energy market to supply static and mobile storage solutions, and to provide the through-life inspection, testing and recertification services for these safety-critical systems over the longer term."

In the statement, Pressure Technologies said that the financial year ending September 30 2024 is expected to be a year of transition for CSC.

The statement added: “ During the first half of FY24, CSC will continue to focus on delivering consistent operational performance and expects to pass the peak of activity on high-value UK defence contract milestones in the second quarter.

"The division then expects to re-balance its revenue profile across UK defence programmes, global defence programmes and the hydrogen energy market in the second half of the year, with each of these markets presenting significant opportunities over the medium-term. During this transitional period, CSC revenue is expected to decline marginally on FY23 levels with a consequent reduction in divisional profitability in FY24.”