Pressure Technologies, the niche designer and manufacturer of high pressure storage systems and biomethane upgrading plants, announced its preliminary results to October 2nd 2010. Revenue and basic EPS declined to £21.7 million (2009: £26.2 million) and 22.3p (2009: 32.1p) respectively. Operating profit fell to £3.5 million (2009: £5.0 million) and pre-tax profit fell to £3.5 million (2009: £5.1 million). The company, however, did increase the total dividend to 7.2p (2009: 6.6p) on the back of operating cash flows and confidence in a medium term recovery.
The global economic downturn began to affect the company’s results in 2009 and the impact was compounded by the BP oil spill which set back off shore oil drilling activities by 12 months. PTexpects the next six months will be the low point in the deep water off shore oil and gas drilling market, with a gradual improvement in forward ordering in H2 FY11.
In response to the deepwater oil market malaise, PT reported that its diversification strategy is going well with the acquisition of Al-Met, a manufacturer of specialised valve wear parts. Following the year end, the company also acquired Hydraton which designs, manufactures and sells a range of air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs. Chesterfield Biogas's first plant at Didcot, Oxfordshire is performing according to expectations and is now injecting methane directly into the national grid.
PT's shares closed 12% down on the day of the results announcement, but have since recovered to 6% down on the pre-announcement price of 207.5 p. The company's Annual General Meeting will be held on Thursday, 10 February 2011 at 10.30 am at the Company's registered office
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