Pressure Technologies, the niche manufacturer of high pressure storage systems and biomethane upgrading plants, announced in a trading update that full year results to September 2011 are anticipated to be below market expectations. The company's broker subsequently reduced its forecast PBT from £2.7 million to £1.8 million and EPS from 17.5p to 13.0p.
The reduction has been caused by the Chesterfield Special Cylinders (CSC) subsidiary, which manufactures and offers services for speciality high pressure, seamless steel gas cylinders, experiencing slower than previously anticipated increase in activity in its principal market, deep water oil rigs and drillships. Growth in 2011/12 will come principally from the Engineered Products Division and Chesterfield BioGas. Growth in CSC is not expected to come through until later in the year when the deep water oil rig market firms up. The delays in these business areas do not affect top line forecasts much (these remain at c. £22 million), but the altered business mix has reduced margins.
Development initiatives at CSC include a) obtaining Civil Aviation Authority approvals to enter the civil aerospace support service market for refurbishment and retesting, and b) being instrumental in the creation of a British Standard for in-situ testing of ultra-large cylinders and currently seeking to extend this into an International Standard.
About the Author
LCF Research
0 comments
