Engineering group Pressure Technologies Plc (LON:PRES) has won orders from BAE Systems (LON:BA.) for the supply of high pressure air cylinders for the fifth Astute Class submarine currently being built at Barrow-in-Furness and the two new aircraft carriers, Queen Elizabeth and Prince Charles, the first of which is now being built at Rosyth on the river Forth. The contract awards follow confirmation of continued funding from the government for UK Naval projects. The contracts, which are worth over £2m in total, are for the supply of forged steel high pressure cylinders and will be used for the storage of ballast air, breathing systems and emergency back up systems in the submarine and bulk storage of breathing air on the aircraft carriers. The cylinders will be supplied during 2011.
The contracts were awarded to Pressure Technologies’ main operating company, Chesterfield Special Cylinders (CSC). The company, which is based in Sheffield, has a 90 year history of supplying the Royal Navy with its marine air storage requirements and has, more recently, also won major contracts for the French and Spanish navies.
John Hayward, the chief executive of Pressure Technologies, said: “Winning these orders confirms Chesterfield Special Cylinders' position as the market leader in terms of cylinder innovation, design and manufacture for the European naval market and, importantly, provides a firm platform from which to gain more business globally.”
Shares in Pressure Technologies rose by 3.6% to 142.5p early on but have seen a steady decline in value from 227.5p in May. That re-rating followed a disappointing set of figures for the half year to April 3, reported in mid-June, in which the company revealed a 24% fall in revenues to £9.7m and a 38% decline in pre-tax profits to £1.5m. At the time it blamed the performance on a downturn in the market for oil and gas activity but said it was enjoying some success in diversifying its market focus.
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