REG - PressureTechnologies - Contract Placements and Update on Sale of PMC

Pressure TechnologiesAnnouncement

14/03/2024 07:00

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RNS Number : 7744G  Pressure Technologies PLC  14 March 2024

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14 March 2024

 

Pressure Technologies plc

("Pressure Technologies" or "the Group")

 

Contract Placements and Update on Sale of PMC Division

 

Pressure Technologies plc (AIM: PRES), the specialist engineering group, is
pleased to announce that Chesterfield Special Cylinders ("CSC"), its wholly
owned subsidiary, has been awarded two major contracts, as expected, in the
defence and green energy sectors and maintains its outlook for FY24. The Group
also provides an update on the sale of the Precision Machined Components
("PMC") division.

 

BAE Systems Australia Contract

 

CSC has been awarded a major contract to supply air pressure vessels to the
Royal Australian Navy's Hunter class frigate program.

 

The contract award by BAE Systems Maritime Australia covers the first batch of
three frigates in the program and will underpin the Group's expected global
defence order book development in the second half of FY24. Initial
manufacturing milestones will commence later this year and pressure vessels
are expected to be delivered to the program over the next three years.
Pressure vessels manufactured by CSC will form an integral part of
safety-critical onboard systems.

 

The Hunter class frigate is based on BAE Systems' established Type 26 Global
Combat Ship platform, currently under construction for the UK's Royal
Navy.

 

Cheesecake Energy Contract

 

CSC has also been awarded a major contract to supply high-pressure steel
cylinder packages to Cheesecake Energy Limited ("CEL"), a UK developer of
sustainable thermal and compressed air energy storage systems, for a pilot
project funded by the Department for Energy Security & Net Zero.

 

Utilising cylinder packages supplied by CSC, CEL systems will store surplus
energy generated by a dedicated solar power plant for use in periods of high
energy demand, reducing reliance on fossil fuels and the grid, and lowering
carbon emissions.

 

This significant contract award for CSC is for a total of 48 cylinders with
initial manufacturing milestones commencing later this year.

 

 

 

Update on Sale of PMC

 

As previously announced, the sale process for the PMC division was launched in
December 2023 with the release of information to a range of interested
parties. Following engagement with potential acquirers, the Board has received
a number of non-binding indicative offers for the division.

 

During the next phase of the process, the Board intends to provide selected
potential acquirers with additional access to PMC and will invite final offers
for the division.

 

The Board continues to target completion of the sale process in the third
quarter of FY24 and will provide a further update in due course.

 

Chris Walters, Chief Executive of Pressure Technologies, commented:

 

"I am delighted to confirm the major contract award for Chesterfield Special
Cylinders to deliver pressure vessels for the Royal Australian Navy's Hunter
class frigate program.

 

Underpinning the global defence order book, the contract award demonstrates
the continued close collaboration with BAE Systems globally and recognises the
specialised engineering and manufacturing capabilities of Chesterfield Special
Cylinders.

 

We are also looking forward to collaborating with Cheesecake Energy on their
pilot UK project, contributing our knowledge and experience in the design and
manufacture of safety-critical pressure vessels to the delivery of a scalable,
cost-effective green energy storage solution.

 

Good progress has been made on the sale of PMC.  We have received several
indicative offers for the division and we look forward to progressing our
discussions with potential acquirers over coming weeks."

 

Paul Harris, CEO of Cheesecake Energy, commented:

 

"Energy storage will play a critical role in the energy transition and in
meeting Net Zero targets in the UK and worldwide. We are excited to be working
with Chesterfield Special Cylinders, an established and highly experienced UK
supplier, on this pilot project.  With funding from the UK Government, this
pilot will help CEL to establish a supplier and partner network that will help
accelerate progress towards our vision of becoming the leading global provider
of sustainable energy storage."

 

 

Additional Information

 

The person responsible for arranging release of this announcement on behalf of
the Group is Steve Hammell, Chief Financial Officer.

 

For further information, please contact:

   Pressure Technologies plc                   Tel: 0333 015 0710

   Chris Walters, Chief Executive              company.secretary@pressuretechnologies.co.uk

   Steve Hammell, Chief Financial Officer
   Singer Capital Markets (Nomad and Broker)   Tel: 0207 496 3000

   Rick Thompson / Asha Chotai

COMPANY DESCRIPTION

 

www.pressuretechnologies.com (http://www.pressuretechnologies.com/)

 

With its head office in Sheffield, the Pressure Technologies Group was founded
on its leading market position as a designer and manufacturer of
high-integrity, safety-critical components and systems serving global supply
chains in oil and gas, defence, industrial and hydrogen energy markets.

 

The Group has two divisions:

 

·    Chesterfield Special Cylinders (CSC) - www.chesterfieldcylinders.com
(http://www.chesterfieldcylinders.com/)

·    Precision Machined Components (PMC) - www.pt-pmc.com
(http://www.pt-pmc.com/)

o  Includes the Al-Met, Roota Engineering and Martract sites.

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