Pressure Technologies plc
(“Pressure Technologies” or the “Group”)
2020 Interim Results
Pressure Technologies (AIM: PRES), the specialist engineering group, announces its interim results for the 26 weeks to 28 March 2020.
Financial Highlights*
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Group revenue of £13.9 million (2019: £14.5 million) |
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Gross profit of £4.0 million (2019: £5.0 million) |
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Adjusted operating loss of £(0.1) million (2019: profit £1.3 million) |
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Reported loss before tax of £(1.5) million (2019: profit £0.1 million) |
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Reported basic loss per share of (5.9)p (2019: earnings per share 1.6p) |
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Adjusted operating cash inflow** of £1.4 million (2019: outflow £1.6 million) |
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Bank facility drawn at £9.3 million (2019: £10.8 million) |
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Bank facility covenants relaxed to give flexibility during period of Covid-19 uncertainty |
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Post period end £0.6 million cash proceeds from the sale of 2.5 million shares in Greenlane Renewables Inc. |
* All results presented for continuing operations only
** Continuing operations only excluding cash outflow for exceptional costs
Operational Highlights
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Overall Group revenue was significantly lower than prior year period due to phasing of large defence contracts and the impact of Covid-19 restrictions in March 2020 |
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Strong order intake in PMC underpinned a 12% increase in external revenue, while operational delivery issues and increased indirect costs adversely impacted margin performance |
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Significant improvement of on-time delivery performance in PMC, with lower levels of overdue orders, shorter lead times and higher customer satisfaction levels |
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PMC order book in excess of £5.0 million at the half-year end, but recent intake levels lower than run rate, with uncertainty in oil and gas markets expected to continue through the second half |
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Loss-making Quadscot site closed in June 2020, with orderbook and customers transferred and consolidated into other PMC sites |
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Growing diversification and sustainability in both divisions, with further progress made in new customer acquisitions, long-term supplier agreements and new market development |
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Five-year framework agreement secured by CSC with Shell to become their approved supplier of ultra-large cylinders for hydrogen refuelling stations across Europe |
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Continued investment in people and HR practices, helping to drive cultural change that is delivering stronger colleague engagement and improvements to customer service |
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Current capital investment programme completed, with £1.2 million spent across both divisions on new machining centres and IT infrastructure
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Chris Walters, Chief Executive of Pressure Technologies commented:
“The operational changes and strategic progress made over the past year have put the Group in a stronger position to face the challenges and uncertainty in the current trading environment.
The impact of Covid-19 continues to be felt to varying degrees across our markets. Strong order books in both divisions at the half year are encouraging, but it remains difficult to foresee how the pandemic and an uncertain oil and gas market will impact performance throughout the remainder of the year, particularly in the PMC division.
Management actions will seek to preserve cash and core capability in the business, without undermining the strategic and operational progress already made in both divisions to establish resilience and a foundation for future growth. New long-term strategic supply agreements with key customers demonstrate the progress being made and we remain focussed on advancing further with the Group's strategic plans .
I am proud to see the tremendous commitment and hard work of our teams across the Group as we continue to support business continuity for our customers during this period.”