VSA Daily Technology Comment (Pressure Technologies) 14/03/24

Pressure Technologies (PRES LN) has today announced two new contracts, one in defence and the other in green energy.

Contract wins support FY24 outlook

Pressure Tech has announced two new contract wins, including a major contract with BAE Systems to supply the Royal Australian Navy’s Hunter class frigate program and a significant contract to supply cylinders to store surplus energy generated by renewables. We make no changes to our forecasts but see today’s contract news as de-risking our FY24 numbers. There is also an update on the sale of PMC with a number of non-binding indicative offers said to have been received. Completion of the disposal

Pressure Technologies: Full Year Sees Strong Move into Profit

Pressure Technologies (PRES LN) this week announced results for the year ending September 30th 2023 (FY 2023). Revenue grew by 29% to £32.0m, and as anticipated, the Group moved strongly into profit producing an adjusted EBITDA of £2.1m (£0.9m loss FY 2022). UK-based PRES produces high pressure steel cylinders through its Chesterfield Special Cylinders (CSC) division, and its Precision Machined Components (PMC) division provides specialised machining services. FY 2023 revenue was supported by £

Strong turnaround in financial performance

FY23 results show sales of £32m, +29% YoY and a return to profitability with EBITDA of £2.1m vs a £0.9m loss in the prior year. As expected, FY24 will be a year of transition in the core CSC division as revenues are rebalanced from high value UK defence contracts towards global defence work programme, hydrogen and integrity management opportunities. The strong recovery in PMC provides an ideal backdrop for progressing the divestment of this non-core asset and create shareholder value by reinvest

Pressure Technologies; New Debt Facilities Agreed in Principle

Pressure Technologies (PRES LN) a UK-based precision engineering company, produces high pressure steel cylinders through its Chesterfield Special Cylinders (CSC) division, and its Precision Machined Components (PMC) division provides specialised machining services. PRES announced today that it has reached agreement in principle with Harwood Capital LLP, as Investment Adviser to Rockwood Strategic plc (who hold a 20.0% shareholding in the Company) and Peter Gyllenhammar AB (a 16.8% shareholder) f

Pressure Technologies: Interims, Order Books Rise Strongly

Pressure Technologies (PRES LN) this week published a trading update for the 12 months ending September 30th 2023 (FY 2023). PRES, a UK-based precision engineering company, produces high pressure steel cylinders through its Chesterfield Special Cylinders (CSC) division, and its Precision Machined Components (PMC) division provides specialised machining services. FY 2023 revenue increased by 28% to £13.8m supported by CSC defence contracts for submarines, and PMC increased sales of machined parts

FY23 trading update, FY24 estimates reduced

The Group has issued a post-close trading update that highlights an expected EBITDA outturn for FY23 of approximately £2m, a substantial improvement on FY22’s EBITDA loss of £0.9m. This EBITDA outturn, benefiting from a 72% increase in order intake, compares to guidance of £2.2m to £2.5m issued with the interim results in June 2023. The shortfall is the result of revenue on a small number of projects slipping into the first quarter of FY24. In terms of the outlook, management now expect revenue

Pressure Technologies: Interims - Order Books Rise Strongly

Pressure Technologies (PRES LN) this week published Interim results for the 6 months ending April 1st 2023 (1H 2023). PRES, a UK-based precision engineering company, produces high pressure steel cylinders through its Chesterfield Special Cylinders (CSC) division, and its Precision Machined Components (PMC) division provides specialised machining services. 1H 2023 revenue increased by 45% to £13.8m on CSC defence work for submarines, and PMC increased sales of machined parts into the oil and gas

Good interim progress but more cautious on outlook

As expected the first half of FY23 has seen a significantly improved performance reflecting a strong defence order book at Chesterfield Cylinders (‘CSC’) and continued recovery in oil & gas market trading conditions in Precision Machined Components’ (‘PMC’). Whilst the Group’s order books are robust, given sizeable contract wins this calendar year, management has raised a note of caution over a second half that relies on strong improvements in operational and supply chain performance, and confir

A much improved outlook, TP increased

Pressure Technologies returns from suspension today with the announcement of FY22 results that are in-line with its March trading update. Notably, there is greater confidence expressed in the outlook as market conditions and order intake have continued to improve during this calendar year. In February 2023 Chesterfield Special Cylinders (‘CSC’) won its largest ever £18.2m naval order and in March 2023 Precision Machined Components (‘PMC’) was also awarded a record £3m contract. The FY22 results

Major contract award

The Group has announced that Chesterfield Special Cylinders (‘CSC’) has been awarded an £18.2m contract which we believe to be for the supply of air pressure vessels for the Royal Navy’s third and fourth boats in the Dreadnought-class nuclear submarine programme. Management had expected BAE Systems to place an order for the third boat at the start of this calendar quarter and today’s announcement underpins current market expectations with delivery anticipated over the next 3 years and reinforces

Announces £2.28m fundraise

Pressure Technologies has announced that it has raised £2.28m through a Placing, via an accelerated bookbuild, and a Retail offer via REX at 30p/share, a 6% discount to the closing midmarket price on 14th November 2022. The net proceeds of the fundraise will be used to provide working capital headroom with respect to material purchases/supplier payments, support the transition to profitable/cash generative trading, and to strengthen the balance sheet. As Nomad and Broker to the fundraise, we are

Pressure Technologies: Trading Update

Pressure Technologies (PRES LN) has published a trading update for the period ending October 1st 2022 (FY 2022). PRES, a UK-based precision produces high pressure steel cylinders through its Chesterfield Special Cylinders (CSC) division, and its Precision Machined Components (PMC) division provides specialised machining services. 1H 2022 (reported on June 28th 2022) revenue was £9.5m with an operating loss of £2.1m. According to the latest trading update, the strong turnaround expected at the ti

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