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 were significantly delayed due to a change in the accounting treatment under IFRS15 of certain long term contracts at CSC that had the effect of increasing prior year losses (including a £1.2m net adverse impact in FY22) and moving operating profits of £2.3m forwards into FY23- FY25. Overall contract profitability and cash flows have nevertheless remained unchanged. There is now good visibility into FY24, including for PMC which has its highest ever order book of £7.6m at end April 2023 (April 2022: £2.2m). We see our forecasts as well underpinned ahead of interims that are now expected later in June. We remain at Buy with an increased TP of 60p (from 50p).
