Pressure Technologies PLC Major Contracts and Trading Update (5103A)
September 30 2020 - 2:00AM
UK Regulatory
TIDMPRES
RNS Number : 5103A
Pressure Technologies PLC
30 September 2020
30 September 2020
Pressure Technologies plc
("Pressure Technologies" or the "Group")
Major Contracts and Trading Update
Pressure Technologies (AIM: PRES), the specialist engineering
group, today provides the following update regarding a new contract
award and a milestone delay on an existing contract.
The Group is pleased to confirm that its Chesterfield Special
Cylinders division ("CSC") has secured a significant contract, in
excess of GBP3 million, to supply nitrogen storage solutions to EDF
Energy for several UK nuclear power plants.
This second major order with EDF Energy comprises ultra-large
high-pressure cylinders manufactured at CSC's Sheffield facility,
in a series of nitrogen storage packages for delivery through
mid-FY21. The contract builds on a strong and successful
relationship established with EDF Energy following the first
contract, announced in October 2019.
In June 2020, CSC secured an order from long standing customer
BAE Systems for the supply of cylinders to the UK MOD's Dreadnought
class submarine programme, covering the long lead time raw material
milestone for the second boat in the series. Delayed order
placement and a compressed delivery schedule are expected to result
in the late receipt of material and the deferral of revenue and
profit driven by this milestone from the fourth quarter of FY20
into the first quarter of FY21.
These major contracts with EDF Energy and BAE Systems reinforce
the strong outlook for the Group's CSC division and demonstrate
further progress with the Group's strategy to diversify the
business into new markets, reducing a historical dependence on the
oil & gas sector where the challenging trading conditions and
slower than expected turnaround, compounded by the current
pandemic, continue to adversely impact the performance of its
Precision Machined Components division ("PMC").
Despite a series of proactive steps taken in PMC earlier in the
year, including the closure of its loss-making Quadscot operation,
divisional restructuring and cost savings, the Group expects an
operating loss for the division in FY20. When combined with a lower
profit anticipated in CSC, principally reflecting the expected
milestone delay in the BAE Systems contract, a loss-making
performance at Group level is expected for the current financial
year.
A further trading update will be made in the second half of
October, following completion of the current year end on 3 October
2020.
ENDS
For further information, please contact:
Pressure Technologies plc Tel: 0114 257 3616
Chris Walters, Chief Executive PressureTechnologies@houston.co.uk
N+1 Singer (Nomad and Broker) Tel: 0207 496 3000
Mark Taylor / Carlo Spingardi
Houston (Financial PR and Investor Tel: 0203 701 7660
Relations)
Kate Hoare / Anushka Mathew /
Ben Robinson
COMPANY DESCRIPTION
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 gases and hydrogen energy markets.
The Group has two divisions, Chesterfield Special Cylinders and
Precision Machined Components.
Chesterfield Special Cylinders (CSC) - www.chesterfieldcylinders.com
-- Chesterfield Special Cylinders, Sheffield, includes CSC
Deutschland GmbH and Chesterfield Special Cylinders Inc.
Precision Machined Components (PMC) - www.pt-pmc.com
-- Precision Machined Components includes the Al-Met, Roota
Engineering, Quadscot, Precision Engineers and Martract brands.
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END
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