Slow start to the year for Pressure Technologies

The Sheffield-based firm, which is holding its annual general meeting today, said trading was in line with the board’s expectations following an anticipated slow start to the year but added that it expects a stronger performance in the second half to offset this.

Since the start of the year, the company said activity in the deep water oil rig market has begun to return. Its largest subsidiary, Chesterfield Special Cylinder, has secured orders on three oil rig projects for delivery in the current financial year and there are signs of this market accelerating into 2012. The pipeline of enquiries, across all sectors of the cylinder business, is strong, it added.

In a trading update this morning, it said: “Our engineered products division is performing as expected with strong demand in the energy sector. Hydratron, which was acquired in October 2010, has been relocated to new premises and is starting to enjoy the benefits of consolidation onto a single site.

“Chesterfield BioGas has won orders for two compressed natural gas filling stations for vehicle refuelling and is in discussions with a number of large utility companies for “biogas to grid” upgrade projects. The rapid growth in the BtG market hinges on the Department of Energy and Climate Change’s confirmation of the level of the Renewable Heat Incentive.

“This is due to be announced by the end of March 2011. We anticipate that this will catalyse the conversion of potential projects into firm orders. Lead times on BtG projects, however, are considerable, so this announcement will have little impact on the Group’s performance in the current financial year.”

It added: “The board remains confident of a return to organic growth in the medium term and aims to strengthen the group further with niche acquisitions as opportunities arise.”