Pressure Technologies on track to beat market expectations

Pressure Technologies expects its adjusted earnings for the full year to be ahead of market views despite difficult conditions in its main oil and gas market, following strong performances across some of its divisions.

In a trading update for the year ended 3 October, the high pressure engineering group said its Precision Machined Components unit performed better than forecast, producing the highest return on sales and cash conversion in the company.

The Cylinders business is expected to be slightly ahead of forecast as a strong performance in the second half was boosted by efficiencies implemented in the first half of the year.

The performance of Engineered Products, however, was disappointing. As a result of reduced order intake, pricing pressures, and the deferral of an order due for delivery in full year 2015 to 2016, the division did not meet earlier expectations.

“Along with many others in the sector, we do not foresee any signs of pick-up in our main oil and gas market during 2016, however we do not currently anticipate market conditions deteriorating further.”

At 1435 GMT, Pressure shares were up 25% at 183.01p.