Pressure Technologies' loss widens as alternative energy revenue stumbles

Pressure Technologies reported on Tuesday that its full-year loss widened due to the impact of a weak performance in its Renewable Energy division.

For the year ended 29 September, the industrial valve manufacturing company’s loss before tax widened to £3.1m from the £1.4m reported for the year before, as revenue dropped by 7% to £32.2m.

The decrease was driven by a fall in the Alternative Energy division's sales to £11.1m from the £15.9m reported the year before, hurt by delays in clients getting funding

On Monday, the AIM traded company confirmed the post year-end conditional sale of the division for £11.1m to a Canadian TSX Venture Exchange listed company.

Meanwhile, revenue in the oil & gas segment increased 18% to £12.5m, driven by increased order volumes, by 16% to £2m in the industrial gas segment and crept up from £6.4m to £6.6m in the defence segment.

Chris Walters, chief executive of Pressure Technologies, said: "The group is well placed to take advantage of improving market conditions and realise the benefits of investment in people, new equipment and supporting processes. Beyond the organic growth seen in our rising order book, increasing our capability, scale and reach through acquisitions remains a strategic focus."

At 29 September, the company's cash and cash equivalents stood at £6.1m, down from £4.8m at 30 September last year.

Pressure Technology’s shares were down 2.75% at 94.82p at 1156 GMT.