Pressure Technologies slumps after warning on results for both current and next year

Pressure Technologies suffered a sharp decline after the group said its results for both the current and next financial year would be "materially lower" than market forecasts.

The engineering solutions provider admitted it has experienced a further slowdown over the past few weeks in the release of capital projects in the oil and gas market.

It explained that this has resulted in a material deterioration in the immediate prospects for its precision machined components and engineered products divisions.

"These weak market conditions are now expected to continue into the next financial year when they will also impact the results of the cylinder division," it warned.

"Alternative Energy Division has now been completed, but the division has experienced delays in securing new orders which will impact its performance in the current year."

It added that it remains confident in its medium-term prospects as the well-documented issues in the oil and gas market have been confined to a general delay in capital spend rather than loss of market share.

"Prospects for the alternative energy division remain exciting, albeit subject to timing issues beyond its control," it continued.

"The group and all of the divisions are well positioned to capitalise quickly on any improvement in market conditions."