Pressure Technologies PLC on Monday said its wholly-owned subsidiary AI-Met Ltd has won a record £3 million order, but also noted that its financial 2022 results will be delayed.
Pressure Technologies is a Sheffield, England-based group of specialist precision engineering businesses. The stock was up 5.1% to 44.16 pence each in London on Monday morning.
Al-Met is part of the company’s Precision Machined Components division.
Pressure Technologies said the order has been won from an ‘established international [original equipment manufacturer] customer’ for the supply of flow control components and sub-assemblies used in high-pressure extreme service oil and gas applications. An OEM makes products from components bought from third-parties.
Pressure Technologies added that the ‘unprecedented order’ for Al-Met underpins the full-year financial 2023 outlook for the PMC division and also provides substantial order book coverage and visibility for the first half of financial 2024.
PMC total order intake for March 2023 is now expected to exceed £4 million, the company explained. This is the division’s highest ever monthly intake.
Chief Executive Officer Chris Walters said: ‘We are delighted to announce this unprecedented order that demonstrates Al-Met’s strong and growing position with its major international OEM customers, resulting from improved operational performance and competitiveness in meeting increasingly stringent metrics for quality and on-time delivery.
‘The scale of this award and the strengthening order intake across the PMC division demonstrate the increasing pace of recovery in oil and gas markets, underpinning our expectations for the full year, including a return to profitability at the end of this quarter.’
In a separate announcement, Pressure Technologies confirmed that it will not meet the March 31 deadline for the publication of its financial year 2022 annual results, and according its shares will suspended from trading on AIM on Monday next week.
Suspension from trading will be lifted with the publication of the financial 2022 Annual Report, which the company expected to be no later than the end of April.
On Tuesday last week, the company said that the results posted for its financial years 2019, 2020, 2021 and 2022 will be adjusted, following advice from its auditor Grant Thornton UK LLP.
It explained that an accounting treatment it has applied since financial year 2019 for long-term defence contracts within its Chesterfield Special Cylinders unit is not in compliance with IFRS15, ‘which requires that all costs incurred in the period relating to the contract should be immediately expensed’.
The company said that due to the lack of compliance of its reporting practice since financial 2019, the results of financial 2019 to and including 2022 will be adjusted. This means a £1.2 million increase to its financial 2022 operating loss, which it has yet to report. In financial 2021, it posted an operating loss of £745,000.
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