Sheffield engineering firm in ‘strong revenue growth’

editorial image

Sheffield-based Engineer​ Pressure Technologies reported strong revenue growth thanks to acquisitions.

The firm also said it is in better shape to cope with the downturn in the oil and gas market now it has diversified into new areas.

Shares in the group closed up six per cent to 218p on the news that revenue jumped 62 per cent to £32.1m in the six months to March 28.

The group’s chief executive John Hayward said around £10m of the £32.1m turnover stemmed from recent acquisitions, which included the purchase of part of the Greenlane group for up to £12m and the acquisition of Quadscot Precision Engineers for up to £10m, both of which took place last October.

Pressure Tech said the integration of Greenlane Biogas has extended the group’s reach into biogas technology and access to global markets while Quadscot has started to provide in-house precision machining to other parts of the group, thereby reducing external spending.

Mr Hayward said: “We are 70 per cent oil and gas and I’d like to reduce that. I can’t say a figure where we’d like it to be. When oil and gas is doing well, it’s the right place to be – it’s a market we need to be in. Over the cycle it’s very profitable.”

The group has seen a fall in sales in its deep-water oil and gas operations after the price of Brent Crude oil fell below $50 a barrel in early January.

The company said underlying operating profits rose 20 per cent to £2.6m. The group made a pre-tax loss of £500, 000 following acquisition and exceptional costs.