AGM Statement

About this update from Chesterfield Special Cylinders Holdings Plc

[{"type":"text","content":"\n \nRNS Number : 2636P Pressure Technologies PLC 17 February 2016  \n\n \n17 February 2016\n \nPressure Technologies plc\n(\"Pressure Technologies\" or the \"Group\")\n \nAGM STATEMENT\n \nThe Board of Pressure Technologies plc (AIM: PRES) issues the following trading update ahead of the Group's Annual General Meeting, which is being held at 11.00 hours today at Chesterfield Special Cylinders, Meadowhall Road, Sheffield.\nThe Group businesses dependent on the oil and gas industry are showing resilience in what are extremely difficult markets and we will continue to take whatever measures are needed to maintain that. Our view, along with others in the sector, is that there will be no significant pick up in the oil and gas market during 2016. Whilst we are monitoring our cost base closely and taking action where necessary to ensure the resilience of our businesses, we continue to invest in the future of the Group and implement the strategic objectives to broaden our customer, technology and industrial base.\n \nAlternative Energy, which is tracking as planned, brings balance and diversification to the Group. Our manufacturing businesses, Precision Machined Components, Engineered Products and Cylinders are well run businesses, which have withstood many oil and gas market cycles. In the short-term the Group is dependent on the timing of receipt of large orders in Cylinders and Alternative Energy to meet market expectations and the third quarter of the financial year will be critical to this, with profits heavily skewed to the second-half. Cash requirements for the Group remain well-controlled and we have comfortably complied with banking covenants.\n \nThe Board remains confident in the medium to long-term prospects for the Group despite the difficult market conditions created by the low oil price.\n \nDivisional Review\n \nPrecision Machined Components\n \nThe division, which is almost 100% focused on the oil and gas market continues to trade in line with expectations. Management believes that market share is being maintained in a very tight market through a combination of cost down initiatives and ability to offer high quality product on short delivery lead-times. Sales of wear parts and consumable tooling remain resilient due to continuing high volumes of oil production. Sales in...

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