Update on FY22 Audit, AGM & Current Trading

About this update from Chesterfield Special Cylinders Holdings Plc

[{"type":"text","content":"\n \n \n 21 March 2023\n \n \n  \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, (\"MAR\"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain.\n \n \n  \n \n \n Pressure Technologies plc\n \n \n (\"Pressure Technologies\", the \"Group\", or \"the Company\")\n \n \n Update on FY22 Audit, AGM Resolutions and\n Current Trading\n \n \n Pressure Technologies plc (AIM: PRES), the specialist engineering group, provides an update on the audit and\n the publication of its Annual Report & Accounts for the financial year ended 1 October 2022 (\"FY22 Annual Report\"), forthcoming AGM resolutions, and its current trading.\n \n \n Audit Update\n \n \n As part of the ongoing audit process in respect of the financial year ended 1 October 2022, the Board is now reviewing its accounting policy and past accounting treatment in respect of a small number of long-term defence contracts within its Chesterfield Special Cylinders division (\"CSC\").\n \n \n Since FY19, the Group has consistently applied an accounting treatment whereby revenue for these specific defence contracts was recognised using an 'Output' methodology under IFRS 15, 'Revenue from Contracts with Customers' (\"IFRS 15\"), with costs being accrued to achieve a uniform profit margin throughout the multi-year life of the contracts, resulting in cost deferrals at financial period ends. Whilst this cost treatment impacted the timing of profit recognition between financial periods, it had no impact on either the total profitability of the contracts over their entire lives, nor the quantum or timing of cash flows.\n \n \n The Company's auditor, Grant Thornton UK LLP (\"Grant Thornton\"), has advised the Company that this accounting treatment is not in compliance with IFRS 15, which requires that all costs incurred in the period relating to the contract should be immediately expensed. This means that cost deferral to achieve a uniform contract profit margi...

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