Slide 1: Full Year Results 2020
a Pressure ~ “~™ Technologies Full Year Results 2020 i 4 .
Slide 2: Disclaimer
This presentation has been prepared by Pressure Technologies plc (the “Company“ or “Pressure Technologies”) solely in connection with providing information on the Company and to certain institutional and professional investors in the United Kingdom. This presentation does not constitute or form part
Slide 3: Agenda
■ Group Highlights 4 ■ Group Financial Results 5 ■ Profit & Loss 6 ■ Balance Sheet 7 ■ Cash Flow 8 ■ Post Year End Events 9 ■ Chesterfield Special Cylinders 10 ■ Precision Machined Components 11 ■ Strategic Progress & Priorities 12 ■ Summary & Outlook 19 ■ Background on Hydrogen & Integrity Management
Slide 4: Group Highlights
RESULTS ■ Group revenue reflects challenging trading conditions, Covid-19 disruption and the deferral of a major defence contract from Q4 FY20 into Q1 FY21 ■ Adjusted operating loss driven by lower than expected gross margins, the deferral of major defence contract revenue in Chesterfield Special Cyli
Slide 5: Group Financial Results
Revenue 10% down Adjusted operating loss* Gross profit £25.4m £2.4m £5.3m (2019: £28.3m) (2019: £2.2m adjusted (2019: £9.2m) operating profit) Loss before taxation Return on revenue Operating cash inflow** £20.0m -9.4% £1.7m (2019: £0.5m) (2019: 7.9%) (2019: £0.6m) Closing Total Net Debt*** Right of us
Slide 6: Profit & Loss
2020 2019 Revenue (£m) 25.4 28.3 * Exceptional items of £18.6m below adjusted operating profit relate to: Precision Machined Components Division 14.2 14.4 £13.9m - Impairment of goodwill and Chesterfield Special Cylinders Division 11.2 13.9 intangible assets £2.0m - Amortisation of acquisition Gross p
Slide 7: Balance Sheet
2020 2019 £m £m Goodwill & Intangible assets 0.3 16.1 * Shares in Greenlane Renewables Inc. and Promissory Note received as Tangible Assets 14.9 14.0 part consideration on disposal in 2019 Other Financial Assets* 3.1 7.4 Net Working Capital 2.6 7.2 Inventories 5.4 5.1 Trade & other receivables 7.3 8
Slide 8: Full Year Results to 3 October 2020
Full Year Results to 3 October 2020
Slide 9: Post Year End Events
FUNDRAISING OF £7.5 MILLION BEFORE EXPENSES COMPLETED ON 18 DECEMBER 2020 Net cash inflow in December 2020 Net debt at 3 October 2020 pro-forma £7.0m £0.4m Pro-forma basis, including fundraising proceeds AMENDMENT AND EXTENSION OF RCF TO NOVEMBER 2022 WITH LLOYDS BANK COMPLETED ON 7 JANUARY 2021 Faci
Slide 10: Chesterfield Special Cylinders
Revenue 19% down Gross profit £11.2m £2.9m (2019: £13.9m) (2019: £5.0m) Adjusted operating loss* Gross profit margin £0.1m 26% (2019: £2.1m adjusted (2019: 36%) operating profit) Return on revenue Integrity Management services revenue up 93% -1% £2.3m (2019:15%) (2019: £1.2m) * operating loss excluding
Slide 11: Precision Machined Components
Revenue 2% down Gross profit £14.2m £2.5m (2019: £14.4m) (2019: £4.2m) Adjusted operating loss* Gross profit margin £0.7m 17% (2019: £1.9m adjusted (2019: 29%) operating profit) Return on revenue Annualised cost base reduction in FY21 -5% £2.0m (2019: 13%) Site consolidation, restructuring & cost savin
Slide 12: Strategic Progress & Priorities
Strategic Progress & Priorities Project Peak - November
Slide 13: Strategic Progress 2019/20 and Priorities and Opportunities 2021
STRATEGIC PROGRESS 2019/20 ■ ■ ■ ■ ■ ■ PRIORITIES AND OPPORTUNITIES 2021 ■ ■ ■ Full Year Results to 3 October 2020
Slide 14: New Contract Wins and Growing Opportunities Pipeline
NEW CONTRACT WINS AND A GROWING OPPORTUNITIES PIPELINE FOLLOWING DECEMBER 2020 FUNDRAISING ■ ■ ■ ■ ■ ■ Full Year Results to 3 October 2020
Slide 15: Products and Markets
Products and Markets: Defence Customers: ■ ■ ■ ■ ■ ■ ■ ■ Oil & Gas Customers: ■ Services: ■ ■ ■ Industrial Gases Customers: Hydrogen Energy Customers: Full Year Results to 3 October 2020 15
Slide 16: Strategic Progress 2019/20 and Priorities and Opportunities 2021
STRATEGIC PROGRESS 2019/20 ■ ■ ■ ■ ■ PRIORITIES AND OPPORTUNITIES 2021 ■ ■ ■ ■ Full Year Results to 3 October 2020
Slide 17: Products: Oil & Gas Customers
Products: Oil & Gas Customers: ■ ■ ■ ■ ■ ■ ■ ■ ■ Full Year Results to 3 October 2020 17
Slide 18: Covid-19 Response and Impact
DECISIVE ACTION TAKEN PROMPTLY FROM MARCH 2020 ■ ■ ■ ■ IMPACT ON END MARKETS, OPERATIONS AND OUR PEOPLE AS COVID-19 IMPACT CONTINUES ■ ■ ■ Full Year Results to 3 October 2020 18
Slide 19: Summary & Outlook
Summary & Outlook Project Peak - November
Slide 20: Summary and Outlook
■ Group in stronger position to face ongoing impact of the Covid-19 pandemic and depressed oil and gas market, following operational changes and strategic progress made since 2019 ■ Further year of challenging conditions in oil and gas market anticipated, but measures taken to preserve capability wi
Slide 21: Background on Hydrogen & Integrity Management Investment
Background on Hydrogen & Integrity Management Investment Project Peak - November
Slide 22: Transition to Net Zero Driving Hydrogen Use
TRANSITION TO LOW AND NET ZERO CARBON DRIVING HYDROGEN USE ■ ■ ■ TRANSPORT FOCUS WHERE BATTERIES ARE LESS ATTRACTIVE ■ ■ ■ ■ Full Year Results to 3 October 2020
Slide 23: Respected Knowledge and Unique One-Stop Shop for Hydrogen Storage
RESPECTED KNOWLEDGE IN DEFENCE, NUCLEAR AND OIL & GAS SECTORS MAJOR PLAYERS IN EUROPEAN HYDROGEN MARKET ■ ■ VALUED PRODUCTS AND THROUGH-LIFE SERVICES ■ ■ UNIQUE ONE-STOP SHOP FOR HIGH-PRESSURE HYDROGEN STORAGE ■ ■ ■ ■ Full Year Results to 3 October 2020
Slide 24: Chesterfield Special Cylinders: Growth Potential
CHESTERFIELD SPECIAL CYLINDERS SUCCESSFUL PROJECTS AND STRONG PIPELINE UNDERPIN GROWTH POTENTIAL* INCREASE PRODUCTION CAPACITY AND EFFICIENCY TO MEET HYDROGEN NEEDS ■ ■ INCREASE CAPABILITY, DEVELOP PARTNERSHIPS AND MARKET-LEADING PRODUCTS ■ ■ ■ Full Year Results to 3 October 2020
Slide 25: Chesterfield Special Cylinders: Integrity Management Growth
CHESTERFIELD SPECIAL CYLINDERS CONTINUING GROWTH OPPORTUNITY FOR INTEGRITY MANAGEMENT (IM) ■ ■ ■ ■ ■ INVEST IN RESOURCES AND TECHNOLOGIES TO SUPPORT FURTHER GROWTH ■ ■ ■ Full Year Results to 3 October 2020
Slide 26: Supplementary Information
Supplementary Information Project Peak - November
Slide 27: Chris Walters and James Locking
Chris Walters James Locking Appointed - September 2018 Appointed - October 2020 Relevant strengths Relevant strengths ● Business regeneration and growth ● Management information and data analytics ● Engineering expertise and credentials ● M&A and financial due diligence ● Energy and marine sector kno
Slide 28: Sir Roy Gardner and Brian Newman
Sir Roy Gardner Brian Newman Appointed - January 2020 Appointed - September 2015 Relevant strengths Relevant strengths ● 40 years’ experience in leading FTSE 250 companies ● Recognised by Harvard as one of the world’s leading wealth creators ● Engineering expertise ● Multi-industry expertise ● Knowl
Slide 29: Tim Cooper and Mike Butterworth
Tim Cooper Mike Butterworth Appointed - January 2020 Appointed - June 2020 Relevant strengths Relevant strengths ● Strong commercial expertise in industrial markets ● 18 years’ experience in Chair of Audit Committee and Non-Executive ● Operational management in manufacturing organisations Director r
Slide 30: Name of Shareholder
Name of Shareholder No. of Shares Holding Full Year Results to 3 October 2020
Slide 31: Contact us
Please join us on LinkedIn And keep up to date with news from around the Group Contact us Full Year Results to 3 October 2020