TIDMPRES

RNS Number : 6835Q

Pressure Technologies PLC

07 June 2018

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

7 June 2018

Pressure Technologies plc

("Pressure Technologies" or the "Group")

Sale of Hydratron Limited

Pressure Technologies plc (AIM: PRES), the specialist engineering group is pleased to announce that it has today agreed the sale of Hydratron Limited ("Hydratron") (the "Disposal"), which comprises the Group's Engineered Products Division, to Pryme Group Limited for an initial cash consideration of GBP1.1 million (less costs and retentions). Additional consideration of up to GBP2.25 million may become payable in cash contingent on Hydratron's trading performance for the twelve month period to 31 May 2019.

The prolonged downturn in the oil and gas market impacted Hydratron more so than the Group's Precision Machined Components Division. Whilst successful steps have been taken to re-align the business with its core markets and establish the foundations for future growth as the oil market improves, the Board has nevertheless concluded that Hydratron will be better served as part of a group that can immediately enhance its critical mass and market position. For the financial year ended 30 September 2017, Hydratron reported a loss before tax of GBP0.47 million on revenues of GBP3.85 million and had net assets of GBP2.53 million.

The proceeds of the Disposal will be used to reduce the Group's debt.

For further information, please contact:

 
  Pressure Technologies plc              Tel: 0114 257 3622 
   John Hayward, Chief Executive          www.pressuretechnologies.com 
   Officer 
   Joanna Allen, Chief Financial 
   Officer 
   Keeley Clarke, Investor Relations 
  Cantor Fitzgerald Europe (Nominated    Tel: 020 7894 8337 
   Adviser and Broker) 
   Philip Davies / Will Goode 
 
 Tavistock 
 Simon Hudson                           Tel: 020 7920 3150

COMPANY DESCRIPTION

Company description - www.pressuretechnologies.com

With its head office in Sheffield, Pressure Technologies was founded on its leading market position as a designer and manufacturer of high-pressure components and systems serving the global energy, defence and industrial gases markets. Today it continues to serve those markets from a broader engineering base with specialist precision engineering businesses and has a worldwide presence in Alternative Energy as a global leader in biogas upgrading.

Pressure Technologies has three divisions, Precision Machined Components, Cylinders and Alternative Energy, serving four main markets: oil and gas, defence, industrial gases and alternative energy.

Precision Machined Components - www.pt-pmc.com

   --     Al-Met, Mid Glamorgan, acquired in 2010 www.almet.co.uk 
   --     Roota Engineering, Rotherham, acquired in March 2014 www.roota.co.uk 
   --     Quadscot, Glasgow, acquired in October 2014 www.quadscot.co.uk 
   --     Martract Limited, Barton-on-Humber, acquired in December 2016 www.martract.co.uk

Cylinders

-- Chesterfield Special Cylinders, Sheffield, IPO cornerstone in 2007 and includes, CSC Deutschland Gmbh, which is based in Dorsten, Germany and Chesterfield Special Cylinders Inc. which is based in Houston, USA www.chesterfieldcylinders.com

Alternative Energy

-- Greenlane Biogas, Vancouver, Canada and Sheffield, UK; acquired in October 2014 www.greenlanebiogas.com

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END

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June 07, 2018 11:45 ET (15:45 GMT)

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