- Sector: Manufacturing & Engineering
- Region: Yorkshire and the Humber
- Revenue: £50m to £75m
- Website: www.pressuretechnologies.co.uk
All systems go
Pressure Technologies is an AIM quoted designer and manufacturer of high-pressure systems serving the global energy, defence and industrial gases markets. As it has expanded, it has developed specialist engineering businesses and a global presence in the alternative energy sector. It makes high-pressure systems for the containment and control of liquids and gases.
John Hayward, CEO, says the opportunity to enter the alternative energy market back in 2008 proved a turning point.
“The prolonged downturn in oil and gas has been challenging, but our business has been protected by the acquisitions we have made over the past five years”
John Hayward, CEO, Pressure Technologies
“We entered an agreement with the world leading biogas upgrading company, Greenlane Biogas, which was significant because it gave us a foothold in a potentially very exciting market, albeit we were limited to the UK,” he says.
“This position gave us the opportunity to acquire Greenlane in 2014, making us a world leader in the field. Alternative energy is expected to account for 25% of our 2015 revenues.”
However, the energy and commodities industries are highly sensitive to economic cycles, so the company has had to contend with some shaky financial conditions.
“Our business operates in a highly cyclical market, and we originally brought the company to AIM in 2007 to provide access to funds, to help diversify earnings and help smooth out some of the profit bumps associated with the cyclical oil and gas market,” says John.
“Although the recent prolonged downturn in our main oil and gas market has been challenging, our business has been protected by the acquisitions we have made over the past five years.”
25% – The proportion of Pressure Technologies’ revenues accounted for by alternative energy
As for the next five years, John has plans to diversify the group further to safeguard its earnings.
“We expect this diversification to come through organic development of new products and services, in addition to some acquisitions,” he says. “The biggest challenge, and therefore opportunity, will be to provide a product with a low cost of ownership, as customers increasingly look for the best value and not the lowest price.”