Company Announcements

The information contained within this announcement is deemed by the Group 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 Group'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.

27 June 2023

 Pressure Technologies plc

("Pressure Technologies", the "Company" or the "Group")

2023 Interim Results

Pressure Technologies (AIM: PRES), the specialist engineering group, is pleased to announce its unaudited interim results for the 26 weeks to 1 April 2023.

Financial Highlights

1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and other exceptional costs

2 Adjusted operating loss is operating loss before amortisation and other exceptional costs

3 Adjusted basic loss per share is reported earnings per share before amortisation and other exceptional costs

4 Net debt comprises cash and cash equivalents, bank borrowings, asset finance lease liabilities and right of use asset lease liabilities

Group Highlights

Chesterfield Special Cylinders ("CSC")

Precision Machined Components ("PMC")

Outlook

Chris Walters, Chief Executive of Pressure Technologies plc, commented:

"Significantly improved performance in the first half of FY23 reflects the strong defence order book in Chesterfield Special Cylinders and the continued recovery of oil and gas market trading conditions in Precision Machined Components.

In Chesterfield Special Cylinders, the order book reached the highest level on record following an £18.2 million contract award to supply air pressure vessels for a major UK naval new construction programme.  This order was the largest ever for the division, providing good visibility of high-value work through the remainder of FY23 and into FY24.

Despite delays in the hydrogen energy supply chain over the past year, we remain well positioned in this emerging market to supply static and mobile hydrogen storage solutions, and to provide the through-life inspection, testing and recertification services for these safety-critical systems over the medium and longer term.

In Precision Machined Components, the recovery of order intake levels during the first half of the year is expected to continue throughout the second half, as OEM customers report an increasingly positive oil and gas market outlook. In light of these improving conditions, the Board has decided not to divest PMC at this time and will revisit strategic options for the business later in the year.

Both of our divisions have strong and growing order books, our executive team, including Chief Financial Officer and Chief Operating Officer, is complete and we see the opportunity for revenue growth and margin improvement across the Group."

Additional Information

The person responsible for arranging release of this announcement on behalf of the Company is Steve Hammell, Chief Financial Officer.

For further information, please contact:

COMPANY DESCRIPTION

www.pressuretechnologies.com

With its head office in Sheffield, the Pressure Technologies Group was founded on its leading market position as a designer and manufacturer of high-integrity, safety-critical components and systems serving global supply chains in oil and gas, defence, industrial and hydrogen energy markets.

The Group has two divisions:

·    Chesterfield Special Cylinders (CSC) - www.chesterfieldcylinders.com 

·    Precision Machined Components (PMC) - www.pt-pmc.com

o  Includes the Al-Met, Roota Engineering and Martract sites.

Business Review

Pressure Technologies has made significant progress in the first half of FY23 as reflected in these interim results. Revenue has increased significantly in the period alongside an increase in new orders, driven by a major new UK defence contract and recovery in the oil and gas market.

Chesterfield Special Cylinders

Chesterfield Special Cylinders ("CSC") has built momentum in the period following receipt of its largest ever contract award of £18.2 million to supply safety-critical pressure vessels for a major UK naval new construction programme, with a three-year manufacturing programme to 2025. Operational performance on this contract was strong in the second quarter driving revenue recognition.

CSC remains well positioned in the emerging market for hydrogen storage and transportation. Order placement from established and new customers was slower than expected during the first half of FY23, influenced by constraints and delays in the broader supply chain for components required in the generation and compression of hydrogen for refuelling and decarbonisation projects. Despite these delays, CSC delivered hydrogen revenues of £1.3 million (2022: £0.5 million) from several refuelling station projects and from periodic inspection, testing and recertification services carried out on existing hydrogen storage systems and road trailers.

CSC order intake in the eight months ended May 2023 was £22.3 million (eight months ended May 2022: £12.4 million) supporting a current order book of £19.2 million at the end of May 2023 (May 2022: £14.2 million), the highest order book level seen in the last five years. The order book provides strong revenue cover for the remainder of FY23 and good visibility into FY24.

CSC has made strong progress on its operational excellence improvements in the period. Organisational changes have been made to strengthen the operations team, with new appointments and governance to improve multi-functional working through a focussed project management approach. A continuous improvement roadmap has been developed and deployment is on-track through a dedicated team.

Furthermore, equipment maintenance processes have been strengthened with the appointment of new technicians and the roll-out of software to track equipment reliability and enable the development of focussed improvements. Further system developments are in the implementation stage which will drive productivity and margins. Solid progress has been made in CSC to improve reliability and repeatability to customers, which in-turn delivers improved forecast accuracy so that forward efforts and plans can focus on cost control and margin enhancement.

Precision Machined Components

Since 2020, our Precision Machined Components ("PMC") division has felt the significant impact of the Covid-19 pandemic. However, we are now seeing the early stages of recovery in oil and gas markets and are encouraged by the steady growth in order intake for the division, which has traded in-line with expectations throughout the first half of FY23 and returned to EBITDA profitability.

The demand for subsea well intervention tools, valve assemblies and control module components has continued to grow during the first half of the year with a sharp improvement noted in April and May 2023. Roota Engineering OEM customers, including Aker, Expro, Halliburton and Schlumberger, continue to report a stronger oil and gas market outlook for the second half of 2023 and are investing heavily in their global manufacturing capacity to support growth in oil and gas production, principally from Middle East, South America, North Sea, US Gulf of Mexico and Australasia regions. There is also growing demand for well de-commissioning projects in the North Sea.

Business Review (continued)

Roota Engineering order intake in the eight months ended May 2023 was £4.2 million (eight months ended May 2022: £2.9 million) supporting a current order book of £2.7 million at May 2023 (May 2022: £1.3 million).

Demand for production drilling and flow control components, supported by a strong and sustained recovery in subsea tree new build capex, is also expected to grow across 2023 and beyond for major subsea and

surface production projects. Al-Met OEM customers, including Schlumberger and Baker Hughes, report increasing investment to support oil and gas production in Middle East, South America, North Sea, US Gulf of Mexico, Canada and South-East Asia regions.

The recovery of order intake at Al-Met was particularly strong in the first half of the year. Order intake in the eight months ended May 2023 was £7.8 million (eight months ended May 2022: £2.1 million) supporting a current order book of £6.2 million at May 2023 (May 2022: £1.1 million), which includes over £3.0 million already secured for delivery in the first half of FY24.

Overall PMC order intake in the eight months ended May 2023 was £12.0 million (eight months ended May 2022: £5.0 million) supporting a current order book of £8.9 million at the end of May 2023 (May 2022: £2.4 million), the highest order book level seen in the last five years. The order book provides strong revenue cover for the remainder of FY23.

In November 2022, the Board announced that an improved trading environment and outlook created the potential opportunity to divest PMC in order to raise funds to progress strategic priorities in CSC. As part of this process, a number of offers to acquire PMC were received but none were at a level that the Board felt appropriately reflected the value of the business, particularly in light of the improved outlook for the oil and gas market and the recent strong order intake of PMC. As a result, the Board has decided not to divest PMC at this time and will revisit strategic options for the business later in the year.

Equity Raising

On 6 December 2022, the Group completed a £2.1 million equity fundraise with support from institutional and retail shareholders. The funds raised provided important flexibility and liquidity during the first half of FY23 and a bridge to profitable, cash-generative trading driven by the commencement of major defence contracts in CSC and recovering order intake in PMC.

Outlook

The Group is well positioned in the defence and emerging hydrogen energy sectors and expects to benefit from recovery in the oil and gas market. Based on the strong current order book, the Group is well placed to drive revenue growth in the second half of FY23 and beyond although this will be critically dependent on the rate at which improved production and supply chain performance can be delivered. Given the supply chain challenges experienced in the period, the Board recognises that this remains a risk to the delivery of the expected stronger performance in the second half of FY23 as delivery milestones, and hence revenue, could be deferred into FY24.

The Board therefore believes that full-year FY23 Adjusted EBITDA is more likely to be in the range £2.2 million to £2.5 million, which would represent significant progress as compared to FY22 (Adjusted EBITDA Loss of £0.9 million).

Chris Walters

Chief Executive

27 June 2023

Financial Review

Revenue & Profitability

Improving market conditions in the oil and gas market and strong new defence orders have underpinned a significant improvement in performance in the first half of FY23. Revenue of £13.8 million was 45% higher than the corresponding period last year (2022: £9.5 million) and has helped drive gross profit to £3.7 million at 27% margin (2022: £2.1m at 22% margin).

The gross margin improvement has been driven by the higher level of activity and throughput in both CSC and PMC, improving asset utilisation, and a benefit of £0.4 million in the period in relation to the adoption of the amended IFRS 15 treatment for certain long-term contracts disclosed in the FY22 Annual Report.

Overhead costs increased slightly in the period to £4.2 million (2022: £4.1 million) with a strict focus on cost control largely offsetting inflationary pressures.

The Group reported an operating loss of £0.5 million (2022: loss of £2.0 million) in the period. Allowing for depreciation charges of £0.8 million (2022: £0.8 million), the Group returned to an Adjusted EBITDA profit of £0.3 million in the period (2022: loss of £1.2 million), demonstrating a strong turnaround in underlying financial performance.

Exceptional costs of £0.7 million were incurred in the period (2022: £0.1 million) in relation to reorganisation costs, the extension of its banking facilities with Lloyds Bank in October 2022 and the strategic review of PMC.

Cashflow

The Group reported a net cash outflow of £0.8 million in the period (2022: outflow of £1.9 million). This was driven by reported EBITDA of £0.3 million, exceptional costs of £0.7 million, working capital outflows (£1.1 million), capital expenditure (£0.6 million), interest costs (£0.2 million) and debt repayments (£0.6 million), partially offset by the net proceeds of the equity raising (£2.1 million) in December 2022.

The equity raising involved the issue of 7,600,000 new ordinary shares at an issue price of 30 pence per share and has provided essential financial flexibility in the period. These funds also supported the purchase of a new milling machine at PMC for £0.5 million in the period.

The cash balance at the end of the period was £1.0 million (1 October 2022: £1.8 million). Net debt, which comprises cash, bank borrowings, finance lease liabilities and right of use asset lease liabilities, at the end of the period was £3.7 million (1 October 2022: £3.5 million). Net bank borrowings, which comprises cash and bank borrowings only, at the end of the period was £0.9 million (1 October 2022: £0.6 million).

Prior Year Adjustment

During the preparation of the Annual Report & Accounts for the year ended 1 October 2022, the Group reviewed its accounting policy and past accounting treatment in respect of a small number of long-term defence contracts within CSC and it was identified that this accounting treatment was not in compliance with IFRS 15.

As a result, the comparative period financial statements have been restated. As at 2 October 2021 and 2 April 2022, the impact of the restatement was to reduce total equity by £1,054,000. The restatement had no impact on profit recognition in the 26 weeks ended 1 April 2023 or the 26 weeks ended 2 April 2022.

These accounting adjustments only impact the timing of profit recognition under these specific contracts. 

They do not impact the total profitability of the contracts, the net debt position of the Group at any date,

Financial Review (continued)

the future cash generation profile of the Group, nor the underlying trading or operations of the business.

Refinancing of Debt Facilities and Amendment of Lloyds Bank Facilities

The Board has been engaged in discussions with a number of prospective lenders to provide asset-backed lending facilities and alternative financing to enable the full repayment of the existing facilities of Lloyds Bank and provide working capital headroom to support the strategic development of the Group. These discussions have progressed more slowly than expected and have not concluded at this time. The Board continues to explore options for refinancing and is engaged in constructive discussions with potential lenders which will require more time to conclude.

The current debt facilities provided by Lloyds Bank have been amended this month such that the final maturity date of the facilities has been brought forward from 31 March 2024 to 31 December 2023, with Lloyds having agreed to waive the financial covenant tests due on 30 June 2023 under the facilities. The Lloyds facility is expected to support the financing requirements of the Group over the period to 31 December 2023 although the liquidity and covenant headroom during this period remains limited.

After December 2023 the Group is likely to require additional working capital facilities, depending on operational and financial performance, to ensure it meets its financial obligations as they fall due. Given the on-going constructive discussions with potential lenders, the Board has a reasonable expectation that adequate financing can be secured during the remainder of the calendar year 2023.

Auditor

Grant Thornton resigned as auditors to the Group on 23 May 2023 following the signing of the FY22 Annual Report and Accounts. They confirmed that there were no matters connected with their ceasing to hold office which they considered should be brought to the attention of the shareholders or creditors of the Group. The Board has commenced the process to appoint new auditors and will update in due course.

Steve Hammell

Chief Financial Officer

27 June 2023

Condensed Consolidated Statement of Comprehensive Income

For the 26 weeks ended 1 April 2023

Condensed Consolidated Statement of Financial Position

As at 1 April 2023

*A restatement of the Condensed Consolidated Statement of Financial Position as at 2 April 2022 has been undertaken to correct an error which related to the incorrect treatment of certain contract accounting transactions (see Note 13).

Condensed Consolidated Statement of Changes in Equity

For the 26 weeks ended 1 April 2023

For the 26 weeks ended 2 April 2022

Condensed Consolidated Statement of Changes in Equity (continued)

For the 52 weeks ended 1 October 2022

*A restatement of the Condensed Consolidated Statement of Changes in Equity as at 2 October 2021 and 2 April 2022 has been undertaken to correct an error which related to the incorrect treatment of certain contract accounting transactions (see Note 13).

Condensed Consolidated Cash Flow Statement

For the 26 weeks ended 1 April 2023

Notes to the Condensed Consolidated Interim Financial Statements

1.   General information

Pressure Technologies plc is incorporated in England and Wales and is quoted on AIM, a market operated by the London Stock Exchange.

These unaudited interim condensed consolidated financial statements for the 26 weeks ended 1 April 2023 and were approved by the Board of Directors on 26 June 2023.

These financial statements may contain certain statements about the future outlook of Pressure Technologies plc. Although the Directors believe their expectations are based on reasonable assumptions, any statements about future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

2.  Basis of preparation

The Group's unaudited interim results for the 26 weeks ended 1 April 2023 ("Interim Results") are prepared in accordance with the Group's accounting policies which are based on the recognition and measurement principles of the UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006. As permitted, the Interim Results has been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting" and therefore the interim information is not in full compliance with International Accounting Standards.

The interim condensed consolidated financial statements are prepared under the historical cost convention as modified to include the revaluation of certain financial instruments. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 1 October 2022. The principal accounting policies of the Group have remained unchanged from those set out in the Group's 2022 annual report and financial statements.  The Principal Risks and Uncertainties of the Group are also set out in the Group's 2022 annual report and financial statements and are unchanged in the period.

The financial information for the 26 weeks ended 1 April 2023 and 2 April 2022 has not been audited and does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.

The Group's 2022 financial statements for the 52 weeks ended 1 October 2022 were prepared under UK-adopted International Accounting Standards. The auditor's report on these financial statements was unqualified and did not contain statements under Sections 498(2) or (3) of the Companies Act 2006 and they have been filed with the Registrar of Companies.

3.  Going concern

The Directors have considered whether the Group will be able to meet its obligations as they fall due for the period of at least 12 months from the date of these Interim Results. These interim condensed financial statements have been prepared on a going concern basis.

The Group's current revolving credit facility (RCF) with Lloyds Bank was amended in June 2023.  The facility reduces from £1.9 million to £0.9 million on 30 September 2023 and now expires on 31 December 2023. The covenant test on 30 June 2023 has been waived and the final testing date is 30 September 2023.  The Board is currently engaged in constructive discussions with potential lenders in order to refinance the Lloyds Bank facilities and has a reasonable expectation that new financing arrangements can be secured before the expiry of the Lloyds Bank facility on 31 December 2023.

Management have produced forecasts for the period up to September 2024 for all business units, taking account of reasonably plausible changes in trading performance and market conditions, which have been reviewed by the Directors. In particular, the forecasts reflect both (i) the award of a major, multi-year contract for the Chesterfield Special Cylinders division to supply air pressure vessels for a major UK naval new construction program, which was announced on 6 February 2023, and also (ii) the recent significantly improved trading in the Precision Machined Components division as oil and gas markets recover, following unprecedented order intake levels which have resulted in an order book of £8.9 million at the end of May 2023, the highest order book level seen in the last five years for the division. The base case forecast demonstrates that the Group is projected to:

·      generate profits and cash in the current financial year and beyond;

·      has headroom in financial covenants over the period up to the expiry of the Lloyds RCF on 31 December 2023; and

·      generates sufficient cash to repay the tranche of the RCF on 30 September 2023 and the final repayment of the facility on 31 December 2023 and has sufficient cash reserves beyond 31 December 2023 to manage without the RCF or an alternative financing facility. While the level of cash reserves is low for the first quarter of calendar year 2024, the level is forecast to improve substantially for the remainder of the forecast period.

The Group has also developed downside scenarios, which include consideration of the recent track record of not always achieving budgets. The downside scenario demonstrates the Group's dependence on the performance of large contracts (including the large

3.  Going concern (continued)

naval contract) noted above due to their materiality to the Group's overall results. Management have modelled the downside scenario based on reasonably possible delays in the large naval contract. By their nature, the achievement of performance milestones under these types of contract can be subject to uncertainties and delays have occurred on similar contracts in the past. These uncertainties include in-house operational delays and inefficiencies, delays in the supply of material and components by suppliers and delays in the performance of work by subcontractors. The Group often has limited control of the latter two factors. The achievement of performance milestones enables the Group to recognise revenue and profits under the contract and typically initiates invoicing to, and subsequent cash collection from, the customer.

As a result, these delays, whilst typically not impacting the financial performance of the contract over its entire duration, can lead to material delays in the timing of profit recognition and cash receipts between periods. Given the size of the recent naval contract, any delays and unforeseen events could have a material impact on the Group's cash reserves and covenant compliance.

In the event of delays in the contract, the Group would look to mitigate the impact, partially or fully, by pulling forward contracted work from other customers and through normal working capital management and other cash preservation initiatives. Work on this contract has already commenced and, to date, whilst the contract is progressing in line with our contractual commitments, some minor delays have arisen, principally due to supply issues with components from third parties and the work of subcontractors.

Given the expiry of the RCF on 31 December 2023 and the step down in its quantum in September 2023, the Group is currently exploring several actions to strengthen the Group's financial position. In particular, the Group is currently working with an advisor to support the Group's review of funding options, including asset-backed and alternative financing lenders, in order to replace the Lloyds Bank RCF with new arrangements that will provide the Group with increased facility headroom and flexibility. These discussions are taking longer than was originally anticipated but management expect these discussions to be completed by the time of the expiry of the Lloyds Bank RCF on 31 December 2023. In addition to pursuing these refinancing opportunities, the Group is also currently exploring the refinancing of the Group's freehold property at Meadowhall Road, Sheffield.

Other factors which could negatively impact the forecasts include:

·      Failure to win additional contracts in the Chesterfield Special Cylinders division for hydrogen energy projects due to market factors outside the control of the Group;

·      Weaker revenue from Integrity Management deployments due to customer delays; and

·      The recent improvement in the Precision Machined Components divisional revenue and order book not continuing going forward due to weaker than expected oil and gas market conditions.

The Group believes that these factors are individually less likely to be material to the achievement of the forecasts than potential delays in the large naval contract, but in the event that they occur, together with large naval contract delays, they may have a negative impact on covenant compliance and cash flow at certain test dates in the forecast period.

The possibility of material delays to the performance of contracts (naval contract in particular) and a replacement financing facility not yet being in place gives rise to material uncertainties, as defined in accounting standards, relating to events and circumstances which may cast significant doubt about the Group's ability to continue as a going concern and to realise its assets and discharge its liabilities in the normal course of business.

Reflecting management's confidence in delivering large contracts and successfully replacing their financing facility, the Group continue to adopt the going concern basis in preparing these interim condensed financial statements. Management have concluded that the Group will be able to continue in operation and meet their liabilities as they fall due over the period to September 2024. Consequently, these financial statements do not include any adjustments that would be required if the going concern basis of preparation were to be inappropriate.

4.  Segmental analysis of Revenue and Operating Loss

Revenue by sector

Revenue by activity

4.  Segmental analysis of Revenue and Operating Loss (continued)

Revenue recognition

The Group's pattern of revenue recognition is as follows:

Operating loss by activity

The Operating (loss)/profit by activity is stated before the allocation of Group management charges, which are included within 'Unallocated central costs'.

5.  Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA)

Earnings before interest, taxation, depreciation, and amortisation (EBITDA) is as follows:

6.  Other exceptional costs

Items that are incurred outside the normal course of business and/or that are non-recurring are considered as exceptional costs and are disclosed separately on the face of the Condensed Consolidated Statement of Comprehensive Income.

An analysis of the amounts presented as exceptional costs is as follows:

7.  Taxation

8. Loss per ordinary share

The calculation of basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

The calculation of diluted loss per share is based on basic loss per share, adjusted to allow for the issue of shares on the assumed conversion of all dilutive share options.

Adjusted loss per share shows loss per share after adjusting for the impact of amortisation charges, impairment charges and any other exceptional items, and for the estimated tax impact, if any, of those costs. Adjusted loss per share is based on the loss as adjusted divided by the weighted average number of shares in issue.

For the 26 week period ended 1 April 2023

The effect of anti-dilutive potential shares is not disclosed in accordance with IAS 33.

The Group adjusted loss per share is calculated as follows:

8. Loss per ordinary share (continued)

For the 26 week period ended 2 April 2022

The effect of anti-dilutive potential shares is not disclosed in accordance with IAS 33.

The Group adjusted loss per share is calculated as follows:

For the 52 week period ended 1 October 2022

8. Loss per ordinary share (continued)

The Group adjusted loss per share is calculated as follows:

For the 52 week period ended 1 October 2022

9.  Reconciliation of net debt

As at 1 April 2023, the Group's bank borrowings was a revolving credit facility provided by Lloyds Bank with a drawn balance of £1.9 million (1 October 2022: £2.4 million drawn) and an expiry date of 31 March 2024. The revolving credit facility was amended in June 2023 and now has an expiry date of 31 December 2023.

10.  Called up share capital and share premium

On 6 December 2022, the Group issued 7,600,000 new ordinary shares with a nominal value of 5p each, raising £2.1 million net of expenses. Of this total, £1.7 million was allocated to the share premium account.

11.  Dividends

No final or interim dividend was paid for the 52-week period ended 1 October 2022.  No interim dividend is declared for the 26-week period ended 1 April 2023.

12.  Related party transactions

There were no related party transactions in the 26 week periods to 1 April 2023 and 2 April 2022.

13. Prior year adjustment - Restatement in respect of IFRS 15 "Revenue from Contracts with Customers"

During the preparation of the Annual Report & Accounts for the year ended 1 October 2022, the Group reviewed its accounting policy and past accounting treatment in respect of a small number of long-term defence contracts within CSC.

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. 

During the preparation of the Annual Report & Accounts for the year ended 1 October 2022, it was noted 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 margin, as historically adopted by the Group, is not permitted.

13. Prior year adjustment - Restatement in respect of IFRS 15 "Revenue from Contracts with Customers" (continued)

As a result, the comparative period financial statements have been restated. As at 2 October 2021 and 2 April 2022, the impact of the restatement was to reduce total equity by £1,054,000. The restatement had no impact on profit recognition in the 26 weeks ended 1 April 2023 or the 26 weeks ended 2 April 2022.

These accounting adjustments only impact the timing of profit recognition under these specific contracts.  They do not impact the net debt position of the Group at any date, the future cash generation profile of the Group, nor the underlying trading or operations of the business.

A copy of the Interim Report will be sent to shareholders shortly and will be available on the Company's website: www.pressuretechnologies.com.