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 £1.1 million (less costs and retentions). Additional consideration of up to £2.25 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 £0.47 million on revenues of £3.85 million and had net assets of £2.53 million.
The proceeds of the Disposal will be used to reduce the Group's debt.