Pressure Technologies plc
Annual Report 2011
A leading designer and manufacturer 
of engineering solutions for high 
pressure markets Pressure Technologies plc
Annual Report 2011
01
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
• Revenue of £23.1 million (2010: £21.7 million)
• Operating profit at £0.7 million (2010: £3.5 million)
• Pre-tax profit of £0.6 million (2010: £3.5 million)
• Basic earnings per share 3.5p (2010: 22.3p)
• Y ear end net funds, after acquisition of the Hydratron 
Group of Companies, £2.9 million (2010: £6.5 million)
• Proposed final dividend of 4.8p per share (2010: 4.8p), 
giving a total dividend of 7.2p per share (2010: 7.2p)
• Sound balance sheet maintained and cash  
management strong
• Dividend maintained as Group remains confident  
in future outlook
• Y ear impacted by low demand for deepwater oil and  
gas platforms in Cylinder division but recovery  
underway and demand trough behind us
• Successful acquisition of Hydratron strengthens 
Engineered Products division and continues 
diversification strategy
• Forward order books in Cylinder and Engineered  
Products divisions growing strongly
Company overview
Highlights 01
Group Structure 02
Strategy 04
Chairman’s Statement 06
Business Review
Chief Executive’s Statement 10
Principal Risks and Uncertainties 16
Key Performance Indicators 17
Governance
Directors and Advisers 18
Directors’ Report 20
 
Financial Statements
Report of the Independent Auditor to
the Members of Pressure Technologies plc 24
Consolidated Statement of Comprehensive 
Income 25
Consolidated Balance Sheet 26
Consolidated Statement of Changes in Equity 27
Consolidated Statement of Cash Flows 28
Accounting Policies 29
Notes to the Consolidated Financial Statements 35
Company Balance Sheet 53
Notes to the Company Financial Statements 54
Financial Highlights
Business Highlights
Pressure Technologies plc
Annual Report 2011
Pressure Technologies plc is a 
leading designer and manufacturer 
of engineering solutions for high 
pressure markets. 
The Group works in partnership  
with its customers to design, 
develop and manufacture the  
best solutions for their pressure 
system needs. Company Overview 
Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Key
   Agents and distributers
   Manufacturing and sales
Group Structure Manufacturing, sales and distribution
A leading designer and manufacturer 
of high pressure engineering systems, 
serving the global energy, defence and 
industrial gases markets.
The Group is organised into three divisions: Cylinders 
(Chesterfield Special Cylinders), Engineered Products 
(Hydratron and Al-Met) and Alternative Energy 
(Chesterfield BioGas).   
These divisions serve four markets: Oil and Gas, 
Defence, Industrial Gases and Alternative Energy.
Alternative Energy Oil and Gas Defence Industrial Gases
The Group provides a range of equipment for the upgrade of biogas 
to biomethane for injection into the gas grid and compressed natural 
gas (“CNG”) vehicle refuelling stations through Chesterfield BioGas 
(“CBG”). 
In September 2010, we installed the UK’s first biogas upgrader supplying 
biomethane to the national gas grid at a Thames Water site at Didcot. 
In the intervening period the market has been slow to develop due to the 
late confirmation of the level of the Renewable Heat Incentive which allows 
the technology to compete on a level playing field with subsidised combined 
heat and power plants. 
The level of interest from large utilities remains high and we expect market 
growth in the near term. CBG has strengthened its position in this market 
sector by extending in perpetuity its exclusive licence agreement to sell and 
manufacture Greenlane® Biogas upgraders in the UK and Eire.
Cross divisional collaboration is used in the provision of refuelling systems 
where CSC provides CBG with bulk CNG storage for filling stations and high 
pressure trailers for transportation of CNG.
Chesterfield BioGas / Chesterfield Special Cylinders Chesterfield Special Cylinders / Engineered Products Chesterfield Special Cylinders / Engineered Products Chesterfield Special Cylinders
4% £0.9m £15.4m £4.5m £2.3m 67% 19% 10%
(2010: 3%) (2010: £0.7m) (2010: £13.8m) (2010: £4.1m) (2010: £3.1m) (2010: 64%) (2010: 19%) (2010: 14%)
By far the largest market sector for the Group, Oil and Gas is, and will 
remain, the focus for development and acquisitions. The market for 
hydrocarbons is here to stay and even if there is an unlikely reduction 
in their use as a fuel, the myriad of industrial uses means that this will 
be an important market for decades to come.
Chesterfield Special Cylinders (“CSC”) supplies air pressure vessels for 
deep-water oil rig and drillship market. This market was weak in 2011 but, 
with major rig-build projects underway, significant new orders have been 
received in recent months. CSC has a reputation for design and development 
capability and we are also able to offer in-situ inspection services that give 
reductions in cost and time for statutory retest.
The Engineered Products division supplies a wide range of products into this 
sector. Al-Met is focused on the supply of wear parts for the control of fluid 
flow in highly demanding applications. Hydratron supplies a range of pumps, 
boosters, test benches and control panels. The products of the division are 
used across the whole of the Oil and Gas market. 
The Group supplies the UK and International Naval and Aerospace 
markets. Our largest market in this sector is in the supply of ultra-
large cylinders into the Naval market where we have a world-wide 
reputation for our expertise. We also supply small steel cylinders into 
the military aerospace sector and our Engineered Products division 
has had some success in supplying test equipment into the UK defence 
sector, a position on which we hope to build.
The Naval market was exceptionally strong in 2011, with major projects 
supplied for submarine building in the UK, France and Spain. CSC also won 
the contract to maintain the Royal Navy’s strategic spares. 2012 will be 
a lower sales year due to the phasing of projects but there are already 
significant orders for 2013.
The defence aerospace market has been affected by government spending 
cuts but this does not have a major impact on Group profitability. Increasing 
technical requirements are being demanded in this market and PT has 
invested long term in the development of a lightweight composite cylinder 
for the next generation of military aircraft.
The industrial gases market has been an important market for the 
Cylinder division for over 100 years. A diverse range of products and 
services is supplied, ranging from bulk gas storage for large industrial 
applications to the reconditioning and retest of cylinders and trailers.
 The key to winning business in this market is having a comprehensive 
network of sales staff and agents to identify projects as they arise. 2011 was 
a weak year for demand but an improvement is evident in 2012, with two 
bulk storage projects already in the order books.
Trailers for the transportation of bulk gases are also an important part of 
this market. The Group manufactures a range of high pressure gas trailers 
for this market sector and also provides a “one stop shop” management of 
reconditioning and retest of cylinders. Further opportunities will arise as  
Hydrogen and Compressed Natural Gas demand increases.
As with the Oil and Gas market, these areas are also able to offer an in-situ 
test service and our first contracts were performed in this market in 2011 
with further growth expected in 2012.
% of Group Revenue % of Group Revenue % of Group Revenue % of Group Turnover Sales Sales Sales Sales
1
2
3
4
5
1. Head Office
 Chesterfield Special Cylinders
1.  Chesterfield BioGas
2.  Hydratron Ltd
3.  Al-Met
4.  Hydratron Inc
5.  GSC German Sales Office Company Overview 
Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
• Acquisition targets will be in niche areas of  
 pressure containment or control
• They will have significant growth prospects
• Stable management teams capable of  
 delivering growth
• Overlapping core skills and/or customers  
 with existing group companies to minimise  
 technology and market risks
• In-situ testing of cylinder assemblies to reduce  
 the cost and time taken to retest cylinders in  
 large static applications and trailers
• Development of light-weight composite  
 cylinders for aerospace applications
• New high-pressure trailer designs to maximise  
 payload and minimise through life costs
• Extending the pressure range of Hydratron’s  
 DHDA pumps to support the ever higher  
 pressures required in the Oil and Gas market
• State of the art cleaning technology which meets  
 the world’s most exacting standards for cylinder  
 system assemblies
• Investment in advanced metrology and  
 CMM equipment
• Electro-discharge machining to give fine  
 tolerance control of the manufacture of complex  
 wear parts
• Expansion in the size range of wear parts through  
 the purchase of larger machining centres
• Developing the people we need through  
 apprenticeships, sponsored degree and post  
 graduate studying
• Multi-skilling that makes our employees more  
 flexible and their work interesting and rewarding
• Having, as far as is possible, common terms and  
 conditions of employment across the Group
• Giving employees a share in the success of the  
 Group through bonus and SAYE schemes
• Using local universities and specialist research  
 organisations to advise on and undertake  
 development of materials and processes
• Developing close working relationships with  
 key suppliers and customers which allow a better  
 and quicker use of new technologies and designs
• Licensing technology from market leading  
 companies to expand our product range and  
 service offerings rapidly and with reduced risks
Achieving our 
goal through a clear 
business strategy
Goal
We aim to build a highly profitable 
group of companies, specialising 
in technology for the containment 
and control of liquids and gases in 
pressure systems. 
The key elements of the strategy 
to deliver this are:
Acquisitions are required to spread the 
commercial risk of the Group and to 
accelerate our rate of growth. 
We have very clear criteria for acquisitions:
The group has significant organic growth 
opportunities as its core markets grow.  
Our sales teams are actively pursuing this 
growth. However, there is still a need to 
develop the next generation of products and 
services to ensure the long-term future of the 
Group’s businesses. Our engineers, technicians 
and designers are working on a range of 
innovative products and services. 
On-going developments:
Ever increasing quality and safety standards 
and the requirement to produce product 
efficiently requires good manufacturing 
technology. The Group is well invested in 
manufacturing technology but there is always  
a continuing requirement to invest in newer 
and better technology.
Recent investments include:
Our businesses rely on skilled, well trained and 
motivated employees. Some of the skills in the 
Group are highly specific to our industries and 
there is only a handful of people world-wide 
with similar skills. We therefore place huge 
emphasis on getting the right people into the 
business, training them and retaining them.
The key elements of this are:
Working with other specialist companies we 
are able to reduce the costs of development 
and speed up time to market of products and 
services.
The Group has formed a number of strategic 
partnerships, these include:
Investing in Technology Expanding Product Portfolio Investing in People Partnerships Building a Balanced Group Company Overview 
Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
It is disappointing to confirm that the Group’s results for the full year 
have, as announced on 21 October 2011, fallen substantially below 
market expectations. I am pleased, however, to report that the much 
delayed recovery in equipment ordering for the deepwater offshore 
oil and gas drilling sector is now underway and there was a notable 
acceleration of firm orders at Chesterfield Special Cylinders (“CSC”) in 
the second half of the year. Demand for oilfield wellhead components 
and equipment from our Engineered Products division also remains 
buoyant and this is underpinned by heavy investment in the US oil and 
gas sector. The delayed announcement of the Renewable Heat Incentive 
had a knock-on effect on orders at our Alternative Energy business, 
Chesterfield BioGas (“CBG”). CBG has a number of major quotations at 
an advanced stage, which we believe will be converted to firm contracts 
during this financial year for delivery over 2012 and 2013. 
Results
Revenue for the year ended 1 October 2011 increased to £23.1 million 
from £21.7 million in 2010. Operating profit, however, reduced 
from £3.5 million in the previous year to £0.65 million. The Group 
continued to invest in new products and processes throughout the year, 
incurring £2.2 million of capital expenditure to support the long term 
development of the business.
Profit before taxation was £0.6 million (2010: £3.5 million), giving basic 
earnings per share of 3.5p (2010: 22.3p).
Our strong balance sheet has been maintained by a continued focus 
on working capital controls across all the Group’s businesses. Net cash 
at 1 October 2011 was £2.9 million (2010: £6.5 million) reflecting 
investments of £5.0 million (net) during the year in acquiring Hydratron 
and the capital expenditure mentioned above. The Group remains in 
a sound position to fund organic development and business growth 
programmes from internal cash flow.
Given our strong balance sheet and confidence in the medium term 
prospects for the Group, borne out by the strong inflow of orders 
experienced in recent months, the Board is proposing a final dividend 
of 4.8 pence per share, giving a total of 7.2 pence per share for the 
financial year, which is unchanged from the previous year. If approved, 
this will be paid on 9 March 2012 to shareholders on the register at the 
close of business on 17 February 2012. The ex-dividend date will be  
15 February 2012.
Strategy and Markets
Our Business Growth Strategy remains the same, namely to penetrate 
select growth sectors with clear synergies to our core businesses, either 
organically or by acquisition, and provide niche, technology driven, high 
margin products for critical applications.
We believe that the best prospects for the Group lie in the global 
energy markets. Over the medium and long term, the global demand 
for energy is forecast to grow to the point that triggers shortages in 
hydrocarbon fuels. We have significant interests in two sectors of this 
market, deepwater oil and gas drilling equipment and oilfield wellhead 
equipment and we continue to actively review further strategic 
acquisitions.
We remain committed to the naval defence market, particularly 
submarine, in which we have a strong international presence across 
Europe, the Far East, Asia, North and South America. We have long-
established, market leading products and technology in this sensitive, 
high integrity market and continue to benefit from both original 
equipment sales and aftermarket spares and support.
Our capability in the industrial gases storage and transportation market 
has been further strengthened and enhanced as we have demonstrated 
our ability to design and build fully finished trailers, storage and 
dispensing facilities. CNG and Hydrogen are increasingly recognised as 
alternatives to traditional fuels and we believe our involvement in these 
sectors has considerable potential.
Our Business Growth Strategy remains 
the same, namely to penetrate select 
growth sectors with clear synergies to 
our core businesses, either organically 
or by acquisition, and provide niche, 
technology driven, high margin products 
for critical applications.
Our confidence 
in the Group’s 
prospects and 
financial position 
is reflected in the 
Board’s dividend 
policy.
Chairman’s Statement
Richard Shacklady, Chairman
• Purchased 15 October 2010 for £3.3 million of which  
 £0.8 million deferred to 2012
• First half constrained by planned relocation of UK part of  
 business onto one integrated site
• Second half performance excellent 
• US subsidiary making good progress in Houston market
• Commercial team strengthened and prospects for short,  
 medium and long term are exciting 
• Objective remains to double the size of the business by 2015
Hydratron is the second element of the Engineered 
Products division. It designs and manufactures a  
range of air operated hydraulic pumps, gas boosters, 
power packs, hydraulic control panels and test rigs.  
The business operates out of facilities in Altrincham  
in the UK and Houston, Texas.
Hydratron
Highlights Company Overview 
Pressure Technologies plc
Annual Report 2011
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
The potential for CNG derived from biogas, either as a vehicle fuel or 
as a supplementary source of natural gas (known as BtG - biomethane 
to grid), affords the Group the prospect of participation in a major 
alternative energy market. In the UK, natural gas is a major energy 
import, often sourced from politically unstable parts of the world.  
During the year, we have strengthened our position in this market by 
extending our licence from Greenlane® to market and manufacture 
biogas upgrade process plants. Greenlane® is recognised as the 
international market leader in biogas upgrade technology with 
equipment installed and operating worldwide.
The Board continues to believe that investment in new products and 
processes at the high end of technology is fundamental to the future 
growth of the business. To this end, we continue to prioritise and fund 
R&D programmes that will, we believe, provide opportunities for growth 
using our unique engineering capabilities. 
People
The Group Board continues to play a full role in the development of 
the Group. The brief of the Audit Committee has been extended and 
it has been renamed the Audit and Risk Committee, recognising the 
importance of the additional duties placed on the Group by legislation 
such as the Bribery Act. I feel it is worth noting that the never ending 
flow of regulation by Government is increasing the burden of corporate 
governance, particularly on smaller business and, at times, can be a 
significant distraction to the primary task of running the business.
The Group recognises the importance of the skills and knowledge base 
of its employees, many in specialised disciplines. We have continued 
to invest in our employees, recruiting apprentices and investing in 
structured training programmes, up to and including post graduate 
training, to ensure that these skills and knowledge are maintained and 
transferred to the next generation. 
Once again it is appropriate to acknowledge the dedication of our 
operational Directors and the skill, commitment and flexibility of all our 
employees, perhaps best exemplified by the high level of attendance at 
work throughout the periods of most severe weather last winter.
Prospects
The Group enters the new financial year with order books across its 
Cylinder and Engineered Products businesses filling. Overall, our order 
book has increased by 50% in the past six months and now stretches 
well into 2012. We have not seen this level of activity in these markets 
since 2008/09. Activity in the global oil and gas industry has returned 
and shows no sign of waning and we expect this momentum to stretch 
into 2013 for long lead time products, notably our ultra-large cylinders 
for the deep water drilling market.
Further growth is anticipated in our Engineered Products division, 
particularly in the North American market where we have secured a 
significant foothold. These businesses have been strengthened through 
the reorganisation we implemented in 2011 and we are now better 
positioned to exploit the opportunities available to us.
The coming year will be a critical for the Group’s alternative energy 
business, Chesterfield BioGas; a number of major quotations are 
expected to be converted into firm contracts for delivery towards the 
latter end of 2012 and into 2013.
The Group is now well along the path of transforming itself, both 
organically and through strategic acquisition, into being a better 
balanced business with long term growth prospects in niche market 
sectors. We are exploring further acquisition opportunities and anticipate 
the transformation of the Group to stretch across the next 12-18 
months with the benefits starting to show in the current financial year. 
I would like to thank all the Group’s shareholders for their continued 
support throughout the difficult and testing period from which, I believe, 
we are now emerging. 
Our confidence in the Group’s prospects and financial position is 
reflected in the Board’s dividend policy and we remain confident that 
the Group has the ability to adapt to changes in market conditions and 
profitably exploit the opportunities which arise. 
Richard L. Shacklady
Chairman
6 December 2011
The ability to carry out in-situ statutory inspection of 
large fixed cylinder installations gives significant cost 
and time savings to CSC’s customers.
Value Added Service Business Review
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
The year for the Group was one of contrasts; the correct trends in 
markets were identified in our Cylinder and Alternative Energy divisions 
but the timing of growth in these markets was much later than we led 
to be expected. By contrast, the acquisitions we made in our Engineered 
Products division performed well against our original expectations. 
The financial results, in terms of sales and profits, were deeply 
disappointing as a lack of market visibility for large contracts and over 
optimism led to poor forecasting and a succession of profit downgrades. 
On a positive note, the balance sheet remains robust with solid cash 
reserves to support the dividend and our future plans. 
The key points for the year are:
Cylinders
 
 2011 2010
 £m £m
Sales 11.0 19.1
Operating Profits 1.4 4.8
Assets 10.7 11.7
Chesterfield Special Cylinders (“CSC”) continued to be affected  
by the downturn in its principal market in deepwater oil and gas,  
where we supply air pressure vessels (“APVs”) for rigs and drillships.  
As anticipated, this market has started to recover as global requirements 
for new sources of hydrocarbons increases. Market confidence, which 
was destroyed by the BP Macondo incident in the Gulf of Mexico, 
has returned and we have seen a recent upturn in both forecasted 
projects and orders received. This improvement came too late to have 
a positive impact on 2011 but, for 2012, we already have orders for 
APVs for six drillships, compared to three supplied in the whole of 2011 
financial year. The major driver is, as expected, the Brazilian market. 
Market dynamics have changed and pricing has increasingly become a 
critical issue for customers. This has had an impact on margins in this 
sector. Having gathered valuable customer feedback, the Board is of 
the opinion that CSC has maintained its technical lead in engineering 
capability, particularly in system design and product cleaning and 
CSC has seen a return of some of the work previously lost to low cost 
competitors for the more difficult to manufacture APVs.
The naval defence market experienced strong sales in 2011 but these 
will be lower in 2012 due to phasing of projects. Major projects are 
already in the order book for the 2013 financial year and there is 
a strong pipeline of potential projects. CSC has continued to make 
headway developing new markets and a major contract to supply 
cylinders for submarines for Brazil was awarded to CSC by DCN for 
supply in 2012 and 2013. A five year contract to manage the Royal 
Navy’s strategic reserve of cylinders has also been awarded to CSC. 
There was no upturn in the external market for new high pressure 
trailers but a compressed natural gas (“CNG”) trailer was built for 
Chesterfield BioGas and a hydrogen trailer to support the trailer 
refurbishment business. We now have a full range of designs for 
trailers and a fully developed supply chain for manufacture. Trailer 
refurbishment continued to progress and was boosted by our ability  
to inspect cylinders in-situ (see below). We expect further progress  
in this market in 2012. Beyond 2012, the development of alternative 
fuels will lead to an increasing market for the bulk storage and 
transportation of CNG and Hydrogen. In 2011, CSC provided the bulk 
storage for two CNG filling station projects for Chesterfield BioGas.
The small cylinder market remains affected by cuts in military  
aerospace spending but work continues on the long-term project to 
develop the next generation of type IV composites for the aerospace 
and SCBA markets.
2011 was another tough year for the 
Group with the strong performance 
of the acquisitions in our Engineered 
Products division lessening the effects 
of slow market growth in CSC and 
CBG. We expect to see good growth 
in Engineered Products in 2012 and 
the return to growth in Cylinders 
accelerating into 2013. 
Chief Executive’s Statement
John Hayward, Chief Executive
The Group’s strong 
balance sheet and 
cash provide a 
sound platform 
from which to 
move forward. 
Pressure Technologies, through CSC has a worldwide 
reputation for expertise in cylinders for naval 
applications. Expansion of the customer base in recent 
years has turned what was a UK centric business into 
a major player in the world market. In 2011, cylinders 
were supplied to projects in the UK, France, Spain  
and Canada.
As our customers’ designs are now being exported, 
we are experiencing follow on orders for supply to 
countries such as Brazil and India.
Whilst increasing orders are a good thing, the phasing 
of deadlines is such that there are wide swings in sales 
revenue between years. To counteract this, we are 
focused on expanding our customer base to encompass 
all major western defence contractors.
Defence Business Review
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
CSC was successful in developing a British Standard for the in-situ 
testing of ultra-large cylinders. This led to work in the UK, Singapore 
and Kazakhstan in 2011 and further projects both home and overseas 
are already in the order book for 2012. This is an exciting development 
and has also led to additional new cylinder contracts including a large 
helium installation for 2012 worth over £1 million.
As announced last year, a lean manufacturing programme was started 
in 2011 and manufacturing headcount was reduced by 16% to 38 
operatives from 45 as part of a productivity improvement programme. 
No significant increase in headcount is planned as the business grows 
but we have employed a further three apprentices at the start of 2012 
as part of our business continuity plan. 
To support productivity and quality improvements CSC spent  
£0.5 million on capital projects in 2011. The start of the 2012 
financial year saw the commencement of an activity based review 
of staff functions and an immediate headcount reduction from 27 
to 25 was made. The business is high fixed cost because we carry a 
large engineering and technical overhead, which is an order winner. 
We therefore do not expect significant further cuts in staff numbers 
but neither do we foresee large increases as the order book recovers. 
Projects are underway to improve gross margins and cut administration 
costs during 2012. Capital investment will be centred around our 
forging process to reduce our reliance on subcontract cylinder forging.
There is a buzz around CSC’s markets which has not been evident for 
some time. We have strengthened our sales presence in Germany where 
we have traditionally been weak by employing the sales manager from 
one of our European competitors. Subject to current economic issues 
in Europe not getting out of control, we are confident that the second 
half of 2012 will deliver an improvement in the Cylinder business which 
will continue into 2013. This confidence is supported by the order book 
which, at the end of 2011, was over £12 million, compared to under 
£10 million one year earlier and there continues to be a strong pipeline 
of open quotations and tenders.
Engineered Products division
 2011 2010
 £m £m
Sales 11.2 2.0
Operating Profits (before acquisition costs) 1.1 —
Assets 10.0 3.4
The division was formed by the purchase of Al-Met in February 2010  
and Hydratron in October 2011 and the two businesses have  
performed well.
Al-Met’s products are used in high-pressure choke and flow control 
valves, designed to regulate flow volumes in extremely demanding 
applications in the subsea and surface oil and gas industries. Its ability  
to combine high alloy steels with tungsten carbide inserts and 
specialised coatings gives Al-Met its niche position with its customers, 
global wellhead and subsea equipment OEMs. Al-Met had record 
sales and profits in 2011 as a result of an upturn in its core markets. 
Investment of £0.3 million was made to extend the size range and 
complexity of products. 
Al-Met delivered record sales and profits in its  
first full year with the Group.
Al-Met
With growth returning to deepwater oil rig and 
drillship construction, CSC is now passed the trough  
in its principal market which affected the 2011 results. 
Serving a much wider part of the market, Engineered 
Products experienced solid growth in 2011.  
For both divisions, 2012 promises further progress  
as experienced by recent order intake.
Oil and Gas
The immediate priority is to strengthen 
the Engineered Products division.  
This will be centred on Hydratron and 
we are actively looking for businesses 
that extend Hydratron’s geographical 
presence or give vertical integration 
within the supply chain. The expansion 
of this division will further reduce the 
effects of the volatility of the Cylinder 
division on Group results. 
Hydratron designs, manufactures and sells a range of air operated 
high pressure hydraulic pumps, gas boosters, power packs, hydraulic 
control panels and test rigs. The business was established in 1981 
and is a leading supplier of quality high pressure equipment to the oil 
and gas industries worldwide. The business operates out of a modern 
manufacturing unit in Altrincham in the UK and a similarly modern but 
smaller facility in Houston, Texas. The UK part of Hydratron moved into 
its current facilities immediately after the acquisition and the first half 
year was impacted by the effects of this planned move. Second half 
performance was excellent and order books and prospects are  
also excellent.
Both businesses are in markets where on time, in full delivery is poor. 
Investment has been made in production systems at both Al-Met and 
Hydratron with the aim of reaching automotive industry standards  
on deliveries to take market share from competitors. These are markets 
where significant growth is forecast. For Hydratron, this growth is 
already apparent. Industry forecasts for Al-Met predict sales  
at current levels for 2012 but significant growth in 2013 and 2014.  
The commercial functions in both businesses have been increased to 
ensure that we are maximising sales opportunities and we look for 
significant progress in the division over the short to medium term. Business Review
Pressure Technologies plc
Annual Report 2011
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Alternative Energy 
 2011 2010
 £m £m
Sales 0.9 0.7
Operating losses (0.5) (0.3)
Assets 1.7 1.3
This was a frustrating year for Chesterfield BioGas (“CBG”), our start-up 
alternative energy equipment business. As with CSC, delay in market 
growth was the over-riding issue. The principal target market for CBG 
is the supply of upgrading equipment to clean biogas produced from 
organic waste to produce biomethane suitable for injection into the 
natural gas grid (Biomethane to Grid, “BtG”) or use as a vehicle fuel. 
Of these uses, BtG is the key growth market for the business but 
government delays in announcing the Renewable Heat Incentive (“RHI”) 
held the market back. The RHI is necessary to enable BtG to compete 
with subsidised Combined Heat and Power (“CHP”) plants; the RHI was 
announced six months late, in March 2011 and has been the trigger  
for large utility companies to set up dedicated teams focused on BtG.  
As a result of this, CBG has seen a significant increase in the number  
of enquiries and tenders in the second half of 2011.
Conversion of enquiries and tenders into firm orders is slow as each 
project has a number of regulatory and planning hurdles to cross before 
contracts can be signed. CBG is well placed to win these projects, as we 
supplied the first successful upgrader on an award winning BtG project 
at Didcot in September 2010. Unlike our Competition, we are UK  
based and we are able to draw on the technical and developmental 
resources of Greenlane® Biogas, from whom we have a perpetual licence 
for the UK to sell and manufacture their world leading biogas  
upgrade technology. Timing of contracts is critical with an order  
to delivery period of eight to nine months for an upgrader; the period 
to 31 December 2011 will define sales in our 2012 financial year. 
As a result of this, the Board felt it prudent to halve our forecasts for 
upgrader sales for 2012 from four units to two units. 
Chesterfield BioGas’ close working relationship 
with Greenlane® Biogas allows the Group to offer 
low risk proven technology into the Biomethane 
to Grid market.
Partnership in Action
The next generation meets new technology; a graduate 
engineer commissioning the new automated brinell 
hardness testing machine at CSC. Hands on experience 
is a vital ingredient of the development of our 
apprentices and graduates and is an important part of 
career progression. The majority of senior managers in 
our manufacturing businesses started as apprentices.
Developing People
Whilst the downside risk on the timing of these two projects remains, 
we are confident in the medium and long term growth potential of  
this market.
The 2011 sales for CBG were all for vehicle refuelling with a trailer 
and a temporary filling station for Greenwich Council and two CNG 
filling stations taking methane from the gas mains for a major logistics 
company. Further progress is expected in this market in 2012 as the 
cost savings, substituting CNG for diesel, are reported to be high.
Acquisitions
The purchase of Al-Met and Hydratron has proved our capability 
in buying and integrating businesses into the Group. The strategy 
is straight forward, to acquire niche suppliers in pressure related 
technologies with manufacturing capabilities that overlap with the 
Group’s core skills in forging, machining and assembly and complement 
our expertise in designing and testing pressure systems.
The immediate priority is to strengthen the Engineered Products 
division. This will be centred on Hydratron and we are actively looking 
for businesses that extend Hydratron’s geographical presence or give 
vertical integration within the supply chain. The expansion of this 
division will further reduce the effects of the volatility of the Cylinder 
division on Group results. 
Summary and outlook
2011 was another tough year for the Group with the strong 
performance of the acquisitions in our Engineering Products division 
lessening the effects of slow market growth in CSC and CBG. We expect 
to see good growth in Engineered Products in 2012 and the return 
to growth in Cylinders accelerating into 2013. Major growth in our 
alternative energy business, CBG, will be delayed to 2013. The Group’s 
strong balance sheet and cash provide a sound platform from which to 
move forward. 
John Hayward
Chief Executive
6 December 2011 Business Review
Pressure Technologies plc
Annual Report 2011
16
Pressure Technologies plc
Annual Report 2011
17
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Principal Risks and Uncertainties
Specific principal risks identified by management are described below together with management actions to minimise these risks:
Key Performance Indicators (“KPI”)
Risk and Impact Management Strategy KPI’s
Market and Customer Concentration
The Group’s largest subsidiary, CSC, has its revenue concentrated on 
the deep water oil and gas sector. Changes in activity in this market, 
therefore, have a significant impact on Group results. Additionally, the 
number of customers in this market is low and loss of market share 
would have a significant impact on Group results.
Contract Delay
CSC earns a significant amount of its revenues from large contracts in 
the deepwater oil and gas and defence markets and CBG is a start-up 
business in the Biogas to Grid market. In most cases, individual 
contracts in these two divisions are material to Group revenues and 
the timing of such contracts is influenced by a number of factors 
outside the control of the Group.
Supplier Concentration
The Group derives a high proportion of its raw material supplies from 
a small number of key suppliers, some of whom are competitors.
Production Concentration
Each product group operates from a single manufacturing site.  
In the event of a prolonged interruption to operations, the Group  
may not have the ability to transfer its manufacturing activities to 
other facilities.
Equipment Concentration 
The Group has a number of large pieces of equipment at CSC for 
which it would be uneconomical to duplicate that equipment to 
guarantee continuity of supply in the case of major equipment failure. 
A failure in one of these key pieces of equipment could lead to a 
prolonged interruption to operations.
Staff Concentration
The Group is small and relies on a small number of key Directors, 
senior managers and specialists. A loss of a small number of such staff 
could have a major impact on Group revenues and development.
Banking Sector Risk
The Group holds significant bank balances and instability in  
the banking sector puts these funds at risk if a bank holding our 
deposits fails.
Foreign Currency
The Group purchases some of its raw materials in both US Dollars 
and Euros and receives payment for some of its products in Euros. 
Movements in exchange rates could potentially impact Group 
revenues.
Development of Markets, Products and Services
The Group has a three-fold strategy to reduce its exposure to this 
market. First, significant management resource is allocated to service 
the requirements of customers in this market to maintain customer 
loyalty. Second, CSC has development programmes for new products 
and services to dilute the proportion of total revenues into this market. 
Third, growing the other divisions of the Group both organically and  
by acquisition. 
Focused Project Management
Major contracts are managed through project teams to ensure all 
elements in the contract quotation and negotiation process that are 
under our control or influence are managed efficiently and effectively. 
However, the impact of the timing of contracts on half-year and  
full-year revenue remains a significant risk to the Group
Managing and Developing the Suppliers
To reduce the inherent risk of supply from competitors, requirements 
are split across the available supplier base. A constant review is 
maintained to identify alternative suppliers subject to constraints  
on pricing and quality.
Active Site Management
Health, safety and environmental risks which could result in site  
closure are managed on a day to day basis by a designated manager  
at each site. 
Active Equipment Management
Key pieces of equipment are subject to on-going maintenance 
programmes and strategic spares for critical components are held.  
There remains a risk that, if a major component for which spares cannot 
be held failed, operations could still see a prolonged interruption.
Succession Planning
As the business grows, increases in staff numbers make succession 
planning easier and recruitment is already carried out to ensure  
that skills and expertise can be duplicated.
Key man insurance is in place for the Group Chief Executive and  
Group Finance Director.
Use of Multiple Banks
The Group splits its cash deposits between three banks so that the 
failure of a single bank will not result in the loss of the total cash 
resources of the Group.
 
Hedging of Exchange Rate Exposures
The Group has natural hedges for much of its foreign currency exposure. 
Regular reviews of the net exposure are maintained and where it is 
deemed necessary the exposure is reduced by the use of forward 
exchange contracts subject to limits in the Group’s banking facility.
Summary and Calculation of KPI’s
The Board uses key performance indicators when assessing the 
performance of the Group. These KPI’s are divided into three sections. 
Shareholders 
Earnings per share is used as a measure of shareholder return. Earnings 
per share are calculated as profit for the period divided by the weighted 
average number of shares in issue.
Financial Performance 
Growth is measured in terms of sales revenue. The Group has a medium 
term target of achieving sales revenues of £40 million and each division 
has growth targets. The Group aims to progress towards the target 
of £40 million revenue through a combination of internal growth and 
acquisitions.
The efficiency of converting sales into profits is measured in terms 
of return on revenue. Return on revenue is calculated as operating 
profit divided by revenue and is stated after excluding CBG which is 
still considered to be in start-up mode (see note 1 for the detailed 
segmental analysis). The Group target return on revenue is 20%.
Corporate Social Responsibility 
This is sub-divided into two areas.
Health & Safety 
The measure used is reportable accidents where the target is Zero 
across the Group. 
Environment 
The measure used is number of reportable environmental incidents. 
Again, the target is Zero across the Group.
A full-time health, safety and environmental manager is employed 
by Chesterfield BioGas but has responsibility for these matters across 
the Group and reports directly to the Group Chief Executive on these 
matters.
Graphs of progress for each KPI are shown to the right.Environmental 
incidents are not graphed as there has been no reportable incident for 
the five year period. Comparative performance for 2011 and 2010 is:
  2011 2010
  £m £m
Shareholders Earnings per share 3.5p 22.3p
Financial  Sales revenue £23.1m £21.7m
performance Return on revenue 5.0% 18.1%
CSR   Reportable accidents Zero Zero
        Environmental incidents Zero Zero
Key issues are that revenues are recovering through growth acquisitions 
in the Engineered Products division which have compensated for a 
further revenue fall at CSC. The high level of fixed costs at CSC and the 
carrying costs of the Chesterfield BioGas start-up have depressed Group 
profits with a consequent effect on EPS. Actions to improve profitability 
are discussed in the Chief Executive’s statement on pages 10 to 15.
Earnings Per Share - Pence
10.9
2007 2008 2009 2010 2011
31.6
3.5
32.1
22.3
Revenue - £ million
15.1
2007 2008 2009 2010 2011
23.7
23.1
26.2
21.7
Return on Revenue - %
12.4
2007 2008 2009 2010 2011
20.8
5.0
20.1
18.1
Reportable Accidents - Number
0
2007 2008 2009 2010 2011
2
0
3
0 Governance 
Pressure Technologies plc
Annual Report 2011
18
Pressure Technologies plc
Annual Report 2011
19
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
RL Shacklady
Non-executive Chairman
JTS Hayward
Chief Executive
TJ Lister
Finance Director
PS Cammerman
Non-executive Director
NF Luckett
Non-executive Director 
Directors and Advisers
Company information
RL Shacklady
Non-executive Chairman (63)
Richard is a partner with RLS Associates where he works as a 
management consultant. He joined the Pressure Technologies business 
at the time of the MBO in 2004. He has extensive experience of working 
in several roles in the engineering sector, latterly as Managing Director 
of Doncasters UK Holdings plc. Richard is also the Non-executive 
Chairman of Langley Alloys Limited.
JTS Hayward
Chief Executive (50)
John has worked for the Company for 11 years, initially as Finance 
Director of Chesterfield Cylinders Limited before assuming additional 
directorial responsibility for the then Special Products division in 2000. 
He led the MBO in 2004 and then assumed the role of Chief Executive. 
John is a qualified accountant and has previously worked for Boots, 
Courtaulds, United Engineering Steels and T&N. He holds a degree in 
Physics from Oxford University.
TJ Lister
Finance Director (56)
James joined the Company in 2008. His previous engineering industry 
experience includes seven years with The 600 Group Plc in roles both 
as Group Financial Controller and as Finance Director of 600 Lathes. 
Prior experience included 15 years with Bridon in a variety of roles 
including Group Development Manager where he acted as the in house 
mergers and acquisitions manager. James is a qualified chartered 
accountant.
PS Cammerman
Non-executive Director (69)
Philip has over 20 years industrial experience in engineering and hi-tech 
industries and has worked in both the UK and USA. He spent 23 years 
in the venture capital industry, playing a major part in the development 
of the YFM Group into one of the most active investors in UK SME’s. 
He retired from all YFM Group businesses in April 2008. Philip is 
Chairman of the remuneration committee.
NF Luckett
Non-executive Director (69)
A qualified chartered accountant, Nigel is a former partner of Thomson 
McLintock & Co and latterly KPMG and has over 40 years of extensive 
corporate finance, insolvency and auditing experience. Since his 
retirement from KPMG in 1995 he has had a number of Non-executive 
Director and Chairman positions in the broad engineering sector. 
Nigel is Chairman of the audit committee.
Directors
RL Shacklady – Non-executive 
Chairman 
JTS Hayward – Chief Executive 
TJ Lister – Finance Director
PS Cammerman – Non-executive 
Director
NF Luckett – Non-executive Director
Secretary
TJ Lister 
Registered office
Meadowhall Road 
Sheffield 
S9 1BT
Registered number  
06135104
Website 
www.pressuretechnologies.co.uk
Nominated advisor
Fairfax I.S. PLC
46 Berkeley Square
London, W1J 5AT
Auditors
Grant Thornton UK LLP
Enterprise House
115 Edmund Street
Birmingham
West Midlands, B3 2HJ
Solicitors
hlw Keeble Hawson LLP 
Commercial House
Commercial Street
Sheffield, S1 2AT
Bankers  
Bank of Scotland 
14 Church Street 
Sheffield, S1 1HP
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield, HD8 0LA Pressure Technologies plc
Annual Report 2011
20
Pressure Technologies plc
Annual Report 2011
21
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Directors’ report
The Directors present their report and the audited financial statements for the period from 2 October 2010 to 1 October 2011.
Principal activities 
Pressure Technologies plc (“PT”) is the holding Company for the following Group operations:
Chesterfield Special Cylinders Limited (“CSC”) whose principal activities are the design, manufacture and reconditioning of seamless steel high pressure gas cylinders. 
Chesterfield Biogas (“CBG”) which was formed to market, sell and manufacture biogas upgrading equipment to produce high purity biomethane for use as a vehicle 
fuel or injection into the natural gas grid using technology licensed in perpetuity from Greenlane® Biogas of New Zealand.
Al-Met Limited whose principal activity is the manufacture of precision engineered valve components for use in the oil and gas industry. 
On 15 October 2010, PT acquired 100% of the issued share capital of the Hydratron Group of Companies. Hydratron’s principal activity is the design, manufacture 
and sale of a range of air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs. Further details of the acquisition 
are given in note 26 to the financial statements. 
Results and dividends
The consolidated statement of comprehensive income is set out on page 25. The profit on ordinary activities before taxation of the Group for the period ended  
1 October 2011 amounted to £0.578 million (2010: £3.506 million). 
An interim dividend of 2.4p per share was paid during the period (2010: 2.4p). The Directors recommend a final dividend of 4.8p per share (2010: 4.8p).
Business review
The Chairman and Chief Executive’s Statements on pages 6 to 15 give a detailed review of the current year’s performance.
The operational overview is contained in the Chief Executive’s Statement on pages 10 to 15.
The principal risks and uncertainties and key performance indicators are set out on pages 16 to 17.
Financial overview
• Revenues increased by 7% to £23.129 million (2010: £21.714 million).
• Gross profit decreased by 20% to £6.294 million (2010: £7.860 million) giving a gross margin of 27% (2010: 36%). 
• Operating profit has decreased to £1.031 million (2010: £3.677 million) before acquisition related costs of £0.382 million (2010: 0.191 million). 
• Profit before tax decreased to £0.578 million (2010: £3.506 million). 
• Basic earnings per share were down 84% at 3.5p (2010: 22.3p). 
• Net cash decreased to £2.897 million (2010: £6.475 million) following the purchase of the Hydratron Group of Companies for £2.5 million upon acquisition and 
the assumption of debt (net of cash) of £0.293 million.
• Capital expenditure on additions to fixed assets for the year was £1.147 million (2010: £0.643 million). 
Environment
Pressure Technologies recognises that its activities have an impact on the environment. Managing this impact is an integral part of responsible corporate governance 
and good management practice. The Group has developed environmental policies and the main points are listed below:
• Overall responsibility for the implementation of these policies is the responsibility of the main Board and the senior management at each Group Company. 
The Group will comply with both the letter and the spirit of relevant environmental regulations. Additionally, the Group will actively participate in industry and 
Governmental environmental consultative processes.
• The Group is committed to the continuous improvement of its environmental management system. Specifically the Group seeks to reduce waste and energy use 
and prevent pollution. 
• As part of continuous improvement, it is the policy of the Group to establish measurable environmental objectives and communicate these to all employees. 
These documented objectives will be periodically reviewed as part of the management review process. The necessary personnel and financial resources will be 
provided to meet these objectives.
• Employees are given such information, training and equipment as is necessary to enable them to undertake their work with the minimum impact on the 
environment.
The Group had no notifiable environment incidents in 2011.
Substantial shareholdings
As at 28 November 2011, the following held or were beneficially interested in 3% or more of the Company’s issued ordinary share capital: 
   Percentage of  
  Number of issued share 
  shares capital owned
D & A Income   1,045,000 9.2%
JTS Hayward   1,002,221 8.8%
Artemis   921,667 8.1%
Hargreave Hale   761,467 6.7%
JW Brown   625,454 5.5%
A Harding   588,333 5.2%
YFM Private Equity   483,633 4.3%
Unicorn    469,767 4.1%
PD Catton   463,333 4.1%
The Liontrust Intellectual Capital Trust   376,025 3.3%
PL Redfern   345,000 3.0%
South Yorkshire Investment Capital Fund    342,224 3.0%
Directors and their interests
The present Directors of the Company are set out on page 18 and 19. 
   1 October 2 October
   2011 2010
Ordinary shares   No. No.
RL Shacklady (including 22,500 shares held by his wife)   60,500 60,500
JTS Hayward   1,002,221 1,000,040
PS Cammerman    26,395 24,395
TJ Lister   3,750 3,750
NF Luckett (including 7,667 shares held by his wife)   52,000 52,000
Share options
On 28 July 2011, options were granted over 89,028 ordinary shares under the rules of the Pressure Technologies plc Save-As-You-Earn scheme at an exercise price of 
150p. These options are exercisable after 3 years and lapse 6 months after this date if they are not exercised. 
On 1 October 2011, there were 106,815 (2010: 67,938) outstanding and exercisable options under the Save-As-You-Earn scheme and a further 73,117 (2010: 73,117) 
outstanding and exercisable options under the Enterprise Management Plan.
The Directors’ interests in share options are as follows: 
  Date granted Number Option price
TJ Lister   18 August 2009 6,050 150p
TJ Lister   7 October 2009 51,612 232.5p
Financial instruments
The Group’s operations expose it to a variety of financial risks including the effects of changes in interest rates, foreign currency exchange rates, credit risk and  
liquidity risk. 
The Group’s principal financial instruments comprise cash and bank deposits together with trade receivables and trade payables that arise directly from its operations. 
The Group has entered into derivative transactions in the normal course of trade. It does not trade in financial instruments as a matter of policy.
Information about the use of financial instruments by the Company and its subsidiaries is given in note 20 to the financial statements. Pressure Technologies plc
Annual Report 2011
22
Pressure Technologies plc
Annual Report 2011
23
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Directors’ report continued
Donations
Donations made by the Group during the period for charitable purposes in the United Kingdom amounted to £3,120 (2010: £3,000).
Supplier payment policy
The Group’s policy is to comply wherever practical with the terms of payment agreed with its suppliers. The average creditor days were 43 (2010: 47) for the Group. 
The Company has no significant trade payables.
Directors’ indemnities
The Company maintains director and officer insurance cover for the benefit of its Directors which remained in force at the date of this report.
Employee involvement
It is the policy of the Group to communicate with employees by regular briefing meetings conducted by senior management. Career development is encouraged 
through suitable training and annual appraisals. The Group takes the approach of maximising performance through the heightening of awareness of corporate 
objectives and policies. 
Disabled persons
The Group gives full and fair consideration to applications for employment from disabled persons, where they have the necessary abilities and skills for that position, 
and, wherever possible, will retrain employees who become disabled so that they can continue their employment in another position. The Group engage, promote, 
and train staff on the basis of their capabilities, qualifications and experience, without discrimination, giving all employees an equal opportunity to progress.
Going concern
Management has produced forecasts for all business units which have been reviewed by the Directors. These demonstrate the Group is forecast to generate profits 
and cash in 2011/2012 and beyond and that the Group has sufficient cash reserves to enable the Group to meet its obligations as they fall due for a period of at least 
12 months from when these financial statements have been signed.
As such, the Directors are satisfied that the Company and Group have adequate resources to continue to operate for the foreseeable future. For this reason they 
continue to adopt the going concern basis for preparing the financial statements.
Post balance sheet events
There are no post balance sheet events to note.
Statement of Directors’ responsibilities for the financial statements
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group financial statements for each financial year. Under that law the Directors have prepared the Group’s financial 
statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs). Under company law, the Directors must not 
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Group for that period. The 
Directors have elected to prepare the parent Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP). 
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and prudent;
• for the Group financial statements, state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained in the financial 
statements;
• for the parent Company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed 
and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. 
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with 
reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 
2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and 
other irregularities.
In so far as each of the Directors is aware: 
• there is no relevant audit information of which the company’s auditors are unaware; and
• the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the 
auditors are aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the 
United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 
 
Auditors
Grant Thornton UK LLP are willing to continue in office and a resolution to reappoint them will be proposed at the Annual General Meeting.
Cautionary statement on forward-looking statements and related information
The annual report contains a number of forward-looking statements relating to the Group. The Group considers any statements that are not historical facts 
as “forward-looking statements”. They relate to events and trends that are subject to risks and uncertainties that could cause the actual results and financial 
position of the Group to differ materially from the information presented. Readers are cautioned not to place undue reliance on these forward-looking 
statements which are relevant only as at the date of this document.
By order of the Board
TJ Lister
Secretary
6 December 2011 Pressure Technologies plc
Annual Report 2011
25
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Pressure Technologies plc
Annual Report 2011
24
Report of the Independent Auditor 
to the members of Pressure Technologies plc
We have audited the financial statements of Pressure Technologies plc for the period ended 1 October 2011 which comprise the consolidated statement of 
comprehensive income, the consolidated and parent company balance sheets, the consolidated statement of changes in equity, the consolidated statement 
of cash flows and notes 1 to 26 to the Group consolidated financial statements and notes 1 to 11 to the parent Company financial statements. The financial 
reporting framework that has been applied in the preparation of the Group financial statements is applicable law and International Financial Reporting 
Standards (IFRSs) as adopted by the European Union. The financial reporting framework that has been applied in the preparation of the parent company 
financial statements is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 Part 16 of the Companies Act 2006. Our audit work has 
been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members 
as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
As explained more fully in the Directors’ Responsibilities Statement set out on pages 22 and 23, the Directors are responsible for the preparation of the 
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial 
statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the 
Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 1 October 2011 and of the Group’s 
profit for the period then ended; 
• the Group financial statements have been properly prepared in accordance with IFRS as adopted by the European Union;
• the parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the 
financial statements.
 Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not 
visited by us; or
• the parent Company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
David Munton
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Birmingham
6 December 2011
Consolidated statement of comprehensive income 
For the period ended 1 October 2011
  52 weeks Acquisition 52 weeks 52 weeks
  ending related costs ending ending
  1 October 1 October 1 October 2 October
  2011 2011 2011 2010
 Notes £’000 £’000 £’000 £’000
Revenue  1 23,129 — 23,129 21,714
Cost of sales  (16,835) — (16,835) (13,854)
Gross profit  6,294 — 6,294 7,860
Administration expenses 1 (5,263) (382) (5,645) (4,374)
Operating profit 1 1,031  (382) 649 3,486
Finance income 2   8 39
Finance costs 3   (79) (19)
Profit before taxation 4   578 3,506
Taxation  8   (177) (978)
Profit for the period     401 2,528
Exchange differences on translating foreign operations    (3) —
Total comprehensive income for the period attributable to the owners of the parent    398 2,528
Earnings per share  – basic 9   3.5p 22.3p 
– diluted 9   3.5p 22.2p
All the above results are from continuing operations.
The accounting policies and notes on pages 29 to 52 form part of these financial statements. Pressure Technologies plc
Annual Report 2011
26
Pressure Technologies plc
Annual Report 2011
27
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Consolidated balance sheet
As at 1 October 2011
   1 October 2 October
   2011 2010
  Notes £’000 £’000
Non-current assets 
Goodwill  11 1,964 272
Intangible assets  12 1,962 543
Property, plant and equipment  13 4,649 3,745
Deferred tax asset  21 245 229
Trade and other receivables  16 324 321
   9,144 5,110
Current assets 
Inventories  15 5,012 3,547
Trade and other receivables  16 6,471 6,601
Cash and cash equivalents   2,939 6,613
   14,422 16,761
Total assets  1 23,566 21,871
Current liabilities 
Trade and other payables  18 (6,260) (3,737)
Derivative financial instruments  17 — (21)
Borrowings  19 (33) (130)
Current tax liabilities   (190) (721)
   (6,483) (4,609)
Non-current liabilities 
Other payables  18 (744) (668)
Borrowings  19 (9) (8)
Deferred tax liabilities  21 (792) (679)
   (1,545) (1,355)
Total liabilities   (8,028) (5,964)
Net assets   15,538 15,907
Equity 
Share capital  22 567 567
Share premium account   5,369 5,341
Translation reserve   (3) —
Retained earnings   9,605 9,999
Total equity   15,538 15,907
The accounting policies and notes on pages 29 to 52 form part of these financial statements.
The financial statements were approved by the Board on 6 December 2011 and signed on its behalf by:
JTS Hayward
Director
Company number: 06135104
Consolidated statement of changes in equity
For the period ended 1 October 2011
  Share Profit
 Share premium and loss Translation Total
 capital account account reserve equity
 £’000 £’000 £’000 £’000 £’000
Balance at 3 October 2009 567 5,341 8,206 — 14,114
Dividends — — (771) — (771)
Share based payments — — 36 — 36
Transactions with owners — — (735) — (735)
Profit and total comprehensive income for the period — — 2,528 — 2,528
Balance at 2 October 2010 567 5,341 9,999 — 15,907
Dividends — — (816) — (816)
Share based payments — — 21 — 21
Shares issued — 28 — — 28
Transactions with owners — 28 (795) — (767)
Profit for the period — — 401 — 401
Exchange differences on translating foreign operations — — — (3) (3)
Total comprehensive income — — 401 (3) 398
Balance at 1 October 2011 567 5,369 9,605 (3) 15,538
The accounting policies and notes on pages 29 to 52 form part of these financial statements.
  Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Consolidated statement of cash flows
For the period ended 1 October 2011
   52 weeks ending 52 weeks ending
   1 October 2 October
   2011 2010
  Notes £’000 £’000
Operating activities 
Cash flows from operating activities  24 3,095 3,391
Finance costs paid   (23) (19)
Income tax paid   (896) (1,158)
Net cash inflow from operating activities   2,176 2,214
  
Investing activities 
Interest received   8 39
Purchase of property, plant and equipment   (1,147) (643)
Purchase of licence and distribution agreement   (800) —
Development costs incurred   (234) —
Purchase of subsidiary net of cash and cash equivalents  26 (2,164) (2,010)
Net cash used in investing activities   (4,337) (2,614)
 
Financing activities 
Repayment of borrowings   (725) (262)
Dividends paid   (816) (771)
Shares issued   28 —
Net cash outflow from financing activities   (1,513) (1,033)
Net decrease in cash and cash equivalents   (3,674) (1,433)
Cash and cash equivalents at beginning of period   6,613 8,046
Cash and cash equivalents at end of period   2,939 6,613
The accounting policies and notes on pages 29 to 52 form part of these financial statements.
Accounting policies
Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use in the European 
Union and IFRIC interpretations issued by the International Accounting Standards Board and the Companies Act 2006. The Company has elected to prepare its parent 
Company financial statements in accordance with UK Generally Accepted Accounting Practice (UK GAAP). These are presented on pages 53 to 56. 
The Group has applied all accounting standards and interpretations issued relevant to its operations for the period ending 1 October 2011. The consolidated financial 
statements have been prepared on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for derivative financial instruments which are carried at fair value. 
Standards and interpretations not yet applied by the Group
There are a number of standards and interpretations issued by the International Accounting Standards Board that are effective for financial statements after this 
reporting period. These standards will be effective in future periods:
• IFRS 9 Financial Instruments (effective 1 January 2013)
• IFRS 10 Consolidated Financial Statements (effective 1 January 2013)
• IFRS 11 Joint Arrangements (effective 1 January 2013)
• IFRS 12 Disclosure of Interests in Other Entities (effective 1 January 2013)
• IFRS 13 Fair Value Measurement (effective 1 January 2013)
• IAS 27 (Revised), Separate Financial Statements (effective 1 January 2013)
• IAS 28 (Revised), Investments in Associates and Joint Ventures (effective 1 January 2013)
• Disclosures – Transfers of Financial Assets – Amendments to IFRS 7 (effective 1 July 2011)
• Deferred Tax: Recovery of Underlying Assets – Amendments to IAS 12 Income Taxes (effective 1 January 2012)
• Presentation of Items of Other Comprehensive Income – Amendments to IAS 1 (effective 1 July 2012)
The application of these standards and interpretations is not expected to have a material impact on the Group’s reported financial performance or position. However, 
they may give rise to additional disclosures being made in the financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described below, the Directors are required to make judgements, estimates and assumptions about 
the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical 
experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and assumptions that have a material risk to the carrying value of assets and liabilities within the next financial year are discussed below:
Critical accounting judgements
Revenue recognition – Cylinders
The Group recognises revenue when the goods in question have finished production and passed any applicable factory and customer acceptance tests. Where goods 
remain on the Group’s premises at the year end at the request of the customer, management consider the detailed criteria for the recognition of revenue from the 
sale of the goods as set out in IAS 18 ‘Revenue’. In particular, consideration is given as to whether the significant risks and rewards of ownership are considered to have 
transferred to the buyer.
Capitalisation of development costs
The Group capitalises costs in relation to development projects where the requirements of IAS 38 ‘Intangible’ assets are met. This key judgement required to capitalise 
the costs is whether future revenues will exceed total forecast capitalised costs. Management make this judgement based on their knowledge of the project, the size 
of the market to which it can be sold and the expected demand for the project. Once capitalised, the assets are reviewed for impairment at each reporting date as 
explained below.
 
Impairment reviews – intangible assets
The Group has acquired, through business combinations and through other acquisitions, intangible assets and capitalised certain assets, such as licence agreements 
and development costs, which are expected to generate revenue in the future but at a reporting period end may not have generated significant income at that time. 
At each reporting period date, the Directors review the likelihood of the assets generating income, the period over which this is likely to be achieved and the potential 
income that can be generated. Where it is probable, the future fair value of income will be in excess of capitalised costs the assets are held within the balance sheet at 
cost. Where this is not the case, an impairment charge will be recorded to adjust the assets to fair value. Pressure Technologies plc
Annual Report 2011
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Pressure Technologies plc
Annual Report 2011
31
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Key sources of estimation uncertainty 
Inventory provisions
The Directors have reviewed the level of inventory provisions carried against inventory in the light of outstanding current and anticipated customer orders. The future 
realisation of carrying amounts is affected by whether the anticipated level of orders is achieved.
Trade receivable provisions
The Directors have reviewed the open trade receivable balances at the reporting period end and made provisions where recovery is assessed as doubtful based on 
knowledge of the customer, project and age of unrecovered debts. 
Basis of consolidation
The Group financial statements consolidate those of the Company and all of its subsidiary undertakings drawn up to 1 October 2011 (2010: to 2 October 2010). 
Subsidiaries are all entities over which the Group has the power to control the financial and operating policies. The Group obtains and exercises control through voting 
rights. The consolidated financial statements of the Group incorporate the financial statements of the parent Company as well as those entities controlled by the 
Group by full consolidation.
In addition, acquired subsidiaries are subject to application of the purchase method. This involves the revaluation at fair value of all identifiable assets and liabilities, 
including contingent liabilities of the subsidiary, at the acquisition date, regardless of whether or not they were recorded in the consolidated financial statements of 
the subsidiary prior to acquisition. On initial recognition, the assets and liabilities of the subsidiary are included in the consolidated balance sheet at these fair values, 
which are also used as the bases for subsequent measurement in accordance with the Group accounting policies. Goodwill represents the excess of acquisition cost 
over the fair value of the Group’s share of the identifiable net assets of the acquired subsidiary at the date of acquisition.
Intra-group balances and transactions, and any unrealised gains or losses arising from intra-group transactions, are eliminated in preparing the consolidated financial 
statements.
Business combinations and goodwill
The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities 
incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. 
Acquisition costs are expensed as incurred.
The Group recognises identifiable assets acquired and liabilities assumed, including contingent liabilities, in a business combination regardless of whether they have 
been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their 
acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of:
• fair value of consideration transferred;
• the recognised amount of any non-controlling interest in the acquiree; and
• acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. 
If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (ie gain on a bargain purchase) is recognised in profit or loss 
immediately.
Contingent consideration is recognised at its acquisition date fair value. Subsequent changes to this fair value resulting from events after the acquisition date are 
recognised through profit or loss.
 
Revenue
Revenue is measured by reference to the fair value of consideration received or receivable and arises from the sales of goods and services provided in the normal 
course of business, net of trade discounts, VAT and other sales-related taxes. Revenue from the sale of goods is recognised when the significant risks and benefits of 
ownership have been transferred to the buyer, which may be the date the goods are despatched to the customer, completion of the product or the product being ready 
for delivery based on specific contract terms; when the amount of revenue can be measured reliably; and when it is probable that the economic benefits associated 
with the transaction will flow to the Group.
Cylinders
In respect of revenue recognition within the Cylinders segment, revenue is recognised when the goods in question have finished production and passed any applicable 
factory and customer acceptance tests. Goods may not always have been despatched for revenue to be recognised provided the above criteria have been met.
Revenue from services provided by the Group, which does not represent a significant portion of the total revenue, is recognised when the outcome of the transaction 
can be estimated reliably and the Group has performed its obligations and, in exchange, obtained the right to consideration.
Engineered Products
In applying the above policy, revenue is recognised in the Engineered Products segment when production is complete, the goods are ready to be despatched and 
substantially all the risks and rewards associated with the product have passed to the customer. In the vast majority of cases, despatch takes place as soon as 
production has been completed.
Alternative Energy
Revenue is recognised in the Alternative Energy segment when the equipment has been installed and all tests of the equipment installed by the Group have been passed.
Share-based employee remuneration 
The Group operates equity-settled share-based remuneration plans for some of its employees. The Group’s plan does not feature any options for a cash settlement. 
All services received in exchange for the grant of any share-based payment are measured at their fair values. Where employees are rewarded using share-based 
payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted to the employee. This fair value is 
appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability and sales growth targets). 
All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to the profit and loss reserve. 
 
If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share 
options expected to vest. Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. Estimates 
are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior 
to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different 
to that estimated on vesting. Upon exercise of share options, the proceeds received net of any directly attributable transaction costs up to the nominal value of the 
shares issued are allocated to share capital with any excess being recorded as additional paid-in capital.
The cancellation of equity-settled share based payments is accounted for as an acceleration of vesting.
Dividends
Interim dividends are charged in the period in which they are paid. Final dividends are only provided when approved by the shareholders.
Property, plant and equipment 
Plant and equipment is stated at cost, net of depreciation and any provision for impairment. Depreciation is applied on a straight-line basis so as to reduce the assets 
to their residual values over their estimated useful lives. The rates of depreciation used are:
Plant and machinery 4 – 15 years
The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying amount of the asset and is 
recognised in the consolidated statement of comprehensive income.
Accounting policies continued Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Accounting policies continued
Intangible assets
Licence and distribution agreement
Intangible assets are recorded at cost, net of amortisation and any provision for impairment. The Group’s licence and distribution agreement is being amortised over 15 
years, being the period over which the Directors have assessed that significant revenues will be generated. 
Development costs
Development costs are recognised at cost, net of amortisation or provision for impairment, where the recognition requirements under IAS38 Intangible assets are met. 
These are:
• it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise; and
• the cost of the asset can be measured reliably.
These costs are capitalised up to the point development is complete and the asset is then amortised over the period which the asset is expected to generate income. If 
at any point the development costs fail to meet the recognition requirements of IAS 38, the costs are expensed through the statement of comprehensive income.
Intangible assets acquired as part of a business combination
In accordance with IFRS 3 ‘Business Combinations’, an intangible asset acquired in a business combination is deemed to have a cost to the Group of its fair value at the 
acquisition date. The fair value of an intangible asset reflects market expectations about the probability that the future economic benefits embodied in the asset will 
flow to the Group.
Such intangible assets are amortised on a straight-line basis over their estimated useful lives as follows:
Customer order book Over life of the order book – typically 1 year
Non-contractual customer relationships 5 years
Impairment testing of non-current assets
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). As a 
result, some assets are tested individually for impairment and some are tested at cash-generating unit level. An impairment loss is recognised for the amount by which 
the assets or cash-generating unit’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions 
less costs to sell, and value in use based on an internal discounted cash flow evaluation.
Leased assets
In accordance with IAS 17 ‘Leases’, the economic ownership of a leased asset is transferred to the lessee if the lessee bears substantially all the risks and rewards 
related to the ownership of the asset. The related asset is recognised at the inception of the lease at its fair value or, if lower, the present value of the lease payments. 
A corresponding liability is recognised when the interest element of the lease payments represents a constant proportion of the capital balance outstanding and is 
charged to profit or loss over the period of the lease. 
All other leases are treated as operating leases. Payments under operating leases are charged to the consolidated statement of comprehensive income on a straight-
line basis over the term of the lease. Lease incentives are spread over the term of the lease. Benefits received as an incentive to enter into an operating lease are spread 
over the lease term on a straight line basis.
 
Inventories
Inventories are stated at the lower of cost and net realisable value, on a first in first out basis. Cost includes materials, direct labour and an attributable proportion of 
manufacturing overheads based on normal levels of activity. Net realisable value is based on the estimated sales price after allowing for all further costs of completion 
and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate.
Income taxes
The tax expense represents the sum of the tax currently payable and deferred tax. Current tax is the tax currently payable based on taxable profit for the year.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying 
amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill nor on the initial recognition of an 
asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with 
shares in subsidiaries is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the 
foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax 
assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible 
temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are 
expected to apply to their respective periods of realisation, provided they are enacted or substantively enacted at the balance sheet date.
Changes in deferred tax assets and liabilities are recognised as a component of tax expense in the consolidated statement of comprehensive income, except where 
they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.
Accounting for financial assets 
The Group has financial assets in the following categories: 
• loans and receivables (trade and other receivables, cash and cash equivalents);
• financial assets at fair value through profit or loss (derivative financial instruments).
Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of the instrument and its purpose. A financial 
instrument’s category is relevant for the way it is measured and whether any resulting income and expenses are recognised in profit or loss or directly in equity.
All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets other than those categorised as 
at ‘fair value through profit or loss’ are recognised at fair value plus transaction costs. Financial assets categorised as at fair value through profit or loss are recognised 
initially at fair value with transaction costs expensed through the consolidated statement of comprehensive income. Changes in fair value due to subsequent 
measurement are recognised in profit or loss.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these 
are measured at amortised cost using the effective interest method, less provision for impairment. Impairment is considered where the balances are past due or 
where there is other evidence that a counterparty may default. Any gains or losses arising as a result of the impairment review are recognised in profit or loss. Pressure 
Technologies plc’s trade and most other receivables fall into this category of financial instrument. Discounting on loans and receivables is omitted where the effect is 
immaterial. However, where it is required, the asset is held at fair value after discounting and the difference is recognised in the profit and loss account under financing 
costs. Long term retentions due on contracts are the main balances where such treatment is required.
Receivables are considered for impairment on a case-by-case basis. 
 
Accounting for financial liabilities 
Financial liabilities represent a contractual obligation for the Group to deliver cash or other financial assets. Financial liabilities are initially recognised at fair value, 
net of issue costs, when the Group becomes a party to the contractual agreements of the instrument. All interest-related charges and, if applicable, changes in an 
instrument’s fair value that are reported in profit or loss are included in the consolidated statement of comprehensive income line items “finance costs” or “finance 
income”. The Group’s financial liabilities include borrowings, trade and other payables, and derivative financial instruments. All but the latter are measured at amortised 
cost using the effective interest rate method.
Derivative financial instruments
The Group has derivative financial instruments that are carried at fair value through profit or loss. The Group does not hedge account for these items.
Any gain or loss arising from derivative financial instruments is based on changes in fair value, which is determined by direct reference to active market transactions or 
using a valuation technique where no active market exists. The Group has foreign currency forward contracts that fall into this category. Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Accounting policies continued
Cash and cash equivalents 
Cash and cash equivalents comprise cash in hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible  
into known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts, where they form an integral part of the Group’s 
cash management.
Equity and reserves
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the 
Group are recorded at the proceeds received, net of direct issue costs. Share premium represents premiums received on issuing of share capital. Retained earnings 
include all current and prior year results as disclosed in the consolidated statement of comprehensive income and reserves note.
The translation reserve is used to record foreign exchange translation differences that occur as a result of the translation of overseas subsidiary undertakings’  
financial statements.
Retained earnings include all current and prior period results as disclosed in the consolidated statement of comprehensive income.
Foreign currency translation 
Foreign currency transactions are translated into the functional currency (being the currency of the primary economic environment in which the entity operates) of 
the respective Group entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from 
the settlement of such transactions and from the re-measurement of monetary balance sheet items at year-end exchange rates are recognised in the consolidated 
statement of comprehensive income. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at rates prevailing at the date 
when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. 
Pounds Sterling is the functional currency of all Group companies and the presentational currency of the consolidated financial statements.
The results of overseas subsidiary undertakings are translated at the average exchange rate (being an approximation to the rate at the date of transactions throughout 
the year) and the balance sheets of such undertakings are translated at the year-end exchange rates. Exchange differences arising on the retranslation of opening net 
assets of overseas subsidiary undertakings are taken to the translation reserve. On disposal of a foreign operation the cumulative translation differences are transferred 
to the consolidated statement of comprehensive income as part of the gain or loss on disposal.
 
Grants
Grants are recognised where there is reasonable assurance that the entity complies with the conditions attached to them. Grants relating to property, plant and 
equipment are treated as deferred income and released to the consolidated statement of comprehensive income over the expected useful lives of the assets 
concerned. Other grants are credited to the consolidated statement of comprehensive income in the same period as the related expenditure is incurred.
Pensions
The Group operates defined contribution schemes with costs being charged to the consolidated statement of comprehensive income in the period to which  
they relate.
Segment reporting
IFRS 8 requires operating segments to be identified on the basis of the internal reports about operating units of the Group that are regularly reviewed by the Chief 
Executive to allocate resources and to assess their performance. The Group operates three main operating segments which represent the main products and services 
provided by the Group:
• Cylinders: the design, manufacture and reconditioning of seamless high pressure gas cylinders.
• Engineered products: the manufacture of precision engineered valve components, air operated high pressure hydraulic pumps, gas boosters, power packs, 
hydraulic control panels and test rigs.
• Alternative energy: marketing, selling and manufacture of biogas upgrading equipment to produce high purity biomethane.
Each of these operating segments is managed separately as each requires different technologies, resources and marketing approaches.
The measurement policies used by the Group for segment reporting are the same as those used in its financial statements. Amortisation of intangible assets arising 
from business combinations and fair value adjustments arising from business combinations are allocated to the operating segment to which they relate.
In addition, corporate overheads and assets not directly related to the business activities of any operating segment are not allocated to a segment.
 
Notes to the consolidated financial statements
1. Segment analysis
The financial information by segment detailed below is frequently reviewed by the Chief Executive.
  Engineered Alternative Unallocated
 Cylinders Products energy amounts** Total
For the period ended 1 October 2011 £’000 £’000 £’000 £’000 £’000
Revenue
– from external customers 11,052 11,161 916 — 23,129
– from other segments 209 — — (209) —
Segment revenues  11,261 11,161 916 (209) 23,129
Operating profit/(loss) before acquisition costs  1,440 1,048 (456) (1,001) 1,031
Acquisition costs* — (382) — — (382)
Operating profit/(loss) 1,440 666 (456) (1,001) 649
Net finance costs (55) (21) 1 4 (71)
Profit/(loss) before tax 1,385 645 (455) (997) 578
Segmental assets 10,748 9,988 1,711 1,119 23,566
Other segment information:
Capital expenditure 504 411 232 — 1,147
Depreciation 248 248 22 — 518
  Engineered Alternative Unallocated
 Cylinders Products energy amounts** Total
For the period ended 2 October 2010 £’000 £’000 £’000 £’000 £’000
Revenue
– from external customers 18,976 2,034 704 — 21,714
– from other segments 118 — — (118) —
Segment revenues 19,094 2,034 704 (118) 21,714
Operating profit/(loss) before acquisition costs 4,753 46 (308) (814) 3,677
Acquisition costs* — (191) — — (191)
Operating profit/(loss) 4,753 (145) (308) (814) 3,486
Net finance costs (3) (8) — 31 20
Profit/(loss) before tax 4,750 (153) (308) (783) 3,506
Segmental assets 11,734 3,375 1,341 5,421 21,871
Other segment information:
Capital expenditure 525 — 118 — 643
Depreciation 186 115 14 — 315
*Acquisition costs include the amortisation of intangible assets acquired through an acquisition and fees associated with acquiring the entity.
**Unallocated amounts include central costs, central assets and unallocated consolidation adjustments.  Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
1. Segment analysis continued
The following table provides an analysis of the Group’s revenue by geographical destination. 
   2011 2010
Revenue   £’000 £’000
United Kingdom   11,828 3,112
Europe   4,850 5,363
Rest of the World   6,451 13,239
   23,129 21,714
 
The Group’s largest customer contributed 13% to the Group’s revenue (2010: 47%) which is reported within the Cylinders segment. The second largest customer 
contributed 12% to the Group’s revenue which is reported within the Engineered Products segment. No other customer contributed more than 10% (2010: the second 
largest customer contributed 10% to the Group’s revenue which is reported within the Cylinders segment). 
 
The following table provides an analysis of the carrying amount of segment assets, additions to property, plant and equipment and intangible assets for 2011. 
  United Rest of
  Kingdom the World Total
  £’000 £’000 £’000
Total assets  22,786 780 23,566
Additions to property, plant and equipment  1,147 — 1,147
Additions to intangible assets  1,800 — 1,800
The 2010 comparative has not been analysed separately by location as they were all located in the United Kingdom.
2. Finance income
   2011 2010
   £’000 £’000
Interest receivable on bank deposits   8 39
 
3. Finance costs
   2011 2010
   £’000 £’000
Interest payable on bank loans and overdrafts   (18) (16)
Interest payable on finance leases   (5) (3)
Fair value discounting adjustment on loans and receivables (note 16)   (56) —
   (79) (19)
 
4. Profit before taxation
Profit before taxation is stated after charging/(crediting):
    2011 2010
   £’000 £’000
Depreciation of property, plant and equipment – owned assets   481 293
Depreciation of property, plant and equipment – assets under finance lease and hire purchase agreements   37 22
Acquisition fees   94 66
Amortisation of intangible assets  – arising on a business combination   288 125 
 – licence and distribution agreement   83 80 
 – development costs   10 —
Amortisation of grants receivable   (32) (42)
Staff costs (see note 7)   5,761 3,020
Cost of inventories recognised as an expense   11,422 11,030
Operating lease rentals:
Land and buildings   531 548
Machinery and equipment   54 27
Foreign currency loss/(gain)    7 (98)
Fair value of derivative financial instruments   (21) 25
Write down of inventories to fair value less costs to sell   — 280
Notes to the consolidated financial statements continued
5. Auditors’ remuneration
   2011 2010
   £’000 £’000
Fees payable to the Company’s Auditor for the audit of the financial statements   11 11
Fees payable to the Company’s Auditor and its associates for other services:
– Audit of the Company’s subsidiaries pursuant to legislation   34 27
Fees payable to the Group’s Auditors for non-audit services:
– Tax services   13 14
– Review of Interim Financial Statements   11 10
– Other services   4 13
6. Directors’ emoluments
Particulars of Directors’ emoluments are as follows:
    Employers
 Salary and   national Total Total Pension Pension
 fees Benefits Bonus insurance 2011 2010 2011 2010
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Non-Executive: 
RL Shacklady  29 — — — 29 24 — —
NF Luckett 17 — — 2 19 17 — —
PS Cammerman 17 — — 2 19 17 — —
Executive: 
JTS Hayward 110 1 — 14 125 111 12 10
TJ Lister 91 2 — 12 105 94 10 9
Total emoluments 264 3 — 30 297 263 22  19
All the payments shown for R.L.Shacklady were paid to RLS Associates, a partnership which he controls.
Directors’ emoluments now include the cost of employers’ national insurance contributions and the comparative figures for 2010 have been adjusted to also include 
this cost. 
The number of Directors who are accruing benefits under money purchase pension arrangements is 2 (2010: 2). The Directors’ interests in share options are given in the 
Directors’ Report.
The Group believes that the Directors of Pressure Technologies plc are the only key management personnel under the definition of IAS 24 ‘Related party disclosures’.
In addition to the above, Directors have received dividends during the year as follows: 
   Total Total
   2011 2010
   £’000 £’000
Non-Executive:
RL Shacklady    4 4
NF Luckett   4 4
PS Cammerman   2 2
Executive:
JTS Hayward   72 68
TJ Lister   — —
Total dividends paid to Directors   82 78
  Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
7. Employee costs
Particulars of employees, including Executive Directors:
   2011 2010
   £’000 £’000
Wages and salaries   5,110 2,615
Social security costs   487 278
Other pension costs   143 91
Share based payments   21 36
   5,761 3,020
 
The average monthly number of employees (including Executive Directors) during the period was as follows:
   2011 2010
   No. No.
Production   128 78
Selling and distribution   19 7
Administration   18 10
   165 95
 
8. T axation
   2011 2010
   £’000 £’000
Current tax 
Current tax expense    227 1,007
Under provision in prior years   19 —
   246 1,007
Deferred tax
Origination and reversal of temporary differences    (69) (29)
Total taxation charge   177 978
Corporation tax is calculated at 27% (2010: 28%) of the estimated assessable profit for the period.
The charge for the period can be reconciled to the profit per the consolidated statement of comprehensive income as follows:
   2011 2010
   £’000 £’000
Profit before taxation    578 3,506
Theoretical tax at UK corporation tax rate 27% (2010: 28%)   156 982
Effects of: 
– non-deductible expenses   5 23
– adjustments in respect of prior years    19 (29)
– carry back of losses   — 2
– change in taxation rates   (3) —
Total taxation charge   177 978
 
9. Earnings per ordinary share
Basic and diluted earnings per share have been calculated in accordance with IAS 33, which requires that earnings should be based on the net profit or loss attributable 
to ordinary shareholders and the weighted average number of ordinary shares in issue during the period.
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue 
during the period.
The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares on the assumed conversion of all  
dilutive options. 
   2011 2010
   £’000 £’000
Profit after tax   401 2,528
 
   No. No.
Weighted average number of shares – basic   11,342,907 11,333,620
Dilutive effect of share options    21,215 74,633
Weighted average number of shares – diluted   11,364,122 11,408,253
Basic earnings per share    3.5p 22.3p
Diluted earnings per share    3.5p 22.2p
10. Dividends
The following dividend payments have been made on the ordinary 5p Shares in issue:
   Shares 2011 2010
 Rate Date in issue £’000 £’000
Final 2008/09 4.4p 12 March 2010 11,333,620 —  499
Interim 2009/10 2.4p 10 August 2010 11,333,620 —  272
Final 2009/10 4.8p 11 March 2011 11,333,620 544 —
Interim 2010/11 2.4p 10 August 2011 11,349,544 272 —
    816 771
At 1 October 2011, the 2010/11 final dividend had not been approved by Shareholders and consequently this has not been included as a liability. The proposed 
dividend of 4.8p per share is expected to be paid on 9 March 2012 at a total cost of £545,000.
 
11. Goodwill
    Total
    £’000
Cost  
At 4 October 2009    —
Additions    272
At 2 October 2010    272
Additions (note 26)    1,692
At 1 October 2011    1,964
Goodwill additions in the period arose on the acquisition of the Hydratron Group of Companies on 15 October 2010 and represents the excess of the fair value of the 
consideration given over the fair value of the identifiable net assets acquired, as detailed in note 26. 
    Original
   Date of cost
Engineered Product division   acquisition £’000
Al-Met Limited   February 2010 272
The Hydratron Group   October 2010 1,692
    1,964 Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
11. Goodwill continued
Goodwill arising on consolidation represents the excess of the fair value of the consideration given over the fair value of the identifiable net assets acquired. The Group 
has two separate cash generating units (CGUs) both held within the Engineered Product division, Al Met Limited and The Hydratron Group.
The Group tests annually for impairment, or more frequently if there are indicators that goodwill might be impaired. 
The recoverable amounts of the cash generating units (CGUs) are determined from value in use calculations, covering a four year forecast and applying a discount rate 
of 7.5% which equates to the Group’s weighted average cost of capital. The same discount rate is used for both CGUs due to the similarities of the businesses.
The forecast for year one is the forecast approved by management and used within the Group. The forecasts used for years two to four are conservative, with no 
assumed growth on year one cash flow figures. 
Management’s key assumptions are based on their past experience and future expectations of the market over the longer term.
The key assumptions for the value in use calculations are those regarding discount rates, growth rates and expected changes to selling prices and direct costs.
Apart from the considerations described in determining the value-in-use of the cash generating unit above, the Group management does not believe that possible 
changes on the assumptions underlying the value in use calculation would have an impact on the carrying value of goodwill.
After applying sensitivity analysis in respect of the results and future cash flows, in particular for presumed growth rates and discount rates, management believe that 
no impairment is required. Management is not aware of any other changes that would necessitate changes to its key estimates.
 
12. Intangible assets
 Licence and   Non contractual
 distribution Development Customer customer
 agreement expenditure order book relationships Total
 £’000 £’000 £’000 £’000 £’000
Cost 
At 3 October 2009 400 — — — 400
Additions — — 107 261 368
At 2 October 2010 400 — 107 261 768
Additions 800 234 90 676 1,800
At 1 October 2011 1,200 234 197 937 2,568
 
Amortisation 
At 3 October 2009 20 — — — 20
Charge for the period 80 — 90 35 205
At 2 October 2010 100 — 90 35 225
Charge for the period  83 10 107 181 381
At 1 October 2011 183 10 197 216 606
 
Net book value 
At 1 October 2011 1,017 224 — 721 1,962
 
At 2 October 2010 300 — 17 226 543
The period of the licence and distribution agreement was extended during the year from an initial period of five years to one of in perpetuity at a cost of £800,000. 
Development costs relate to internal projects incurred in the year which have been capitalised as they meet the recognition criteria of IAS 38 ‘Intangible Assets’.
The additions to customer order book and non-contractual customer relationships during the year relate to the acquisition of The Hydratron Group of Companies  
(note 26). 
 
13. Property, plant and equipment
    Plant and
    machinery
    £’000
Cost 
At 3 October 2009    4,351
Additions    643
Acquisitions    1,222
At 2 October 2010    6,216
Additions    1,147
Acquisitions (note 26)    275
At 1 October 2011    7,638
  
Depreciation 
At 3 October 2009    2,156
Charge for the period    315
At 2 October 2010    2,471
Charge for the period    518
At 1 October 2011    2,989
  
Net book value
At 1 October 2011    4,649
 
At 2 October 2010    3,745
Included within the net book value of £4,649,000 is £274,000 (2010: £385,000) relating to assets held under finance lease agreements. The depreciation charged to 
the financial statements in the period in respect of such assets amounted to £37,000 (2010: £22,000).
14. Subsidiaries
A list of the significant investments in subsidiaries, including the name, country of incorporation and proportion of ownership interest is given in note 4 to the Parent 
Company’s separate financial statements as listed on page 55.
15. Inventories
   2011 2010
   £’000 £’000
Raw materials and consumables   3,014 2,110
Work in progress   1,998 1,437
   5,012 3,547
Included in the total net value above are gross inventories of £835,489 (2010: £797,000) over which fair value provisions have been made of £519,000  
(2010: £517,000).
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
16. Trade and other receivables
   2011 2010
   £’000 £’000
Current
Trade receivables   5,826 4,997
Other debtors   46 159
Prepayments and accrued income   599 1,445
   6,471 6,601
 
   2011 2010
   £’000 £’000
Non-current
Accrued income   324 321
   324 321
Included in accrued income are debts not due for settlement for a number of years. Management have reviewed the book value of the assets and applied discounting 
to reduce the balances by £56,000 to a fair value of £324,000.
The average credit period taken on the sale of goods and services was 83 days (2010: 78 days) in respect of the Group. Three debtors accounted for over 10% of trade 
receivables and represented 11%, 10% and 10% of the total balance. In 2010, three debtors accounted for over 10% of trade receivables and represented 31%, 17% 
and 14% of the total balance. 
Ageing of past due but not impaired receivables:
   2011 2010
   £’000 £’000
Days past due:
0 – 30 days   1,002 446
31 – 60 days   218 89
61 – 90 days   31 330
91 – 120 days    — 12
121+ days   520 976
Total   1,771 1,853
 
Of the above receivables more than 121 days past their due date totalling £520,000, £428,000 relates to work carried out on two overseas naval contracts, for which 
no impairment provision is considered necessary. Since the financial year end, a payment of £100,000 has been received which settles in full the outstanding balance 
on one of these overseas naval contracts.
17. Derivative financial instruments
   2011 2010
   £’000 £’000
Derivatives carried at fair value not recognised for hedge accounting
– Forward foreign currency contracts   — (21)
Liability    — (21)
18. Trade and other payables
   2011 2010
   £’000 £’000
Amounts due within 12 months
Trade payables   2,271 1,748
Other tax and social security   222 85
Deferred consideration (note 26)   800 —
Accruals and deferred income   2,967 1,904
Total due within 12 months   6,260 3,737
 
Amounts due after 12 months
Other payables   376 371
Deferred income   368 297
Total due after 12 months   744 668
Other payables due after 12 months relate to rental lease incentives, the benefits of which are spread over the life of the lease.
Deferred income due after 12 months relates to grant income received. There are no unfulfilled conditions or other contingencies attached to these grants.
19. Borrowings
   2011 2010
   £’000 £’000
Secured borrowings
Net obligations under finance leases   42 138
Amounts due for settlement within 12 months   33 130
Amounts due for settlement after 12 months   9 8
 
The maturity profile of long-term loans is as follows:
   2011 2010
   £’000 £’000
Due within one year   33 130
Due within one to two years   9 8
   42 138
Obligations under finance leases are secured on the assets to which they relate.
The un-drawn committed borrowing facility and principal features of the Group’s borrowings are described in note 20 of these financial statements.
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
20. Financial instruments
Capital risk management
Pressure Technologies plc’s capital management objectives are to ensure the Group’s ability to continue as a going concern and to provide an adequate return to 
shareholders through the payment of dividends.
 
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 19, cash and cash equivalents and equity attributable to equity 
holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the consolidated statement of changes in equity.
   2011 2010
   £’000 £’000
Debt   (42) (138)
Cash and cash equivalents    2,939 6,613
Net cash   2,897 6,475
 
Equity   15,538 15,907
Debt is defined as long and short-term borrowings, as detailed in note 19. Equity includes all capital and reserves of the Group attributable to equity holders of  
the parent.
The Group is not subject to externally imposed capital requirements, other than the minimum capital requirements and duties regarding a serious reduction of capital, 
as imposed by the Companies Act 2006 on all public limited companies.
The Group held the following categories of financial instruments:
    2011 2010
   £’000 £’000
Financial assets
Loans and receivables:
– Trade receivables   5,826 4,997
– Cash and cash equivalents    2,939 6,613
   8,765 11,610
Financial liabilities
Fair value through profit and loss (FVTPL)
– Derivative instrument – forward currency contract not recognised for hedge accounting   — 21
Trade and other payables – held at amortised cost
– Trade payables   2,271 1,748
– Accruals and deferred income   2,967 1,904
Borrowings – at amortised cost   42 138
Deferred consideration   800 —
   6,080 3,811
 
The fair value of the financial instruments set out above is not materially different from their book value.
 
20. Financial instruments continued
Financial risk management objectives
Management monitor and manage the financial risks relating to the operations of the Group through regular reports to the Board. These risks include currency risk, 
interest rate risk, credit risk and liquidity risk.
The Group seeks to minimise the effects of currency risk by using derivative financial instruments. The use of financial derivatives is governed by the Group’s policies 
on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments and the investment of excess liquidity. 
The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Whilst the Group entered into forward 
currency contracts during the period to mitigate foreign currency risk, it did not apply hedge accounting. 
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, particularly in US Dollars and Euros, and interest rates. 
The Group enters into derivative financial instruments to manage its exposure to foreign currency risk. The level of long term borrowings in place at the year end is not 
significant to the Group.
Foreign currency risk management
The Group purchases its principal raw materials in US Dollars, Euros and Pounds Sterling and receives payment for its products in Euros, US Dollars and Pounds Sterling. 
After netting off foreign currency receipts and payments, there is a net exposure to the risk of currency movements both in US Dollars and Euros. Where necessary, the 
net exposure is hedged using forward contracts.
The carrying amounts of the Group’s foreign currency denominated monetary financial assets and monetary financial liabilities at the reporting date are as follows:
 Financial Financial Financial Financial 
 assets assets liabilities  liabilities 
 2011 2010 2011 2010 
 £’000 £’000 £’000 £’000
Australian Dollar 6 — 73 —
Euro 2,303 3,681 1,555 595
Norwegian Krone 4 4 — —
US Dollar 565 167 456 153
 2,878 3,852 2,084 748
  
Foreign currency sensitivity analysis
The Group’s exposure to a 10% exchange rate movement on its foreign currency denominated financial assets and financial liabilities is as follows:
 Australian Dollar Australian Dollar Euro currency Euro currency US Dollar US Dollar
 impact impact impact impact impact impact
 2011 2010 2011 2010 2011 2010
 £’000 £’000 £’000 £’000 £’000 £’000
Profit or loss 6  — 68 283 10 1
The use of a 10% movement in exchange rates is considered appropriate given recent movements in exchange rates.
A substantial amount of the Group’s sales and purchases are made in foreign currencies. The exposure to foreign exchange rates varies throughout the year depending 
on the volume and timing of transactions in foreign currencies.
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Pressure Technologies plc
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47
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
20. Financial instruments continued
Fair value hierarchy
Financial instruments carried at fair value are required to be measured by reference to the following levels:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived  
from prices); and
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the financial asset or liability is clarified is determined based on the lowest level of significant input to one fair value measurement. The only 
derivatives entered into by the Group are included in level 2 and consist of foreign currency forward contracts.
Forward foreign exchange contracts
The Group enters into forward foreign exchange contracts to cover specific foreign currency payments and receipts. The Group also periodically enters into forward 
foreign exchange contracts to manage the risk associated with anticipated sales and purchase transactions out to between 6-12 months. The Group does not hedge 
account for the forward currency exchange contracts.
At 1 October 2011, the Group had no outstanding forward exchange contracts (2010: contracts outstanding to purchase €2 million for £1,718,000).
The fair value of forward foreign exchange contracts at 1 October 2011 gave rise to a profit/loss of £nil (2010: loss of £25,000).
Interest rate risk management
Surplus cash is placed on short-term deposit.
If interest rates had been 0.5% higher/lower and all other variables were held constant, the impact on the results in the consolidated statement of comprehensive 
income and equity would be an increase/decrease of £11,000 (2010: £30,000).
Price risk management
Where possible the Group enters into contracts incorporating price escalation clauses to mitigate any significant exposure to material price risk.
Credit risk management
The Group’s credit risk is primarily attributable to its trade receivables. The two largest customers within trade receivables account for 21% (2010: 48%) of debtors. 
Management continually monitor this dependence on the largest customers and are continuing to seek acquisitions and are also developing new products, customers 
and markets to reduce this dependence. Credit risk is managed by monitoring the aggregate amount and duration of exposure to any one customer. The Group’s 
management estimate the level of allowances required for doubtful debts based on prior experience and their assessment of the current economic environment. The 
Group’s maximum exposure to credit risk is limited to the carrying value of financial assets recognised at the period end. The Group’s management considers that all 
financial assets that are not impaired or past due are of good credit quality.
The credit risk on liquid funds is minimized by using counterparty banks with high credit-ratings assigned by international credit-rating agencies. 
Liquidity risk management
The Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows and by matching 
the maturity profiles of financial assets and liabilities. 
 
20. Financial instruments continued
At 1 October 2011, the Group’s liabilities have contractual maturities summarised below:
 Current 
 within Current Non current Less future Total net 
 6 months 6-12 months 1 to 5 years interest payable 
2011  £’000 £’000 £’000 £’000 £’000
Trade and other payables 4,698 — 540 — 5,238
Amounts due under hire purchase agreements 21 13 9 (1) 42
Deferred consideration 400 400 — — 800
 5,119 413 549 (1) 6,080
 Current 
 within Current Non current Less future Total net 
 6 months 6-12 months 1 to 5 years interest payable 
2010 £’000 £’000 £’000 £’000 £’000
Trade and other payables 2,978 134 540 — 3,652
Amounts due under hire purchase agreements 77 54 8 (1) 138
Forward currency contracts 1,718 — — — 1,718
 4,773 188 548 (1) 5,508
The Group had an un-drawn bank overdraft facility available at 1 October 2011 of £2,000,000 (2010: £5,000,000) which is due for renewal on the 29 February 2012.
The following amounts have been recognised in the consolidated statement of comprehensive income in respect of derivative financial instruments:
   2011 2010
   £’000 £’000
Fair value through profit and loss (FVTPL)
– Derivative instrument – forward currency contract not recognised for hedge accounting   (21) 25
Amounts (credited)/charged to cost of sales within the consolidated statement of comprehensive income   (21) 25
 
Fair values
The fair values of financial assets and liabilities are determined as follows: 
– Outstanding foreign currency exchange contracts are measured using quoted forward exchange rates at the balance sheet date. The Group does not hedge account. 
The carrying value and fair value of the financial assets and financial liabilities are considered to be the same except for on certain debts due in more than 1 year as 
explained in note16.
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
21. Deferred tax
The following are the major deferred tax assets/(liabilities) recognised by the Group and movements thereon during the current and prior reporting period.
   Short term 
 Accelerated tax Intangible temporary Share Operating lease 
 depreciation assets differences option costs incentives Total 
 £’000 £’000 £’000 £’000 £’000 £’000
At 3 October 2009 (278) — (3) 6 89 (186)
Al-Met Acquisition (190) (103) — — — (293)
Credit/(charge) to income (143) 35 119 3 15 29
At 2 October 2010 (611) (68) 116 9 104 (450)
Hydratron Acquisition (28) (138) — — — (166)
Credit/(charge) to income (51) 104 15 — 1 69
At 1 October 2011 (690) (102) 131 9 105 (547)
 
The net deferred tax balance has been analysed as follows in the consolidated balance sheet:
   2011 2010
   £’000 £’000
Non-current asset
Deferred tax asset   245 229
Non-current liabilities
Deferred tax liabilities   (792) (679)
   (547) (450)
At the balance sheet date, the Group has unused tax losses held in a subsidiary company as disclosed below:
   Unprovided Unprovided
   2011 2010
   £’000 £’000
Trading losses   43 43
  
22. Called up share capital
 2011 2010 2011 2010
 No. No. £’000 £’000
Authorised  
Authorised ordinary shares of 5p each 15,000,000 15,000,000 750 750
Allotted, issued and fully paid  
Ordinary shares of 5p each 11,349,540 11,333,620 567 567
During the year, the Company issued 15,920 ordinary shares at a price of 176p increasing share capital by £796 and share premium by £28,000. These shares were 
issued to employees exercising their rights to acquire shares under the company’s SAYE/share option plan. 
 
23. Share based payments
Save-as-you-earn Scheme
Pressure Technologies plc introduced a share option scheme for all employees of the Group in November 2007. A third grant of options was made in July 2011. If the 
options remain unexercised after a period of 3 years and 6 months from the date of the grant, the options expire. Options are forfeited if the employee leaves the Group 
before the options vest. Members of the scheme are required to remain employees of the Group and make regular contributions. The first tranche of options, initially 
granted in November 2007, expired during the year.
Details of the share options outstanding during the period are as follows:
   2011 2010
   No. No.
Outstanding and exercisable at the beginning of the period    67,938 76,650
Granted during the period   89,028 —
Lapsed during the period   (2,516) (8,712)
Exercised during the period   (15,920) —
Expired during the period   (31,715) —
Outstanding and exercisable at the end of the period   106,815 67,938
The exercisable options outstanding at 1 October 2011 had a weighted average exercise price of 150p (2010: 168p) and a weighted average remaining contractual life 
of 2.5 years (2010: 0.7 years). The terms of these options are as follows:
 Options
 outstanding   Market value
 at 1 October Vesting at date of Exercise Exercise
Date of grant 2011 period grant (p) price (p) period
18 August 2009 17,787 3 years 178 150 6 months
28 July 2011 89,028 3 years 160 150 6 months
There are no performance conditions that apply to these options other than continued employment.
Pressure Technologies plc Performance Share Plan – Enterprise Management Plan 
Pressure Technologies plc introduced a share option scheme for senior employees of the Group in October 2009. On 7 October 2009, options were granted over 
116,127 ordinary shares under the rules of the Pressure Technologies plc Performance Share Plan – Enterprise Management Plan at an exercise price of 232.5p. These 
options are exercisable between 3 and 5 years following the date of grant. Options are forfeited if the employee leaves the Group before the options vest.
Details of the share options outstanding during the period are as follows:
   2011 2010
   No. No.
Outstanding and exercisable at the beginning of the period   73,117 —
Granted during the period   — 116,127
Lapsed during the period   — (43,010)
Outstanding and exercisable at the end of the period   73,117 73,117
The exercisable options outstanding at 1 October 2011 had a weighted average exercise price of 232.5p (2010: 232.5p) and a weighted average remaining contractual 
life of 1 year (2010: 2 years). The terms of these options are as follows:
 Options
 outstanding   Market value
 at 1 October Vesting at date of Exercise Exercise
Date of grant 2011 period grant (p) price (p) period
7 October 2009 73,117 3 years 232.5 232.5 6 months
There are no performance conditions that apply to these options other than continued employment. Pressure Technologies plc
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
23. Share based payments continued
The options granted have been valued using the Black-Scholes model. The inputs into the Black-Scholes model are as follows:
   Enterprise 
 Save-As Save-As Management Save-As 
Scheme: -You-Earn -You-Earn Plan -You-Earn 
Date granted: 30/11/07 18/08/09 07/10/10 28/07/11
Weighted average share price 220p 178p 232.5p 160p
Weighted average exercise price  176p 150p 232.5p 150p
Expected volatility 37.6% 32.7% 42.3% 45%
Expected life 3 years 3 years 3 years 3 years
Risk free rate 5.2% 4.6% 3.4% 3.5%
Expected dividend yield 0% 2.6% 2.8% 3%
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the period since the Group was admitted to AIM. The expected 
option value used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural 
considerations. The expected dividend yield was based on the Group’s dividend pay out pattern at the date of issue of the options.
The total charge to the consolidated statement of comprehensive income in the period in respect of share-based payments was £21,000 (2010: £36,000). A deferred 
tax charge of £nil (2010: £3,000) was recognised in the consolidated statement of comprehensive income during the period in respect of share based payments. 
24. Consolidated cash flow statement
   2011 2010
   £’000 £’000
Profit after tax   401 2,528
Adjustments for:
Finance costs/(income) – net   71 (20)
Depreciation of property, plant and equipment   518 315
Amortisation of intangible assets   381 205
Share option costs   21 36
Income tax expense   177 978
(Profit)/loss on derivative financial instruments   (21) 25
Foreign exchange movement   (3) —
Changes in working capital:
(Increase)/decrease in inventories   (235) 1,443
Decrease/(increase) in trade and other receivables   1,235 (1,673)
Increase/(decrease) in trade and other payables   550 (446)
Cash flows from operating activities   3,095 3,391
 
25. Financial commitments
(a) Capital commitments
Commitments for capital expenditure entered into were as follows:
   2011 2010
   £’000 £’000
Contracted for, but not provided in the accounts   112 161
 
(b) Operating lease commitments
The Group has entered into commercial leases on certain properties, motor vehicles and items of plant and equipment. At the balance sheet date, the Group had 
outstanding commitments for minimum lease payments under non-cancellable operating leases, which fall due as follows:
   2011 2010
   £’000 £’000
Land and buildings, leases expiring:
Within one year   601 475
In the second to fifth years inclusive   2,571 1,916
After more than five years   2,844 2,497
   6,016 4,888
 
Other assets, leases expiring:
Within one year   43 14
In the second to fifth years inclusive   23 4
   66 18
 
The operating lease commitment on land and buildings includes the following significant commitments:
• a 15 year lease commenced on 1 July 2005 with rent reviews every five years on the Group factory and offices at Meadowhall, Sheffield;
• a secondary 15 year lease commenced on the same date with rent reviews every five years for the end bays at Meadowhall, Sheffield;
• a third lease was entered into on 7 February 2010, expiring on the same date as the two leases above, for new offices at the above address;
• a 15 year lease for Al-Met Limited’s property commenced on 10 November 2010 with rent reviews at the end of year 5 and year 10 of the term; and
• Hydratron Limited’s10 year property lease commenced on 28 October 2010 and has a rent review at the end of year 5.
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Pressure Technologies plc
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Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the consolidated financial statements continued
26. Acquisition of subsidiary
On 15 October 2010, the Group acquired 100% of the issued share capital of the Hydratron Group of Companies for an initial cash consideration of £2.5 million to 
be followed by two deferred payments of £400,000 each payable on 15 October 2011 and 8 August 2012. Hydratron designs, manufactures and sells a range of air 
operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs. The transaction has been accounted for by the acquisition 
method of accounting.
   Intangible assets 
    recognised on  
  Book value acquisition Fair value 
  £’000 £’000 £’000
Net assets acquired:  
Property, plant and equipment  275 — 275
Intangibles  — 766 766
Inventories  1,230 — 1,230
Trade and other receivables  1,164 — 1,164
Cash and cash equivalents  336 — 336
Borrowings  (574) — (574)
Finance leases  (55) — (55)
Trade and other payables  (1,249) — (1,249)
Current tax liabilities  (119) — (119)
Deferred tax liability   (28) (138) (166)
  980 628 1,608
Goodwill    1,692
Total consideration    3,300
Satisfied by:  
Cash    2,500
Deferred cash consideration    800
    3,300
Net cash outflow arising on acquisition   
Cash consideration    2,500
Cash and cash equivalents acquired    (336)
    2,164
Acquisition fees of £94,000 were incurred in the year. These have been recognised in the consolidated statement of comprehensive income. 
The £574,000 borrowings in the acquired balance sheet relate to invoice discounting liabilities which were settled by the Group after acquisition and are included 
within the consolidated statement of cash flow under repayment of borrowings.
The intangible assets acquired with the business comprise £676,000 for non-contractual customer relationships and £90,000 for the order book. 
The goodwill arising on the acquisition of Hydratron is mainly attributable to the skills and talent of the workforce and the anticipated value of new business that the 
operation is capable of securing. 
The fair value of receivables shown above represents the gross contractual amounts receivable. These have now been collected in full.
The Hydratron Group contributed £6,531,000 to Group revenue and a profit before amortisation and tax of £457,000 for the period between the date of acquisition 
and the balance sheet date. The acquisition was completed on 15 October 2010 which is marginally later than the Group’s previous year end of 2 October 2010. The 
effect of the inclusion of the acquisition had it been completed on the first day of the financial year is considered to be immaterial upon the Group’s revenue and 
profit before tax.
   2011 2010
  Notes £’000 £’000
Fixed assets 
Investments  4 6,687 3,358
Intangible assets  5 — 300
   6,687 3,658
Current assets 
Debtors  6 4,097 403
Cash at bank and in hand   640 5,331
   4,737 5,734
 
Creditors: amounts falling due within one year  7 (1,354) (576)
Net current assets   3,383 5,158
Net assets   10,070 8,816
 
Capital and reserves 
Called up share capital  8 567 567
Share premium account  9 5,369 5,341
Equity – non distributable  9 50 41
Profit and loss account  9 4,084 2,867
Equity shareholders’ funds  10 10,070 8,816
The notes on pages 54 to 56 form part of these financial statements.
Approved by the Board on 6 December 2011 and signed on its behalf by:
JTS Hayward
Director
Company balance sheet
As at 1 October 2011 Pressure Technologies plc
Annual Report 2011
54
Pressure Technologies plc
Annual Report 2011
55
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
Notes to the Company financial statements
1. Accounting policies
These financial statements have been prepared under the historical cost convention and in accordance with applicable UK accounting standards and the Companies 
Act 2006. Under section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own profit and loss account. The profit for the 
financial year dealt within the financial statements of the holding Company was £2,021,000 (2010: £1,746,000).
Investments
Investments in subsidiary undertakings are stated at cost subject to provision for impairment where the underlying business does not support the carrying value of the 
investment. Where the ownership of investments has been transferred between Group undertakings, this has been accounted for at nominal value under the provisions 
of merger relief.
Pensions
The Company makes contributions to a defined contribution scheme with costs being charged to the profit and loss account in the period to which they relate.
Share based payments
The share option programme allows Pressure Technologies plc to grant options to Group employees to acquire shares in Pressure Technologies plc. The fair value is 
measured at the date of granting the options and spread over the period during which the employees become unconditionally entitled to the options. The fair value 
of the options granted is measured using an option valuation model, taking into account the terms and conditions upon which the options were granted. The amount 
recognised as fair value is adjusted to reflect the actual number of share options that vest except where forfeiture is due only to share prices not achieving the 
threshold for vesting. Deferred taxation is recognised over the vesting period.
Where the individuals are employed by the parent Company, the fair value of options granted is recognised as an employee expense with a corresponding increase 
in equity. Where the individuals are employed by a subsidiary undertaking, the fair value of options to purchase shares in the Company that have been issued to 
employees of subsidiary companies is recognised as an additional cost of investment by the parent Company. An equal amount is credited to other equity reserves. 
This treatment is in accordance with UITF 44 and FRS 20: Share based payments.
2. Employees
Average weekly number of employees, including Executive Directors:
   2011 2010
   Number Number
Administration    4 4
Staff costs, including Directors: 
   2011 2010
   £’000 £’000
Wages and salaries   351 239
Social security costs   35 31
Other pension costs   19 22
Share based payments   12 12
   417 304
 
Further details of Directors’ remuneration are provided in note 6 to the consolidated financial statements.
3. Operating profit
The Auditors’ remuneration for the audit and other services is disclosed in note 5 to the consolidated financial statements.
 
4. Investments
    Investment
    in subsidiary
    companies
    £’000
Cost  
At 2 October 2010    3,358
Additions (see note 26 to the consolidated financial statements)    3,300
Acquisition costs    94
Inter-group transfer of shares in subsidiary undertakings    (74)
Share options granted to subsidiary company employees    9
At 1 October 2011    6,687
  
The principal subsidiaries which are all 100% owned, are:
Name Country of incorporation Principal activity
Al-Met Limited England & Wales Manufacturing
Chesterfield BioGas Limited (“CBG”) England & Wales Manufacturing
Chesterfield Special Cylinders Limited (“CSC”) England & Wales Manufacturing
Hydratron Limited England & Wales Manufacturing
Hydratron Inc USA Manufacturing
 
The trade and assets of the biogas division of CSC were transferred to CBG with effect from 3 October 2010.
5. Intangible assets
    Licence and 
    distribution
    agreement
    £’000
Cost  
At 2 October 2010     400
Transfer to CBG     (400)
At 1 October 2011    —
  
Amortisation 
At 2 October 2010    100
Transfer to CBG    (100)
At 1 October 2011    —
  
Net book value 
At 1 October 2011    —
  
At 2 October 2010    300
  
The licence and distribution agreement was transferred to CBG at book value during the year.
6. Debtors
   2011 2010
   £’000 £’000
Amounts: falling due within one year
Prepayments and accrued income   49 41
Amounts owed by Group companies   4,048 362
   4,097 403 Pressure Technologies plc
Annual Report 2011
56
Pressure Technologies plc
Annual Report 2011
57
Company Overview  01-09
Business Review  10-17
Governance  18-23
Financial Statements  24-56
7. Creditors: amounts falling due within one year
   2011 2010
   £’000 £’000
Trade creditors   24 35
Other tax and social security   14 7
Accruals and deferred income   53 69
Deferred consideration   800 —
Amounts owed to Group companies   463 465
   1,354 576
 
8. Share capital
Details of the Company’s authorised and issued share capital and of movements in the year are given in note 22 to the consolidated financial statements.
9. Reserves
 Share  Profit Share  Profit 
 premium Equity – non and loss premium Equity – non and loss 
 account distributable account account distributable account 
 2011 2011 2011 2010 2010 2010 
 £’000 £’000 £’000 £’000 £’000 £’000
At beginning of period 5,341 41 2,867 5,341 20 1,880
Profit for the financial period — — 2,021 — — 1,746
Share option costs — — 12 — — 12
Share options granted to subsidiary employees — 9 — — 21 —
Shares issued 28 — — — — —
Dividends — — (816) — — (771)
At end of period 5,369 50 4,084 5,341 41 2,867
 
10. Reconciliation of movements in equity shareholders’ funds
   2011 2010
   £’000 £’000
Equity shareholders’ funds at beginning of period   8,816 7,808
Profit for the financial period   2,021 1,746
Dividends paid   (816) (771)
Share option costs   12 12
Share options granted to subsidiary employees   9 21
Share issued   28 —
Equity shareholders’ funds at end of period   10,070 8,816
11. Related party transactions 
The company has taken advantage of the exemption available under FRS 8 not to disclose transactions with fellow members of the Pressure Technologies plc Group.
The interests of Directors’ in dividends paid during the year are disclosed in note 6 to the consolidated financial statements.
Design and Production
www.carrkamasa.co.uk
Photography
Charlie Fawell
Print
www.thecolourhouse.com
Printed on Revive 50:50. This paper comes from sustainable 
forests and is fully recyclable and biodegradable. Made from 50% 
recovered waste and 50% virgin fibre. The manufacturers of the 
paper and the printer are accredited with ISO 14001 environmental 
management system.
Notes to the Company financial statements continued Pressure Technologies plc
Meadowhall Road 
Sheffield 
S9 1BT
UK
Telephone +44 (0) 114 242 7500
Fax +44 (0) 114 242 7502
www.pressuretechnologies.co.uk