pressure technologies plc 
annual report 2012
a leading designer and manufacturer of 
engineering solutions for high pressure markets
pressure technologies plc annual report 2012  developing profitable  
 acquisition opportunities
clear group acquisition criteria
	 minimise risk by focusing on closely related 
technologies and markets with overlapping 
customer base
	 profitable businesses with significant growth 
prospects
	 stable management teams capable of 
delivering growth
rapid integration of management and  
financial control
achieving our goals through  
a clear business strategy
delivery
 developing profitable organic  
 growth opportunities
structured development programmes with 
project champions subject to regular group 
review
minimise risk through evolutionary 
development
“lean” business specialists at all operating  
companies to focus on total quality and profit 
maximisation
goal
to build a highly profitable 
group of companies 
specialising in technology  
for the containment and 
control of liquids and gases  
in pressure systems
strategy
to identify and develop 
profitable niche opportunities 
in growth sectors for pressure 
products and services through 
a combination of organic 
growth and acquisitions
 identifying opportunities  
 organic and acquisition
internal focus draw from group knowledge 
market research and attending trade events
external focus capitalise on feedback from 
customers agents distributors and suppliers
our strategy
1
2
3
pressure technologies plc  annual report 2012 a leading designer and manufacturer 
of high pressure engineering systems 
serving the global energy defence and 
industrial gases markets
delivered
	 record revenue of £304 million 2011 £231 million
	 operating profit post acquisiton costs and related 
amortisation at £18 million 2011 £07 million
	 pretax profit of £18 million 2011 £06 million
	 basic earnings per share 112p 2011 35p
	 adjusted earnings per share of 125p 2011 62p
	 operating cash flow of £19 million 2011 £09 million 
	 year end net funds of £27 million 2011 £29 million
	 proposed final dividend of 50p per share 2011 48p 
giving a total dividend of 75p per share 2011 72p
balanced
	 engineered products  poised to become largest part  
of the group
	 cylinders  significant increase in rig and drillship activity 
and strong growth in service offerings
	 alternative energy  ready for rapid expansion with 2013 
being the crucial year
growing
	 strong order books and pipeline for cylinders and 
engineered products
	 alternative energy pipeline strong with number and size  
of projects increasing
	 focus on growing higher margin services in cylinders
	 new products planned for engineered products
	 engineered products focus on “on time in full” delivery  
to take market share
	 seeking selective acquisition opportunities
company overview
highlights 01
group structure 02
chairman’s statement 04
business review
chief executive’s statement 08
finance director’s report 14
key performance indicators 17
principal risks and uncertainties 18
governance
directors and advisers 20
directors’ report 22
report of the independent auditor to
the members of pressure technologies plc 26
 
financial statements
consolidated statement 
of comprehensive income 27
consolidated balance sheet 28
consolidated statement of changes in equity 29
consolidated statement of cash flows 30
accounting policies 31
notes to the consolidated financial statements 37
company balance sheet 54
notes to the company financial statements 55
01  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 group structure
the group is organised into three divisions 
cylinders chesterfield special cylinders 
engineered products hydratron and almet 
and alternative energy chesterfield biogas   
these divisions serve four markets oil and gas 
defence industrial gases and alternative energy
oil and gas defence
chesterfield special cylinders  engineered products chesterfield special cylinders  engineered products
£240m £22m 79 7
2011 £154m 2011 £45m 2011 67 2011 19
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 such that 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
sales into this market grew by 52 in 2012 this was due to a combination 
of  the resurgence of deepwater oil rig and drillship building where the 
cylinder division supplies air pressure vessels and an increase in oil well 
test and control panels sales in the engineered products division
the engineered products division has experienced a significant upturn in
orders into 2013 as investment in oil well production equipment has led
to an increasing requirement for the division’s products particularly wear
parts for subsea trees 
the cylinder division as well as serving the new equipment market  
is also able to offer a range of insitu inspection services that give
reductions in cost and time for statutory pressure vessel retesting
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 worldwide 
reputation for our expertise we also supply small steel cylinders 
into the military aerospace sector and our engineered products 
division supplies test equipment into the uk defence sector 
2012 saw a reduction of sales into this market due to delivery phasing on
naval projects orders were won for cylinders for the astute 6 submarine
and insitu inspection services have been extended into this market
in the defence aerospace market the cylinder division won a prestigious 
order to supply oxygen cylinders for the f22 raptor in the us
 of group revenue  of group revenue sales sales
1
2
3
copyright
©
 2010 bae systems 
02  pressure technologies plc  annual report 2012 key
   agents and distributers
   manufacturing and sales
manufacturing sales and distribution
alternative energy industrial gases
the group provides a range of equipment for the upgrade of  
biogas to biomethane for injection into the gas grid licensed  
to our chesterfield biogas subsidiary by world market leading
greenlane
®
 biogas
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  
an order for a second upgrader was won in 2012 and delivery of this was 
completed shortly after the financial year end
the slow development of this market was due to the late confirmation 
of the level of the renewable heat incentive  by government which 
allows the technology to compete on a level playing field with subsidised 
combined heat and power plants confirmation of  the level of this 
incentive has led to an increase in interest in upgrade projects by large 
utlity companies
chesterfield biogas chesterfield special cylinders  engineered products
£39m £03m 13 1
2011 4 2011 £09m 2011 £23m 2011 10
the industrial gases market has been an important market for the
cylinder division for over 100 years a diverse range of products  
and services are 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 and two
major bulk storage projects were delivered in 2012
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 and defence markets continued growth was 
maintained in our insitu testing service offering to this market
 of group revenue  of group revenue sales sales
1 head office
 chesterfield special cylinders
1  chesterfield biogas
2  hydratron ltd
3  almet
4  hydratron inc
5  csc german sales office
4
5
03  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 richard l shacklady
chairman
i am pleased to report that the group has delivered a much 
improved performance for the year ended 29 september 2012 
with a continuation of the recovery previously reported in the 
first half interim statement
we begin the new financial year with solid order books in our 
two main divisions engineered products and cylinders and a 
number of contracts stretching beyond the current financial year 
underpinning our confidence in the medium term prospects 
for the group whilst the oil and gas market remains the largest 
sector for the group the businesses are now better balanced 
both by product sector and customer geographic location
the strength of the group’s balance sheet underpins the board’s 
strategy for the growth of the group our prime objective is to 
penetrate select growth market sectors which offer synergies to 
our core businesses and provide niche design and technology 
driven high margin products for critical applications through 
organic development programmes or by acquisition
results
group revenues for the year ended 29 september 2012 
increased almost 32 to a record £304 million from  
£231 million in 2011 profit before taxation saw a threefold 
increase to £18 million from £06 million in 2011 giving basic 
earnings per share of 112p compared to 35p
we continue to maintain a strong balance sheet through 
focussing on operating cash and working capital controls  
across the group’s divisions and net cash at the year end  
was £27 million after outflows of £08 million on deferred 
acquisition costs compared to £29 million in 2011
chairman’s statement
04  pressure technologies plc  annual report 2012 given our strong balance sheet and confidence in the medium 
term prospects for the group the board is proposing a final 
dividend of 50 pence per share giving a total of 75 pence per 
share for the year this represents an increase of 4 over 2011 
if approved the final dividend will be paid on 8 march 2013 to 
shareholders on the register at the close of business on  
15 february 2013
the board is committed to maintaining a progressive  
dividend policy
trading
demand from the global offshore oil and gas drilling operators 
has continued to firmup reflecting a return to higher levels of 
exploration and production by the major oil and gas producers 
in particular and activity levels generally across the wider 
industry
the group has significant interests in two sectors of this market 
deepwater oil and gas drilling equipment and oilfield well head 
equipment and controls including the rapidly developing subsea 
well head equipment sector 
our engineered products division which supplies the oilfield 
well head controls and equipment sectors has continued to 
benefit from sustained high levels of oil and gas production both 
onshore and offshore the subsea well head equipment sector 
experienced a period of flat demand for some six months and is 
now moving ahead strongly with new offshore fields moving into 
the production phase
as a niche engineering business it is vital that  
we continue to invest in our employees at all 
levels to ensure business continuity and growth  
in the uk we operate an extensive apprentice 
scheme and structured training programmes 
covering the whole spectrum from school  
leavers through to post graduate qualifications 
all senior engineering and operations managers 
in our uk based companies started their  
working life as apprentices
employee development is  
essential for our continued 
success
we begin the new financial year with solid order books in our two main divisions 
engineered products and cylinders and a number of contracts stretching 
beyond the current financial year underpinning our confidence in the medium 
term prospects for the group whilst the oil and gas market remains the largest 
sector for the group the businesses are now better balanced both by product 
sector and customer geographic location
05  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 the cylinder division has seen a significant increase in rig and 
drillship activity and in the defence sector we maintain our 
market leading position at home whilst increasing sales into 
overseas defence programmes further business has been 
secured from overseas navies and in the uk we have taken 
orders for bae’s astute boat 6 submarine as the uk mod source 
for inservice and after market cylinder maintenance and support 
for the royal navy we have responsibility for the management 
of throughlife capability for all high pressure cylinders including 
insitu inspection 
our facilities in the industrial gases storage and transportation 
market have been further developed resulting in record levels of 
activity in this sector and growing  penetration of new accounts 
this in turn provides the platform for further growth on the back 
of compressed natural gas cng and hydrogen being recognised 
across europe as alternatives to traditional fuels
we continue to believe that the best long term prospects for 
the group lie in the global energy markets and particularly 
in the equipment required for exploration and production of 
hydrocarbons 
in our alternative energy division chesterfield biogas has been 
very active throughout the year promoting and tendering for 
biogas upgrade plant and enjoys a high profile in this market  
demand for uk biogas upgrade plant is still in early phase 
development with so far limited conversion from the project 
stage which is very active into firm orders  
our second biogas upgrading installation however will be 
completed in the 1st quarter of the coming financial year and 
we are expecting to see a number of the outstanding major 
quotations converted into firm orders for delivery in mid 2013 
and beyond
chairman’s statement
continued
evolutionary product 
development gives low cost low 
risk organic growth opportunities
across the group an evolutionary approach to 
product development is encouraged this not 
only minimises the costs of development but  
also reduces the risks inherent in launching  
new products pictured above is a helium leak 
test gas booster system launched by hydratron 
at the adipec 2012 trade show in abu dhabi  
an evolutionary development from the standard 
gas booster it allows precise concentrations of 
helium to be injected into pressure systems as 
part of leak testing
06  pressure technologies plc  annual report 2012 the board believes that there is major uk potential for this 
technology in the longer term however regular reviews on the 
division’s progress are being undertaken and we recognise that 
2013 is a crucial year for chesterfield biogas
prospects
the engineered products division is ready to deliver further 
growth the facility in north america has been restructured and 
is very well positioned to take advantage of a buoyant us market 
for its well control products additionally the seabed well control 
equipment market has rebounded after a period of stagnation 
and orders from this sector are particularly buoyant 
having recovered strongly in 2012 we expect growth in the 
cylinder division to moderate this year not least due to 
increased competition from the far east in the oil and gas 
market however the business does benefit from having a large 
forward order book market leadership in the defence sector  
and growth positions into diversified markets 
we will continue to seek acquisitions that suit our profile and will 
fit into and enhance the engineered products division it is now 
positioned both geographically and in product range to become 
a significant player in the oilfield control and equipment sector 
and we believe it is proving to be a platform for growth
richard l shacklady
chairman
4 december 2012 
we continue to believe that the best long term prospects for  
the group lie in the global energy markets and particularly in  
the equipment required for exploration and production  
of hydrocarbons 
07  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 pressure technologies “pt” or “group” has made considerable 
progress in the last 12 months we have delivered better results 
and have made improvements across the group to create a 
more balanced business portfolio this is highlighted by the 
expansion of sales in the engineered products division and the 
development of new service offerings in the cylinder division 
pt is growing and that growth is now better balanced across the 
group’s divisions and markets
chesterfield special cylinders “csc” grew strongly as a  
direct result of the resurgence in the building of deepwater 
semisubmersible oil rigs and drill ships following a prolonged 
downturn caused initially by the global financial crisis and 
exacerbated by the crisis of confidence following the sinking of 
deepwater horizon in the gulf of mexico in 2010 
air pressure vessels “apvs” for motion compensation systems 
on 10 drillship projects were delivered in the year compared 
to three in 2011 we currently have orders for seven projects 
in 2013 compared to six at the same stage last year however 
market dynamics have changed considerably and margins are 
under acute pressure from asian competition particularly south 
korea and we expect to see a declining market share for projects 
built in south korean shipyards this is compounded by a weaker 
euro as sales into this market are euro denominated 
we are however actively pursuing opportunities with a number 
of new entrants into the motion compensation system market 
who need the design expertise of csc opportunities will also 
open up away from south korea as brazil expands shipyard 
capacity to build oil rigs and drillships
chief executive’s statement
john hayward
chief executive
cylinder division
sales £163 million 2011 £110 million
operating profit £23 million 2011 £15 million
net assets £68 million 2011 £69million
08  pressure technologies plc  annual report 2012 as expected sales into the naval defence market were materially 
lower than in 2011 as a result of the phasing of projects rather 
than a downturn in the market in august csc won the contract 
to supply the high pressure cylinders for the sixth astute class 
submarine hms agamemnon which will be delivered over 2013 
and 2014 the order for cylinders for the seventh and final astute 
class submarine is expected in 2013 for delivery over 2014 
and 2015 and we have begun preliminary design work on the 
cylinders for the trident replacement 
we have continued focus on expanding our customer base in 
the naval defence market and have strengthened our design 
team with an experienced naval cylinder designer building on 
our expertise on cleanliness standards developed for the oil and 
gas industry we won a contract from bae to supply a service 
cleaning cylinders for oxygen containment this demonstrated 
csc’s technical capabilities and its flexibility the process was 
developed and capital equipment was procured and installed 
in a six week period to meet an urgent customer requirement 
csc is now planning to market this service to other potential 
customers building oxygen systems the contract to maintain 
the royal navy’s stores of high pressure cylinders won last year 
has expanded rapidly with a number of planned submarine refit 
projects increasing the value of this contract as well as giving 
more opportunity to sell insitu inspection services
the small cylinder market stabilised in the year with an increase 
in military aerospace spending which improved margins in this 
market the military market has been more resilient than we 
forecast and in august we were awarded the contract to supply 
steel high pressure cylinders on the initial build programme of 
the f22 raptor the development of the type iv composite has 
been successfully completed but as yet we have not identified 
a new commercial platform into which this can be built and 
consequently we have amortised the £224000 development 
costs incurred to date 
typical of this approach was an urgent new 
requirement from the us air force usaf 
for high pressure cylinders for its fleet of f22 
raptors the first delivery of csc’s cylinders 
to the usaf was accomplished in record time 
with csc receiving the order on a monday 
and the initial batch being delivered to seattle 
washington in time for test flights the following 
friday
flexibility and speed of response 
are critical order winning criteria 
for chesterfield special cylinders
2012 was a turning point for the group as we returned  
to growth and delivered market expectations
09  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 the balance was investment in a number of process 
improvements particularly in the forging and washing processes  
capital expenditure in 2013 is expected to be at a similar level  
to 2012 with the major focus being on process efficiency 
the key issue for csc is to develop high added value service 
offerings quickly to offset the effects of margin erosion from 
low cost competitors and the weak euro the business has the 
energy the expertise and the people to achieve this effectively 
the division is comprised of hydratron ltd in altrincham 
hydratron inc in houston texas and almet ltd in pontyclun 
south wales the hydratron businesses manufacture a range of 
air operated high pressure hydraulic pumps gas boosters power 
packs hydraulic control panels and test rigs mainly for use in the 
oil and gas sector almet produces wear resistant components  
in a range of high alloy steels and tungsten carbides for use in 
highpressure choke and flow control valves designed to regulate 
flow volumes in extremely demanding applications in the subsea 
and surface oil and gas industries 
hydratron ltd
hydratron ltd had an excellent year with sales growing by one 
third and operating profits doubling the sales design and 
development teams were strengthened during the year  
new products launched in the year included a 30000 psi pump 
for very high pressure testing applications a helium leak test gas 
booster system capable of injecting precise concentrations  
of helium and a pulse test system for testing aerospace  
pressure transducers 
this was always viewed as a long term development and we 
are well placed to move into the composite market as new 
opportunities arise
the high pressure trailer market saw a reduction in reconditioning 
and refurbishment due to the phasing of statutory inspection 
within the boc trailer fleet but we supplied two new trailers to  
air liquide and linde france overall sales were slightly higher 
and margins slightly lower as a result of the material content in 
the new trailers csc’s new sales manager in germany has 
made significant inroads with the large industrial gases 
companies in europe this coupled with the financial instability 
of a major european competitor puts csc in a strong position 
in this market with the forecast growth of the market for the 
transportation and bulk storage of hydrogen and cng the 
medium and long term prospects for this market are very 
promising 
our insitu inspection service grew fourfold in the year and we 
have a team solely dedicated to the development of this offering 
immediate opportunities for growth exist in the defence and 
oil and gas markets in the medium term the increase of high 
pressure bulk storage of hydrogen and compressed natural 
gas for alternative fuels will be a source for further growth 
insitu inspection creates a new revenue stream from the 
knowledge base of csc it is a high margin service offering which 
is not subject to the pricing pressures created by our low cost 
competitors in the ultra large cylinder manufacturing market
manufacturing continued to focus on “lean” initiatives a major 
review of trailer build was carried out creating significant 
improvements in strip down and build times a similar initiative 
is underway on the ultralarge finishing line these initiatives are 
team based owned and run by the shopfloor employees  
working on the product further investment was made in csc’s 
it systems with the introduction of a more sophisticated finite 
capacity scheduling system and shop floor data capture  
this allows efficient real time planning of resources to further 
improve efficiency the major items of capital spend in the year 
were the oxygen cleaning facility and replacement overhead 
cranes together these accounted for 50 of the total capital 
spend of £446000 
engineered products
sales £139 million 2011 £112 million
operating profit £10 million 2011 £10 million
net assets £77 million 2011 £65 million
chief executive’s statement 
continued
10  pressure technologies plc  annual report 2012 the latter project involved the recruitment of an electronics 
engineer giving the business selfsufficiency in the design and 
development of automated plc controlled systems several new 
product opportunities have been identified and an additional 
full time development engineer is being sought to speed up the 
development cycle 
the assembly section of the business was reorganised to  
split standard product assembly from the bespoke systems 
this has improved the efficiency of both areas due to the pace 
of growth in the business the operations manager role is to 
be split in january with the incumbent becoming technical 
manager responsible for design engineering and logistics and 
a new experienced lean manufacturing engineer joining as 
manufacturing manager responsible for the machining and 
assembly areas 
due to the nature of the business little capital expenditure is 
required it systems will be upgraded in 2013 but beyond that  
no other major spend is planned
hydratron has an excellent reputation for its design and build 
ability this allied to a strong sales team augmented by a 
distributor network in key market locations and the general  
level of market activity gives grounds for optimism of further 
progress in 2013
hydratron inc
hydratron inc after a good first half failed to deliver its second 
half order book profitably despite a 50 increase in sales  
we did not have sufficient management resources of the  
right calibre in the business which has now been remedied  
an experienced general manager was appointed in october 2012 
with the remit to grow the business profitably being located in 
houston the business is situated close to all the major oilfield 
wellhead equipment and control system manufacturers and is 
therefore in a prime location from which to grow it has already 
established a reputation for the same design and build capability 
as its uk sister company and is expected to make significant 
progress in 2013
hydratron’s range of test equipment for valves 
and hoses are not just used in the oil and 
gas market sales are regularly made into the 
industrial gases power and defence markets  
for component testing the product range  
was extended during the year to include  
pulse testing systems for life cycle testing  
of pressure transducers which gives exciting  
new opportunities in the aerospace and 
automotive markets 
high pressure component  
testing equipment opens new 
markets to hydratron
with immediate organic growth prospects the engineered 
products division is expected to become the largest part  
of the group within 18 months
11  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 almet
almet had a challenging year sales were at the same level as 
2011 but the phasing of these was very heavily skewed with 
low sales in the first half and a strong third quarter which tailed 
off into the fourth quarter concurrently market forecasts and 
customer orders for 2013 were showing a significant increase 
the decision was taken to hold the level of the shopfloor 
workforce and strengthen the management and engineering 
team with lean manufacturing specialists ahead of this increase 
as a result of these factors operating profits were down two 
thirds on 2011 the expected growth has materialised following 
these changes and the year end order book was 73 higher 
than at september 2011 and production schedules are full 
through to the end of february 2013 an additional afternoon 
shift has subsequently been recruited to meet the increased 
loading and reduce overtime 
there are two major reasons for this growth a significant 
proportion of almet’s turnover is wear parts for subsea tree 
valves this market is growing rapidly as more deepwater oil 
wells come on stream market forecasts and customer feedback 
suggest a 40 increase in this market in 2013 and continued 
growth into 2014 also a uk competitor ceased production in 
october which has compounded the increase 
as a division it was disappointing that operating profits did not 
grow year on year increased profits at hydratron ltd were offset 
by the reduction in profitability at almet and losses at hydratron 
inc the outlook for 2013 is good and i expect the benefits of 
the changes made in 2012 to feed through into improved profits 
in 2013 the organic growth opportunities for this division are 
immediate and we expect engineered products to become the 
largest division of the group in terms of sales revenues within 
the next eighteen months 
additionally we are pursuing a number of acquisition 
opportunities to add further breadth to the product range of  
the division 
in the medium to long term on time in full delivery “otif” 
remains the key to success for the division 
specific targeting of customers has proved that where delivery 
otif is met order intake improves in the current buoyant 
environment this advantage is masked by general growth but as 
our companies are significantly smaller than their competitors 
we expect to take market share even when markets are 
declining if we can consistently deliver otif
this was an important year for chesterfield biogas “cbg” our 
startup alternative energy equipment business an order was 
secured for an upgrader our second into the biogas to grid 
“btg” market this was due for installation in september 2012 
but a road accident which occurred during delivery damaged 
the equipment and delayed installation to october but for this 
operating losses would have been halved in the year more 
importantly confirmation by government of the structure of 
the renewable heat incentive “rhi” for btg has increased the 
number and size of potential projects
in previous years cbg has been quoting a handful of small 
“pilot” projects with larger projects only at the feasibility 
stage now quotations are more numerous and the project 
size has increased to fully commercial sized plants as large 
utility companies look to enter the market this matches the 
pattern experienced in other countries where adoption of this 
technology is more advanced 
alternative energy
sales £02 million 2011 £09 million
operating profits £05 million 2011 £05 million
net assets £16 million 2011 £17million
chief executive’s statement 
continued
12  pressure technologies plc  annual report 2012 summary and outlook
2012 was a turning point for pt as we returned to growth and 
delivered market expectations the result was underpinned by 
recovery in the cylinder division’s main market and the group’s 
other two divisions making significant progress this progress 
which has created a better balanced group is yet to be reflected 
in bottom line performance
looking to 2013 the cylinder division will face stiffer competition 
in its core oil and gas market and the challenge is to speed 
up the development of high added value services and new 
customers there is significant potential for revenue growth in 
the engineered products division which this year must lead to 
bottom line growth the alternative energy division chesterfield 
biogas appears set for major growth and 2013 will be the crucial 
year for this business 
the clear message is that pressure technologies delivered 
in 2012 it is a better balanced group growing strongly in 
market sectors where its expertise is recognised and valued 
seeking opportunities for further expansion through selective 
acquisitions  
john hayward
chief executive
4 december 2012 the group has wide areas of expertise in 
pressure containment and control this not only 
leads to the development of new products but 
also to the development of value added services 
for our customers for example at csc a service 
launched to support the management of retest 
and refurbishment of high pressure gas trailers 
has led to the launch of a service for the insitu 
inspection of cylinders to save our customers 
time and the expense of returning cylinders for 
statutory retest
development of added value 
services making knowledge pay
we have delivered better results and have made 
improvements across the group to create a more 
balanced business portfolio
13  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 finance director’s report
james lister
group finance director
overview
the group’s revenue grew to £304m 2011 £231m the growth 
was driven principally by a recovery in csc’s oil and gas business 
where sales increased from £43m to £109m and growth in the 
engineered products division
operating profit increased from £07m to £18m mainly as a 
result of the benefits to csc from operational gearing following 
the recovery in the level of their business with the oil  gas 
sector historically the group has benefitted from a high market 
share for cylinders used in deep water motion compensation 
systems but with increasing competition pricing and volume 
pressures are expected to be a feature going forward
the group seeks to target niche markets with good growth 
prospects and uses return on revenue as a key performance 
indicator our aim is a target return of 15 before taking  
account of the cost of acquiring subsidiaries and the  
subsequent amortisation of the intangible assets so acquired 
the alternative energy division is also excluded from this target 
as it is still considered to be in startup mode using this measure 
we achieved an 81 return in 2012 2011 67 with the 
expectation that this can be raised further with the benefits of 
lean manufacturing and operational gearing
foreign exchange
pt operates in international markets and accordingly accepts 
contracts denominated in currencies other than sterling
whilst the level of exposure at any point in time is dependent on 
the nature of individual contracts the group usually has a partial 
hedge in place as both purchases and sales are made in euro 
and also to a lesser extent in us dollars 
14  pressure technologies plc  annual report 2012 with the group’s manufacturing activities being based mainly in 
the uk management estimates that a 5 weakening of the euro 
against sterling would cost the group circa £02m in profit before 
tax in any one year the effect on the group of movements in the 
us dollar to sterling exchange rate as long as it is within normal 
parameters is not significant
at the end of september 2012 the group had contracts in  
place to sell euros 35m at an average exchange rate of 126  
to sterling 2011 nil
treatment of acquisition related costs in the engineered 
products division
the board intends to grow the group both organically and by 
acquisition and consequently both goodwill and intangible assets 
are expected to be a recurring theme within the annual financial 
statements
in the interest of clarity acquisition costs and the amortisation of 
intangible assets resulting from acquisitions is shown separately 
in the income statement the relevant costs for the last two 
years all of which relate to the engineering products division  
are as follows
 2012 2011
 £m £m
cost of acquiring hydratron — 01 
amortisation of intangible assets  
acquired with almet and hydratron 02 03
total 02 04
the remaining carrying value of these intangible assets totalling 
£05m will be amortised over the next three years
the effect on earnings per share of these adjustments is 
 2012 2011
earnings per share as reported 112p  35p
adjustment for acquisition costs  
and related amortisation 13p 27p
adjusted earnings per share 125p 62p
amortisation of other intangible assets
the cost of the chesterfield biogas licence and distribution 
agreement with greenlane biogas is being amortised over a  
period of 15 years this being the period over which significant 
revenues are expected to be generated
development costs incurred in the cylinder division in 2011 
totalling £02m have been expensed in 2012 as these costs no 
longer meet the recognition requirements of ias 38
taxation
the effective tax rate for the group in 2012 was 285  
2011 306 which is higher than the uk standard rate of  
25 due to the effect of unrelieved losses in the us 
the group seeks to target niche markets with good 
growth prospects with a target return on revenue 
of 15
15  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 finance director’s report
continued
cash flow
the group has a strong balance sheet with net funds of £27m 
2011 £29m and an unused overdraft facility of £2m 
the movement in cash flow can be summarised as follows
 
 2012 2011
 £m £m
earnings before interest tax depreciation
and amortisation ebitda 29 15
movement in working capital 04 16
capital expenditure net of disposals 06 12
development costs capitalised — 02
extension of biogas licence — 08
operating cash flow 19 09
 
acquisition of hydratron 
2012 deferred consideration paid 08 28
uk corporation tax paid 05  09
dividends paid 08 08
net movement 02 36
cash flow in 2012 was strongly positive at the operational level
the build up of working capital reflects the recovery in activity  
in csc and growth in the engineering products division
net capital expenditure at £06m was inline with the  
depreciation charge
the deferred consideration of £08m re the acquisition of 
hydratron was paid during 2012 there are no further deferred 
consideration payments to be made for either almet or 
hydratron
the acquisition of hydratron cost a total of £36m comprising 
purchase consideration of £33m and £03m of borrowings 
assumed on takeover in addition £01m of acquisition costs were 
expensed through the income statement in 2011
it is pleasing to note that in both of the last two years our 
acquisitions have generated profits of over £1 million on an initial 
outlay of £58 million including net borrowings assumed
james lister
group finance director
4 december 2012
16  pressure technologies plc  annual report 2012 key performance indicators “kpis”
the board uses key performance indicators when assessing the 
performance of the group these kpis are divided into three sections
earnings per share  pence
316
2008 2009 2010 2011 2012
321
112
223
35
revenue  £ million
237
2008 2009 2010 2011 2012
262
304
217
231
reportable accidents
2
2008 2009 2010 2011 2012
3
1
0 0
return on revenue  
208
2008 2009 2010 2011 2012
201
81
190
67
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 pre acquisition costs and related 
amortisation divided by revenue it is also stated after  
excluding chesterfield biogas which is still considered to  
be in startup mode see note 1 for the detailed segmental 
analysis the group target return on revenue is 15
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
corporate social responsibility csr
this is subdivided 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 fulltime 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
environmental incidents are not graphed as there has been  
no reportable incident for the five year period
17  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 risk and impact management strategy
market and customer concentration
the group’s largest subsidiary csc has its revenue 
concentrated in 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
competitive pricing pressures
csc operates in certain markets where its major competitors 
are based in low cost countries which have considerable cost 
advantages and they are able to undercut on pricing
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 startup 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
development of markets products and services
the group has a threefold 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 
reduced dependence on price sensitive business
the group has set minimum gross margin levels and does not 
reduce prices to unacceptable levels as experience indicates 
that these pressures reduce in the medium term product 
development is pursued in order to maintain a technical lead 
and a range of high value added service offerings is under 
development to reduce dependence on markets where 
this pricing pressure exists cost reduction through lean 
manufacturing and supplier development reduces the impact  
of pricing pressures
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 halfyear and fullyear revenue remains a significant risk to 
the group
principal risks and uncertancies
specific principal risks identified by 
management are described below 
together with management actions to 
minimise these risks
18  pressure technologies plc  annual report 2012 risk and impact management strategy
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
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
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 ongoing 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’s chief executive 
and group finance director
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
19  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 rl shacklady
nonexecutive chairman
jts hayward
chief executive
tj lister
finance director
ps cammerman
nonexecutive director
nf luckett
nonexecutive director 
directors and advisers
20  pressure technologies plc  annual report 2012 company information
rl shacklady
nonexecutive chairman 64
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 nonexecutive chairman of langley alloys 
limited
jts hayward
chief executive 51
john has worked for the company for 15 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 tn he holds a degree in physics from oxford 
university
tj lister
finance director 57
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
nonexecutive director 70
philip has over 20 years industrial experience in engineering  
and hitech 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
nonexecutive director 70
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 nonexecutive director and chairman positions 
in the broad engineering sector nigel is chairman of the audit 
committee
directors
rl shacklady – nonexecutive 
chairman 
jts hayward – chief executive 
ps cammerman – nonexecutive 
director
tj lister – finance director
nf luckett – nonexecutive 
director
secretary
tj lister 
registered office
meadowhall road 
sheffield 
s9 1bt
registered number  
06135104
website 
wwwpressuretechnologiescouk
nominated advisor
charles stanley securities
131 finsbury pavement
london ec2a 1nt
auditors
grant thornton uk llp
no 1 whitehall riverside
leeds ls1 4bn
solicitors
hlw keeble hawson llp 
commercial house
commercial street
sheffield s1 2at
bankers  
lloyds bank 
14 church street 
sheffield s1 1hp
registrars
capita registrars
northern house
woodsome park
fenay bridge
huddersfield hd8 0la
21  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 22  pressure technologies plc  annual report 2012
directors’ report
the directors present their report and the audited financial statements for the period from 2 october 2011 to 29 september 2012
principal activities 
pressure technologies plc “pt” is the holding company for the following group operations
cylinders
chesterfield special cylinders limited “csc” whose principal activities are the design manufacture testing and reconditioning of seamless 
steel high pressure gas cylinders 
engineered products
almet limited ‘almet’ whose principal activity is the manufacture of precision engineered valve components for use in the oil and gas 
industry 
the hydratron group of companies’ ‘hydratron ltd’ and ‘hydratron inc’ whose 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 
 
alternative energy
chesterfield biogas limited “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
results and dividends
the consolidated statement of comprehensive income is set out on page 27 the profit on ordinary activities before taxation of the group for 
the period ended 29 september 2012 amounted to £1778 million 2011 £0578 million 
an interim dividend of 25p per share was paid during the period 2011 24p the directors recommend the payment of a final dividend of 
50p per share 2011 48p
business review
the chairman and chief executive’s statements on pages 4 to 13 gives a detailed review of the current year’s performance
the operational overview is contained in the chief executive’s statement on pages 8 to 13
the financial review is contained in the finance director’s report on pages 14 to 16
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 2012 2011 nil 23  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
substantial shareholdings
as at 25 november 2012 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    1045000 92
jts hayward    1002221 88
artemis    921667 81
hargreave hale    770767 68
jw brown    625454 55
a harding    588333 52
unicorn    486767 43
yfm private equity    483633 43
investec    455710 40
the liontrust intellectual capital trust    381025 34
pl redfern    345000 30
south yorkshire investment capital fund     342224 30
directors and their interests
the present directors of the company are set out on pages 20 and 21 
    29 september 1 october
    2012 2011
ordinary shares    no no
rl shacklady including 22500 shares held by his wife    64500 60500
jts hayward    1002221 1002221
ps cammerman     33395 26395
tj lister    9800 3750
nf luckett including 7667 shares held by his wife    52000 52000
share options
on 23 february 2012 options were granted over 53156 ordinary shares under the rules of the pressure technologies plc performance share 
plan – enterprise management plan and 73089 ordinary shares under the rules of the pressure technologies plc performance share plan – 
share options plan both sets of options have an exercise price of 1505p these options are exercisable between 3 and 5 years following the 
date of grant 
on 6 august 2012 options were granted over 52440 ordinary shares under the rules of the pressure technologies plc saveasyouearn 
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 29 september 2012 there were 128537 2011 106815 outstanding and exercisable options under the saveasyouearn scheme 
104768 2011 73117 outstanding and exercisable options under the enterprise management plan and a further 73089 2011 nil 
outstanding and exercisable options under the share options plan
the directors’ interests in share options are as follows 
   date granted number option price
tj lister    7 october 2009 51612 2325p
tj lister    23 february 2012 73089 1505p
tj lister   6 august 2012 6000 1500p
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 consolidated financial statements 24  pressure technologies plc  annual report 2012
donations
donations made by the group during the period for charitable purposes in the united kingdom amounted to £3000 2011 £3120
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 34 
2011 43 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 engages promotes and trains 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 20122013 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 elected 
to prepare 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 and parent company 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 judgements 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 
directors’ report continued 25  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
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
the directors confirm that 
• so far as each director is aware there is no relevant audit information of which the company’s auditor is 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 auditor is 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 
 
auditor
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 forwardlooking statements and related information
the annual report contains a number of forwardlooking statements relating to the group the group considers any statements that are  
not historical facts as “forwardlooking 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 forwardlooking statements which are relevant only as at the date of this document
by order of the board
tj lister
secretary
4 december 2012 26  pressure technologies plc  annual report 2012
we have audited the financial statements of pressure technologies plc for the period ended 29 september 2012 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 25 to the group consolidated financial statements and notes 1 
to 10 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 24 and 25 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 wwwfrcorgukapbscopeprivatecfm
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 29 september 
2012 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
andrew wood
senior statutory auditor
for and on behalf of grant thornton uk llp
statutory auditor chartered accountants
leeds
4 december 2012
report of the independent auditor 
to the members of pressure technologies plc 27  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
consolidated statement of comprehensive income 
for the period ended 29 september 2012
    52 weeks  52 weeks
    ended ended
    29 september 1 october
    2012 2011
   notes  £’000 £’000
revenue    1 30442 23129
cost of sales    22704 16835
gross profit    7738 6294
administration expenses    5978 5645
operating profit pre acquisition costs and related amortisation   1 1950 1031
acquisition costs and related amortisation   4 190 382
operating profit post acquisition costs and related amortisation     1760 649
finance income   2 27 8
finance costs   3 9 79
profit before taxation   4 1778 578
taxation    8 507 177
profit for the period     1271 401
exchange differences on translating foreign operations    9 3
total comprehensive income for the period attributable to the owners of the parent   1280 398
earnings per share  – basic   9 112p 35p 
– diluted   9 112p 35p
all the above results are from continuing operations
the accounting policies and notes on pages 31 to 53 form part of these financial statements 28  pressure technologies plc  annual report 2012
    29 september 1 october
    2012 2011
   notes £’000 £’000
noncurrent assets
goodwill   11 1964 1964
intangible assets   12 1478 1962
property plant and equipment   13 4654 4649
deferred tax asset   21 110 245
trade and other receivables   16 152 324
    8358 9144
current assets
inventories   15 6922 5012
trade and other receivables   16 7257 6471
cash and cash equivalents    2693 2939
    16872 14422
total assets   1 25230 23566
current liabilities
trade and other payables   18 7651 6260
derivative financial instruments   17 23 —
borrowings   19 6 33
current tax liabilities    252 190
    7932 6483
noncurrent liabilities
other payables   18 655 744
borrowings   19 — 9
deferred tax liabilities   21 588 792
    1243 1545
total liabilities    9175 8028
net assets   1 16055 15538
equity
share capital   22 568 567
share premium account    5378 5369
translation reserve    6 3
retained earnings    10103 9605
total equity    16055 15538
the accounting policies and notes on pages 31 to 53 form part of these financial statements
the financial statements were approved by the board on 4 december 2012 and signed on its behalf by
jts hayward
director
company number 06135104
consolidated balance sheet
as at 29 september 2012 29  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
consolidated statement of changes in equity
for the period ended 29 september 2012
  share profit
 share premium and loss translation total
 capital account account reserve equity
 £’000 £’000 £’000 £’000 £’000
balance at 2 october 2010 567 5341 9999 — 15907
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 5369 9605 3 15538
dividends — — 829 — 829
share based payments — — 56 — 56
shares issued 1 9 — — 10
transactions with owners 1 9 773 — 763
profit for the period — — 1271 — 1271
exchange differences on translating foreign operations — — — 9 9
total comprehensive income — — 1271 9 1280
balance at 29 september 2012 568 5378 10103 6 16055
          
the accounting policies and notes on pages 31 to 53 form part of these financial statements 30  pressure technologies plc  annual report 2012
consolidated statement of cash flows
for the period ended 29 september 2012
    52 weeks  52 weeks
    ended ended
    29 september 1 october
    2012 2011
   notes £’000 £’000
operating activities
cash flows from operating activities   24 2573 3095
finance costs paid    9 23
income tax paid    514 896
net cash inflow from operating activities    2050 2176
investing activities
interest received    2 8
proceeds from sale of fixed assets    84 —
purchase of property plant and equipment    727 1147
purchase of licence and distribution agreement    — 800
development costs incurred    — 234
purchase of subsidiary net of cash and cash equivalents    — 2164
deferred purchase consideration    800 —
net cash used in investing activities    1441 4337
financing activities
repayment of borrowings    36 725
dividends paid    829 816
shares issued    10 28
net cash outflow from financing activities    855 1513
net decrease in cash and cash equivalents    246 3674
cash and cash equivalents at beginning of period    2939 6613
cash and cash equivalents at end of period    2693 2939
the accounting policies and notes on pages 31 to 53 form part of these financial statements 31  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
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 54 to 57 
the group has applied all accounting standards and interpretations issued relevant to its operations for the period ended 29 september 2012 
the consolidated financial statements have been prepared on a going concern basis
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 20122013 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
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 beginning on or after the dates given below these standards will be effective in future periods
• ifrs 9 financial instruments effective 1 january 2015
• 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
• presentation of items of other comprehensive income – amendments to ias 1 effective 1 july 2012
• mandatory effective date and transition disclosures – amendments to ifrs 9 and ifrs 7 effective 1 january 2015
• annual improvements 20092011 cycle effective 1 january 2013
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 specific recognition criteria 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 32  pressure technologies plc  annual report 2012
critical accounting judgements continued
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
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
basis of consolidation
the group financial statements consolidate those of the company and all of its subsidiary undertakings drawn up to 29 september 2012 
2011 to 1 october 2011 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
intragroup balances and transactions and any unrealised gains or losses arising from intragroup 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 acquisitiondate 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 acquisitiondate fair values which are also used as the bases for subsequent measurement in 
accordance with the group accounting policies
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 noncontrolling interest in the acquiree and
• acquisitiondate fair value of any existing equity interest in the acquiree over the acquisitiondate 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 salesrelated taxes revenue from the sale of goods is 
recognised when the significant risks and rewards 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
accounting policies continued 33  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
revenue continued
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
sharebased employee remuneration 
the group operates equitysettled sharebased 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 sharebased payment are measured at their fair values where employees are rewarded 
using sharebased 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 nonmarket vesting conditions for example 
profitability and sales growth targets 
all sharebased 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 nonmarket 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 paidin capital
the cancellation of equitysettled 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 straightline 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 34  pressure technologies plc  annual report 2012
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
• the project is technically and commercially feasible
• the group intends to and has sufficient resources to complete the projects
• the group has the ability to use or sell the asset 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 straightline basis over their estimated useful lives as follows
customer order book  over life of the order book – typically 1 year
noncontractual customer relationships  5 years
impairment testing of noncurrent assets
for the purposes of assessing impairment assets are grouped at the lowest levels for which there are separately identifiable cash flows  
cashgenerating units as a result some assets are tested individually for impairment and some are tested at cashgenerating unit level  
an impairment loss is recognised for the amount by which the assets or cashgenerating 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 where 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 straightline 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 slowmoving 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 35  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
income taxes continued
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 nonderivative 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 casebycase 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 after initial recognition 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
cash and cash equivalents 
cash and cash equivalents comprise cash in hand and demand deposits together with other shortterm 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 36  pressure technologies plc  annual report 2012
accounting policies continued
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 into the presentation currency of the consolidated 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 remeasurement of monetary balance 
sheet items at yearend exchange rates are recognised in the consolidated statement of comprehensive income nonmonetary 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  
nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated 
pounds sterling is the functional currency of the group and the parent company 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 yearend exchange rates 
exchange differences arising on the retranslation of opening net assets of overseas subsidiary undertakings are chargedcredited to other 
comprehensive income and recognised in the translation reserve in equity 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 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 37  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
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 29 september 2012 £’000 £’000 £’000 £’000 £’000
revenue
– from external customers 16306 13912 224 — 30442
operating profitloss before acquisition costs  2303 1017 494 876 1950
acquisition costs — 190 — — 190
operating profitloss 2303 827 494 876 1760
net finance incomecosts 26 8 — — 18
profitloss before tax 2329 819 494 876 1778
segmental net assets 6815 7703 1632 95 16055
other segment information
capital expenditure 446 275 6 — 727
depreciation 275 331 33 — 639
amortisation 224 190 70 — 484
  engineered alternative unallocated
 cylinders products energy amounts total
period ended 1 october 2011 £’000 £’000 £’000 £’000 £’000
revenue
– from external customers 11052 11161 916 — 23129
– from other segments 209 — — 209 —
segment revenues 11261 11161 916 209 23129
operating profitloss before acquisition costs 1440 1048 456 1001 1031
acquisition costs — 382 — — 382
operating profitloss 1440 666 456 1001 649
net finance incomecosts 55 21 1 4 71
profitloss before tax 1385 645 455 997 578
segmental net assets 6932 6486 1719 401 15538
other segment information
capital expenditure 504 411 232 — 1147
depreciation 248 248 22 — 518
amortisation 10 288 83 — 381
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 
segmental net assets comprise the net assets of each division adjusted to reflect the elimination of the cost of investment in subsidiaries 
and the provision of financing loans provided by pressure technologies plc 38  pressure technologies plc  annual report 2012
1 segment analysis continued
the following table provides an analysis of the group’s revenue by geographical destination 
    2012 2011
revenue    £’000 £’000
united kingdom    10307 11828
europe    4275 4850
rest of the world    15860 6451
    30442 23129
the group’s largest customer contributed 38 to the group’s revenue 2011 13 which is reported within the cylinders segment no other 
customer contributed more than 10 in the year to 29 september 2012
the second largest customer in the year to 1 october 2011 contributed 12 to the group’s revenue which is reported within the engineered 
products segment no other customer contributed more than 10 in the year to 1 october 2011
the following table provides an analysis of the group’s revenue by market 
    2012 2011
revenue    £’000 £’000
oil and gas    24051 15402
defence    2190 4472
industrial gases    3888 2339
alternative energy    313 916
    30442 23129
the following table provides an analysis of the carrying amount of segment assets additions to property plant and equipment for 2012 
   united rest of
   kingdom the world total
   £’000 £’000 £’000
total assets   24217 1013 25230
additions to property plant and equipment   706 21 727
there were no additions of intangible assets for 2012
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   22786 780 23566
additions to property plant and equipment   1147 — 1147
additions to intangible assets   1800 — 1800
notes to the consolidated financial statements continued 39  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
2 finance income
    2012 2011
    £’000 £’000
interest receivable on bank deposits    2 8
fair value discounting adjustment on loans and receivables note 16    25 —
    27 8
3 finance costs
    2012 2011
    £’000 £’000
interest payable on bank loans and overdrafts    3 18
interest payable on finance leases    6 5
fair value discounting adjustment on loans and receivables note 16    — 56
    9 79
4 profit before taxation
profit before taxation is stated after chargingcrediting
    2012 2011
    £’000 £’000
depreciation of property plant and equipment – owned assets    624 481
depreciation of property plant and equipment – assets under finance lease and hire purchase agreements  15 37
profit on disposal of fixed assets    1 —
acquisition costs – fees    — 94
amortisation of intangible assets  – arising on a business combination    190 288 
– licence and distribution agreement     70 83 
– development costs    50 10
impairment of intangible assets – development costs    174 —
amortisation of grants receivable    37 32
staff costs see note 7    6485 5761
cost of inventories recognised as an expense    15019 11422
operating lease rentals
– land and buildings    624 531
– machinery and equipment    44 54
foreign currency loss     134 7
fair value of derivative financial instruments    23 21
5 auditor’s remuneration
    2012 2011
    £’000 £’000
fees payable to the company’s auditor for the audit of the financial statements    14 11
fees payable to the company’s auditor and its associates for other services
– audit of the company’s subsidiaries pursuant to legislation    39 34
fees payable to the group’s auditor for nonaudit services
– tax services    13 13
– review of interim financial statements    10 11
– other services    5 4 40  pressure technologies plc  annual report 2012
notes to the consolidated financial statements continued
6 directors’ emoluments
particulars of directors’ emoluments are as follows
       employers employers
       national national
 salary and    total total insurance insurance
 fees benefits bonus pension 2012 2011 2012 2011
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
nonexecutive
rl shacklady  30 — — — 30 29 — —
nf luckett 20 — — — 20 17 2 2
ps cammerman 20 — — — 20 17 2 2
executive
jts hayward 122 1 — 13 136 127 16 14
tj lister 102 2 — 11 115 103 13 12
total emoluments 294 3 — 24 321 293 33  30
all the payments shown for rl shacklady were paid to rls associates a partnership which he controls
the number of directors who are accruing benefits under money purchase pension arrangements is two 2011 two 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
    2012 2011
    £’000 £’000
nonexecutive
rl shacklady     5 4
nf luckett    4 4
ps cammerman    2 2
executive
jts hayward    73 72
tj lister    — —
total dividends paid to directors    84 82
7 employee costs
particulars of employees including executive directors
    2012 2011
    £’000 £’000
wages and salaries    5729 5110
social security costs    545 487
other pension costs    155 143
share based payments    56 21
    6485 5761
the average monthly number of employees including executive directors during the period was as follows
    2012 2011
    no no
production    140 128
selling and distribution    19 19
administration    18 18
    178 165 41  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
8 taxation
    2012 2011
    £’000 £’000
current tax 
current tax expense     578 227
overunder provision in prior years    2 19
    576 246
deferred tax
origination and reversal of temporary differences     76 69
under provision in prior years    6 —
total taxation charge    507 177
corporation tax is calculated at 25 2011 27 of the estimated assessable profit for the period deferred tax is calculated at 23 2011 26
the charge for the period can be reconciled to the profit per the consolidated statement of comprehensive income as follows
    2012 2011
    £’000 £’000
profit before taxation     1778 578
theoretical tax at uk corporation tax rate 25 2011 27    444 156
effects of 
– nondeductible expenses    2 5
– adjustments in respect of prior years     4 19
– effect of unrealised overseas losses     64 —
– change in taxation rates    3 3
total taxation charge    507 177
9 earnings per ordinary share
basic and diluted earnings per share have been calculated 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 
    2012 2011
    £’000 £’000
profit after tax    1271 401
    no no
weighted average number of shares – basic    11350099 11342907
dilutive effect of share options     — 21215
weighted average number of shares – diluted    11350099 11364122
basic earnings per share     112p  35p
diluted earnings per share     112p 35p 42  pressure technologies plc  annual report 2012
notes to the consolidated financial statements continued
10 dividends
the following dividend payments have been made on the ordinary 5p shares in issue
   shares 2012 2011
 rate date in issue £’000 £’000
final 200910 48p 11 march 2011 11349544 —  544
interim 201011 24p 10 august 2011 11349544 —  272
final 201011 48p 9 march 2012 11356199 545 —
interim 201112 25p 6 august 2012 11356199 284 —
    829 816
at 29 september 2012 the 201112 final dividend had not been approved by shareholders and consequently this has not been included as a 
liability the proposed dividend of 50p per share is expected to be paid on 8 march 2013 at a total cost of £568000
11 goodwill
     total
     £’000
cost 
at 2 october 2010     272
additions     1692
at 1 october 2011 and 29 september 2012     1964
     original
    date of cost
engineered product division    acquisition £’000
almet limited    february 2010 272
the hydratron group    october 2010 1692
     1964
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 75 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 and have been based on the extrapolated year one forecast no terminal 
value has been assumed in this calculation 
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 valueinuse 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
  43  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
12 intangible assets
 licence and   non contractual
 distribution development customer customer
 agreement expenditure order book relationships total
 £’000 £’000 £’000 £’000 £’000
cost
at 2 october 2010 400 — 107 261 768
additions 800 234 90 676 1800
at 1 october 2011 and 29 september 2012 1200 234 197 937 2568
amortisation
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
charge for the period  70 50 — 190 310
impairment losses — 174 — — 174
at 29 september 2012 253 234 197 406 1090
         
net book value
at 29 september 2012 947 — — 531 1478
         
at 1 october 2011 1017 224 — 721 1962
         
an impairment loss of £174000 2011 £nil was recognised for development expenditure reducing the value to £nil at the year end all 
amortisation and impairment charges are included in the consolidated statement of comprehensive income 
 
13 property plant and equipment
     plant and
     machinery
     £’000
cost
at 2 october 2010     6216
additions     1147
acquisitions     275
at 1 october 2011     7638
additions     727
disposals     593
at 29 september 2012     7772
depreciation
at 2 october 2010     2471
charge for the period     518
at 1 october 2011     2989
charge for the period     639
disposed of in the period     510
at 29 september 2012     3118
net book value
at 29 september 2012     4654
at 1 october 2011     4649
included within the net book value of £4654000 is £159000 2011 £274000 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 £15000 2011 £37000 44  pressure technologies plc  annual report 2012
notes to the consolidated financial statements continued
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 56
15 inventories
    2012 2011
    £’000 £’000
raw materials and consumables    4002 3014
work in progress    2920 1998
    6922 5012
included in the total net value above are gross inventories of £751000 2011 £835489 over which provisions have been made of £528000 
2011 £519000
16 trade and other receivables
    2012 2011
    £’000 £’000
current
trade receivables    6194 5826
other receivables    113 46
prepayments and accrued income    950 599
    7257 6471
    2012 2011
    £’000 £’000
noncurrent
accrued income    152 324
    152 324
included in noncurrent accrued income are debts not due for settlement for a number of years management has reviewed the book  
value of these assets and applied discounting to reduce the balances by £31000 2011 £56000 to a fair value of £152000 2011 £324000 
the release during the year was £25000 2011 charge of £56000
the average credit period taken on the sale of goods and services was 54 days 2011 83 days in respect of the group two debtors 
accounted for over 10 of trade receivables and represented 21 and 13 of the total balance in 2011 three debtors accounted for  
over 10 of trade receivables and represented 11 10 and 10 of the total balance respectively 
ageing of past due but not impaired receivables
    2012 2011
    £’000 £’000
days past due
0 – 30 days    859 1002
31 – 60 days    381 218
61 – 90 days    — 31
91 – 120 days     11 —
121 days    38 520
total    1289 1771 45  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
17 derivative financial instruments
    2012 2011
    £’000 £’000
derivatives carried at fair value not recognised for hedge accounting
– forward foreign currency contracts     23  —
liability     23 —
18 trade and other payables
    2012 2011
    £’000 £’000
amounts due within 12 months
trade payables    2977 2271
other tax and social security    227 222
deferred consideration     — 800
accruals and deferred income    4447 2967
total due within 12 months    7651 6260
amounts due after 12 months
other payables    348 376
deferred income    307 368
total due after 12 months    655 744
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
    2012 2011
    £’000 £’000
secured borrowings
net obligations under finance leases    6 42
amounts due for settlement within 12 months    6 33
amounts due for settlement after 12 months    — 9
the maturity profile of longterm loans is as follows
    2012 2011
    £’000 £’000
due within one year    6 33
due within one to two years    — 9
    6 42
obligations under finance leases are secured on the assets to which they relate
the undrawn committed borrowing facility and principal features of the group’s borrowings are described in note 20 of these financial 
statements 46  pressure technologies plc  annual report 2012
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
    2012 2011
    £’000 £’000
debt    6 42
cash and cash equivalents     2693 2939
net cash    2687 2897
equity    16055 15538
debt is defined as long and shortterm 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
    2012 2011
    £’000 £’000
financial assets
loans and receivables
– trade receivables    6194 5826
– other receivables    113 46
– cash and cash equivalents     2693 2939
    9000 8811
financial liabilities
fair value through profit and loss fvtpl
– derivative instrument – forward currency contract not recognised for hedge accounting   23 —
trade and other payables – held at amortised cost
– trade payables    2977 2271
– accruals     1476 998
borrowings – at amortised cost    6 42
deferred consideration    — 800
    4482 4111
the fair value of the financial instruments set out above is not materially different from their book value 47  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
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 nonderivative 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 enters into forward currency contracts during the period to mitigate foreign currency 
risk it does 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
  2012 2011 2012 2011
  £’000 £’000 £’000 £’000
australian dollar  — 6 — 73
euro  2796 2303 2695 1555
norwegian krone  6 4 — —
us dollar  487 565 290 456
  3289 2878 2985 2084
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 australian   norwegian norwegian
 dollar  dollar euro euro krone krone us dollar us dollar
 currency currency currency currency currency currency currency currency
 impact impact impact impact impact impact impact impact
 2012 2011 2012 2011 2012 2011 2012 2011
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
profit or loss —  6 9 68 1 — 18 10
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 48  pressure technologies plc  annual report 2012
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 ie as prices or 
indirectly ie 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 612 months the group does not hedge account for the forward currency exchange contracts
at 29 september 2012 the group had contracts outstanding to sell €3525 million for £2794000 2011 no outstanding forward  
exchange contracts
the fair value of forward foreign exchange contracts at 29 september 2012 gave rise to a loss of £23000 2011 profitloss of £nil
interest rate risk management
surplus cash is placed on shortterm deposit
if interest rates had been 05 higherlower and all other variables were held constant the impact on the results in the consolidated 
statement of comprehensive income and equity would be an increasedecrease of £14000 2011 £11000
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 34 
2011 21 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 creditratings assigned by international creditrating 
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  49  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
20 financial instruments continued
at 29 september 2012 the group’s liabilities have contractual maturities summarised below
 current 
 within current noncurrent less future total net
 6 months 612 months 1 to 5 years interest payable
2012 £’000 £’000 £’000 £’000 £’000
trade and other payables 6733 — 691 — 7424
amounts due under hire purchase agreements 6 — — — 6
 6739 — 691 — 7430
 current
 within current noncurrent less future total net
 6 months 612 months 1 to 5 years interest payable
2011 £’000 £’000 £’000 £’000 £’000
trade and other payables 4698 — 540 — 5238
amounts due under hire purchase agreements 21 13 9 1 42
deferred purchase consideration 400 400 — — 800
 5119 413 549 1 6080
the group had an undrawn bank overdraft facility available at 29 september 2012 of £2000000 2011 £2000000 which is due for renewal 
on 28 february 2013
the following amounts have been recognised in the consolidated statement of comprehensive income in respect of derivative financial 
instruments
    2012 2011
    £’000 £’000
fair value through profit and loss fvtpl
– derivative instrument – forward currency contract not recognised for hedge accounting   23 21
amounts chargedcredited to cost of sales within the consolidated statement of comprehensive income  23 21
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 certain receivables due 
in more than 1 year as explained in note 16 50  pressure technologies plc  annual report 2012
notes to the consolidated financial statements continued
21 deferred tax
the following are the major deferred tax assetsliabilities recognised by the group and movements thereon during the current and prior 
reporting period
   short term  operating
 accelerated tax intangible temporary share lease
 depreciation assets differences option costs incentives total
 £’000 £’000 £’000 £’000 £’000 £’000
at 2 october 2010 611 68 116 9 104 450
hydratron acquisition 28 138 — — — 166
creditcharge to income 51 104 15 — 1 69
at 1 october 2011 690 102 131 9 105 547
creditcharge to income 224 20 114 4 25 69
at 29 september 2012 466 122 17 13 80 478
the net deferred tax balance has been analysed as follows in the consolidated balance sheet
    2012 2011
    £’000 £’000
noncurrent asset
deferred tax asset    110 245
noncurrent liabilities
deferred tax liabilities    588 792
    478 547
 
22 called up share capital
  2012 2011 2012 2011
  no no £’000 £’000
authorised
authorised ordinary shares of 5p each  15000000 15000000 750 750
allotted issued and fully paid
ordinary shares of 5p each  11356199 11349544 568 567
during the year the company issued 6655 ordinary shares at a price of 150p increasing share capital by £332 and share premium £9650 
these shares were issued to employees exercising their rights to acquire shares under the company’s sayeshare option plan 
23 share based payments
saveasyouearn scheme
pressure technologies plc introduced a share option scheme for all uk based employees of the group in november 2007 a fourth grant 
of options was made in august 2012 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 
details of the share options outstanding during the period are as follows
    2012 2011
    no no
outstanding and exercisable at the beginning of the period     106815 67938
granted during the period    52440 89028
lapsed during the period    24063 2516
exercised during the period    6655 15920
expired during the period    — 31715
outstanding and exercisable at the end of the period    128537 106815 51  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
23 share based payments continued
the exercisable options outstanding at 29 september 2012 had a weighted average exercise price of 150p 2011 150p and a weighted 
average remaining contractual life of 21 years 2011 25 years the terms of these options are as follows
 options
 outstanding   market value
 at 29 september vesting at date of exercise exercise
date of grant 2012 period grant p price p period
18 august 2009 17787 3 years 178 150 6 months
28 july 2011 89028 3 years 160 150 6 months
6 august 2012 50040 3 years 175 150 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 
on 23 february 2012 options were granted over 53156 ordinary shares under the rules of the pressure technologies plc performance share 
plan – enterprise management plan at an exercise price of 1505p being the market value at the date the options were granted these options 
are exercisable between three and five 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
    2012 2011
    no no
outstanding and exercisable at the beginning of the period    73117 73117
granted during the period    53156 —
lapsed during the period    21505 —
outstanding and exercisable at the end of the period    104768 73117
the exercisable options outstanding at 29 september 2012 had a weighted average exercise price of 1909p 2011 2325p and a weighted 
average remaining contractual life of 32 year 2011 3 years the terms of these options are as follows
date of grant  options 
  outstanding  market value
  at 29 september vesting at date of exercise
  2012 period grant p price p
7 october 2009  73117 3 – 5 years 2325 2325
23 february 2012  53156 3 – 5 years 1505 1505
there are no performance conditions that apply to these options other than continued employment
pressure technologies plc performance share plan – share options plan
on 23 february 2012 options were granted over 73089 ordinary shares under the rules of the pressure technologies plc performance share 
plan – share options plan at an exercise price of 1505p being the market value at the date the options were granted 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
    2012 2011
    no no
granted during the period    73089 —
outstanding and exercisable at the end of the period    73089 — 52  pressure technologies plc  annual report 2012
23 share based payments continued
the exercisable options outstanding at 29 september 2012 had a weighted average exercise price of 1505p and a weighted average 
remaining contractual life of 44 years the terms of these options are as follows
  options 
  outstanding  market value
  at 29 september vesting at date of exercise
date of grant  2012 period grant p price p
23 february 2012  73089 3 – 5 years 1505 1505
there are no performance conditions that apply to these options other than continued employment
the options granted during the period have been valued using the blackscholes model the inputs into the blackscholes model are as 
follows
   enterprise  share 
   management options saveas
scheme   plan  plan youearn
date granted   230212 230212 060812
weighted average share price   1505p 1505p 175p
weighted average exercise price    1505p 1505p 150p
expected volatility   58 58 45
expected life   35 years 35 years 3 years
risk free rate   4 4 35
expected dividend yield   32  32  37
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 
nontransferability 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 sharebased payments was £56000 
2011 £21000 a deferred tax credit of £10000 2011 £nil was recognised in the consolidated statement of comprehensive income during 
the period in respect of share based payments 
24 consolidated cash flow statement
    2012 2011
    £’000 £’000
profit after tax    1271 401
adjustments for
finance incomecosts – net    18 71
depreciation of property plant and equipment    639 518
amortisation of intangible assets    484 381
share option costs    56 21
income tax expense    507 177
lossprofit on derivative financial instruments    23 21
foreign exchange movement    9 3
profit on disposal of fixed assets    1 —
changes in working capital
increase in inventories    1910 235
increasedecrease in trade and other receivables    589 1235
increase in trade and other payables    2102 550
cash flows from operating activities    2573 3095
notes to the consolidated financial statements continued 53  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
25 financial commitments
a capital commitments
commitments for capital expenditure entered into were as follows
    2012 2011
    £’000 £’000
contracted for but not provided in the accounts    — 112
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 noncancellable operating leases which fall due as 
follows
    2012 2011
    £’000 £’000
land and buildings leases expiring
within one year    624 601
in the second to fifth years inclusive    2624 2571
after more than five years    2167 2844
    5415 6016
other assets leases expiring
within one year    44 43
in the second to fifth years inclusive    35 23
    79 66
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 bay 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 almet 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’s 10 year property lease commenced on 28 october 2010 and has a rent review at the end of year 5 54  pressure technologies plc  annual report 2012
    2012 2011
   notes £’000 £’000
fixed assets
investments   4 6344 6687
    6344 6687
current assets
debtors   5 5528 4097
cash at bank and in hand    75 640
    5603 4737
creditors amounts falling due within one year   6 338 1354
net current assets    5265 3383
 
net assets    11609 10070
capital and reserves
called up share capital   7 568 567
share premium account   8 5378 5369
equity – non distributable   8 85 50
profit and loss account   8 5578 4084
equity shareholders’ funds   9 11609 10070
 
the accounting policies and notes on pages 55 to 57 form part of these financial statements
approved by the board on 4 december 2012 and signed on its behalf by
jts hayward
director
company balance sheet
as at 29 september 2012 55  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
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 
£2302000 2011 £2021000
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 
2 employees
average weekly number of employees including executive directors
    2012 2011
    number number
administration     5 4
staff costs including directors 
    2012 2011
    £’000 £’000
wages and salaries    389 351
social security costs    46 35
other pension costs    39 19
share based payments    21 12
    495 417
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
 
notes to the company financial statements 56  pressure technologies plc  annual report 2012
4 investments
     investment 
     in subsidiary
     companies
     £’000
cost 
at 1 october 2011     6687
provision for diminution in value     378
share options granted to subsidiary company employees     35
at 29 september 2012     6344
the assets of the former owner of chesterfield special cylinders limited chesterfield pressure systems group limited “cpsg” were 
distributed as a dividend to pressure technologies plc during the year as a consequence of this a provision has been made for the 
diminution in value of the cost of investment by pressure technologies plc in cpsg
the principal subsidiaries which are all 100 owned are
name country of incorporation principal activity
almet 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
5 debtors
    2012 2011
    £’000 £’000
amounts falling due within one year
prepayments and accrued income    116 49
amounts owed by group companies    5412 4048
    5528 4097
6 creditors amounts falling due within one year
    2012 2011
    £’000 £’000
trade creditors    36 24
other tax and social security    12 14
accruals and deferred income    58 53
deferred purchase consideration    — 800
amounts owed to group companies    232 463
    338 1354
7 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
notes to the company financial statements 57  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757
8 reserves
 share  profit share   profit
 premium  equity – non and loss premium equity – non and loss
 account distributable account account distributable account
 2012 2012 2012 2011 2011 2011
 £’000 £’000 £’000 £’000 £’000 £’000
at beginning of period 5369 50 4084 5341 41 2867
profit for the financial period — — 2302 — — 2021
share option cost — — 21 — — 12
share options granted to subsidiary employees — 35 — — 9 —
shares issued 9 — — 28 — —
dividends — — 829 — — 816
at end of period 5378 85 5578 5369 50 4084
9 reconciliation of movements in equity shareholders’ funds
    2012 2011
    £’000 £’000
equity shareholders’ funds at beginning of period    10070 8816
profit for the financial period    2302 2021
dividends paid    829 816
share option cost    21 12
share options granted to subsidiary employees    35 9
share issued    10 28
equity shareholders’ funds at end of period    11609 10070
10 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
notes to the company financial statements continued
design and production
wwwcarrkamasacouk pressure technologies plc
meadowhall road 
sheffield 
s9 1bt
uk
telephone 44 0 114 242 7500
fax 44 0 114 242 7502
wwwpressuretechnologiescouk
pressure technologies plc annual report 2012


Summary:
 pressure technologies “pt” or “group” has made considerable 
progress in the last 12 months we have delivered better results 
and have made improvements across the group to create a 
more balanced business portfolio this is highlighted by the 
expansion of sales in the engineered products division and the 
development of new service offerings in the cylinder division 
pt is growing and that growth is now better balanced across the 
group’s divisions and markets
chesterfield special cylinders “csc” grew strongly as a  
direct result of the resurgence in the building of deepwater 
semisubmersible oil rigs and drill ships following a prolonged 
downturn caused initially by the global financial crisis and 
exacerbated by the crisis of confidence following the sinking of 
deepwater horizon in the gulf of mexico in 2010 
air pressure vessels “apvs” for motion compensation systems 
on 10 drillship projects were delivered in the year compared 
to three in 2011 we currently have orders for seven projects 
in 2013 compared to six at the same stage last year however 
market dynamics have changed considerably and margins are 
under acute pressure from asian competition particularly south 
korea and we expect to see a declining market share for projects 
built in south korean shipyards this is compounded by a weaker 
euro as sales into this market are euro denominated 
we are however actively pursuing opportunities with a number 
of new entrants into the motion compensation system market 
who need the design expertise of csc opportunities will also 
open up away from south korea as brazil expands shipyard 
capacity to build oil rigs and drillships
chief executive’s statement
john hayward
chief executive
cylinder division
sales £163 million 2011 £110 million
operating profit £23 million 2011 £15 million
net assets £68 million 2011 £69million
08  pressure technologies plc  annual report 2012 as expected sales into the naval defence market were materially 
lower than in 2011 as a result of the phasing of projects rather 
than a downturn in the market in august csc won the contract 
to supply the high pressure cylinders for the sixth astute class 
submarine hms agamemnon which will be delivered over 2013 
and 2014 the order for cylinders for the seventh and final astute 
class submarine is expected in 2013 for delivery over 2014 
and 2015 and we have begun preliminary design work on the 
cylinders for the trident replacement 
we have continued focus on expanding our customer base in 
the naval defence market and have strengthened our design 
team with an experienced naval cylinder designer building on 
our expertise on cleanliness standards developed for the oil and 
gas industry we won a contract from bae to supply a service 
cleaning cylinders for oxygen containment this demonstrated 
csc’s technical capabilities and its flexibility the process was 
developed and capital equipment was procured and installed 
in a six week period to meet an urgent customer requirement 
csc is now planning to market this service to other potential 
customers building oxygen systems the contract to maintain 
the royal navy’s stores of high pressure cylinders won last year 
has expanded rapidly with a number of planned submarine refit 
projects increasing the value of this contract as well as giving 
more opportunity to sell insitu inspection services
the small cylinder market stabilised in the year with an increase 
in military aerospace spending which improved margins in this 
market the military market has been more resilient than we 
forecast and in august we were awarded the contract to supply 
steel high pressure cylinders on the initial build programme of 
the f22 raptor the development of the type iv composite has 
been successfully completed but as yet we have not identified 
a new commercial platform into which this can be built and 
consequently we have amortised the £224000 development 
costs incurred to date 
typical of this approach was an urgent new 
requirement from the us air force usaf 
for high pressure cylinders for its fleet of f22 
raptors the first delivery of csc’s cylinders 
to the usaf was accomplished in record time 
with csc receiving the order on a monday 
and the initial batch being delivered to seattle 
washington in time for test flights the following 
friday
flexibility and speed of response 
are critical order winning criteria 
for chesterfield special cylinders
2012 was a turning point for the group as we returned  
to growth and delivered market expectations
09  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 the balance was investment in a number of process 
improvements particularly in the forging and washing processes  
capital expenditure in 2013 is expected to be at a similar level  
to 2012 with the major focus being on process efficiency 
the key issue for csc is to develop high added value service 
offerings quickly to offset the effects of margin erosion from 
low cost competitors and the weak euro the business has the 
energy the expertise and the people to achieve this effectively 
the division is comprised of hydratron ltd in altrincham 
hydratron inc in houston texas and almet ltd in pontyclun 
south wales the hydratron businesses manufacture a range of 
air operated high pressure hydraulic pumps gas boosters power 
packs hydraulic control panels and test rigs mainly for use in the 
oil and gas sector almet produces wear resistant components  
in a range of high alloy steels and tungsten carbides for use in 
highpressure choke and flow control valves designed to regulate 
flow volumes in extremely demanding applications in the subsea 
and surface oil and gas industries 
hydratron ltd
hydratron ltd had an excellent year with sales growing by one 
third and operating profits doubling the sales design and 
development teams were strengthened during the year  
new products launched in the year included a 30000 psi pump 
for very high pressure testing applications a helium leak test gas 
booster system capable of injecting precise concentrations  
of helium and a pulse test system for testing aerospace  
pressure transducers 
this was always viewed as a long term development and we 
are well placed to move into the composite market as new 
opportunities arise
the high pressure trailer market saw a reduction in reconditioning 
and refurbishment due to the phasing of statutory inspection 
within the boc trailer fleet but we supplied two new trailers to  
air liquide and linde france overall sales were slightly higher 
and margins slightly lower as a result of the material content in 
the new trailers csc’s new sales manager in germany has 
made significant inroads with the large industrial gases 
companies in europe this coupled with the financial instability 
of a major european competitor puts csc in a strong position 
in this market with the forecast growth of the market for the 
transportation and bulk storage of hydrogen and cng the 
medium and long term prospects for this market are very 
promising 
our insitu inspection service grew fourfold in the year and we 
have a team solely dedicated to the development of this offering 
immediate opportunities for growth exist in the defence and 
oil and gas markets in the medium term the increase of high 
pressure bulk storage of hydrogen and compressed natural 
gas for alternative fuels will be a source for further growth 
insitu inspection creates a new revenue stream from the 
knowledge base of csc it is a high margin service offering which 
is not subject to the pricing pressures created by our low cost 
competitors in the ultra large cylinder manufacturing market
manufacturing continued to focus on “lean” initiatives a major 
review of trailer build was carried out creating significant 
improvements in strip down and build times a similar initiative 
is underway on the ultralarge finishing line these initiatives are 
team based owned and run by the shopfloor employees  
working on the product further investment was made in csc’s 
it systems with the introduction of a more sophisticated finite 
capacity scheduling system and shop floor data capture  
this allows efficient real time planning of resources to further 
improve efficiency the major items of capital spend in the year 
were the oxygen cleaning facility and replacement overhead 
cranes together these accounted for 50 of the total capital 
spend of £446000 
engineered products
sales £139 million 2011 £112 million
operating profit £10 million 2011 £10 million
net assets £77 million 2011 £65 million
chief executive’s statement 
continued
10  pressure technologies plc  annual report 2012 the latter project involved the recruitment of an electronics 
engineer giving the business selfsufficiency in the design and 
development of automated plc controlled systems several new 
product opportunities have been identified and an additional 
full time development engineer is being sought to speed up the 
development cycle 
the assembly section of the business was reorganised to  
split standard product assembly from the bespoke systems 
this has improved the efficiency of both areas due to the pace 
of growth in the business the operations manager role is to 
be split in january with the incumbent becoming technical 
manager responsible for design engineering and logistics and 
a new experienced lean manufacturing engineer joining as 
manufacturing manager responsible for the machining and 
assembly areas 
due to the nature of the business little capital expenditure is 
required it systems will be upgraded in 2013 but beyond that  
no other major spend is planned
hydratron has an excellent reputation for its design and build 
ability this allied to a strong sales team augmented by a 
distributor network in key market locations and the general  
level of market activity gives grounds for optimism of further 
progress in 2013
hydratron inc
hydratron inc after a good first half failed to deliver its second 
half order book profitably despite a 50 increase in sales  
we did not have sufficient management resources of the  
right calibre in the business which has now been remedied  
an experienced general manager was appointed in october 2012 
with the remit to grow the business profitably being located in 
houston the business is situated close to all the major oilfield 
wellhead equipment and control system manufacturers and is 
therefore in a prime location from which to grow it has already 
established a reputation for the same design and build capability 
as its uk sister company and is expected to make significant 
progress in 2013
hydratron’s range of test equipment for valves 
and hoses are not just used in the oil and 
gas market sales are regularly made into the 
industrial gases power and defence markets  
for component testing the product range  
was extended during the year to include  
pulse testing systems for life cycle testing  
of pressure transducers which gives exciting  
new opportunities in the aerospace and 
automotive markets 
high pressure component  
testing equipment opens new 
markets to hydratron
with immediate organic growth prospects the engineered 
products division is expected to become the largest part  
of the group within 18 months
11  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757 almet
almet had a challenging year sales were at the same level as 
2011 but the phasing of these was very heavily skewed with 
low sales in the first half and a strong third quarter which tailed 
off into the fourth quarter concurrently market forecasts and 
customer orders for 2013 were showing a significant increase 
the decision was taken to hold the level of the shopfloor 
workforce and strengthen the management and engineering 
team with lean manufacturing specialists ahead of this increase 
as a result of these factors operating profits were down two 
thirds on 2011 the expected growth has materialised following 
these changes and the year end order book was 73 higher 
than at september 2011 and production schedules are full 
through to the end of february 2013 an additional afternoon 
shift has subsequently been recruited to meet the increased 
loading and reduce overtime 
there are two major reasons for this growth a significant 
proportion of almet’s turnover is wear parts for subsea tree 
valves this market is growing rapidly as more deepwater oil 
wells come on stream market forecasts and customer feedback 
suggest a 40 increase in this market in 2013 and continued 
growth into 2014 also a uk competitor ceased production in 
october which has compounded the increase 
as a division it was disappointing that operating profits did not 
grow year on year increased profits at hydratron ltd were offset 
by the reduction in profitability at almet and losses at hydratron 
inc the outlook for 2013 is good and i expect the benefits of 
the changes made in 2012 to feed through into improved profits 
in 2013 the organic growth opportunities for this division are 
immediate and we expect engineered products to become the 
largest division of the group in terms of sales revenues within 
the next eighteen months 
additionally we are pursuing a number of acquisition 
opportunities to add further breadth to the product range of  
the division 
in the medium to long term on time in full delivery “otif” 
remains the key to success for the division 
specific targeting of customers has proved that where delivery 
otif is met order intake improves in the current buoyant 
environment this advantage is masked by general growth but as 
our companies are significantly smaller than their competitors 
we expect to take market share even when markets are 
declining if we can consistently deliver otif
this was an important year for chesterfield biogas “cbg” our 
startup alternative energy equipment business an order was 
secured for an upgrader our second into the biogas to grid 
“btg” market this was due for installation in september 2012 
but a road accident which occurred during delivery damaged 
the equipment and delayed installation to october but for this 
operating losses would have been halved in the year more 
importantly confirmation by government of the structure of 
the renewable heat incentive “rhi” for btg has increased the 
number and size of potential projects
in previous years cbg has been quoting a handful of small 
“pilot” projects with larger projects only at the feasibility 
stage now quotations are more numerous and the project 
size has increased to fully commercial sized plants as large 
utility companies look to enter the market this matches the 
pattern experienced in other countries where adoption of this 
technology is more advanced 
alternative energy
sales £02 million 2011 £09 million
operating profits £05 million 2011 £05 million
net assets £16 million 2011 £17million
chief executive’s statement 
continued
12  pressure technologies plc  annual report 2012 summary and outlook
2012 was a turning point for pt as we returned to growth and 
delivered market expectations the result was underpinned by 
recovery in the cylinder division’s main market and the group’s 
other two divisions making significant progress this progress 
which has created a better balanced group is yet to be reflected 
in bottom line performance
looking to 2013 the cylinder division will face stiffer competition 
in its core oil and gas market and the challenge is to speed 
up the development of high added value services and new 
customers there is significant potential for revenue growth in 
the engineered products division which this year must lead to 
bottom line growth the alternative energy division chesterfield 
biogas appears set for major growth and 2013 will be the crucial 
year for this business 
the clear message is that pressure technologies delivered 
in 2012 it is a better balanced group growing strongly in 
market sectors where its expertise is recognised and valued 
seeking opportunities for further expansion through selective 
acquisitions  
john hayward
chief executive
4 december 2012 the group has wide areas of expertise in 
pressure containment and control this not only 
leads to the development of new products but 
also to the development of value added services 
for our customers for example at csc a service 
launched to support the management of retest 
and refurbishment of high pressure gas trailers 
has led to the launch of a service for the insitu 
inspection of cylinders to save our customers 
time and the expense of returning cylinders for 
statutory retest
development of added value 
services making knowledge pay
we have delivered better results and have made 
improvements across the group to create a more 
balanced business portfolio
13  pressure technologies plc  annual report 2012
company overview  0107
business review  0819
governance  2026
financial statements  2757