pressure technologies plc
annual report 2013
a leading designer and manufacturer of engineering solutions for high pressure markets
alternative energy
engineered products
cylinders a leading designer and 
manufacturer of high 
pressure engineering 
systems serving the global 
energy defence and 
industrial gases markets 01  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
record revenue
£344m
2012 £304m
pretax profit
£29m
2012 £18m
basic earnings per share
194p
2012 112p
adjusted earnings per share
226p
2012 125p
operating cash flow
£28m
2012 £19m 
year end net funds
£40m
2012 £27m
operating profit post acquisition 
costs and related amortisation
£29m
 2012 £18m
total dividend
78p per share 
2012 75p
highlights
growth in sales and profits led by the cylinder and engineered products 
divisions as a result of increased activity in the oil and gas market
breakthrough for the alternative energy division as chesterfield  
biogas wins £46 million of major orders for delivery in 2014
strong order books and pipeline across the group due  
to sustained activity in oil and gas defence and alternative energy
group pressing on with its strategy of organic and  
acquisitive diversification
company overview
highlights 01
group structure 02
chairman’s statement 04
business review
chief executive’s statement 06
finance director’s report 12
key performance indicators 14
principal risks and uncertainties 16
governance
directors and advisers 18
report of the remuneration committee 20
directors’ report 23
report of the independent auditor to
the members of pressure technologies plc 27
financial statements
consolidated statement 
of comprehensive income 28
consolidated balance sheet 29
consolidated statement  
of changes in equity 30
consolidated statement  
of cash flows 31
accounting policies 32
notes to the consolidated  
financial statements 38
company balance sheet 55
notes to the company  
financial statements 56 oil and gas
1
2
3
02  pressure technologies plc  annual report 2013
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
chesterfield special  
cylinders  engineered products
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 a reduction in their use as a fuel 
industrial uses will continue to increase  
and this will be an important market for 
decades to come
sales into this market grew by 14 in 2013  
this was due to a combination of further 
increases in deepwater oil rig and drillship 
building where the cylinder division supplies  
air pressure vessels and a major increase in 
orders for wear parts for subsea trees a key 
market for the engineered products division 
this increased activity has continued into 2014 
the cylinder division also offers a range  
of insitu inspection services that give 
reductions in cost and time for statutory 
pressure vessel retest this service is gaining 
considerable attention from the market and  
has won a number of awards for innovation
sales
£276m
2012 £241m 
 of group revenue
80
2012 79  defence industrial gases alternative energy
copyright
©
 2010 bae systems 
4
5
03  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
key
   agents and distributers
   manufacturing and sales
1 head office
 chesterfield special cylinders
1  chesterfield biogas
2  hydratron ltd
3  almet
4  hydratron inc
5  csc deutschland
chesterfield special  
cylinders  engineered products
chesterfield special  
cylinders  engineered products
  
chesterfield biogas
the group supplies the uk and international 
naval and aerospace markets our largest 
market in this sector is the supply of 
ultralarge 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
following the closure of our german  
competitor in the naval cylinder market  
our cylinder division was awarded major 
contracts for the supply of cylinders for naval 
vessels being built in germany chesterfield 
special cylinders is now the principal supplier 
of ultralarge cylinders for the naval shipbuilding 
market in europe outside europe we won 
further contracts for south korea and our  
long term aim remains to break into the  
us naval market
the cylinder division also offers a range  
of insitu inspection services and specialist 
cleaning services into the naval and  
aerospace sectors
a diverse range of products and services  
is supplied into this market by our cylinder 
division ranging from bulk gas storage 
for large industrial applications to the 
reconditioning and retest of cylinders and 
trailers our engineered products division 
supplies a range of test equipment for high 
pressure components
sales into this market were lower than in  
the prior year as a result of lower sales into  
the bulk storage and transportation market  
by the cylinder division there are signs of 
an upturn in this market and two innovative 
composite cylinder trailers are currently  
being manufactured for the european market
in the medium to long term we expect to 
see an increase in the bulk storage and 
transportation of compressed natural gas  
and hydrogen as result of growth in the 
alternative fuels market 
as with the oil and gas and defence  
markets the cylinder division offers a range  
of insitu testing services into this market
the group provides a range of equipment  
in the uk and eire for the upgrade of biogas 
to biomethane for injection into the gas grid 
licensed inperpetuity to our chesterfield 
biogas subsidiary by world market leading 
greenlane® biogas
chesterfield biogas was one of the early 
entrants into this market and supplied  
upgrade equipment to the first project to 
inject biomethane into the uk gas grid in 
2010 a second small upgrader was supplied 
at the beginning of the year under review but 
a number of regulatory and financial hurdles 
slowed down major adoption of this technology 
in may 2013 the last of these hurdles was 
resolved and we won two large orders for 
delivery in 2014 with a combined sales value  
of £46 million the division is at an advanced 
stage of negotiation on a number of  
followon projects
sales
£38m
2012 £22m 
sales
£18m
2012 £39m 
sales
£12m
2012 £03m 
 of group revenue
11
2012 7 
 of group revenue
5
2012 13 
 of group revenue
4
2012 1  04  pressure technologies plc  annual report 2013
in this my first year as chairman of  
the group i am delighted to report  
a very strong set of results for 2013 and 
excellent prospects for 2014 pressure 
technologies is a great business 
operating in some of the world’s most 
dynamic markets with demanding 
customers who value our ability to design 
and manufacture engineering solutions 
that meet their exacting standards
there have been major changes to the 
board during the year neil macdonald 
and i joined as nonexecutive directors 
and the group’s former chairman 
richard shacklady retired in march  
i would like to extend the board’s thanks 
to richard for his outstanding contribution 
to the company since 2004 in particular 
his vision to float the company on aim 
which enabled us to fund the expansion 
and diversification of the group
results 
group sales for the fullyear reached  
a record £344m 2012 £304m  
which yielded a pretax profit of £29m  
2012 £18m giving a return on sales 
of 84 2012 58 it is particularly 
pleasing to note that large incremental 
profits were generated in cylinders  
and engineered products divisions  
chairman’s statement
as we benefited from the effects  
of operational gearing
the group’s balance sheet continues 
to strengthen on the improved trading 
results with a yearend net asset value  
of £175m 2012 £161m £40m of net 
cash 2012 £27m and no bank debt  
as a result of the solid balance sheet  
and positive trading outlook the board  
is continuing its progressive dividend 
policy and is recommending a final 
dividend of 52p per share 2012 50p 
giving a total of 78p per share for the 
year a 4 increase on last year  
if approved the final dividend will be  
paid to shareholders on 7 march 2014
trading and market conditions 
overall conditions in our largest market 
oil  gas were favourable during the  
year with the global demand for oil 
increasing by 12 oil prices have 
traded between us90120 per barrel 
over the past three years with yearly 
averages stabilising around us110 
this has provided a stable investment 
environment whereby spending on oil 
and gas exploration and production  
ep in 2013 has experienced an 
estimated increase of 6 creating  
a positive impact on our two core  
sectors deep water drilling rigs and 
subsea wellheads
the quest to find and develop oil fields  
in deeper waters has put pressure on the 
ageing stock of drilling rigs mostly built 
during the 197090s which has spurred  
a flurry of orders for sixthgeneration 
ultradeep water rigs capable of operating 
in 3000m water depths this was strongly 
reflected in sales in our cylinders division 
and in our continued strong order book 
however many of these newbuild  
orders have been placed with south 
korean shipbuilders on a fixedprice 
lumpsum basis which has put pressure 
on pricing from suppliers of equipment 
as shipbuilders try to maximize  
their profits 
in response to this our cylinders division 
has continued to develop higher added 
value services and expanded its portfolio 
of defence customers winning major 
contracts for naval projects in germany

return on sales 
84
2012 58
pretax profit 
£29m
2012 £18m
£
£
group sales 
£344m
2012 £304m 05  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
“pressure technologies is a great business operating 
in some of the world’s most dynamic markets with 
demanding customers who value our ability to design 
and manufacture engineering solutions that meet their 
exacting standards”
we are aware that the four leading 
subsea tree manufacturers experienced 
unprecedented order intake during 
2013 which is further confirmation of 
the quest to find and develop oil in deep 
water encouragingly such levels of order 
intake have been very positive for our 
engineered products division which has 
enjoyed record sales and order intake 
and solid profit growth this outstanding 
performance has continued into the first 
quarter of the current financial year
regulatory changes in the uk have 
resulted in our alternative energy division 
securing large orders for biogas upgrading 
equipment for delivery in the current 
financial year this is the breakthrough we 
had anticipated and much credit is due 
to the board and management for their 
vision and perseverance in this venture 
prospects 
set against market forecasts of global 
gdp growth for 2014 in the order of 3 
the global demand for oil is expected to 
increase by 13 slightly higher than the 
previous year this increased demand  
will further underpin the oil price and  
ep investment which is forecast to 
grow by 8 thereby creating a generally 
positive and encouraging picture for the 
coming year
at a more granular level we have begun 
the current financial year with an order 
book 37 higher than last year so the 
prospects for a further improvement 
in performance are very promising we 
also continue to develop new products 
and services across the group and are 
planning major capital expenditure over 
the next two years to expand capacity 
improve productivity and quality and 
increase profitability in parallel with 
growing our core businesses the board 
continues to evaluate earnings enhancing 
acquisitions which complement and add 
value to our existing portfolio
i view the current year with much 
enthusiasm and look forward to 
presenting further evidence of the 
group’s ability to capitalise on the 
opportunities which lie ahead
alan wilson 
chairman 
3 december 2013
focus
biogas is generated as a product of the anaerobic digestion  
of organic waste a typical composition could be 60 methane 
39 carbon dioxide “co
2
” and 1 other gases upgrading 
removes the majority of the co
2
 and other gases to give  
upwards of 98 pure methane 
the greenlane® upgrading process uses water under pressure  
in a process akin to a giant soda syphon the co
2
 dissolves in  
the water and the less soluble methane is collected and dried  
for injection into the natural gas grid 
what is  
biogas upgrading 06  pressure technologies plc  annual report 2013
chief executive’s statement
the past year for pressure technologies 
has seen a material step change 
in our businesses once again the 
group delivered improved results and 
the diversification of our businesses 
continued apace the major markets  
of all of the group’s three divisions 
cylinders engineered products and 
alternative energy are experiencing 
significant volume growth and there  
is a real sense that this will be  
a continuing trend in the mid term
cylinder division 
chesterfield special cylinders “csc” 
had a very good year continued growth 
in its principal market the supply of air 
pressure vessels “apvs” for motion 
compensation systems in the deep water 
oil and gas market combined with an 
increase in delivery schedules to the naval 
market resulted in both increased sales 
and significantly increased profits 
pleasingly the positive trends in the deep 
water oil and gas market have carried 
over into the current financial year our 
current order book in terms of number 
of projects won is ahead of the same 
time last year although market share 
has been maintained at the expense of 
the well flagged significant reductions 
in selling price whilst this work remains 
profitable these selling price reductions 
are expected to materially impact margins 
in the division we continue to develop 
the customer base in this market and 
csc was awarded us asme accreditation 
which is already leading to additional sales 
orders in the united states
our presence in the naval defence  
market has continued to expand 
particularly since the closure of our 
european competitor mcs international 
we have won significant orders for  
vessels being built in german shipyards 
and we are now the principal supplier  
of ultralarge cylinders on all major 
european submarine projects our 
medium term target is penetration  
of the large us naval market 
sales of services fell in the year as  
a result of an anticipated reduction  
in hydrogen trailer retest and 
refurbishment for boc this was  
due to a combination of phasing  
of the retest cycle and a continued  
downturn in the uk hydrogen market 
there are signs of improvement and 
we have secured new retest and 
refurbishment contracts from other 
industrial gases companies 
sales
£173m
2012 £163m 
operating profit
£36m
2012 £23m 
net assets
£69m
2012 £68m 
cylinder division 07  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
we have continued to develop the insitu 
retest service for the oil and gas and 
defence markets sales growth for this 
new service was lower than anticipated 
as a result of two projects requiring 
replacement cylinders following our initial 
site survey this will however result in 
additional cylinder sales in the current 
year the rate of new insitu project wins 
is accelerating and we anticipate that this 
service will grow rapidly over the next two 
years our long term goal is to generate 
50 of divisional profits through sales  
of services
the market for new high pressure gas 
trailers has been moribund we did 
however secure orders for two new  
state of the art compressed natural gas 
“cng” trailers for delivery in the current 
financial year these trailers developed 
with a major industrial gases company 
were designed and will be built by csc 
using lightweight composite cylinders 
supplied by worthington as the use 
of alternative fuels such as cng and 
hydrogen increases we expect the  
market for this type of trailer and large 
high pressure storage facilities to 
increase csc is actively engaged in this 
market through its german subsidiary 
csc deutschland gmbh 
major capital spend in the year was 
centred on improving our forging 
capability for small cylinders and naval 
defence cylinders the group anticipates 
spending in the order of £1 million over 
the next two years to further enhance our 
capabilities in these areas both in terms  
of quality and efficiency
“the past year for pressure technologies has seen  
a material step change in our businesses once again  
the group delivered improved results and the 
diversification of our businesses continued apace”
focus
as well as supplying equipment and technical services to our 
uk armed forces the group provides practical support and 
employment opportunities for service personnel chesterfield 
special cylinders has been commended as a supportive employer 
and for piloting a work experience scheme for army reservists 
it has been presented with certificate by brigadier greville bibby 
cbe commander 15 north east brigade the scheme gives 
army reservists not in civilian employment experience and 
skills in manufacturing which increases their employability and 
complements the skills they are developing in the army reserve
photograph by corporal gabriel moreno royal logistic corps – crown 
copyright reserved 2013
supporting the  
army reserve 08  pressure technologies plc  annual report 2013
engineered products division 
the division is primarily focused on  
the oil and gas market but unlike the  
cylinder division it is not confined  
to a narrow sector of the market  
either geographically or technologically  
the division’s products are used  
onshore and in all areas of offshore  
the division comprises hydratron  
based in altrincham and houston  
texas and almet in pontyclun  
south wales hydratron manufactures  
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
almet 
almet had its best year ever breaking 
records for both order intake and  
sales output as a result of the rapidly  
growing subsea tree market and its  
ability to win greater market share 
through a focus on ontime infull  
delivery major improvements to the 
factory layout and working practices  
also significantly improved productivity 
and the management team has been 
augmented to promote business 
development and to underpin gains in 
quality and environmental management 
the increase in order intake has 
continued into the new financial year  
and with subsea tree order lead times  
to the oil exploration and production 
sector currently at 18 months we expect 
this trend to continue for the foreseeable 
future capital investment of at least 
£750000 is planned in the current 
financial year to increase production 
capacity and the range of products  
due to the nature of equipment used  
at almet finance leasing is available  
and inexpensive consequently we are 
able to spread the cost of purchase so 
that capital investment is selffinancing  
as a result additional equipment over  
and above the current year’s budget  
will be leased if the current market 
dynamic continues
hydratron 
hydratron saw a sustained upturn  
in its markets in the second half of the 
year that more than offset the low order 
intake of the first quarter which impacted 
the first half year results annual sales 
in the uk side of the business were the 
highest ever in may the us business  
was brought under the direct control  
of the uk and significant progress has 
been made in strengthening the us sales  
and design functions as with almet 
both order books and the pipeline 
remain very strong and we expect to 
make significant progress in the current 
year similarly the management team 
has been strengthened in the area of 
quality and environmental management 
as a result the company has recently 
achieved both iso14001 environmental 
and ohsas18001 health and safety 
accreditation these are important 
milestones for the business where  
our customers have an increasing  
focus on both environmental and  
health and safety management
during the year the business has 
started to reduce the level of inhouse 
manufacture of components in the uk 
sales
£160m
2012 £139m 
operating profit
£16m
2012 £10m 
net assets
£77m
2012 £77m 
engineered products 09  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
to free up additional space for assembly 
of pumps and systems this will continue 
in 2014 and consequently no major 
investment in plant and equipment is 
planned the major expenditure of 2013 
was replacement of the it infrastructure 
which will be followed up in the current 
year by investment in erp systems to 
manage the growth and increasing 
complexity of the business
product development is critical to the 
longterm success of the business  
our major development programme  
is centred on the automation of control 
panels and test systems this has the 
benefit for the customer of simplifying 
operations improving safety and 
providing a digital audit trail the latter 
is particularly important for test systems 
where our customers’ customers are 
imposing more stringent product 
certification requirements plans are 
well advanced to increase the resources 
available for research and development 
from january 2014 rd will be 
managed separately from engineering 
under a recently recruited specialist 
rd manager this will allow hydratron 
to speed up the time to market for 
development projects
given our success in buying and 
integrating almet and hydratron into  
the group we see engineered products 
as an area for further development  
there is significant organic growth 
potential which we will continue to  
pursue but we are also looking for 
acquisition opportunities to expand  
the range of products of the division
focus
the group has significant experience in using management 
techniques developed in the automotive industry to improve  
our businesses in engineered products the focus has been  
on on time in full “otif” delivery to our customers in an 
industry with a history of poor customer service this is a clear 
differentiator otif puts our customers first and reduces their 
costs and inventory levels the discipline required to achieve 
otif also means that our businesses and supply chain are more 
efficient and we therefore get the double benefit of higher sales 
and lower costs 
otif aiding growth  
in engineered products 10  pressure technologies plc  annual report 2013
alternative energy 
chesterfield biogas “cbg” sells a range 
of equipment for cleaning raw biogas 
produced by anaerobic digestion of 
organic waste the cleaning process uses 
water to strip out unwanted gases such 
as carbon dioxide producing almost pure 
methane known as biomethane which is 
then injected into the uk natural gas grid 
in the energy sector this is termed biogas 
to grid “btg” cbg was the first company 
in the uk to provide equipment for btg  
at didcot in 2010
in october 2012 cbg delivered its second 
btg project to a waste processing site 
in stockport and this was the reason for 
the increase in sales over 2012 losses 
remained at £05 million as we continued 
to invest for expected growth in 2014
in last year’s preliminary results 
presentation i described the year under 
review as the “crucial year” for cbg this 
has proved to be the case the remaining 
regulatory hurdles to large scale injection 
of biomethane into the uk gas grid were 
resolved in may and we have seen  
a transformation of the sales pipeline as 
large utility companies and processors 
of organic waste have woken up to the 
potential of this market to date we have 
received orders for delivery of two btg 
projects in 2014 with a combined sales 
value of £46 million negotiations are 
at an advanced stage on further btg 
projects which may result in additional 
sales in the current financial year and give 
grounds for significant optimism for 2015
people
as a group we recognise the importance 
of hiring developing and retaining high 
calibre people this is not only necessary 
to deliver our short term goals but  
is essential for our medium and  
long term succession planning  
in the past year two of our subsidiary  
managing directors have completed 
strategic decision making courses  
at cranfield university we have  
two senior managers who have  
completed mbas and we continue  
to support a number of employees 
in first degree courses professional 
qualifications and apprenticeships 
all uk based manufacturing units now  
have apprentices and we have just 
recruited five new graduates across  
the group we will continue to seek  
out the best talent to ensure that we  
are properly resourced to meet our  
growth opportunities
summary and outlook
the year under review has been another 
good year for the group and one in which 
we have made significant progress in all 
three divisions the group has continued 
to improve profitability whilst at the  
same time improving the quality of  
these earnings through a better balance 
of performance across its divisions 
looking to the current year there is 
significant growth potential for the 
engineered products and alternative 
energy divisions the cylinder division  
has a fantastic opportunity to develop  
its service offerings in particular  
insitu testing and this gives the board 
confidence for further progress in the 
year all operating divisions of the group 
are expected to be profitable and we  
look forward to updating shareholders  
as the year progresses
john hayward
chief executive
3 december 2013
sales
£11m
2012 £02m 
operating loss
£05m
2012 £05m 
net assets
£02m
2012 £16m 
alternative energy 11  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
strategy
building for
the future
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
delivery
developing profitable  
acquisition opportunities
clear group acquisition criteria
 minimised 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
3
identifying organic and 
acquisition opportunities
internal focus drawn from group 
knowledge market research and 
attending trade events
external focus capitilising on  
feedback from customers agents 
distributors and suppliers
1
developing profitable 
organic growth 
opportunities
structured development  
programmes with project  
champions subject to regular  
group review
minimising risk through  
evolutionary development
“lean” business specialists at all 
operating companies focusing on  
total quality and profit maximisation
2 12  pressure technologies plc  annual report 2013
finance director’s report 
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 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
the board intends to grow the group both organically 
and by acquisition and consequently both acquisition 
related costs and 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 are shown separately in the income 
statement the relevant costs for the last two years  
are as follows
revenue 
the group’s revenue grew to £344m 2012 £304m 
the growth of 13 was driven by a continued recovery  
in csc’s oil and gas business growth in the engineered 
products division and completion of a biogas upgrader 
project in the year
profitability
the movement in profitability between the two years  
was as follows
 2013 2012
 £m £m
earnings before interest taxation  40 29
depreciation and amortisation  
“ebitda” 
stated before charging acquisition costs 
of £02m in 2013 see below
depreciation 06 06
amortisation –  01 01
chesterfield biogas licence
amortisation –  – 02 
development costs
operating profit pre acquisition 33 20
costs and amortisation
re acquired businesses
amortisation charges arising  02 02
from the acquisition of
almet and hydratron
acquisition related costs 02 –
profit before taxation 29 18
 2013 2012 
 £m £m
amortisation of intangible assets  02 02
acquired with almet and hydratron
acquisition related costs 02 –
total 04 02 13  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
the remaining carrying value of these intangible assets 
totalling £03m 2012 £05m will be fully amortised  
over the next two years 
as required by ifrs 3 the costs of market research and 
professional fees in relation to possible acquisitions are 
expensed in the year in which they are incurred
it is pleasing to note that in each of the three years 
since almet and hydratron were acquired in 2010 they 
have generated profits before amortisation charges of 
over £1m pa relative to an acquisition cost including 
borrowing assumed of £58m
the effects on earnings per share of these adjustments 
are as follows 
 2013 2012
 £m £m
earnings per share as reported 194p 112p
adjustment for acquisition  32p 13p
costs and related amortisation
adjusted earnings per share 226p 125p
 2013 2012
 £m £m
earnings before interest tax  38 29
depreciation and amortisation
ebitda
movement in working capital 02 04
capital expenditure net of disposals 08 06
operating cash flow 28 19
uk corporation tax paid 06 05
dividend paid 09 08
acquisition of hydratron  – 08
2012 deferred consideration paid  
net movement 13 02
taxation
the effective tax rate for the group in 2013 was 236 
2012 285 which is in line with the uk standard rate 
of 235 as unrelieved us losses were compensated  
by a reduction in the uk taxation charge as detailed in  
note 9 corporation tax paid in the uk during 2013 
totalled £06m
foreign exchange
the group operates in international markets and 
accordingly trades in the euro and the us dollar 
as well as 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 with the group’s 
manufacturing activities based mainly in the uk 
management estimates that a 5 movement of the  
euro against sterling would affect group profit by circa 
£05m the effect on the group of movements in the  
us dollar to sterling exchange rate as long as it is  
within normal trading parameters is not significant
at the end of september 2013 the group had contracts 
in place to sell €395m at an average exchange rate  
of €116 to £1 2012 contracts in place to sell €35m  
at an average exchange rate of €126
cash flow
the movement in cash flow can be summarised  
as follows
cash flow in 2013 was again strongly positive at the 
operational level
net capital expenditure at £08m compares to  
a depreciation charge of £06m
there are no further deferred consideration payments  
to be made for either almet or hydratron
the group has a strong balance sheet with net funds  
of £40m 2012 £27m and an unused overdraft facility 
of £3m 
james lister
group finance director
3 december 2013 14  pressure technologies plc  annual report 2013
key performance indicators “kpis”
the board uses key performance indicators  
when assessing the performance of the group  
these kpis are divided into three sections
shareholders
adjusted earnings per share is used as a measure  
of shareholder return
in the interest of clarity as stated in the finance 
director’s report acquisition costs and the  
amortisation of intangibles assets resulting from 
acquisition are shown separately in the income 
statement the board believe the use of adjusted 
earnings per share is a more appropriate kpi
adjusted earnings per share is calculated as the  
profit before tax adjusted for the add back of  
acquisition costs and amortisation on acquired 
businesses net of tax effects 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 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 
adjusted earnings per share – pence
321
2009 2010 2011 2012 2013
231
226
62
125
226p
adjusted earnings per share
reportable accidents
3
2
2009 2010 2011 2012 2013
0 0
1
2
reportable accidents  15  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
return on revenue – 
201
2009 2010 2011 2012 2013
190
108
67
81
108
return on revenue
revenue – £ million
262
344
2009 2010 2011 2012 2013
217
231
304
344m
revenue
financial performance
growth is measured in terms of sales revenue 
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 16  pressure technologies plc  annual report 2013
principal risks and uncertainties
specific principal risks identified by management are  
described below together with management actions  
to minimise these risks
customer concentration
csc and almet both have one customer accounting  
for over 45 of their respective sales revenue the  
loss of either of these customers would materially  
affect group results
development of markets products and services
significant management resource is allocated  
to service the requirements of these customers  
to maintain customer loyalty 
market concentration
a downturn in the deep water oil and gas sector  
would have a significant impact on results of both  
the cylinder and engineering product divisions
development of markets products and services
the group has development programmes for new products  
and services to dilute the proportion of total revenues into  
these markets and by growing other activities of the group  
both organically and by acquisition
competitive pricing pressures
the group 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
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
risk and impact management strategy
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
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 individual contracts on halfyear and fullyear revenue 
remains a significant risk to the group 17  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
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
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
production concentration
each subsidiary 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
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 
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
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
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
succession planning
as the business grows increases in staff numbers make 
succession planning easier and recruitment is already carried  
out to ensure that skills and expertise can be duplicated
key man insurance is in place for the group chief executive  
and group finance director
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
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 18  pressure technologies plc  annual report 2013
directors and advisers
ajs wilson
nonexecutive chairman
alan is a degreequalified chartered 
engineer with 33 years of experience  
from working in the oil  gas industry  
the majority of which has been served  
at senior management and board level  
his experience spans most aspects of the 
industry life cycle including oil company 
operations major capital projects support 
services and product manufacturing  
alan joined the board of pressure 
technologies in february 2013 and also 
serves as chairman and nonexecutive 
director of other private equitybacked 
and privately owned companies within  
the oil  gas sector
tj lister
finance director 
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 inhouse mergers 
and acquisitions manager james is  
a qualified chartered accountant
jts hayward
chief executive 
john joined the company in 1997 when  
it was part of united engineering  
forgings he led the mbo in 2004 that 
created chesterfield special cylinders  
and then assumed the role of chief 
executive of pressure technologies  
on admission to aim john is a qualified 
accountant and has finance and general 
management experience in the steel 
chemicals and engineering sectors 
in 2008 he was the uk ernst and 
young entrepreneur of the year
®
 for 
manufacturing he holds a degree  
in physics from oxford university 19  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
nf luckett
nonexecutive director 
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
ps cammerman
nonexecutive director 
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 the most active investor in uk smes 
he retired from all yfm group businesses 
in april 2008 following their disposal  
to gle capital 
na macdonald
nonexecutive director 
neil is a chartered accountant with  
25 years of experience in the oil and gas 
and engineering industries he was group 
finance director of aes engineering 
limited aes a successful fast growing 
privately owned mechanical seals 
manufacturer until september 2012 
when he resigned to take up the role 
of master of the company of cutlers in 
hallamshire neil remains on the board  
of aes as a nonexecutive director prior 
to this he was group finance director 
of the international aerospace company 
firth rixson neil has valuable experience 
of fast growth in the oil and gas sector 
and general ma
directors
ajs wilson 
nonexecutive chairman 
jts hayward  
chief executive 
tj lister  
finance director 
ps cammerman  
nonexecutive director
nf luckett  
nonexecutive director
na macdonald 
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
14 commercial street
sheffield s1 2at
bankers 
lloyds bank 
14 church street 
sheffield s1 1hp
registrars
capita asset services
northern house
woodsome park
fenay bridge
huddersfield hd8 0ga
company information 20  pressure technologies plc  annual report 2013
the remuneration committee comprises four nonexecutive directors and is chaired by philip cammerman the committee meets when 
necessary usually at least three times annually and is responsible for determining the remuneration packages of the executive directors 
and the chairman the remuneration of the nonexecutive directors is set by the board annually
policy on remuneration of executive directors
the committee aims to ensure that the remuneration packages offered are designed to attract maintain and motivate high calibre directors 
without paying more than necessary for this purpose the remuneration policy and packages attempt to match the interest of the executive 
with those of shareholders by providing
a basic salary and benefits
executive directors’ basic salaries are reviewed each year taking into account the performance of the individual and rates of salary and 
benefits for similar jobs in companies of comparable size 
benefits include all assessable tax benefits arising from employment by the company and relate mainly to the provision of private medical 
and life assurance cover
the company pays 5 of basic salary into individual money purchase pension schemes so long as this is matched by salary sacrifice by the 
individual
b annual performance related cash bonus scheme
in order to link executive remuneration to group performance executive directors participate in a cash bonus scheme which in the event 
of exceptional performance can pay out up to a maximum of 50 of basic salary
c long term incentive plan 
the company intends to introduce a long term incentive plan whereby at the discretion of the remuneration committee share options 
would be granted to executive directors and senior managers on a rolling annual basis
the extent to which options granted vest will be dependent on the cumulative growth in earnings per share eps over the three year period 
following the grant relative to the eps in the period immediately prior to grant as follow
    of annual salary over  
increase in eps over three year period    which options granted vest
33   25
50   50
100     100
the maximum grant of options in any one year will be fixed at 100 of basic salary for executive directors of pressure technologies plc and 
50 of salaries for other senior managers in the group
the option price will be set at the outset and be in line with the share price at that time executives who leave the group before the expiry 
of the three year vesting period will lose their right to exercise their options
d service contracts
all executive directors have rolling service contracts terminable on no more than one year’s notice
report of the remuneration committee 21  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
the following graph shows the company’s performance over the previous five year period when compared to the performance of the  
aim all share index the board and its advisors believe this to be the most appropriate broad equity market index with which to compare 
the company’s performance 
total shareholder return tsr is calculated to show the theoretical growth in the value of a shareholding over a specified period assuming 
that dividends are reinvested to purchase additional shares
directors’ remuneration
particulars of directors’ emoluments are as follows
 
       employers’ employers’
 salary      national national
 and    total total insurance insurance
 fees benefits bonus pension 2013 2012 2013 2012
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
nonexecutive        
rl shacklady
resigned 21 march 2013 19 — — — 19 30 — —
ajs wilson
appointed 12 february 2013 38 — — — 38 — — —
ps cammerman 28 — — — 28 20 3 2
nf luckett 28 — — — 28 20 2 2
na macdonald
appointed 4 june 2013 10 — — — 10 — — —
executive        
jts hayward 145 2 40 15 202 136 24 16
tj lister 119 2 49 13 183 115 22 13
total emoluments 387 4 89 28 508 321 51  33
all the payments shown for rl shacklady were paid to rls associates a partnership which he controls the remuneration of ajs wilson and 
since april 2013 for nf luckett is paid to management companies which they control
the number of directors who are accruing benefits under money purchase pension arrangements is two 2012 two 
0
20
40
60
80
100
120
140
160
180
sep
08
dec
08
mar
09
jun
09
sep
09
dec
09
mar
10
jun
10
sep
10
dec
10
mar
11
jun
11
sep
11
dec
11
mar
12
jun
12
sep
12
dec
12
mar
13
jun
13
sep
13
return index rebased to 100
pressure technologies
ftse aim allshare 22  pressure technologies plc  annual report 2013
report of the remuneration committee continued
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
    2013 2012
    £’000 £’000
nonexecutive  
rl shacklady     3 5
ps cammerman    3 2
nf luckett    4 4
executive  
jts hayward    76 73
tj lister    1 —
total dividends paid to directors    87 84
    
directors’ options
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
tj lister   9 august 2013 53000 2425p
further details of the share options granted to executive directors can be found on page 24 of the directors’ report
on behalf of the board
philip cammerman
chairman remuneration committee
3 december 2013 23  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
directors’ report
the directors present their report and the audited financial statements for the period from 30 september 2012 to 28 september 2013
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 during the period a new company csc deutschland gmbh was incorporated
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 28 the profit on ordinary activities before taxation of the group 
for the period ended 28 september 2013 amounted to £2878 million 2012 £1778 million 
an interim dividend of 26 p per share was paid during the period 2012 25p the directors recommend the payment of a final dividend  
of 52p per share 2012 50p
business review
the chairman’s and chief executive’s statements on pages 4 to 10 gives a detailed review of the current year’s performance
the operational overview is contained in the chief executive’s statement on pages 6 to 10
the financial review is contained in the finance director’s report on pages 12 to 13
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	respons ibility	for	the	impl ementation	of	these	policies	is	the	r esponsibility	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	co mmitted	to	the	co ntinuous	improvement	of	its	enviro nmental	management	system	specifically	the	group	seeks	to	
reduce waste and energy use and prevent pollution 
•	 as	part	of	conti nuous	improveme nt	it	is	the	policy	of	the	group	to	es tablish	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
•	 em ployees	are 	given	such	inform ation	training	and	equipment	as	is	n ecessary	to	enable	them	to	undertake	their	work	with	the	
minimum impact on the environment
the group had no notifiable environment incidents in 2013 2012 nil 24  pressure technologies plc  annual report 2013
directors’ report continued
substantial shareholdings
as at 27 november 2013 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
the liontrust intellectual capital trust    1019012 90
jts hayward    1002221 88
artemis    761667 67
hargreave hale    727800 64
jw brown    607454 54
a harding    588333 52
acuim    497990 44
unicorn    469967 41
directors and their interests
the present directors of the company are set out on pages 18 and 19 
the following directors were appointedresigned during the period
rl shacklady resigned 21 march 2013
ajs wilson appointed 12 february 2013
na macdonald appointed 4 june 2013
    28 september 29 september
    2013 2012
ordinary shares    no no
jts hayward    1002221 1002221
ps cammerman     33395 33395
tj lister    30000 9800
nf luckett including 7667 shares held by his wife    70000 52000
the former chairman rl shacklady held 64500 shares including 22500 held by his wife at 29 september 2012 and at 21 march 2013 
share options
on 29 july 2013 options were granted over 57213 ordinary shares under the rules of the pressure technologies plc saveasyouearn scheme 
at an exercise price of 156p the options are exercisable after three years and lapse six months after this date if they are not exercised
on 9 august 2013 options were granted over 153000 ordinary shares under the rules of the pressure technologies plc performance share 
plan – enterprise management incentive plan the options have an exercise price of 2425p the options are exercisable between three and 
five years following date of grant
the directors’ interests in share options are disclosed in the report of the remuneration committee
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 21 to the consolidated  
financial statements 25  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
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 that the group 
is forecast to generate profits and cash in 20132014 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 to 
prepare the group’s financial statements in accordance with international financial reporting standards as adopted by the european union 
ifrss the directors have elected to prepare the parent company financial statements in accordance with united kingdom generally 
accepted accounting practice uk gaap 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 in 
preparing these financial statements the directors are required to
•	 select	suitable	 accounting	policie s	and	then	apply	them	consistently
•	 make	judgeme nts	and	accountin g	estimates	that	are	reasonable	and 	prudent
•	 for	the	group	f inancial	statemen ts	state	whether	applicable	ifrss	ha ve	been	followed	subject	to	any	material	departures	disclosed	
and explained in the financial statements
•	 for	the	parent	c ompany	financial 	statements	state	whether	applicab le	uk	accounting	standards	have	been	followed	subject	to	any	
material departures disclosed and explained in the financial statements
•	 prepare	the	fin ancial	statements	 on	the	going	concern	basis	unless	it 	is	inappropriate	to	presume	that	the	company	will	continue	 
in business  26  pressure technologies plc  annual report 2013
directors’ report continued
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	d irector	is	aware	t here	is	no	relevant	audit	informatio n	of	which	the	company’s	auditor	is	unaware	and
•	 the	directors	h ave	taken	all	steps 	that	they	ought	to	have	taken	as	di rectors	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
3 december 2013
  27  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
report of the independent auditor
to the members of pressure technologies plc
we have audited the financial statements of pressure technologies plc for the period ended 28 september 2013 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 27 to the group consolidated financial statements and notes  
1 to 14 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 page 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 financial reporting council’s website at  
wwwfrcorgukapbscopeprivatecfm
opinion on financial statements
in our opinion
•	 the	financial	sta tements	give	a	tru e	and	fair	view	of	the	state	of	the	g roup’s	and	of	the	parent	company’s	affairs	as	at	28	september	
2013 and of the group’s profit for the period then ended 
•	 the	group	finan cial	statements	h ave	been	properly	prepared	in	acco rdance	with	ifrss	as	adopted	by	the	european	union
•	 the	parent	com pany	financial	sta tements	have	been	properly	prepar ed	in	accordance	with	united	kingdom	generally	accepted	
accounting practice and
•	 the	financial	sta tements	have	bee n	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	acco unting	records	hav e	not	been	kept	by	the	parent	com pany	or	returns	adequate	for	our	audit	have	not	been	received	
from branches not visited by us or
•	 the	parent	com pany	financial	sta tements	are	not	in	agreement	with	 the	accounting	records	and	returns	or
•	 certain	disclosu res	of	directors’	r emuneration	specified	by	law	are	no t	made	or
•	 we	have	not	re ceived	all	the	infor mation	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
3 december 2013 28  pressure technologies plc  annual report 2013
consolidated statement of comprehensive income 
for the period ended 28 september 2013
    52 weeks 52 weeks
    ended ended
    28 september 29 september
    2013 2012
   notes £’000 £’000
revenue    1 34383 30442
cost of sales     24088 22704
gross profit    10295 7738
administration expenses    7012 5788
operating profit pre acquisition costs and amortisation on acquired businesses  1 3283 1950
acquisition costs and amortisation on acquired businesses   5 407 190
operating profit post acquisition costs and amortisation on acquired businesses   2876 1760
finance income   2 11 27
finance costs   3 9 9
profit before taxation   4 2878 1778
taxation    9 678 507
profit for the period attributable to owners of the parent     2200 1271
other comprehensive income
items that may be reclassified subsequently to profit of loss
currency translation differences on translation of foreign operations    19 9
total comprehensive income for the period attributable to the owners of the parent  2219 1280
earnings per share  – basic   10 194p 112p 
– diluted   10 192p 112p
all the above results are from continuing operations
the accounting policies and notes on pages 32 to 54 form part of these financial statements 29  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
consolidated balance sheet
as at 28 september 2013 
    28 september 29 september
    2013 2012
   notes £’000 £’000
noncurrent assets
goodwill   12 1964 1964
intangible assets   13 1221 1478
property plant and equipment   14 4767 4654
deferred tax asset   22 138 110
trade and other receivables   17 163 152
    8253 8358
current assets
inventories   16 7206 6922
trade and other receivables   17 8705 7257
cash and cash equivalents    4044 2693
derivative financial instruments   18 71 —
    20026 16872
total assets    28279 25230
current liabilities
trade and other payables   19 9236 7651
derivative financial instruments   18 — 23
borrowings   20 — 6
current tax liabilities    448 252
    9684 7932
noncurrent liabilities
other payables   19 593 655
deferred tax liabilities   22 538 588
    1131 1243
total liabilities    10815 9175
net assets    17464 16055
equity
share capital   23 568 568
share premium account    5387 5378
translation reserve    25 6
retained earnings    11484 10103
total equity    17464 16055
the accounting policies and notes on pages 32 to 54 form part of these financial statements
the financial statements were approved by the board on 3 december 2013 and signed on its behalf by
jts hayward
director
company number 06135104
  30  pressure technologies plc  annual report 2013
consolidated statement of changes in equity
for the period ended 28 september 2013
  share  profit
 share premium translation and loss total
 capital account reserve account equity
 £’000 £’000 £’000 £’000 £’000
balance at 1 october 2011 567 5369 3 9605 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
other comprehensive income
exchange differences on translating foreign operations — — 9 — 9
total comprehensive income — — 9 1271 1280
balance at 29 september 2012 568 5378 6 10103 16055
dividends — — — 863 863
share based payments — — — 44 44
shares issued — 9 — — 9
transactions with owners — 9 — 819 810
profit for the period — — — 2200 2200
other comprehensive income
exchange differences on translating foreign operations — — 19 — 19
total comprehensive income — — 19 2200 2219
balance at 28 september 2013 568 5387 25 11484 17464
the accounting policies and notes on pages 32 to 54 form part of these financial statements 31  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
consolidated statement of cash flows
for the period ended 28 september 2013
    52 weeks 52 weeks
    ended ended
    28 september 29 september
    2013 2012
   notes £’000 £’000
operating activities
cash flows from operating activities   25 3544 2573
finance costs paid    8 9
income tax paid    558 514
net cash inflow from operating activities    2978 2050
 
investing activities
interest received    — 2
proceeds from sale of fixed assets    9 84
purchase of property plant and equipment    776 727
deferred purchase consideration    — 800
net cash used in investing activities    767 1441
financing activities
repayment of borrowings    6 36
dividends paid    863 829
shares issued    9 10
net cash outflow from financing activities    860 855
net increasedecrease in cash and cash equivalents    1351 246
cash and cash equivalents at beginning of period    2693 2939
cash and cash equivalents at end of period    4044 2693
the accounting policies and notes on pages 32 to 54 form part of these financial statements 32  pressure technologies plc  annual report 2013
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 55 to 59 
the group has applied all accounting standards and interpretations issued relevant to its operations for the period ended 28 september 
2013 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 20132014 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 and are expected to be relevant to the financial statements these standards will  
be effective in future periods
•	 ifrs	7	amendm ents	disclosures 	–	offsetting	financial	assets	and	lia bilities	effective	1	january	2014
•	 ifrs	10	consol idated	financial	st atements	effective	1	january	2014
•	 ifrs	11	joint	ar rangements	effec tive	1	january	2014
•	 ifrs	12	disclos ure	of	interests	in 	other	entities	effective	1	january	2 014
•	 ifrs	13	fair	val ue	measurement	 effective	1	january	2013
•	 ias	19	employe e	benefits	effecti ve	1	january	2013
•	 ias	27	revised 	separate	financ ial	statements	effective	1	january	2 014
•	 ias	28	revised 	investments	in	a ssociates	and	joint	ventures	effecti ve	1	january	2014
•	 ias	32	amendm ents	offsetting	f inancial	assets	and	liabilities	effecti ve	1	january	2014
•	 ias	36	amendm ents	impairmen t	of	assets	effective	1	january	2014
•	 annual	improve ments	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
changes in accounting policies
adoption of ‘presentation of items of other comprehensive income’ amendments to ias 1 
the group has applied the amendments to ias 1 ‘presentation of items of other comprehensive income’ for the first time in the current 
year the amendments to ias 1 are effective for annual periods beginning on or after 1 july 2012 and require entities to group items 
presented in other comprehensive income oci into those that in accordance with other ifrs will not be reclassified subsequently to  
profit or loss and those that will be reclassified subsequently to profit or loss when specific conditions are met 
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 33  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
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 the key judgement required 
to capitalise 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 into which it can be sold and the expected demand for the project once capitalised the 
assets are reviewed for impairment at each reporting date as explained below
impairment reviews – intangible assets
the group has acquired through business combinations and through other acquisitions intangible assets and capitalised certain assets 
such as licence agreements and development costs which are expected to generate revenue in the future but at a reporting period end 
may not have generated significant income at that time at each reporting period date the directors review the likelihood of the assets 
generating income the period over which this is likely to be achieved and the potential income that can be generated where it is probable 
the future fair value of income will be in excess of capitalised costs the assets are held within the balance sheet at cost where this is not  
the case an impairment charge will be recorded to adjust the assets to fair value
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 28 september 2013 
2012 to 29 september 2012 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 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	con sideration	transfe rred
•	 the	recognised 	amount	of	any	no ncontrolling	interest	in	the	acquire e	and
•	 acquisitiondat e	fair	value	of	any	 existing	equity	interest	in	the	acquir ee	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 34  pressure technologies plc  annual report 2013
accounting policies continued
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
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 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 share options 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 estimates used for residual values and useful lives are reviewed as required but at least annually 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  35  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
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	econ omic	benefits	that	are	attributable	 to	the	asset	will	flow	to	the	enterprise
•	 the	project	is	te chnically	and	com mercially	feasible
•	 the	group	inten ds	to	and	has	suf ficient	resources	to	complete	the	pr ojects
•	 the	group	has	 the	ability	to	use	o r	sell	the	asset	and
•	 the	cost	of	the	 asset	can	be	meas ured	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 one year
noncontractual customer relationships five 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 
goodwill is allocated to those cashgenerating units that are expected to benefit from synergies of the related business combination 
and represent the lowest level within the group at which management monitors goodwill cashgenerating units to which goodwill has 
been allocated are tested for impairment at least annually all other individual assets or cashgenerating units are tested for impairment 
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable 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 profit or loss 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 36  pressure technologies plc  annual report 2013
accounting policies continued
income taxes
the tax expense represents the sum of the tax currently payable and deferred tax current tax is the tax currently payable based on taxable 
profit for the year
deferred income taxes are calculated using the liability method on temporary differences deferred tax is generally provided on the 
difference between the carrying amounts of assets and liabilities and their tax bases however deferred tax is not provided on the initial 
recognition of goodwill nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects 
tax or accounting profit deferred tax on temporary differences associated with shares in subsidiaries is not provided if reversal of these 
temporary differences can be controlled by the group and it is probable that reversal will not occur in the foreseeable future in addition  
tax losses available to be carried forward as well as other income tax credits to the group are assessed for recognition as deferred tax assets
deferred tax liabilities are provided in full with no discounting deferred tax assets are recognised to the extent that it is probable that the 
underlying deductible temporary differences will be able to be offset against future taxable income current and deferred tax assets and 
liabilities are calculated at tax rates that are expected to apply to their respective periods of realisation provided they are enacted  
or substantively enacted at the balance sheet date
changes in deferred tax assets and liabilities are recognised as a component of tax expense in the consolidated statement of 
comprehensive income except where they relate to items that are recognised in other comprehensive income or directly in equity  
in which case the related deferred tax is also recognised in other comprehensive income or equity respectively
accounting for financial assets 
the group has financial assets in the following categories 
•	 loans	and	rece ivables	trade	and	 other	receivables	cash	and	cash	eq uivalents
•	 financial	assets 	at	fair	value	throu gh	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 other comprehensive income
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 profit or loss 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 37  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
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
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 profit or loss 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 
the consolidated financial statements are presented in pounds sterling which is also the functional currency of the parent company 
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 profit or loss 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 profit or loss over the expected useful lives of the assets 
concerned other grants are credited to profit or loss in the same period as the related expenditure is incurred
pensions
the group operates defined contribution schemes with costs being charged to profit or loss 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	d esign	manufactu re	and	reconditioning	of	seamless	h igh	pressure	gas	cylinders
•	 engineered	products	the	manufa cture	of	precision	engineered	valve 	components	air	operated	high	pressure	hydraulic	pumps	 
gas boosters power packs hydraulic control panels and test rigs
•	 alternative	ene rgy	marketing	se lling	and	manufacture	of	biogas	upg rading	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
the reported segment engineered products is an aggregate of operating segments hydratron ltd hydratron inc and almet limited 38  pressure technologies plc  annual report 2013
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 28 september 2013 £’000 £’000 £’000 £’000 £’000
revenue
– from external customers 17306 15942 1135 — 34383
operating profitloss before acquisition costs  3558 1562 480 1357 3283
acquisition costs — 187 — 220 407
operating profitloss 3558 1375 480 1577 2876
net finance incomecosts 7 2 — 3 2
profitloss before tax 3565 1373 480 1580 2878
segmental net assets 6940 7728 153 2643 17464
other segment information
capital expenditure 396 362 6 12 776
depreciation 295 309 34 8 646
amortisation — 187 70 — 257
  engineered alternative unallocated
 cylinders products energy amounts total
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
acquisition costs include the amortisation of intangible assets acquired through business acquisitions and fees associated with  
making acquisitions
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
acquisition costs include the amortisation of intangible assets acquired through business acquisitions 39  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
1 segment analysis continued
the following table provides an analysis of the group’s revenue by geographical destination 
    2013 2012
revenue    £’000 £’000
united kingdom    10639 10307
europe    5690 4275
rest of the world    18054 15860
    34383 30442
the uk is the entity’s country of domicile with revenue of £10639000 2012 £10307000 being obtained during the period
revenue of £23744000 2012 £20135000 has been generated overseas 
the group’s largest customer contributed 34 to the group’s revenue 2012 38 which is reported within the cylinders segment  
no other customer contributed more than 10 in the year to 28 september 2013 2012 nil
the following table provides an analysis of the group’s revenue by market 
    2013 2012
revenue    £’000 £’000
oil and gas    27640 24051
defence    3793 2190
industrial gases    1793 3888
alternative energy    1157 313
    34383 30442
the above table is provided for the benefit of shareholders it is not provided to the pt board on a regular monthly basis and consequently 
does not form part of the divisional segmental analysis
the following table provides an analysis of the carrying amount of noncurrent assets additions to property plant and equipment 
 united rest of  united rest of
 kingdom the world total kingdom the world total
 2013 2013 2013 2012 2012 2012
 £’000 £’000 £’000 £’000 £’000 £’000
noncurrent assets 8188 65 8253 8333 25 8358
additions to property plant and equipment 724 52 776 706 21 727
2 finance income
    2013 2012
    £’000 £’000
interest receivable on bank deposits    — 2
fair value discounting adjustment on loans and receivables note 17    11 25
    11 27 40  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
3 finance costs
    2013 2012
    £’000 £’000
interest payable on bank loans and overdrafts    5 3
interest payable on finance leases    1 6
other interest    3 —
    9 9
4 profit before taxation
profit before taxation is stated after chargingcrediting
     2013 2012
    £’000 £’000
depreciation of property plant and equipment – owned assets    646 624
depreciation of property plant and equipment – assets under finance lease and hire purchase agreements  — 15
profitloss on disposal of fixed assets    8 1
amortisation of intangible assets  – licence and distribution agreement    70 70 
– development costs     — 50
impairment of intangible assets – development costs    — 174
amortisation of grants receivable    39 37
staff costs see note 7    6904 6485
cost of inventories recognised as an expense    16327 15019
operating lease rentals
– land and buildings    627 624
– machinery and equipment    66 44
foreign currency loss     275 134
5 acquisition costs and amortisation on acquired businesses
    2013 2012
    £’000 £’000
amortisation of intangible assets arising on a business combination    187 190
acquisition costs – fees    220 —
    407 190
6 auditor’s remuneration
    2013 2012
    £’000 £’000
fees payable to the company’s auditor for the audit of the financial statements   13 14
fees payable to the company’s auditor and its associates for other services
– audit of the company’s subsidiaries pursuant to legislation    36 39
fees payable to the group’s auditor for nonaudit services
– tax services    21 13
– other services    10 15 41  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
7 employee costs
particulars of employees including executive directors
    2013 2012
    £’000 £’000
wages and salaries    6080 5729
social security costs    608 545
other pension costs    172 155
share based payments    44 56
    6904 6485
the average monthly number of employees including executive directors during the period was a follows
    2013 2012
    no no
production    151 140
selling and distribution    17 19
administration    23 18
    191 178
8 directors’ emoluments
particulars of directors’ emoluments are as follows
    2013 2012
    £’000 £’000
emoluments – short term employee benefits    480 297
pension costs – post employment benefits    28 24
employers’ national insurance    51 33
    559 354
please see the report of the remuneration committee on pages 20 to 22 for full details of directors’ emoluments which have been audited 
included in the aggregate emoluments for the period ended 28 september 2013 are payments of £72000 2012 £30000 made by the 
company to third parties the highest paid director received total emoluments of £202000 including pension contributions of £15000 
2012 total emoluments of £136000 including pension contributions of £13000
the group believe that the directors of pressure technologies plc are the only key management personnel under the definition of ias 24 
‘related party disclosures’ 42  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
9 taxation
    2013 2012
    £’000 £’000
current tax 
current tax expense     775 578
over provision in respect of prior years    19 2
    756 576
deferred tax
origination and reversal of temporary differences     74 76
overunder provision in respect of prior years    4 6
total taxation charge    678 507
corporation tax is calculated at 235 2012 25 of the estimated assessable profit for the period deferred tax is calculated at 20  
2012 23
the charge for the period can be reconciled to the profit per the consolidated statement of comprehensive income as follows
    2013 2012
    £’000 £’000
profit before taxation     2878 1778
theoretical tax at uk corporation tax rate 235 2012 25    676 444
effects of 
– nondeductible expenses    39 2
– disallowable acquisition costs    52 —
– research and development allowance    115 —
– adjustments in respect of prior years     23 4
– effect of unrealised overseas losses     121 64
– change in taxation rates    72 3
total taxation charge    678 507
10 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 
    2013 2012
    £’000 £’000
profit after tax    2200 1271
    no no
weighted average number of shares – basic    11361221 11350099
dilutive effect of share options     78069 —
weighted average number of shares – diluted    11439290 11350099
basic earnings per share     194p 112p
diluted earnings per share     192p 112p 43  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
11 dividends
the following dividend payments have been made on the ordinary 5p shares in issue
   shares 2013 2012
 rate date in issue £’000 £’000
final 201011 48p 9 march 2012 11356179 — 545
interim 201112 25p 6 august 2012 11356179 — 284
final 201112 50p 8 march 2013 11362229 568 —
interim 201213 26p 8 august 2013 11362229 295 —
    863 829
at 28 september 2013 the 201213 final dividend had not been approved by shareholders and consequently this has not been included as 
a liability the proposed dividend of 52p per share will if approved at the agm be paid on 7 march 2014 at a total cost of £591000
12 goodwill
     total
     £’000
cost 
at 29 september 2012 and 28 september 2013     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 31 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
  44  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
13 intangible assets
    non
 licence and   contractual
 distribution development customer customer
 agreement expenditure order book relationships total
 £’000 £’000 £’000 £’000 £’000
cost
at 29 september 2012 and 28 september 2013 1200 234 197 937 2568
amortisation
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
charge for the period  70 — — 187 257
at 28 september 2013 323 234 197 593 1347
        
net book value
at 28 september 2013 877 — — 344 1221
at 29 september 2012 947 — — 531 1478
        
remaining useful economic life at 28 september 2013 13 years — — 2 years
        
an impairment loss of £nil 2012 £174000 was recognised for development expenditure reducing the value to £nil at the prior year end 
all amortisation and impairment charges are included in the consolidated statement of comprehensive income the cumulative aggregate 
impairment loss is £174000
 
14 property plant and equipment
     plant and
     machinery
     £’000
cost
at 1 october 2011     7638
additions     727
disposals     593
at 29 september 2012     7772
additions     776
disposals     391
at 28 september 2013     8157
depreciation
at 1 october 2011     2989
charge for the period     639
disposed of in the period     510
at 29 september 2012     3118
charge for the period     646
disposed of in the period     374
at 28 september 2013     3390
net book value
at 28 september 2013     4767
at 29 september 2012     4654
included within the net book value of £4767000 is £nil 2012 £159000 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 £nil 2012 £15000 45  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
15 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 57
16 inventories
    2013 2012
    £’000 £’000
raw materials and consumables    3649 4002
work in progress    3557 2920
    7206 6922
included in the total net value above are gross inventories of £1668000 2012 £751000 over which provisions have been made of 
£707000 2012 £528000
17 trade and other receivables
    2013 2012
    £’000 £’000
current
trade receivables    6796 6194
other receivables    399 113
prepayments and accrued income    1510 950
    8705 7257
    2013 2012
    £’000 £’000
noncurrent
accrued income    163 152
    163 152
included in noncurrent accrued income are debts not due for settlement for a number of years management have reviewed the  
book value of these assets and applied discounting to reduce the balances by £20000 2012 £31000 to a fair value of £163000  
2012 £152000 the release during the year was £11000 2012 £25000
the average credit period taken on the sale of goods and services was 63 days 2012 54 days in respect of the group one debtor 
accounted for over 10 of trade receivables and represented 24 of the total balance in 2012 two debtors accounted for over 10  
of trade receivables and represented 21 and 13 of the total balance respectively 
ageing of past due but not impaired receivables
    2013 2012
    £’000 £’000
days past due
0 – 30 days    825 859
31 – 60 days    365 381
61 – 90 days    106 —
91 – 120 days     20 11
121 days    100 38
total    1416 1289 46  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
18 derivative financial instruments
    2013 2012
    £’000 £’000
derivatives carried at fair value not recognised for hedge accounting
– forward foreign currency contracts     71  23
assetliability     71 23
19 trade and other payables
    2013 2012
    £’000 £’000
amounts due within 12 months
trade payables    2903 2977
other tax and social security    329 227
accruals and deferred income    6004 4447
total due within 12 months    9236 7651
amounts due after 12 months
other payables    337 348
deferred income    256 307
total due after 12 months    593 655
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
20 borrowings
    2013 2012
    £’000 £’000
secured borrowings
net obligations under finance leases    — 6
amounts due for settlement within 12 months    — 6
the maturity profile of longterm loans is as follows
    2013 2012
    £’000 £’000
due within one year    — 6
obligations under finance leases are secured on the plant  machinery assets to which they relate 47  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
21 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 20 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
    2013 2012
    £’000 £’000
debt    — 6
cash and cash equivalents     4044 2693
net cash    4044 2687
equity    17464 16055
debt is defined as long and shortterm borrowings as detailed in note 20 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
    2013 2012
    £’000 £’000
financial assets
loans and receivables
– trade receivables    6796 6194
– other receivables    399 113
– cash and cash equivalents     4044 2693
fair value through the profit and loss fvtpl
– derivative instrument – forward currency contract not recognised for hedge accounting   71 —
    11310 9000
    2013 2012
    £’000 £’000
financial liabilities
fair value through profit and loss fvtpl
– derivative instrument – forward currency contract not recognised for hedge accounting   — 23
financial liabilities – held at amortised cost
– trade payables    2903 2977
– accruals     2129 1476
borrowings     — 6
    5032 4482
the fair value of the financial instruments set out above is not materially different from their book value 48  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
21 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 
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
  2013 2012 2013 2012
  £’000 £’000 £’000 £’000
euro  3994 2796 1863 2695
norwegian krone  6 6 30 —
us dollar  522 487 215 290
  4522 3289 2108 2985
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
   norwegian norwegian
 euro euro krone krone us dollar us dollar
 currency  currency currency currency currency currency
 impact impact impact impact impact impact
 2013 2012 2013 2012 2013 2012
 £’000 £’000 £’000 £’000 £’000 £’000
profit or loss 194 9 2 1 28 18
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 49  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
21 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 28 september 2013 the group had contracts outstanding to sell €3950 million for £3393 million 2012 sell €3525 million  
for £2794 million
the fair value of forward foreign exchange contracts at 28 september 2013 gave rise to a gain of £71000 2012 loss of £23000
interest rate risk management
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 £15000 2012 £14000
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 33 
2012 34 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  50  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
21 financial instruments continued
at 28 september 2013 the group’s liabilities have contractual maturities summarised below
  current 
  within current noncurrent total net
  6 months 612 months 1 to 5 years payable
2013  £’000 £’000 £’000 £’000
trade and other payables  6824 1248 835 8907
  current 
  within current noncurrent total net
  6 months 612 months 1 to 5 years payable
2012  £’000 £’000 £’000 £’000
trade and other payables  6733 — 691 7424
amounts due under hire purchase agreements  6 — — 6
  6739 — 691 7430
the group had an undrawn bank overdraft facility available at 28 september 2013 of £3000000 2012 £2000000 which is due for 
renewal on 28 february 2014
the following amounts have been recognised in the consolidated statement of comprehensive income in respect of derivative financial 
instruments
    2013 2012
    £’000 £’000
fair value through profit and loss fvtpl
– derivative instrument – forward currency contract not recognised for hedge accounting   71 23
amounts chargedcredited to cost of sales within the consolidated statement of comprehensive income  71 23
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 51  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
22 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 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
creditcharge to income 4 54 34 6 12 78
at 28 september 2013 470 68 51 19 68 400
the net deferred tax balance has been analysed as follows in the consolidated balance sheet
    2013 2012
    £’000 £’000
noncurrent asset
deferred tax asset    138 110
noncurrent liabilities
deferred tax liabilities    538 588
    400 478
 
23 called up share capital
  2013 2012 2013 2012
  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  11362229 11356179 568 568
during the year the company issued 6050 ordinary shares at a price of 150p increasing share capital by £303 and share premium £8773 
these shares were issued to employees exercising their rights to acquire shares under the company’s sayeshare option plan 
24 share based payments
saveasyouearn scheme
pressure technologies plc introduced a share option scheme for all employees of the group in november 2007 a fifth grant of options was 
made in july 2013 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
    2013 2012
    no no
outstanding and exercisable at the beginning of the period     128537 106815
granted during the period    57213 52440
lapsed during the period    9757 24063
exercised during the period    6050 6655
expired during the period    3872  —
outstanding and exercisable at the end of the period    166071 128537
the weighted average exercise price of the share options exercised in the period is 150p 2012 150p 52  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
24 share based payments continued
the exercisable options outstanding at 28 september 2013 had a weighted average exercise price of 152p 2012 150p and a weighted 
average remaining contractual life of 18 years 2012 21 years the terms of these options are as follows
 options
 outstanding   market value
 at 28 september vesting at date of exercise exercise
date of grant 2013 period grant p price p period
28 july 2011 64725 3 years 160 150 6 months
6 august 2012 46440 3 years 175 150 6 months
29 july 2013 54906 3 years 2475 156 6 months
total options outstanding at 28 september 2013 166071
there are no performance conditions that apply to these options other than continued employment
pressure technologies plc performance share plan – enterprise management plan 
on 9 august 2013 options were granted over 153000 ordinary shares under the rules of the pressure technologies plc performance share 
plan – enterprise management plan at an exercise price of 2425p 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
    2013 2012
    no no
outstanding and exercisable at the beginning of the period    104768 73117
granted during the period    153000 53156
lapsed during the period    —  21505 
outstanding and exercisable at the end of the period    257768 104768
the exercisable options outstanding at 28 september 2013 had a weighted average exercise price of 2215p 2012 1909p and a weighted 
average remaining contractual life of 38 years 2012 32 years the terms of these options are as follows
  options
  outstanding  market value
  at 28 september vesting at date of exercise
date of grant  2013 period grant p price p
7 october 2009  51612 3 – 5 years 2325 2325
23 february 2012  53156 3 – 5 years 1505 1505
9 august 2013  153000 3 – 5 years 2425 2425
total options outstanding at 28 september 2013  257768
there are no performance conditions that apply to these options other than continued employment 53  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
24 share based payments continued
pressure technologies plc performance share plan – share options plan
pressure technologies plc introduced this share option scheme in february 2012 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
    2013 2012
    no no
outstanding and exercisable at the beginning of the period    73089 —
granted during the period    — 73089
outstanding and exercisable at the end of the period    73089 73089
the exercisable options outstanding at 28 september 2013 had a weighted average exercise price of 1505p 2012 1505p and a weighted 
average remaining contractual life of 34 years 2012 44 years the terms of these options are as follows
  options
  outstanding  market value
  at 28 september vesting at date of exercise
date of grant  2013 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
    management saveas
scheme    plan youearn
date granted    09082013 29072013
share price at date of offer    2425p 195p
exercise price    2425p 156p
expected volatility    19 15
expected life    35 years 3 years
risk free rate    14 13
expected dividend yield    33  51
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
in line with hmrc approved schemes share options under the saveasyouearn scheme may be exercisable at a discount of up to 20  
of the market value of the shares at the time of issue
the total charge to the consolidated statement of comprehensive income in the period in respect of sharebased payments was £44000 
2012 £56000 a deferred tax credit of £6000 2012 £4000 was recognised in the consolidated statement of comprehensive income 
during the period in respect of share based payments  54  pressure technologies plc  annual report 2013
notes to the consolidated financial statements continued
25 consolidated cash flow statement
    2013 2012
    £’000 £’000
profit after tax    2200 1271
adjustments for
finance income – net    2 18
depreciation of property plant and equipment    646 639
amortisation of intangible assets    257 484
share option costs    44 56
income tax expense    678 507
profit loss on derivative financial instruments    71 23
loss profit on disposal of fixed assets    8 1
changes in working capital
increase in inventories    284 1910
increase in trade and other receivables    1448 598
increase in trade and other payables    1516 2120
cash flows from operating activities    3544 2573
26 financial commitments
a capital commitments
commitments for capital expenditure entered into were as follows
    2013 2012
    £’000 £’000
contracted for but not provided in the accounts    — —
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
    2013  2012
    £’000 £’000
land and buildings leases expiring
within one year    641 624
in the second to fifth years inclusive    2711 2624
after more than five years    1517 2167
    4869 5415
other assets leases expiring
within one year    53 44
in the second to fifth years inclusive    56 35
    109 79
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	fiv e	years	on	the	group	factory	and	offices	at	meadowhall	sheffield
•	 a	 secondary	15 	year	lease	comm enced	on	the	same	date	with	rent	re views	every	five	years	for	the	end	bays	at	meadowhall	sheffield
•	 a	 third	lease	wa s	entered	into	on 	7	february	2010	expiring	on	the	sa me	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	nove mber	2010	with	rent	reviews	at	the	end	of	year	5	and	year	10	 
of the term and
•	 hydratron	limited’s	10	year	prop erty	lease	commenced	on	28	octob er	2010	and	has	a	rent	review	at	the	end	of	year	5
27 related party transactions 
the interests of directors in dividends paid during the year are disclosed in the report of the remuneration committee which has  
been audited 55  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
company balance sheet
as at 28 september 2013
    2013 2012
   notes £’000 £’000
fixed assets
investments   4 6373 6344
tangible fixed assets   5 4 —
    6377 6344
current assets
debtors   6 4528 5528
cash at bank and in hand    2181 75
    6709 5603
creditors amounts falling due within one year   7 530 338
net current assets    6179 5265
total assets less current liabilities    12556 11609
provisions for liabilities    10 8 —
net assets    12564 11609
capital and reserves
called up share capital   9 568 568
share premium account   11 5387 5378
equity – non distributable   11 114 85
profit and loss account   11 6495 5578
equity shareholders’ funds   12 12564 11609
the accounting policies and notes on pages 56 to 59 form part of these financial statements
approved by the board on 3 december 2013 and signed on its behalf by
jts hayward
director
  56  pressure technologies plc  annual report 2013
notes to the company financial statements
1 accounting policies
these financial statements have been prepared under the historical cost convention and in accordance with applicable uk accounting 
standards and the companies act 2006 under section 408 of the companies act 2006 the company is exempt from the requirement  
to present its own profit and loss account the profit for the financial year dealt within the financial statements of the holding company  
was £1765000 2012 £2302000 after applying a tax credit note 8 of £8000 2012 £nil to the profit before tax of £1757000  
2012 £2302000
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
fixed assets and depreciation
fixed assets are stated at cost less accumulated depreciation and any reduction for recognised impairment in value with a corresponding 
charge to the profit and loss account cost reflects purchase price or construction cost of the asset together with any incidental costs of 
bringing the asset into use 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 one year
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
    2013 2012
    number number
administration     5 5
staff costs including directors 
    2013 2012
    £’000 £’000
wages and salaries    455 389
social security costs    59 46
other pension costs    43 39
share based payments    15 21
    572 495
further details of directors’ remuneration are provided in the report of the remuneration committee on pages 20 to 22 57  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
3 operating profit
the auditor’s remuneration for the audit and other services is disclosed in note 6 to the consolidated financial statements
4 investments
     investment 
     in subsidiary
     companies
     £’000
cost 
at 29 september 2012     6344
share options granted to subsidiary company employees     29
at 28 september 2013     6373
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
csc deutschland gmbh germany sales and marketing
hydratron limited england  wales manufacturing
hydratron inc usa manufacturing
5 tangible fixed assets
     plant and
     machinery
     £’000
cost
at 29 september 2012     —
additions     12
at 28 september 2013     12
depreciation
at 29 september 2012     —
charge for the period     8
at 28 september 2013     8
net book value
at 28 september 2013     4
at 29 september 2012     —
6 debtors
    2013 2012
    £’000 £’000
amounts falling due within one year
prepayments and accrued income    194 116
other debtors    100 —
amounts owed by group companies    4234 5412
    4528 5528 58  pressure technologies plc  annual report 2013
notes to the company financial statements continued
7 creditors amounts falling due within one year
    2013 2012
    £’000 £’000
trade creditors    87 36
other tax and social security    16 12
corporation tax    1 —
accruals and deferred income    426 58
amounts owed to group companies    — 232
    530 338
8 taxation
    2013 2012
    £’000 £’000
current tax 
current tax expense     1 —
over provision in respect of prior years    1 —
    — —
deferred tax
origination and reversal of temporary differences     8 —
total taxation charge    8 —
corporation tax is calculated at 235 2012 25 of the estimated assessable profit for the period deferred tax is calculated at 20  
2012 23
9 share capital
details of the company’s authorised and issued share capital and of movements in the year are given in note 23 to the consolidated 
financial statements
10 provisions for liabilities
deferred tax
    2013 2012
    £’000 £’000
at 30 september 2012    — —
credit for the period    8 —
    8 —
the provision for deferred taxation is made up as follows
    2013 2012
    £’000 £’000
cost of share options    7 —
accelerated capital allowance    1 —
    8 — 59  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
11 reserves
 share  profit share  profit
 premium  equity – non and loss premium equity – non and loss
 account distributable account account distributable account
 2013  2013 2013 2012 2012 2012
 £’000 £’000 £’000 £’000 £’000 £’000
at beginning of period 5378 85 5578 5369 50 4084
profit for the financial period — — 1765 — — 2302
share option cost — — 15 — — 21
share options granted to subsidiary employees — 29 — — 35 —
shares issued 9 — — 9 — —
dividends — — 863 — — 829
at end of period 5387 114 6495 5378 85 5578
12 reconciliation of movements in equity shareholders’ funds
    2013 2012
    £’000 £’000
equity shareholders’ funds at beginning of period    11609 10070
profit for the financial period    1765 2302
dividends paid    863 829
share option cost    15 21
share options granted to subsidiary employees    29 35
shares issued    9 10
equity shareholders’ funds at end of period    12564 11609
13 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 the report of the remuneration committee
14 ultimate controlling party
the directors consider there is no ultimate controlling party
  60  pressure technologies plc  annual report 2013
notes design and production
wwwcarrkamasacouk
this report is printed on upm fine offset which is fsc
®
 certified as well as having iso14001 ems emas and the european ecolabel pressure technologies plc
meadowhall road 
sheffield 
s9 1bt
uk
telephone 44 0 114 242 7500
fax 44 0 114 242 7502
wwwpressuretechnologiescouk


Summary:
 04  pressure technologies plc  annual report 2013
in this my first year as chairman of  
the group i am delighted to report  
a very strong set of results for 2013 and 
excellent prospects for 2014 pressure 
technologies is a great business 
operating in some of the world’s most 
dynamic markets with demanding 
customers who value our ability to design 
and manufacture engineering solutions 
that meet their exacting standards
there have been major changes to the 
board during the year neil macdonald 
and i joined as nonexecutive directors 
and the group’s former chairman 
richard shacklady retired in march  
i would like to extend the board’s thanks 
to richard for his outstanding contribution 
to the company since 2004 in particular 
his vision to float the company on aim 
which enabled us to fund the expansion 
and diversification of the group
results 
group sales for the fullyear reached  
a record £344m 2012 £304m  
which yielded a pretax profit of £29m  
2012 £18m giving a return on sales 
of 84 2012 58 it is particularly 
pleasing to note that large incremental 
profits were generated in cylinders  
and engineered products divisions  
chairman’s statement
as we benefited from the effects  
of operational gearing
the group’s balance sheet continues 
to strengthen on the improved trading 
results with a yearend net asset value  
of £175m 2012 £161m £40m of net 
cash 2012 £27m and no bank debt  
as a result of the solid balance sheet  
and positive trading outlook the board  
is continuing its progressive dividend 
policy and is recommending a final 
dividend of 52p per share 2012 50p 
giving a total of 78p per share for the 
year a 4 increase on last year  
if approved the final dividend will be  
paid to shareholders on 7 march 2014
trading and market conditions 
overall conditions in our largest market 
oil  gas were favourable during the  
year with the global demand for oil 
increasing by 12 oil prices have 
traded between us90120 per barrel 
over the past three years with yearly 
averages stabilising around us110 
this has provided a stable investment 
environment whereby spending on oil 
and gas exploration and production  
ep in 2013 has experienced an 
estimated increase of 6 creating  
a positive impact on our two core  
sectors deep water drilling rigs and 
subsea wellheads
the quest to find and develop oil fields  
in deeper waters has put pressure on the 
ageing stock of drilling rigs mostly built 
during the 197090s which has spurred  
a flurry of orders for sixthgeneration 
ultradeep water rigs capable of operating 
in 3000m water depths this was strongly 
reflected in sales in our cylinders division 
and in our continued strong order book 
however many of these newbuild  
orders have been placed with south 
korean shipbuilders on a fixedprice 
lumpsum basis which has put pressure 
on pricing from suppliers of equipment 
as shipbuilders try to maximize  
their profits 
in response to this our cylinders division 
has continued to develop higher added 
value services and expanded its portfolio 
of defence customers winning major 
contracts for naval projects in germany

return on sales 
84
2012 58
pretax profit 
£29m
2012 £18m
£
£
group sales 
£344m
2012 £304m 05  pressure technologies plc  annual report 2013 company overview  01 – 05
business review  06 – 17
governance  18 – 27
financial statements  28 – 59
“pressure technologies is a great business operating 
in some of the world’s most dynamic markets with 
demanding customers who value our ability to design 
and manufacture engineering solutions that meet their 
exacting standards”
we are aware that the four leading 
subsea tree manufacturers experienced 
unprecedented order intake during 
2013 which is further confirmation of 
the quest to find and develop oil in deep 
water encouragingly such levels of order 
intake have been very positive for our 
engineered products division which has 
enjoyed record sales and order intake 
and solid profit growth this outstanding 
performance has continued into the first 
quarter of the current financial year
regulatory changes in the uk have 
resulted in our alternative energy division 
securing large orders for biogas upgrading 
equipment for delivery in the current 
financial year this is the breakthrough we 
had anticipated and much credit is due 
to the board and management for their 
vision and perseverance in this venture 
prospects 
set against market forecasts of global 
gdp growth for 2014 in the order of 3 
the global demand for oil is expected to 
increase by 13 slightly higher than the 
previous year this increased demand  
will further underpin the oil price and  
ep investment which is forecast to 
grow by 8 thereby creating a generally 
positive and encouraging picture for the 
coming year
at a more granular level we have begun 
the current financial year with an order 
book 37 higher than last year so the 
prospects for a further improvement 
in performance are very promising we 
also continue to develop new products 
and services across the group and are 
planning major capital expenditure over 
the next two years to expand capacity 
improve productivity and quality and 
increase profitability in parallel with 
growing our core businesses the board 
continues to evaluate earnings enhancing 
acquisitions which complement and add 
value to our existing portfolio
i view the current year with much 
enthusiasm and look forward to 
presenting further evidence of the 
group’s ability to capitalise on the 
opportunities which lie ahead
alan wilson 
chairman 
3 december 2013
focus
biogas is generated as a product of the anaerobic digestion  
of organic waste a typical composition could be 60 methane 
39 carbon dioxide “co
2
” and 1 other gases upgrading 
removes the majority of the co
2
 and other gases to give  
upwards of 98 pure methane 
the greenlane® upgrading process uses water under pressure  
in a process akin to a giant soda syphon the co
2
 dissolves in  
the water and the less soluble methane is collected and dried  
for injection into the natural gas grid 
what is  
biogas upgrading