Pressure Technologies (PRES) expects to beat full-year expectations following a strong second half for its seamless steel cylinders, used widely on oil rigs and submarines, and for high pressure equipment made by the smaller engineered products division. And, despite almost doubling since our buy tip (187p, 27 Jun 2013), the shares still look good value.
Indeed, management expects another good year from the engineered products team, including valve parts business Al-Met, which continues to keep pace with rising demand for so-called subsea trees, which monitor and control the production of deep sea wells. Further orders for its biogas 'upgraders', used to make biomethane fit for the national gas grid, look inevitable, too. True, low-cost Korean rivals may chip away at cylinder margins, but that's been well-flagged and broker Charles Stanley still expects group adjusted EPS to grow 20 per cent in 2014 and 27 per cent the year after.
