Pressure Technologies, the Sheffield-headquartered engineering group has raised 5m within the placing of shares throughout the stock game.
The firm gives operate the proceeds which could strengthen the business’ balance sheet minimizing its borrowings.
The influx of revenue would also provide the business the possibility pay for its manufacturing divisions because of strengthening conditions from the key oil and coal and defence markets, and even pursuing opportunities in other markets and capitalising on opportunities equally for organic and non-organic growth.
The business also wishes to provide support to renewable energy as a result it offers the best possibility to capitalise within the significant market potential during 2018 and beyond.
A statement from Pressure Technologies said: “As highlighted inside interim latest shopping results for the 6 months to 1 April 2017, released in June, along with the trading update announced shortly after August, the Group’s three Manufacturing Divisions: Precision Machined Components, Engineered Products and Cylinders are emerging caused by a sustained number of retrenchment and re-organisation owing to the coal and oil market downturn.
“Precision Machined Components and Chesterfield Special Cylinders start to view an uplift in activity, stemming from increased confidence over the oil market, providing a stabilized and increasing order load, as well as strong defence contracts stretching about the medium term.
“Engineered Products continues to be stabilised but is experiencing reduced quantities of demand caused by continued low buying of capital equipment from the oil market.
“The board believes how the upward trajectory in sales revenue and profits, underpinned via the great things about restructuring, should continue across these divisions with market and application across several areas giving the momentum to keep this progress.”
For the six months to just one April, the firm posted revenue of 17.7m, up by 500,000 around the identical period in 2016 but posted an adjusted operating loss of 800,000 and reported losses before tax of 2.6m.
While Pressure Technologies said its manufacturing and sustainable energy divisions both made progress the volatility together with the oil and coal markets and redundancy costs had a positive alteration to the business enterprise.
Its electrical power arm reduced its workforce by 12 staff, incurring redundancy and reorganisation costs of 400,000.