By Joe Hoppe
Pressure Technologies PLC shares fell Tuesday after it forecast an adjusted operating loss for fiscal 2022, and said that it doesn't expect to meet financial covenants on its banking facility.
Shares at 0717 GMT were down 26.5 pence, or 42%, at 36.5 pence.
The specialist engineering group said it had previously forecast a much stronger second-half performance after booking an adjusted operating loss of 2.1 million pounds ($2.2 million) for the first half of the year ending Oct. 1, reflecting a strong order book in its Chesterfield Special Cylinders division and an expected order intake recovery in its Precision Machined Components division.
However, while Pressure said that it expects an adjusted operating profit in the second half, the recovery has been smaller than anticipated, and the company now foresees an adjusted operating loss for the full year.
The company said that it expects its banking facility with Lloyds Bank to be fully drawn at GBP2.4 million at the end of fiscal 2022, and that due to the forecast loss it doesn't expect to meet its covenants. It said it was in constructive dialogue with Lloyds, while accounting firm Ernst & Young LLP is reviewing funding options to replace the facility.
Pressure said that it is confident in underlying opportunities, and that it expects to return to profit in fiscal 2023.
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(END) Dow Jones Newswires
September 27, 2022 03:46 ET (07:46 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.