30 January 2024

Pressure Technologies plc

("Pressure Technologies" or "the Company" or "the Group")

2023 Full-Year Results

Pressure Technologies plc (AIM: PRES), the specialist engineering group, is pleased to announce its audited results for the 52 weeks to 30 September 2023 ("FY23"), which are in line with the Group revenue and Adjusted EBITDA¹ previously announced by the Company on 3 October 2023.

The audited Annual Report and Financial Statements will be published on the Company's website today.

Group Highlights

Chesterfield Special Cylinders ("CSC")

Precision Machined Components ("PMC")

Outlook

Chris Walters, Chief Executive of Pressure Technologies plc, commented:

"Significantly improved performance in FY23 reflects the strong defence order book in Chesterfield Special Cylinders and the continued recovery of oil and gas market trading conditions in Precision Machined Components.

In Chesterfield Special Cylinders, the order book reached the highest level on record following an £18.2 million contract award to supply air pressure vessels for a major UK naval new construction programme.  This order was the largest ever for the division, providing good visibility of high-value work into FY24.

Despite delays in the hydrogen energy supply chain over the past year, we remain well positioned in this emerging market to supply static and mobile hydrogen storage solutions, and to provide the through-life inspection, testing and recertification services for these safety-critical systems over the medium and longer term. The announcement in December 2023 by UK Government of the first Hydrogen Allocation Round is positive for the market and presents opportunities for CSC over the next two years.

In Precision Machined Components, the recovery of order intake levels was very strong in the year facilitating a return to profitability for the division. In light of these improving conditions, the Board decided to divest PMC and launched the sale process in December 2023. We are targeting completion of the sale in the third quarter of FY24, with the sale proceeds to be used to repay the new term loan recently arranged with two of our major shareholders and to fund the development of CSC in the hydrogen energy market.

We have a clear focus on shareholder value and the delivery of strategic objectives for the Group in FY24."

Annual General Meeting

The Annual General Meeting of the Company will take place on Thursday 21 March 2024 at 09:30 am at the offices of Singer Capital Markets, 1 Bartholomew Lane, London EC2N 2AX.

Notice of FY24 Interim Results

The Company expects to publish its unaudited interim results for the half year ending 30 March 2024 by the end of May 2024.

For further information, please contact:

COMPANY DESCRIPTION

www.pressuretechnologies.com

With its head office in Sheffield, the Pressure Technologies Group was founded on its leading market position as a designer and manufacturer of high-integrity, safety-critical components and systems serving global supply chains in oil and gas, defence, industrial and hydrogen energy markets.

The Group has two divisions:

·      Chesterfield Special Cylinders (CSC) - www.chesterfieldcylinders.com 

·      Precision Machined Components (PMC) - www.pt-pmc.com

o  Includes the Al-Met, Roota Engineering and Martract sites.

Chair's statement

Pressure Technologies plc (the "Company") and its subsidiaries (together "the Group") are globally recognised as a leading provider of safety-critical pressure containment and control products and services to customers in the defence, energy and industrials sectors who operate in highly demanding environments. The operating divisions of the Group are Chesterfield Special Cylinders ("CSC") and Precision Machined Components ("PMC"). The Annual Report and Financial Statements and this announcement cover the financial year ended 30 September 2023 ("FY23").

FY23 has been a year of significant progress for the Group. Market conditions and order intake have improved considerably, we have made significant operational improvements, facilitating a return to profitability in both divisions, and we have reduced our debt levels and restructured our financing. This provides a solid foundation to deliver on our strategic priorities in the year ahead.

I am pleased to report that in FY23 we won new orders of £43.0 million (FY22: £24.6 million), an increase of 75%.

On 6 February 2023, we announced the award of a £18.2 million major defence contract, propelling CSC order intake in FY23 to £24.6 million (FY22: £15.7 million). Moreover, PMC order intake was £18.4 million (FY22: £8.9 million), an increase of over 100%, and has accelerated since March 2023 when we won a record £3.0 million order from an established international OEM customer for the supply of flow control components and sub-assemblies. The OEM customers of PMC continue to forecast strong recovery in demand for specialised components for oil and gas exploration and production projects over the next three to five years. The order book of the Group at the end of the year was £20.7 million (FY22: £10.4 million), positioning the Group well for FY24.

The Group delivered much improved financial performance in FY23. Group revenue was £32.0 million (FY22: £24.9 million), facilitating a return to profitability with Adjusted EBITDA of £2.1 million (FY22: Adjusted EBITDA loss of £0.9 million). The turnaround in performance started in the first half of the year and accelerated in the final quarter as the full benefits of our investments in operational efficiency and continuous improvement in our manufacturing facilities were realised.

CSC performed very strongly in FY23, reporting revenue of £20.7 million (FY22: £17.6 million) and Adjusted EBITDA of £3.9 million (FY22: £1.1 million), delivering an operating margin of 19%. The rapid improvement in profitability was driven by the major defence contract won in the year which continues to provide order cover into FY24. We are also encouraged by diversification opportunities for pressure system inspection and testing services, including Integrity Management field deployments and cylinder reconditioning and recertification services. These activities cover established defence and offshore markets, while new opportunities are developing for industrial gas and hydrogen storage applications.

CSC is also very well positioned in the emerging market for hydrogen storage and transportation. However, order placement by established and new customers was slower than expected during FY23, influenced by constraints and delays in the supply chain for components required in the generation and compression of hydrogen for refuelling and decarbonisation projects. Despite these delays, we are hopeful of securing several contracts during FY24 and remain positive about our prospects in the hydrogen energy market for new build storage and transport solutions and for the through-life inspection, testing and recertification of hydrogen systems over the medium and longer term.

PMC delivered a significant turnaround in performance in FY23, reporting revenue of £11.3 million (FY22: £7.3 million) and Adjusted EBITDA of £0.1 million (FY22: Adjusted EBITDA loss of £0.3 million), achieving a return to full-year profitability. The final quarter of FY23 was particularly strong, with a substantial increase in activity levels following the surge in order intake mid-way through the year. Conditions in the oil and gas market have improved further during the second half of the year, supported by a rising oil price, such that PMC exited FY23 with an order book of £9.4 million (FY22: £3.0 million), the highest level seen in the last 5 years. The division is well placed to carry this momentum into FY24.

Having considered the current trading environment, improved outlook and positive developments being made by PMC, the Board has decided that the timing is now favourable to realise value through the divestment of the PMC division.

The Group has appointed advisors to handle the sale process which was launched in December 2023. The sale process is expected to run for approximately 6 months into the third quarter FY24. The proceeds of the sale are intended to repay the new Term Loan facility and fund strategic investment opportunities at CSC to support its growth in the hydrogen energy sector.

The Group has strengthened its financing position considerably during the year. On 6 December 2022, we completed a £2.1 million equity fundraise with support from institutional and retail shareholders. The funds raised provided important flexibility and liquidity during the first half of FY23 as a bridge to stronger cash generation from major contracts in CSC and the return to profitability in PMC, whilst supporting a debt repayment of £0.5 million to Lloyds Banking Group in March 2023. With the improvement in trading performance and cashflow delivered in the second half of the year, a further debt repayment of £1.0 million was made on 30 September 2023, reducing the balance payable to Lloyds to £0.9 million.

Subsequent to the year-end, on 14 November 2023, the Group exited its existing Revolving Credit Facility, provided by Lloyds, by arranging a new Term Loan facility of £1.5 million with Rockwood Strategic plc and Peter Gyllenhammar AB, two of its major shareholders. The new Term Loan facility provides a financing bridge to the sale of PMC and is repayable upon a successful sale of the division. In conjunction with the provision of the new Term Loan, Rockwood

Chair's statement (continued)

and Gyllenhammar were issued with 1,933,358 warrants in aggregate (representing 5% of the issued share capital) to subscribe for ordinary shares in the Company at a price of 32 pence per share.

During the year, the Board also strengthened the Executive team. In April 2022, we welcomed Chris Webster to the Group as Chief Operating Officer. Chris has brought considerable operational experience to the business based on his 30 year career in manufacturing and has delivered positive, controlled change across all sites, improving production efficiencies, supply chain controls and project management disciplines. These operational improvement initiatives have been critical to returning the Group to profitability and improving its financial position.

On 17 January 2023, we announced the appointment of Steve Hammell as Chief Financial Officer. Steve joined the Board in May 2023 and brings considerable financial expertise to the Group based on his 25 year career in corporate finance and industry. Since arriving, he has led the appointment of new auditors, improved our forecasting procedures, driven the successful refinancing process and initiated the sale process for PMC.

I am also pleased that Richard Staveley of Rockwood Strategic plc, a major shareholder in the Company, joined the Board as a non-executive director from 23 May 2023 and played a central role in delivering the refinancing.

The Group will continue to prioritise investment in the skills and development of its people. The Board are mindful that the capabilities of CSC and PMC are dependent on building the qualifications and experience of our employees and has therefore remained committed to its apprenticeship programme, growing the skilled workers of the future. The Board also emphasises improvement in its health and safety and environmental performance, investing in safety enhancing projects. We continue to place a high premium on our technical and engineering expertise that underpins the performance of our products and services for the benefit of our customers.

With a much stronger order book, a strengthened Executive team and clear strategic priorities for the Group, we are very excited about the opportunities presented to the Group as we look into 2024.

Nick Salmon

Chair

30 January 2024

Business and financial review

Group

FY23 has been a year of significant progress for the Group. Market conditions and order intake improved consistently as the year progressed and we made significant operational improvements, facilitating a return to trading profitability.

New order intake in FY23 was £43.0 million (FY22: £24.6 million), an increase of 75%. On 6 February 2023, we announced the award of a £18.2 million major defence contract, propelling CSC order intake in FY23 to £24.6 million (FY22: £15.7 million). Moreover, PMC order intake was £18.4 million (FY22: £8.9 million), an increase of over 100%, and has accelerated since March 2023 when we won a record £3.0 million order from an established international OEM customer.

The turnaround in financial performance started in the first half of the year and accelerated in the final quarter as the full benefits of our investments in operational efficiency and continuous improvement in our manufacturing facilities were realised.

Group revenue for the year was £32.0 million (2022: £24.9 million) and Adjusted EBITDA was £2.1 million (2022: Adjusted EBITDA loss of £0.9 million). The Group reported adjusted operating profit for the year of £0.6 million (2022: adjusted operating loss of £2.6 million).

The order book of the Group at the end of the year was £20.7 million (FY22: £10.4 million), positioning the Group well for FY24.

The Group reported a loss before taxation of £1.1 million (2022: loss of £4.0 million) due to exceptional costs of £1.3 million (2022: £1.0 million) and finance costs of £0.4 million (2022: £0.3 million).

The exceptional costs related to professional fees incurred in the proposed refinancing of the banking facilities of the Group during the year, corporate finance advisory fees exploring the potential sale of PMC in the first half of the year and the costs of re-organising the senior management of the Group.

Business and financial review (continued)

Chesterfield Special Cylinders

Chesterfield Special Cylinders ("CSC") delivered revenue of £20.7 million (FY22: £17.6 million) and Adjusted EBITDA of £3.9 million (2022: 1.1 million), a much improved performance in the year. The division reported adjusted operating profit of £3.1 million (FY22: £0.4 million).

CSC's order intake in FY23 was £24.6 million (FY22: £15.7 million), an increase of 57%. This supported a year-end order book of £11.3 million (2022: £7.4 million), positioning the division well for FY24.

The recovery in revenue, to the highest level seen in the last 5 years, was driven by work for the defence sector. On 6 February 2023, the Group announced the major contract placement by a major UK naval customer for pressure vessel manufacturing for a new construction project. This contract, valued at £18.2 million, is the largest ever awarded to CSC and will be delivered to the customer over three years. Activity on the contract commenced immediately upon placement and accelerated in the final quarter of FY23, driving revenue and Adjusted EBITDA for the year.

CSC was also active on contracts for global defence customers in France and Australia during the year. We expect revenue from global defence to increase further in FY24.

Revenue for Integrity Management field services from defence customers was below expectations in the year at £1.2 million (2022: 1.8 million) due to the postponement of several naval vessel deployments. However, we expect Integrity Management to resume profitable growth in FY24.

The significant increase in defence revenue, up 27% on prior year, was the main driver of the improvement in gross margin to 34% (2022: 26%), reflecting CSC's strong competitive position in the defence supply chain.

Growth opportunities for Integrity Management services more generally remain strong in key markets of defence, offshore services, nuclear and industrial ground storage.  Enquiry levels from offshore services customers increased sharply during FY23, driven by growing activity in the market to support offshore oil and gas projects. Integrity Management has the potential to provide recurring revenue streams at attractive margins and is a key strategic priority for FY24.

Revenue from hydrogen projects in the year was £2.1 million (2022: £2.4 million), reflecting lower order placement by customers during the year due to broader supply chain challenges, including performance issues with electrolysers and extended lead times for gas compression systems.

Whilst these supply chain issues for electrolysers and gas compression systems are affecting refuelling and decarbonisation project schedules, the opportunities pipeline continues to develop for hydrogen ground storage and road trailers in the UK and Europe. 

Business and financial review (continued)

The growing road trailer opportunity reflects the increasing demand for the flexible and cost-effective transportation of hydrogen, in which CSC is well placed to deliver solutions for established operators and new entrants. In addition, in-situ testing and factory reconditioning of hydrogen storage and transportation systems present additional exciting growth opportunities for CSC. Throughout the year, CSC continued to raise the profile of its hydrogen capabilities, products and services during events and exhibitions held in the UK and Europe. 

Based on market evaluation and evolving customer requirements, we are currently developing solutions for higher storage pressures and efficient road trailer designs. Operational improvements in the Sheffield facility have delivered increased capacity and efficiency for hydrogen road trailer assembly and for reconditioning, inspection and testing services and we remain focused on delivering improved revenue and contract margins from these growth areas.

In December 2023, UK Government announced the award of £90 million of funding for the construction of 11 UK hydrogen projects as part of the first Hydrogen Allocation Round (HAR1). The first projects are expected to be operational in 2025. CSC has developed commercial relationships with a number of these new UK projects providing a pipeline of opportunities for the next two years.

Precision Machined Components

Precision Machined Components (PMC) delivered revenue of £11.3 million (2022: £7.3 million) and Adjusted EBITDA of £0.1 million (2022: Adjusted EBITDA loss of £0.3 million). The division reported an adjusted operating loss of £0.6 million (2022: adjusted operating loss of £1.1 million). This is an encouraging performance during a critical recovery period for the oil and gas sector and positions the division well for FY24.

PMC's order intake in FY23 was £18.4 million (FY22: £8.9 million), an increase of over 100%. This supported a year-end order book of £9.4 million (2022: £3.0 million), substantially above prior year and at the highest level seen in the last 5 years, providing strong revenue visibility into FY24.

Order intake from the oil and gas sector accelerated from March 2023 following a record £3.0 million order from an established international OEM customer. Moreover, the OEM customers of PMC continue to forecast strong recovery in demand for specialised components for oil and gas exploration and production projects over the next three to five years.

At Roota Engineering, the demand for subsea well intervention tools, valve assemblies and control module components has recovered strongly as major OEM customers including Expro, Halliburton, Schlumberger and Aker continue to report a stronger oil and gas market outlook for 2024 and are investing heavily in their global manufacturing capacity to support growth in oil and gas production, principally from South America, West Africa, US Gulf of Mexico, Middle East and North Sea regions. The recovery of Roota's revenue and profitability has been supported by successful recruitment, skills development and specialist engineering software, increasing the capacity to meet the growing demand and extended product range for a broader customer base. This supported a significant step-up in activity levels at Roota in the third and fourth quarters of FY23 with resilient margins reported.

Al-Met has remained focused on the improvement of operational performance, efficiency and competitiveness and is well positioned for a recovery in demand for precision, high-pressure valve control components. On 27 March 2023, the Group announced that Al-Met had been awarded an unprecedented order of £3.0 million from an

international OEM customer for the supply of flow control components and sub-assemblies used in high-pressure extreme service oil and gas applications.

This order supported a significant ramp-up of activity in the fourth quarter of FY23 at Al-Met. However, Al-Met's margins have remained challenged during this recovery phase and are not expected to show material improvement until the middle of FY24.  To support this recovery in margins, the Group has prioritised capital investment at Al-Met that reduces dependency on sub-contractors and drives raw material savings.

Business and financial review (continued)

On 24 October 2023, the Group announced that having considered the current trading environment, improved outlook and the improved financial performance of PMC in the second half of FY23, the timing was favourable to realise value through the divestment of the PMC division. The Board has appointed DSW Corporate Finance to handle the sale process which was launched in December 2023.

Central Costs

Central costs include the following items:

·      the employment costs of the Board of Directors;

·      the employment costs of central staff who undertake group-wide activities;

·      administration costs incurred by Directors and central staff;

·      the regulatory costs of operating as a public limited company quoted on the London Stock Exchange; and

·      depreciation of assets held centrally.

Central cash costs increased to £1.9 million in the year (2022: £1.7 million) due to inflationary cost pressures.

Financial review

Financial performance

Revenue & Profitability

Record new defence orders and improving market conditions in the oil and gas market have underpinned a significant improvement in performance in FY23. Group revenue of £31.9 million was 28% higher than last year (2022: £24.9 million) and has helped drive gross profit to £8.9 million at 28% margin (2022: £5.3 million at 21% margin).

The Group's gross margin improvement has been driven by achievement of high-value milestones on UK defence contracts, boosting CSC gross margin to 34% (2022: 26%). In addition, the higher level of activity and throughput at PMC, improving asset utilisation, has increased PMC gross margins to 17% (2022: 11%), contributing to the increase in Group margins.

Overhead costs increased in the year to £8.4 million (2022: £7.9 million). This increase has been driven by the need to re-build the capability of the organisation following the Covid-19 pandemic in order to maximise future growth opportunities in CSC and PMC. The overhead base has also been impacted by the high levels of cost inflation experienced during the year driving increased IT, recruitment, marketing and travel costs.

The Group reported adjusted operating profit of £0.6 million (2022: adjusted operating loss of £2.6 million) in the year. Allowing for depreciation charges of £1.5 million (2022: £1.7 million), the Group delivered Adjusted EBITDA of £2.1 million in the year (2022: Adjusted EBITDA loss of £0.9 million), demonstrating the strong turnaround in underlying financial performance.

Exceptional costs

Exceptional costs of £1.3 million (2022: £1.0 million) were incurred in the year relating to professional fees incurred in the proposed refinancing of the banking facilities of the Group during the year, corporate finance advisory fees in relation to the potential sale of PMC in the first half of the year and the costs of re-organising the senior management of the Group.

Impairment Review

The Group tests annually for impairment, in accordance with IAS 36, if there are indicators that intangible or tangible fixed assets might be impaired.

The impairment methodology identifies two Cash Generating Units ("CGU's") within the Group, being CSC and PMC. Each CGU is assessed for potential indicators of impairment, including internal or external factors or events that

could reduce the recoverable value of the fixed assets of the Group. If indicators of impairment are identified, a full impairment review is undertaken to determine the recoverable amount of the CGU.

Business and financial review (continued)

The recoverable amount of a CGU is determined using a discounted cashflow model that is based upon a five-year forecast period. The forecast takes into account the firm order book, sales pipeline and market opportunities of the CGU, together with expected gross margin performance and consideration of the cost base, planned capital expenditure and estimated working capital needs of the CGU. A long-term growth assumption is applied beyond the five-year forecast period. The future cashflows are then discounted to a present, recoverable value by applying a risk-adjusted pre-tax discount rate.

As detailed further in note 2 to the accounts, an impairment review was undertaken for each of CSC and PMC. The review concluded that no impairment was required in these financial statements.

The Group holds freehold land and buildings, including CSC's main facility at Meadowhall Road, Sheffield.  As part of discussions with the Group's bankers during the year, the Directors obtained two valuations from two independent chartered surveyors of this freehold land and buildings, which indicated that no impairment of this asset was required.

Taxation

The tax credit for the year was £0.4 million (2022: tax charge £0.1 million). The current year tax credit was principally due to a £0.4 million receipt in respect of R&D tax credit claims submitted in the year in respect of FY21 and FY22.

Corporation tax refunded in the year totalled £0.4 million (2022: £0.1 million).

Loss per share

Basic loss per share was 1.8 pence (2022: loss per share 13.0 pence). Allowing for add-back of exceptional costs and amortisation charges, adjusted earnings per share was 0.8 pence (2022: adjusted loss per share of 10.2 pence).

Dividends

No dividends were paid in the year (2022: nil) and no dividends have been declared in respect of the year ended 30 September 2023 (2022: nil). Distributable reserves in the parent company totalled £2.6 million at year end (2022: £5.7 million).

Operating cash flow, capital expenditure and cash flow before financing

Operating cash flow was £1.2 million (2022: £1.8 million), driven by Adjusted EBITDA of £2.1 million (2022: Adjusted EBITDA loss of £0.9 million), accounting add-backs of £0.3 million (2022: deductions of £0.3 million) and working capital outflows of £1.2 million (2022: inflows of £3.0 million). Key movements within working capital in the year included the build-up of inventory across the Group as a result of the increased activity in the second half of the year.

Capital expenditure in the year was £0.6 million (2022: £0.5 million) incurred principally to replace plant and equipment for productive use. Proceeds from the disposal of fixed assets was £0.2 million (2022: £2.1 million from sale and leaseback of property).

Allowing for exceptional costs of £1.3 million (2022: £1.0 million), finance costs of £0.4 million (2022: £0.3 million) and corporation tax refunds of £0.4 million (2022: £0.1 million), cash flow before financing was an outflow of £0.5 million (2022: inflow of £2.2 million).

Financing and liquidity

On 6 December 2022, the Group completed a £2.1 million equity fundraise (net of transaction costs) with support from institutional and retail investors. The funds raised provided important flexibility and liquidity during the first half of FY23 and a bridge to profitable, cash-generative trading driven by the commencement of major defence contracts in CSC and recovering order intake in PMC.

The cash balance at 30 September 2023 was £0.9 million (2022: £1.8 million). The reduction in cash of £0.9 million was driven by the equity fundraise of £2.1 million, the cash outflow before financing of £0.5 million, the repayment of borrowings of £1.5 million and the repayment of lease liabilities of £1.0 million.

Net debt at 30 September 2023 was £2.4 million (2022: £3.5 million). The reduction in net debt of £1.1 million was driven by the equity fundraise of £2.1 million, partially offset by the cash outflow before financing of £0.5 million and new lease liabilities of £0.5 million.

Subsequent to the end of FY23, on 14 November 2023, the Group exited its existing debt facilities provided by Lloyds Banking Group by arranging a new Term Loan facility of £1.5 million with Rockwood Strategic plc and Peter

Gyllenhammar AB, two of its major shareholders. The new Term Loan is committed for a period of 5 years and is secured against the assets of the Group.

Business and financial review (continued)

In conjunction with the provision of the new Term Loan, Rockwood and Gyllenhammar were issued with 1,933,358 warrants in aggregate (representing 5% of the issued share capital) to subscribe for ordinary shares in the Company at a price of 32 pence per share, representing a 20% premium to the closing share price on 23 October 2023 (being the day prior to the announcement of the new facility). The warrants may be exercised at any time in the 5 years following drawdown of the new facility and continue to be exercisable in the event the facility is repaid before its final expiry.

Going concern

These financial statements have been prepared on the going concern basis.

The Directors have prepared financial projections for the period to September 2025 and these demonstrate that the Group can operate within its existing financing facilities and meet is financial obligations as they fall due.

The base case projections recognise that the Group remains dependent on the profitability of CSC which is currently dependent on large UK defence contracts. During the projection period, CSC is expected to undergo a period of transition, with revenue from UK defence contracts falling and revenue from the hydrogen energy market and global defence customers expected to increase. Over the short-term, this is expected to result in lower revenues and earnings for CSC, which is factored into the financial projections. The base case projections also recognise the much improved performance of PMC and the more favourable outlook for the oil and gas market.

The Directors have also developed downside scenarios and have modelled reasonably possible delays to delivery of UK defence milestones and delays to placement of major orders from new hydrogen customers. In the event of such delays, the Group would look to mitigate the impact, partially or fully, by pulling forward contracted work from other customers, and through normal working capital management and other cash preservation initiatives.

Reflecting management's confidence in delivering large UK defence contracts and winning new hydrogen contracts, and having refinanced its debt facilities in November 2023, the Directors have concluded that the Group does have sufficient financial resources to meet its obligations as they fall due for the next 12 months and no material uncertainty relating to Going Concern has been identified.

Outlook

During FY24, CSC expects to pass the peak of activity on current high-value defence contract milestones and will seek to re-balance its revenue profile across global defence programmes and the hydrogen energy market, with each of these markets presenting significant opportunities over the medium-term. During this transitional period, CSC revenue is expected to decline slightly on FY23 levels with a consequent reduction in divisional profitability in FY24.

PMC continues to see increasing demand from customers and improving operational performance. The momentum in order intake provides significant confidence in delivering an improved full-year FY24 performance for the PMC division. As previously announced, this improved trading environment underpins the decision of the Board to divest PMC.

Given these divisional trends, the Board expects the Group's full-year FY24* revenue and Adjusted EBITDA to be in-line with current market expectations (revenue of £34 million and Adjusted EBITDA of £2.1 million).

* FY24 outlook includes CSC and PMC, on the basis that PMC is not sold in FY24 and remains a continuing operation

Chris Walters

Chief Executive

30 January 2024

Consolidated statement of comprehensive income

For the 52 week period ended 30 September 2023

Consolidated statement of financial position

Consolidated statement of changes in equity

For the 52 week period ended 30 September 2023

*A restatement of the Consolidated statement of changes in equity for the year ended 2 October 2021 was undertaken to correct an error which related to the incorrect treatment of certain contract accounting transactions (see Note 14).

Consolidated statement of cash flows

For the 52 week period ended 30 September 2023