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Pressure Technologies Floatation Returns Over 8 Times Money to Regional Funds

Published: 2nd July 2007

Following the successful floatation of Pressure Technologies plc on AIM on 6th June, YFM Venture Finance will return 8½ x their money to investors. Two funds, the Development Fund at South Yorkshire Investment Fund (SYIF) and the Yorkshire & Humber Equity Fund (YHEF), both managed by YFM, will see a return of 125% IRR.

Pressure Technologies plc is the parent company of Chesterfield Special Cylinders, the Sheffield business that designs, manufactures, tests and refurbishes a range of high pressure seamless cylinders. They supply global energy and defence markets and export over 80% of their products.

In August 2004 the Yorkshire & Humber Equity Fund invested in the original MBO led by John Hayward and four colleagues from its German parent company. This was followed by a further investment of capital from South Yorkshire Investment Fund and grant aid from Yorkshire Forward which enabled the firm to move their operation to the Don Valley and re-equip the business.

Over the last 24 months the Company's new owner-managers have re-organised the business and driven a rapid expansion of the businesses; The success of the Pressure Technologies Initial Public Offering (IPO), which was oversubscribed, has raised over £6 million and given the Company the financial muscle it was looking for to continue its expansion programme.

As Mark Hunter, the Investment Director at YFM Group who led the original buy-out deal points out "It was clear to us that the Chesterfield management team, led by John Hayward was both high calibre and ambitious. The rapid growth over the last 24 months has exceeded our expectations. Our continued backing for the team is an expression of our belief in Chesterfield Cylinders and their business model."

John Hayward, Chief Executive of Pressure Technologies said "we are delighted the float has gone so well and we have achieved our funding requirements, giving us the financial platform to fund our aggressive growth and development objectives. The help from Mark and YFM Group in initially backing our MBO was invaluable in helping us get to where we are today."

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