LONDON (ShareCast) - (Sharecast News) - Chesterfield Special Cylinders reported a wider interim loss for the six months ended 29 March on Tuesday, but said strong order intake and a second-half weighting of contract deliveries were expected to drive a return to full-year adjusted EBITDA profitability in line with market expectations.
Revenue fell to £5.4m from £6.5m, with an adjusted EBITDA loss of £1.3m compared to a £0.7m loss a year earlier.

The AIM-traded group, formerly known as Pressure Technologies, posted a pre-tax loss of £2.1m and adjusted operating loss of £1.7m.

It said it ended the period with £1.9m in net cash, following the £4.8m sale of its precision machined components division and repayment of its remaining term loan.

Order intake rose sharply to £14.2m, up from £10.3m in the prior year, supporting an order book of £18m at the period end.

CSC said performance in the first half reflected the phasing of contracts, with major defence and hydrogen revenues due in the second half.

Defence revenue slipped to £4.4m due to milestone timing, but recent contract wins with the Australian, Canadian, US and Spanish navies bolstered visibility through the 2026 financial year.

Hydrogen revenue rose modestly to £0.7m and was expected to accelerate in the second half, supported by a contract for BP's Aberdeen Hydrogen Hub and an agreement with Atawey for high-pressure storage systems.

Integrity management services revenue grew to £2.1m, benefiting from increased naval deployments, with further growth expected in the second half.

CSC also highlighted progress toward its 2028 targets, with strategic agreements in place to supply modular hydrogen systems in the UK.

The company said it anticipated a record performance for both hydrogen and integrity management revenue in the full year, with its strong order book underpinning expectations for a return to profitability.

Geopolitical factors and government hydrogen initiatives were cited as supportive tailwinds for long-term demand.

"We are pleased with the progress being made towards our 2028 targets, with recent strategically significant overseas defence contract awards and our first order for large-scale UK hydrogen storage systems," said chief executive officer Chris Walters.

"Record full-year revenue performance is anticipated for hydrogen and integrity management services, while strong order intake and order book coverage underpin second-half revenue expectations and a return to full-year adjusted EBITDA profitability, in line with market expectations."

At 1226 BST, shares in Chesterfield Special Cylinders Holdings were down 1.33% at 37p.

Reporting by Josh White for Sharecast.com.

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