Shares in Pressure Technologies PLC (AIM:PRES) fell 5.1% to 39.40p on Tuesday morning after a review of accounting policies led to the company forecasting a wider loss for financial year 2022.
The specialist engineering group now expects results for the financial year 2022 to reflect a £1.2mln increase in operating losses over the £1.4mln adjusted operating loss notified in the trading update on 15 November 2022.
The changes reflect a review of its accounting policy and past accounting treatment in respect of a small number of long-term defence contracts within its Chesterfield Special Cylinders division.
The company said using a correct application of IFRS 15 accounting rules will lead to a restatement of the comparative period in 2021 by which the previously reported operating loss of £0.7mln will increase by £0.8mln. Adjustments made to operating profit or loss in 2019 and 2020 financial year profit are not considered individually material, but do result in a reduction to 2021 opening reserves of £0.3mln.