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(Sharecast News) - Chesterfield Special Cylinders reported a sharp improvement in full-year performance on Thursday, as higher defence, hydrogen and lifecycle services activity drove a return to profitability on an adjusted basis and strengthened the balance sheet.
The AIM-traded pressure systems specialist said revenue for the 52 weeks ended 27 September rose 12% to 16.6m, with gross profit increasing 22% to 6.4m and margins improving to 39% from 33%.
Adjusted EBITDA swung to a profit of 0.8m from a loss of 0.9m a year earlier, while adjusted operating profit reached 43,000 compared with a 1.7m loss in the 2024 financial year.
The reported loss before tax narrowed to 0.8m from 2.7m, and the reported basic loss per share improved to 1.6p from 6.1p.
Chesterfield said it ended the year with a cash balance of 2.1m and no borrowings, compared with 0.1m of cash and 1.0m of debt a year earlier, reflecting proceeds from the sale of its PMC division in October 2024.
Order intake during the year rose to 23.4m, underpinning a closing order book of 16.3m, up from 9.5m.
Defence revenue increased 15% to 12.8m, supported by overseas contracts and growth in UK integrity management services.
Hydrogen revenue reached a record 2.6m, reflecting in-factory lifecycle services and early milestones on the BP Aberdeen Hydrogen Hub contract, while integrity management services revenue doubled to 4.8m following peak activity on major UK naval deployments.
"We were pleased to deliver good strategic progress and significantly improved financial performance in 2025, with earnings ahead of market expectations, starting 2026 with a strong balance sheet and a positive outlook," said chief executive Chris Walters.
Looking ahead, Chesterfield said its defence order book and opportunities in the UK hydrogen market underpin expectations for significant earnings growth in the 2026 financial year, with revenues weighted towards the second half of the year.
The company said further growth is anticipated from 2027 as defence newbuild programmes expand and large-scale UK hydrogen projects move forward, supported by recent investment in skills and operational capability at its Sheffield facility.
At 1447 GMT, shares in Chesterfield Special Cylinders Holdings were up 1.79% at 39.7p.
Reporting by Josh White for Sharecast.com.