Plexus hails record results despite weak growth in North Sea market

PLEXUS, the Aberdeen-based oil services company, yesterday announced record results and said it was well placed to benefit from a fast-growing subsea market.

The company, which has developed the “Pos-Grip” friction-based method of wellhead engineering, saw revenues rise by 5.7 per cent to £27.02 million in the year to 30 June with a 26 per cent increase in profit before tax to £5.38m.

Chief executive Ben van Bilderbeek said the company had reaped the rewards from its move to develop new business outside the UK and European North Sea territories.

Revenues outside Europe rose by 17 per cent, year-on-year, in contrast to the UK and Europe, which experienced only marginal growth as a result of a decline in exploration drilling activities on the UK Continental Shelf.

“As the North Sea has historically been our most important market, the decline in activity in the region validates our strategy of seeking growth beyond Europe,” he said.

Van Bilderbeek said the com- pany had been making good progress on contract wins in Asia, Australasia, and West Africa and in the longer term saw significant sales opportunities in the Gulf of Mexico and in Russia.

Research and development investment increased by 61 per cent to £2.37m and spending on patent development and filings increased by more than 40 per cent to £180,000.

The company said the global subsea market is expected to be “highly active” and grow by over 60 per cent in the next five years.

Shares in Plexus rose by 5.9 per cent to close at 250.88p.