Losses narrow at Plexus Holdings
Losses narrowed at Plexus Holdings in 2018-19 as the oil well technology firm’s “rebuild and reset” plan showed promising signs.
The £42.5 million sale of Plexus’ jack-up exploration wellhead business to TechnipFMC in 2018 “triggered” the initiative.
The Aberdeen firm has moved away from equipment rental to focus instead on new products based on its Pos-Grip tool, which has been used for hundreds of oil and gas projects globally.
Chief executive Ben van Bilderbeek said this would restore the business’ “past record of reporting robust financial results and distributing dividends to shareholders”.
Revenue jumped to £3.61m during the year to June 30 2019, from £318,000 in 201718, while pre-tax losses
“We believe we have the right intellectual property”
narrowed to £3.71m from £5.25m.
Plexus said most of its income came from orders for a production wellhead for Spirit Energy, equipment for abandonment operations for Oceaneering, and the £1.4m sale of two PosGrip wellhead systems to Russian partner Gusar.
Despite the improvement in its finances, Plexus’ shares slumped more than 13%.
Mr van Bilderbeek said progress was being made.
He added: “We believe we have the right intellectual property, the right business model and the right partners to, over time, establish Pos-Grip as the go-to wellhead and related products technology for the broader energy sector, and in the process rebuild Plexus into a highly profitable, operating and IPlicensing company.”