Plexus Holdings PLC (AIM:POS) reported a return to profit and said it will focus on short-term growth in jack-up rental to maintain profitability, as well as establishing a diversified mix of income for its future in the energy market.
Sales revenue of £12.7 million was generated in the year to 30 June, up more than eightfold from the previous year thanks in large part to a rental contract that increased from £5 million originally to nearer £8 million, while other business in the year included a $5.2 million licensing deal with SLB, £1 million for various plug and abandonment (P&A) activities in the North Sea and another £850,000 from a P&A campaign.
An underlying profit (EBITDA) of £5.4 million was made in the year, swinging from a £2.5 million loss in the prior year, with a reported profit before tax of £2.8 million compared to a £4.2 million pre-tax loss.
Cash and cash equivalents stood at £2.5 million at year end.
Chief executive Craig Hendrie, the 25-year company veteran and former technical director who took over from founder Ben van Bilderbeek at the year end, said the return to profitability “is due to an exceptional licence deal and a large special project, in addition to progress made in the underlying revenue of the core business of jack-up rental wellheads”.
He also hailed the conclusion of the SLB licencing deal from last December as “a welcome cash boost, which also enabled us to begin consolidating Plexus' remaining products and licence rights into a new business direction.
“This strategy builds upon our long-standing success in the jack-up wellhead market while adapting to the changing trends in the global offshore oil and gas drilling market. Notably, it addresses the North Sea's shift from traditional drilling to carbon capture storage and P&A projects.”
Hendrie also flagged that once the £8 million rental contract is completed it will free up resources to pursue other similar work.
"The strategy now is to focus on short-term growth in jack-up rental revenue, to maintain profitability, and to establish a diversified mix of income that can be more resilient to future cycles of the energy market and local government policies,” he said.
“This solid base will allow us to incubate and develop more of the underlying value in applications of POS-GRIP technology that Plexus retains, including HG-R production wellhead remediation technology, HG Trees, the P&A market, and subsea infrastructure, such as the Python subsea wellhead system.”
By focusing on expanding the Exact rental wellhead inventory and forging strong global partnerships, Hendrie said Plexus is not only advancing its technology but also positioning the company to deliver value for shareholders.