Plexus Holdings PLC (AIM:POS) is gearing up for a stronger second half, saying it’s well positioned to deliver “sustained growth and value” once its £3.5 million fundraising round closes next month.
The AIM-listed oil and gas engineering firm expects the capital injection to significantly bolster its balance sheet and double its rental fleet, enabling it to chase new business across plug-and-abandonment (P&A) and exploration markets.
Operationally, there are signs of real progress. The company’s Dutch North Sea P&A contract has doubled in size, a new $1 million deal was secured in the Middle East, and a major subsea abandonment project wrapped up in December with over £9 million in revenue.
A master services agreement signed with a well-management firm also lays the groundwork for more recurring business.
That momentum has been masked by the headline numbers. Revenue halved to £2.9 million, although the prior year included a one-off £4.1 million licensing deal with SLB.
Strip that out, and underlying revenue increased by £1.9 million, a step in the right direction. Even so, Plexus posted a pre-tax loss of £1.3 million and an EBITDA loss of £200,000.
Leadership has had a shake-up too, with Craig Hendrie taking over as chief executive last July, joined by a new CFO. The team is now looking to expand Plexus’ footprint with its proprietary POS-GRIP wellhead technology, which is designed to improve performance and reliability in extreme drilling conditions.
The planned fundraising, a mix of placing, subscription, retail offer and loan conversion, will fund eight new rental wellhead sets.
If shareholder approval is secured in April, Plexus will be on a firmer financial footing just as demand for high-integrity wellhead equipment starts to pick up.
CEO Hendrie said: "I am excited to lead Plexus into this next phase of growth, leveraging our superior wellhead technology and excellence in operations to meet the evolving needs of the energy sector.
"Our solutions now extend beyond oil and gas exploration and production to encompass plug and abandonment, and gas and carbon capture storage wells, among other emerging applications.
"Having recently announced a well-supported fundraise, the expansion of our rental fleet will represent a major milestone, enabling us to serve a broader client base and maximise returns from our unique IP.
"With strong market demand, a clear strategy, and a commitment to engineering and project delivery excellence, we are well-positioned to drive sustainable growth while delivering the highest standards of safety and performance."