Plexus Holdings PLC (LON:POS) has been bit by the downturn in oil exploration, it confirmed today.
Revenue for the current year to June is running materially behind expectations, though talks are underway over contracts that may claw back some of the shortfall.
Plexus added it had already mitigated some of the potential problems through cost cutting, so the increase in losses will be less proportionate. Cash is also being conserved.
More encouragingly, Plexus has noted an uptick in activity in the oil & gas industry and see the second half of the current financial year as the bottom of the exploration drilling down cycle, especially in the North Sea.
“With the oil price stabilising at levels which are profitable for many exploration & production companies as a result of the recent OPEC production reduction strategy, the Directors are confident of improving results for Plexus during the next 2017/18 financial year,” it said.
Ben Van Bilderbeek, chief executive, said: "The downturn has undoubtedly significantly impacted on our progress and financial performance, [but] we are confident that once sentiment within the sector begins to recover and operators renew their appetite for exploration, Plexus will in turn regain the momentum.”