Plexus Holdings Plc (LON:POS) chief executive Ben van Bilderbeek has described the drop in the group’s financial results as inevitable.
In Thursday’s release, which comes after the announcement that Plexus is selling its jack-up exploration services business, the company reported annual revenue of £4.75mln for the twelve months ended June 30, down from £11.2mln.
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The results, impacted by the drop in industry investment due to lower oil prices, included an operating loss of £7mln and a £5.7mln loss after tax, versus losses of £6.8mln and £5.79mln in the preceding year.
It ended the period with £6.5mln in cash.
"Results are, by their nature, backward-looking, and our full year financial performance goes a long way to justifying the decisive action we have taken in recent years to realign our cost base to the lower oil price environment and the associated significant reduction in the levels of capital investment seen across the upstream industry, particularly in relation to exploration drilling,” van Bilderbeek said.
He added: “The sale of our jack-up exploration business to top tier oil and gas service and equipment provider, TFMC, promises to re-establish the momentum behind the business.
READ: Contracts have been flowing for Plexus Holdings even though energy companies are still cautious about new drilling
“As well as allowing us to benefit from a sustained recovery in jack-up exploration drilling activity through the three year earn-out agreement with TFMC, we expect the disposal to accelerate industry awareness and the roll-out of our POS-GRIP friction based method of engineering across the wider energy sector and beyond jack-up exploration applications.
“The disposal repositions Plexus as an IP development and licensing business and importantly provides industry validation for our family of POS-GRIP enabled equipment, which is scientifically proven to be superior to conventional technology in terms of performance, reliability, safety and cost savings.”