In its financial results statement for the six months ended December 31, the oil and gas services group reported on a period in which it agreed an asset sale that effectively restructures its business.
In October, it sold the Plexus Jack-up Business to a subsidiary of TechnipFMC and alongside the deal a collaboration deal was signed for new and existing products based on the Plexus’s POS-GRIP technology.
The significance of the transaction somewhat overshadows the usual metrics revealed in the financial results, and van Bilderbeek described the deal as a “major vote of confidence”.
“While our first half financial performance bears the hallmarks of the severe downturn that has continued to blight the sector in recent years, what lies behind our confidence is the landmark sale of our niche Jack-up Business for up to £42.5 million and the signing of a collaboration agreement with FMCT where the two companies have agreed to collaborate together on future applications of the POS-GRIP method of engineering,” he said.
“As well as boosting our already cash rich balance sheet following the receipt of the initial £14.1 million net consideration post period end, both the sale and collaboration agreement provide our technology with the industry recognition from one of the world's leading oil and gas service and equipment companies that we have been striving for.
“In a sector where the adoption and acceptance of newer technologies is typically slow, the decision by a global top three oil services group to not only buy our Jack-up business but to agree to explore working with us to develop new products based on our unique IP is a major vote of confidence in POS-GRIP, the Plexus team and our vision.”
The financial results were themselves less encouraging. Sales revenue from continuing operations amounted to £40,000, down from £179,000 in the comparative period of 2016, and the company reported an EBITDA loss of £1.88mln for the continuing operations – while the discontinued unit saw a profit of £105,000.
In all, the company made a £2.74 loss after tax on the continuing operations.
Plexus ended the period with £5.3mln of net cash.
The Technip transaction closed in current period, delivering further cash to the balance sheet.
In Monday’s early trading, Plexus shares were down 5.7% changing hands at 50.89p.