logo-loader
viewPlexus Holdings Plc

Plexus boss says its “never been in a stronger position”

The significance of the TechnipFMC transaction somewhat overshadows the usual metrics revealed in the financial results

oil and gas operations
Van Bilderbeek described the deal as a “major vote of confidence”

Plexus Holdings Plc (LON:POS) chief executive Ben van Bilderbeek told investors that he believes the company has “never been in a stronger position” to achieve its goals.

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.

READ: Plexus Holdings bags £1.4mln sale from Russian partner

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.

Quick facts: Plexus Holdings Plc

Price: 13.0001 GBX

AIM:POS
Market: AIM
Market Cap: £14.21 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Plexus Holdings Plc named herein, including the promotion by the Company of Plexus Holdings Plc in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Morning Report: Growing threat of coronavirus sees FTSE 100 open firmly in...

Headlines from the Proactive UK newsroom. The FTSE 100 has slipped below 7000 this morning as fears continued to mount over the spread of the coronavirus. Diageo (LON:DGE) has warned the outbreak will hit sales by between £225mln and £325mln, while profits will be knocked by between...

on 26/2/20

3 min read