Plexus (AIM: POS) announced interim results for the six months ending 31 December 2006. Highlights included a 186% increase in turnover to £4.4 million and 288.8% increase in EBITA to £0.556 million.
"I am very pleased with the progress we have made during our first 12 months as an AIM listed company. This has been a particularly active period in which we have had to increase our infrastructure considerably to accommodate our growing sales activities in new markets and with new customers around the world. The significant increase in sales generated by our high pressure/high temperature (HP/HT) rental wellhead equipment is particularly gratifying as this demonstrates the growing acceptance by the industry of the technical benefits of our proprietary method of engineering and its unique combination of benefits in terms of safety; performance; and time savings" said CEO, Ben van Bilderbeek
However, shares in Plexus dropped 10.6% to 46 pence as Plexus also stated that gross margins had eroded to 45.4% from 61.9%. This was a result of the lower margin, but higher volume business it has with BP Shah Deniz and the effect of 'pass-through' sales of well control valves which are not Plexus products and are sold at cost. Plexus went on to say that rental gross margins were improving due to the economies of scale being achieved through higher sales volumes. Administrative expenses also leapt from £0.99 million last year to £1.71 million, due to expansion of the company's premises, personnel and associated infrastructure.