Plexus Holdings Plc (LON:POS) chairman Jeff Thrall has told investors that talks with more potential partners about new and existing applications for the company’s flagship POS-GRIP technology continue to see progress.
In a statement ahead of today’s AGM, Thrall noted that the company has “a growing suite” of proprietary products based around the POS-GRIP technology, which includes certain patented features such as superior metal-to-metal seals.
Such technologies and products have diversified applications beyond oil and gas, where the initial business is centred.
“Wherever metal-to-metal annulus sealing is required, POS-GRIP can deliver a true, leak-proof solution, and importantly one that can last for the 'Life of Field', thereby avoiding expensive remedial and maintenance costs which often result in significant production revenue losses for operators,” Thrall said.
READ: Plexus’s POS-GRIP verified for use in extreme temperatures
He added: “As a result, multiple markets, both inside and outside the energy sector, can benefit from POS-GRIP technology-based equipment and solutions in the same way as jack-up exploration has for many years.”
“At a time when there is increasing pressure on the oil & gas industry to eradicate harmful gas and methane emissions from operations through the use of advanced technologies across the supply chain from well site to consumer, we believe that a major opportunity has opened up for our leak-proof technology, one we are focused on taking full advantage of for the benefit of our customers, our shareholders and the environment in which we operate,” Thrall said.
The Plexus chairman also reflected on the group’s recent successes: “Our recently published 2019 report did not just summarise the financial results for the year ended 30 June 2019 but also our strategic vision to transform Plexus into an IP-led business based on POS-GRIP, our proprietary method of friction grip engineering that has raised the bar in terms of wellhead performance, reliability and safety.
“The chairman's Statement detailed the 'reset and rebuild' strategy we are pursuing following the sale of our jack-up exploration wellhead rental business to leading oil and gas services company TechnipFMC in 2018.
“Meanwhile, the headline financials, notably a ten-fold increase in revenues generated from continuing operations to £3.6 million, showed the progress we are making in rebuilding our revenues, although as was noted the lead times associated with the sale of production wellheads, which we are now targeting as opposed to the rental of exploration wellheads, are much longer,” Thrall concluded.