Plexus Holdings Plc (LON:POS) has told investors that it anticipates annual group revenues will be in line with market expectations, though it acknowledged the potential for disruption due to the coronavirus (COVID-19) pandemic.
Posting interim results on Friday, the company said: “It is important to acknowledge the ongoing disruption to the general global economy and resultant uncertainty for companies and workforces caused by the COVID-19 virus and the impact this may have on Plexus.
“Like many companies the full extent of the impact of the COVID-19 pandemic is not yet known, and it is difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and the wider economy.”
READ: Plexus’s Russian partner orders more POS-GRIP equipment
In addition to COVID-19, Plexus also noted the negative impact on oil demand caused by the decisions of Saudi Arabia and Russia - which led the OPEC+ cabal – to allow crude production to rise to record levels.
At the same time, the company’s significant recent catalysts have come from Russia as distribution associate has seen success delivering orders into Gazprom.
It noted that its first ‘breakthrough’ jack-up exploration wellhead was successfully installed as part of the inaugural contract for the rental equipment – it was the first year under a five-year arrangement for Gazprom’s operations in the Kara Sea shelf. Additional kit has also been sold to Russian distributor Gusar since the end of the first half.
Elsewhere, the company highlighted a growing sales pipeline of bidding activity and emphasised its large target market.
Financial results
Plexus, which sold-off its wellhead Jack-up exploration business to FMC Technologies in February 2018 before focusing on the development of the POS-GRIP business, reported £49,000 of sales revenue from continuing operations compared to £1.3mln in the first half of the preceding year.
It posted negative underlying earnings (EBITDA) of £1.8mln for the six-month period, widening slightly from the £1.5mln loss in the same period of 2018.
The company made a first half pre-tax loss of £2.76mln from continuing operations. The company ended December with £4.5mln of net cash, and, noted that it had £2.96mln of financial assets and had no debt, following a final payment in September 2019.
Plexus's chief executive Ben van Bilderbeek said: "The half year numbers, including revenues of £49k, are in line with internal budgets and the group's revenues are projected to be higher in the second half of the current financial year.
“Trading for the full year is expected to be in line with market expectations.”