Plexus Holdings Plc (LON:POS) chief executive Ben van Bilderbeek told investors that the company is well-positioned to capitalise on the opportunities which will become available as market conditions improve.
The engineering and technology company in the oil and gas sector today reported results for the twelve months ended June 30, 2020, a period significantly disrupted by the coronavirus (COVID-19) pandemic.
This disruption saw sales prospects were placed on hold whilst customers, oil and gas companies and offshore service companies, scaled back and/or postponed operations as businesses were hit by COVID restrictions and falling crude and gas prices.
Nonetheless, Plexus highlighted some key business wins – for example, a follow-up order from Spirit Energy and a recent deal with Schlumberger’s Cameron unit - that were sealed and said it is positioned to benefit as the sector returns to growth, as is anticipated.
“I feel very positive that the Spirit Energy order, achieved during the depths of lockdown, plus the Cameron license deal just announced have demonstrated the resilience of the company and the continuing IP potential,” van Bilderbeek said in the result statement.
He added: “Whilst oil and gas operators, together with service companies, have had to scale back their operations and lay off thousands of employees, we have been able to reduce our costs and survive the period without any layoffs.
“This means we are well prepared to benefit from the return to growth that the industry will undoubtedly see in 2021, as we continue to target direct equipment sales and support our licensees, in particular Cameron, to rapidly introduce POS-GRIP to their customers and markets.”
In terms of financial performance, the company reported sales revenue of £525,000, down from £3.6mln in 2019.
Plexus reported an adjusted underlying earnings (EBITDA) loss of £3.08mln, compared to a US$2.27mln loss in the year before, and, the operating loss was marked at £5.6mln from £4.01mln in 2019. It made a £4.05mln loss after tax.
The company ended June 2020 with £4.09mln of net cash.
Looking ahead, van Bilderbeek added: "Our goal is to fully capitalise on the potential of our technology within the oil and gas industry and beyond, to improve the performance of wellheads and other pressure-containing equipment, and to develop a portfolio of POS-GRIP-based products and partners.
“As well as benefiting the environment and our customers, the board believes this approach will in time lead to sustained and growing revenue streams and can ultimately deliver value for our shareholders.”