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Preliminary Results for the year to 30 June 2015
Plexus Holdings plc, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP method of wellhead engineering, has announced its preliminary results for the year ending 30 June 2015.
Financial Results
· Record revenue, EBITDA, profit before tax and profit after tax
· 18.8% increase in profit after tax to £5.43m (2014: £4.57m as restated)
· 5.6% increase in revenue to £28.53m (2014: £27.02m)
· 5.7% increase in EBITDA to £9.53m (2014: £9.02m)
· 10.5% increase in profit before tax to £5.94m (2014: £5.38m)
· 17.5% increase in basic earnings per share to 6.40p (2014: 5.44p as restated)
· 182.3% proposed increase in final dividend to 1.75p per share (2014: 0.62p)
Operational Highlights
· Strong financial performance driven by core business of renting proprietary POS-GRIP® friction-grip exploration wellhead equipment particularly for High Pressure/High Temperature applications, resulting in repeat business and the winning of new major international oil and gas customers in new territories around the world
– Contracts secured include: £0.6m from Centrica for North Sea; £0.9m from Det Norske Oljeselskap ASA in Norway; significant contract from BG Group for North Sea; £1.9m order from undisclosed customer for North Sea; £1.5m from Brunei Shell in Brunei; USD$0.8m from new customer Cardon IV in Venezuela; £1.0m from Premier Oil Norge AS for North Sea; £1.25m Maersk for North Sea; and £3.3m from new customer Total offshore Norway for an Ultra-HP/HT exploration well which is potentially the highest pressure well ever drilled in the North Sea
· Acceleration of planned international expansion through strategic initiatives:
– First major licence agreement signed post period end with major Yantai Jereh Oilfield Services Group Co., Ltd in China to facilitate the rental, sale, and manufacture of Plexus’ wellhead equipment to supply the major Chinese, wider Asian, Brazil, Indian and Middle East oil and gas markets
– Formation of a new Malaysian company Plexus Products (Asia) Sdn Bhd in conjunction with a local Malaysian oil and gas partner, Integrated Petroleum Services Sdn Bhd to create a fully operational Plexus Asian business hub to increase the supply of POS-GRIP wellhead equipment and services to the Australian, Brunei, Indonesian, Malaysian, Thai, and Singaporean oil and gas exploration and production markets
– Secured a local Petronas licence post period end to manufacture and supply Plexus’ POS-GRIP wellhead equipment in Malaysia through PPA
· Disposal of non-core investment interest in a private UK oil and gas equipment manufacturing and engineering company for £1.5m as Plexus focuses on its global expansion strategy of identifying new international manufacturing partners
· Significant strategic progress made in relation to research and development and new product innovation:
– Launched new PythonTM Subsea Wellhead post period end as a new best in class and safest standard for subsea wellheads – supported by BG, Royal Dutch Shell, Wintershall, Maersk, Total, Tullow Oil, eni, Senergy, and Oil States Industries Inc
– Signed £0.8m agreement with Centrica for new POS-SET™ Connector product for the growing de-commissioning and abandonment market
– Collaboration with Aquaterra post period end to develop HP/HT dual marine risers to provide a safer, technically superior and cost efficient solution for use on jack-up rigs
– HP/HT Tie-Back connector product and its unique operational and cost saving advantages now beginning to be marketed to the industry
– Capital investment in additional POS-GRIP rental wellhead assets for exploration was £2.53m, consistent with the prior year’s level (2014: £2.32m)
– Research and Development spend, excluding cost of building test fixtures, increased by 46.7% to £3.47m (2014: £2.37m)
