TIDMPOS
RNS Number : 5111D
Plexus Holdings Plc
24 March 2011
Plexus Holdings PLC/Index: AIM/Epic: POS / Sector: Oil equipment
& services
24 March 2011
Plexus Holdings plc ('Plexus' or 'the Group')
Interim Results for the six months ended 31 December 2010
Plexus Holdings plc, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering announces its interim
results for the six months to 31 December 2010.
Highlights
-- 16% growth in sales revenue of POS-GRIP wellhead equipment
and services GBP7.5m (2009: GBP6.5m)
-- 78.5% increase in EBITDA of GBP2.6m (2009: GBP1.4m) - (before
IFRS2 share based payment charges)
-- Profit before tax GBP1.1m (2009: GBP0.1m)
-- Continuing to secure and extend contracts with major
international oil and gas companies to supply proprietary POS-GRIP
wellhead equipment
-- High pressure/high temperature ('HP/HT') contract win with
new customer Apache Energy Australia for exploration offshore NW
Australia with a value in excess of GBP1.0m commenced November
2010
-- New customer and new country win with Murphy Suriname Oil
Ltd. for two 10,000 psi exploration wells in Suriname, South
America for GBP0.5m commenced November 2010
-- Post period end HP/HT contract secured with Statoil Petroleum
AS for exploration in the Norwegian Continental Shelf with a value
of approximately GBP0.7m commencing August 2011
-- Proceeding with the development and qualification of a new
POS-GRIP friction-grip subsea wellhead HGSS(TM), following the
completion of the initial conceptual design stage March 2011
-- Continued capital investment of GBP1.0m (2009: GBP1.1m) of
which GBP0.6m was rental inventory (2009: GBP0.4m)
-- Research and Development ('R&D') spend continued at
GBP0.3m (2009: GBP0.36m)
-- Successful conclusion to a dialogue with the American
Petroleum Institute ('API'), and the completion of an assessment of
friction-grip technology by Det Norske Veritas ('DNV'), enables
Plexus to market POS-GRIP technology as compliant with API Spec 6A
wellhead standards and the equivalent ISO 10423
-- Bank facilities renewed and increased - comprises a GBP5m
credit facility on a three year revolving basis, increased from
GBP4m, with an additional GBP1m overdraft on a yearly term
-- Basic earnings per share of 1.32p (2009: 0.11p)
-- 6.1% increase in interim dividend of 0.35p per share approved
for payment on 14 April 2011 to members appearing on the register
on 1 April 2011
Plexus' Chief Executive Ben van Bilderbeek said, "I am pleased
to report a strong set of results for the first six months of our
financial year. Plexus has made substantial progress both in terms
of organic sales activities and important strategic initiatives to
expand the Group's growth potential within the oil and gas wellhead
industry. This led post period end to the launch of a key project
to develop and qualify a new POS-GRIP friction-grip subsea
wellhead, HGSS. This is in response to recent regulatory reports
and government initiatives that bring into question conventional
wellhead technology and performance capabilities. Our new wellhead
design will look to deliver a number of key features in relation to
higher performance and testing standards that are actively being
considered and pursued by various international operators.
Specifically, the key capabilities will include locking down of
casing and tubing hangers; effective sealing over large contact
areas for the life of the well and beyond; annulus pressure
monitoring with remedial capability; and the use of qualification
test procedures which reflect 'true life' field conditions whilst
matching accepted higher standards such as those required for
casing and tubing couplings.
"I believe that we are entering into an exciting phase of
Plexus' development, despite current business activities taking
place against an adverse backdrop of various global geo-political
uncertainties. As oil and gas prices continue to increase due to
current supply constraints and rising global demand, we believe
substantial investment into additional exploration activities will
inevitably follow. At the same time there is clear evidence of a
growing awareness of the need for "better and safer technology",
and I am confident that Plexus and its proprietary friction grip
technology can play an increasingly important role in delivering
such requirements. Whilst we are initially focusing on solutions
for wellhead equipment and related seal performance, both for
surface and subsea activities, in due course we will look to apply
our POS-GRIP friction grip technology to more diverse new product
applications such as valves, connectors, and tanker mooring
systems.
"During the period we have continued to enhance our reputation
for the supply of rental exploration equipment which delivers a
range of operational advantages including technical performance,
installation time savings, reduced operating costs and enhanced
safety, particularly for HP/HT applications. This has helped us
extend our geographic reach with a new customer offshore Australia,
and also to Suriname in South America, again with a new customer.
In addition we have begun to market our technology and equipment as
API Spec 6A compliant for those operators that seek such assurance
even though we maintain that our technology significantly exceed
current accepted standards for certain applications.
"For these reasons I am confident that we can continue to grow
organically and strategically by leveraging the unique nature of
our technology over the coming months and years, and look forward
to achieving our goal of delivering significant value to
shareholders.
"Finally, due to the solid trading period, I am delighted to
announce that the directors of the Group have approved the payment
of an increased interim dividend of 0.35p per share which will be
paid on 14 April 2011 to members appearing in the register on the
record date of 1 April 2011."
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: +44 (0) 20 7795
6890
Graham Stevens Plexus Holdings PLC Tel: +44 (0) 20 7795
6890
Jon Fitzpatrick Cenkos Securities PLC Tel: +44 (0) 20 7397
8900
Ken Fleming Cenkos Securities PLC Tel: +44 (0) 131 220
6939
Felicity Edwards St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Chairman's Statement
Business Progress
I am pleased to report that in line with management's
expectations Plexus has made solid progress in the first six months
of the financial year as we continue to see an increased level of
organic business activity. We believe this is a direct result of
the recovery in the global demand for energy, oil prices increases,
and the growing reputation of our proprietary POS-GRIP
friction-grip wellhead technology. These factors have also helped
us to further expand our geographic reach to include Australia and
South America. Alongside this organic progress we have continued to
work on addressing a number of important technical and engineering
issues that have become increasingly topical following recent well
control incidents around the world. These strategic initiatives
have culminated in the launch of a new product development project
for an innovative subsea wellhead system, HGSS, utilising our
proprietary friction-grip technology. To ensure that suitable
funding is in place our bank facilities were increased during the
period by 20% with Bank of Scotland Corporate and now consists of a
GBP5m credit facility on a three year revolving basis with an
additional GBP1m overdraft facility agreed on a yearly term.
Operating Review
Plexus is an engineering led business which owns a suite of
proprietary technology that delivers a number of unique advantages
and solutions to wellhead equipment users in terms of safety, time
savings, and operational performance. These advantages are
particularly beneficial for HP/HT gas applications that are growing
in importance as operators' exploration activities extend to more
unconventional and deeper reservoirs that require superior and
enabling technology. Furthermore, as government regulators and
safety organisations focus on improving current drilling practices
and technologies, we believe that over time this will lead to
Plexus equipment being increasingly recognised as a wellhead of
choice, rather than simply in some cases a wellhead of
necessity.
These considerations, we believe, have helped us secure a number
of important exploration contracts during the first half of the
financial year and post period end. Firstly we have extended our
scope of operations to offshore Australia for the first time with
Apache Energy Australia, a subsidiary of Apache Energy Limited, for
a 15,000 psi HP/HT well, and it is hoped that this will generate
further opportunities in the region. Secondly we gained another new
customer in a new region, Murphy Suriname Oil Ltd. in Suriname,
South America, to supply 10,000 psi POS-GRIP wellhead technology
for two exploration wells; it is also hoped that a first time
presence in this country could lead to further sales opportunities
not only in Suriname, but also in neighbouring Guyana and Trinidad.
The third contract win of note was post period end securing
additional business with leading oil and gas company Statoil
Petroleum AS ('Statoil') for an HP/HT well offshore Norway. Plexus
has worked with Statoil previously and we hope that this continued
working relationship bodes well for future business.
Plexus has always maintained that POS-GRIP technology for
certain wellhead system applications significantly exceeds current
accepted standards in critical areas such as annular seal integrity
and hanger lock down capacity. However there are operators who rely
on prescriptive wellhead standards such as API Spec 6A rather than
internal engineering analysis, and for this reason we were pleased
during the period to conclude a dialogue with the API which in
combination with the completion of an assessment of friction-grip
technology by DNV enabled Plexus to market POS-GRIP technology as
compliant with API Spec 6A wellhead standards and the equivalent
ISO 10423.
This progress has to be supported by necessary and ongoing
investment in rental inventory, infrastructure, and intellectual
property. Plexus therefore continues to commit to an ongoing
capital expenditure programme, and will be adding additional sets
of wellhead equipment over the next six to twelve months. This will
ensure enough capacity to service future customer demands, and
manage utilisation constraints that can develop when equipment is
being deployed in a diverse number of locations around the
world.
Alongside investment in the operational activities of the
business we also maintain an active R&D programme which
continually addresses ways of extending the performance and
capabilities of our proprietary POS-GRIP technology, not only for
surface jack up rig exploration applications but also for surface
production and subsea wellhead applications, as well as pursuing
new product development opportunities. An example of this is an
ongoing project to demonstrate to the industry that a 15,000 psi
HP/HT Mudline Tieback is achievable for HP/HT exploration wells and
pre-drilled production wells by using POS-GRIP set metal-to-metal
'HG'(R) seals. Currently HP/HT exploration wells are permanently
abandoned after drilling as there is no acceptable technical
solution available to convert such wells to subsea or platform
producing wells. With an HP/HT exploration well costing anything
from GBP50m to GBP200m it should clearly be of interest to the
industry to avoid having to 'throw away' such an investment.
Testing and manufacture of the prototype is underway with assembly
and testing scheduled for the first quarter of the next financial
year.
A major new project recently announced concerns the design and
development of a new POS-GRIP HGSS Subsea Wellhead. This project
follows on from Plexus inviting key oil and gas operators and
service companies to contribute to the process of developing a new
subsea wellhead which utilises friction-grip technology, whilst
considering a number of key technical issues that have been brought
sharply into focus following recent offshore well control incidents
around the world. These issues include the need for all casing and
tubing hangers to be locked down 'instantly' with sufficient
capacity to withstand forces in the well whilst avoiding the
problems and costs associated with lock down rings; that wellheads
should provide effective sealing over large contact areas
throughout and beyond the productive life of a well; and that
wellhead test standards need to reflect a systems ability to
withstand 'true life' field conditions, and should also match the
accepted higher standards of other critical performance items of
equipment in the well such as casing and tubing couplings.
A further critical feature, which both industry and regulators
have been highlighting, concerns the importance of annulus pressure
monitoring and access to address sustained casing pressure ('SCP')
situations. In the past, annulus monitoring in subsea applications
was considered technically impractical, uneconomic, and risk
compounding. However recent official reports have recommended that
future subsea technology should include diagnostic capabilities and
remedial facilities to deal with unforeseen circumstances. The
ability to activate and re-activate metal-to-metal seals in the
wellhead bore enables our friction-grip method of engineering to
achieve monitoring of annular seal integrity as well as annulus
pressure variations. Furthermore the ability to open and reseal the
casing annulus at will enables remedial cement job procedures.
These features and functions all form part of our innovative HGSS
subsea wellhead design, and will enable subsea monitoring and
remedial capabilities, including 'bleed off', without penetrations
through the wellhead body.
We believe that our unique ability to design a subsea wellhead
that incorporates all of these technical safety and performance
features will be of significant commercial benefit to the Group and
to the oil and gas industry over the coming years. This opportunity
will be further enhanced by our plan to incorporate new test
standards for casing hanger and annular seal qualification into our
design as specified by a major independent operator which go well
beyond what is currently required under API 17D/ISO 13628-4. The
project is currently estimated to last up to two years and cost
between GBP1.5m and GBP2m. The majority of these costs we believe
will qualify as R&D, and the intellectual property ('IP')
generated by the project will be owned by Plexus, further
strengthening our extensive suite of POS-GRIP related IP.
As you will be aware, Plexus for a long time has championed the
need for improved standards and practices for surface wellheads. We
have maintained our belief that the ability to avoid and control
potential blow outs is significantly increased by the use of
'through the blow out preventer' ('BOP') wellhead designs such as
POS-GRIP. An unfortunate incident offshore Western Australia on the
Montara well in late 2009 was another incident that underlines the
importance of such basic engineering principles. The Montara
Commission of Inquiry reported its findings last year and concluded
that had properly designed Abandonment Caps, (the report calls them
PCCC's), been installed and retrieved through the BOP, then this
disaster would most likely have been averted. However the crucial
issue remains that until such 'through the BOP' equipment is
selected and specified as a matter of course at the well planning
stage, operators will continue to expose personnel and the
environment to such risks. However with regulators and legislation
becoming ever more vigilant we are hopeful that such messages will
gain momentum and in turn increase the market opportunity for our
equipment. With these developments in mind, we are currently very
active both in terms of securing contracts, and in terms of
strategic initiatives all designed to ensure that POS-GRIP
technology becomes a new wellhead standard in the coming years. We
continue to work hard to communicate the benefits of our technology
as effectively as we can to our peers and other interested parties,
and believe that our reputation for supplying innovative wellhead
equipment will move us to a point where we will be recognised as
being able to supply a superior essential component needed to
access the growing number of unconventional reservoirs, safely and
reliably.
Interim Results
Revenue for the six month period ended 31 December 2010 was
GBP7.5m, which is GBP1m above the previous year's figure of
GBP6.5m. The rental wellhead associated services and equipment
business activities for exploration drilling contracts accounted
for over 90% of sales revenues, the same as the prior year. The
largest sales component remains the supply of our HP/HT wellhead
equipment which accounted for approximately 73% of total revenues
which compares to 80% for the same period last year. Revenue
generated by the rental of 10,000 psi standard pressure wells
increased 116.5% to GBP1.6m as compared to GBP0.7m last year, and
reflects the increased exploration activity that we have seen in
the North Sea where higher oil prices are encouraging increased
expenditure.
Gross margins have increased to 61.6% in the first half of the
year from 54.1% in the comparative period last year. This reflects
both the higher margins associated with HP/HT rental activities,
and lower levels of equipment refurbishment costs due to certain
contracts being of an ongoing nature which meant that equipment was
not returned to the Plexus Aberdeen facility during the period.
Administration expenses have continued to increase year on year
and totalled GBP3.5m for the period, up from GBP3.3m last year.
However a continued focus on cost controls resulted in the
proportion of these expenses as a percentage of sales revenues
reducing to 46.5% as compared to 51.1% in the previous year.
The profit before tax of GBP1.1m increased substantially from
the previous year (2009: GBP0.1m), although it should be noted that
last year's results were weighted towards the second half of the
financial year. This excellent result was achieved after absorbing
depreciation and amortisation increases of GBP0.17m, and which
totalled GBP1.35m in the period against GBP1.18m for the same
period last year. This increase reflects the recent and ongoing
investment in Plexus' asset rental equipment inventory which is
essential to support the growing number of customers operating in a
wide variety of geographic locations adding to increased logistical
demands. The profit before tax is stated after charges for share
based payments under IFRS2; the charge for the half year to
December 2010 is GBP0.08m, which is unchanged from the
corresponding period last year. The Group has provided for a charge
to UK Corporation tax at a rate of 28% which is expected to be the
rate of tax for the full year and compares to a rate of 28% last
year. The effective rate of tax is 4% (2009: 30%) after the
application of both R&D tax credits relating to both the
current and prior years and offsets for disallowable expenditure.
Basic earnings per share amounted to 1.32p per share (2009:
0.11p).
The balance sheet continues to reflect the ongoing investment in
operations with property, plant and equipment including items in
the course of construction increasing to GBP8.4m at the end of
December 2010 from GBP8.2m at the end of December 2009. This
continued to be driven by ongoing capital expenditure investment in
the expansion of rental inventory which increased 40.5% compared to
the same period last year, as well as R&D activity. Net cash
closed at GBP0.67m compared to net borrowings of GBP2.9m primarily
reflecting the Group receiving a number of large customer payments
that were outstanding at the June 2010 year end. As a result of
this strong cash flow the Group remained well within its bank
facilities with Bank of Scotland Corporate which were increased
during the period in anticipation of both a rise in R&D
activity, and an increase in rental inventory capital expenditure
over the next 18 months. The new bank facilities now total GBP6.0m
comprising a three year revolving GBP5.0m credit facility, and an
additional GBP1.0m overdraft facility agreed on a yearly term.
Outlook
We are pleased with the results for the first six months and are
confident that progress will continue to be made in the second half
both in terms of organic and strategic activities. Contract wins in
the period with new customers in new territories, as well as repeat
business demonstrates that the oil and gas industry is becoming
increasingly aware of and receptive to the advantages of POS-GRIP
wellhead equipment. Currently we are particularly benefiting from
the fact that our technical and performance advantages are relevant
for the growing number of HP/HT activities around the world. I
therefore look to the future with confidence, and at the current
time anticipate our full year results being in line with market
expectations.
It is important to note that an increased level of capital
investment and exploration activity is taking place globally as
operators look for new and secure sources of oil and gas. An
example of this, which Plexus expects to benefit from over the
coming years, concerns the North Sea. In February 2011 Oil and Gas
UK's latest 'Activity Survey' (which incorporates the latest
investment, exploration, and production data supplied by all the
leading exploration and production companies operating in the UK)
stated that after a declining trend in recent years where capital
investment in 2009 was GBP5 billion, this could increase by 60% to
GBP8 billion, and that this rate of annual investment could be
sustained for the next five years. As the Scottish and Norwegian
North Sea is an important territory for Plexus, this bodes well for
the future.
These global investment trends, in conjunction with our
strategic initiatives built around our POS-GRIP friction-grip
technology, will help us amplify our message to the industry that
we offer a range of superior wellhead equipment, and not only for
exploration activities, but also for production wellheads both
surface and in due course subsea with the launch of our new HGSS
subsea wellhead design with unique performance and remedial
features. At the same time it is increasingly clear that following
recent incidents governments, regulators, safety bodies, and
operators are more focused than ever on identifying ways in which a
whole range of key oil and gas equipment, including wellheads can
be improved and made safer under the mantra of pursuing 'BAST'
(best and safest technology). We believe that Plexus will be able
to play an important role in raising such standards for wellheads,
and that our reputation for innovative and enabling technology with
clear safety and performance advantages is being recognised and
places us in the 'strong technology' category which can only help
drive future business progress.
Finally I would like to thank all those involved with the Group
for their hard work and commitment during the last six months.
Robert Adair
Chairman
24 March 2011
Plexus Holdings Plc
Unaudited Interim Consolidated Statement of Comprehensive
Income
For the six months ended 31 December
2010
Six months Six months Year to
to 31 December to 31 December 30 June
2010 2009 2010
GBP 000's GBP 000's GBP 000's
Revenue 7,539 6,473 13,142
Cost of sales (2,894) (2,974) (5,453)
--------------- --------------- ---------
Gross profit 4,645 3,499 7,689
Administrative expenses (3,509) (3,312) (6,918)
--------------- --------------- ---------
Operating profit 1,136 187 771
Finance income 2 1 -
Finance costs (59) (60) (127)
Share of (loss) / profit
of associate (1) 3 1
Fair value adjustment to
associate 18 - -
Profit before taxation 1,096 131 645
Income tax expense (note
5) (41) (39) 58
Profit after tax 1,055 92 703
Other comprehensive income - - -
Total comprehensive income 1,055 92 703
=============== =============== =========
Earnings per share (pence)
Basic (note 6) 1.32p 0.11p 0.88p
Diluted (note 6) 1.30p 0.11p 0.87p
Plexus Holdings Plc
Unaudited Interim Consolidated Balance Sheet
As at 31 December 2010
31 December 31 December 30 June
2010 2009 2010
GBP 000's GBP 000's GBP 000's
ASSETS
Goodwill 759 722 722
Intangible assets 6,978 6,647 6,897
Financial assets 60 60 60
Investment in associate - 1 4
Property, plant and equipment 8,372 8,181 8,866
Total non-current assets 16,169 15,611 16,549
----------- ----------- ---------
Inventories 3,335 3,161 3,332
Trade and other receivables 2,533 5,033 6,624
Current income tax assets 627 - 451
Cash and cash equivalents 4,676 1,944 1,470
Total current assets 11,171 10,138 11,877
----------- ----------- ---------
TOTAL ASSETS 27,340 25,749 28,426
----------- ----------- ---------
EQUITY AND LIABILITIES
Called up share capital 802 802 802
Share premium account 15,596 15,596 15,596
Share based payments reserve 843 628 764
Retained earnings 2,416 1,286 1,674
Total equity attributable to equity
holders
----------- ----------- ---------
of the parent 19,657 18,312 18,836
----------- ----------- ---------
Deferred tax liabilities 588 563 469
Bank loans 4,000 4,000 4,000
Total non-current liabilities 4,588 4,563 4,469
----------- ----------- ---------
Trade and other payables 3,095 2,261 4,748
Current income tax liabilities - 16 -
Borrowings - 597 373
Total current liabilities 3,095 2,874 5,121
----------- ----------- ---------
Total liabilities 7,683 7,437 9,590
----------- ----------- ---------
TOTAL EQUITY AND LIABILITIES 27,340 25,749 28,426
----------- ----------- ---------
Plexus Holdings Plc
Unaudited Interim Cash Flow
Statement
For the six months ended 31 December 2010
Six months Six months Year to
to 31 December to 31 December 30 June
2010 2009 2010
GBP 000's GBP 000's GBP 000's
Cash flows from operating
activities
Profit before taxation 1,096 131 645
Adjustments for:
Depreciation, amortisation
and impairment charges 1,349 1,178 2,430
Loss on disposal of property,
plant and equipment 30 - 19
Charge for share based
payments 79 78 214
Investment income (2) (1) -
Interest expense 59 60 127
--------------- --------------- ---------
2,611 1,446 3,435
(Increase) / decrease in
inventories (3) 633 462
Decrease / (increase) in trade
and other receivables 4,091 (234) (1,825)
(Decrease) / increase in trade
and other payables (1,653) (1,071) 1,417
Cash generated from operations 5,046 774 3,489
Income taxes paid (98) (666) (1,089)
Net cash generated from operating
activities 4,948 108 2,400
--------------- --------------- ---------
Cash flows from investing
activities
Adjustment to value of associate
undertaking 4 - (3)
Purchase of intangible assets (346) (238) (707)
Purchase of property, plant
and equipment (657) (815) (2,560)
Proceeds of sale of property,
plant and equipment - - 8
Net cash used in investing
activities (999) (1,053) (3,262)
--------------- --------------- ---------
Cash flows from financing
activities
Interest paid (59) (59) (127)
Interest received 2 1 -
Equity dividends paid (313) (305) (569)
Net cash used in financing
activities (370) (363) (696)
--------------- --------------- ---------
Net increase / (decrease) in
cash and cash equivalents 3,579 (1,308) (1,558)
Cash and cash equivalents at
1 July 1,097 2,655 2,655
Cash and cash equivalents at
31 December 4,676 1,347 1,097
=============== =============== =========
Plexus Holdings Plc
Unaudited Interim Statement of Changes in Equity
For the six months ended 31 December 2010
Called Share Share Based
Up Share Premium Payments Retained
Capital Account Reserve Earnings Total
GBP 000's GBP 000's GBP 000's GBP 000's GBP 000's
Balance as at 1 July
2009 802 15,596 550 1,499 18,447
Profit for the year - - - 703 703
Share based payments
reserve charge - - 214 - 214
Deferred tax movement
on share options - - - 41 41
Dividends - - - (569) (569)
--------- --------- ----------- --------- ---------
Balance as at 30 June
2010 802 15,596 764 1,674 18,836
Profit for the period - - - 1,055 1,055
Share based payments
reserve charge - - 79 - 79
Dividends - - - (313) (313)
Balance as at 31
December 2010 802 15,596 843 2,416 19,657
========= ========= =========== ========= =========
Notes to the Interim Report December 2010
1. This interim financial information does not constitute
statutory accounts as defined in section 435 of the Companies Act
2006 and is unaudited.
This unaudited interim report has been prepared on the basis of
the accounting policies set out in the annual report for the year
ended 30 June 2010 and which are also expected to apply for 30 June
2011.
The interim financial information is compliant with IAS 34 -
Interim Financial Reporting.
The accounting policies are based on current International
Financial Reporting Standards ("IFRS"), International Financial
Reporting Interpretation Committee ("IFRIC") interpretations and
current International Accounting Standards Board ("IASB") exposure
drafts that are expected to be issued as final standards and
adopted by the EU such that they are effective for the year ending
30 June 2011. These standards are subject to ongoing review and
endorsement by the EU and further IFRIC interpretations and may
therefore be subject to change.
2. This interim report was approved by the board of directors on
23 March 2011.
3. During the interim period the Group paid a dividend on
ordinary shares of GBP312,713. The directors have approved the
payment of an interim dividend of 0.35p per share which will be
paid on Thursday 14 April 2011 to members appearing in the register
on the record date of Friday 1 April 2011.
4. There were no other gains or losses to be recognised in the
financial period other than those reflected in the Statement of
Comprehensive Income.
5. Taxation on the operating profit after interest has been
provided at a rate of 28% for the six months ended 31 December 2010
(2009: 28%) which is the estimated rate of UK tax for the full
year. The effective rate of tax for the six months is 4% (2009:
30%) after adjustments made to reflect R&D tax credits received
relating to the current and prior years and offsets for
disallowable expenditure.
6. Basic and pre-exceptional earnings per share are based on the
weighted average of ordinary shares in issue during the half-year
of 80,182,569 (2009: 80,182,569). The calculation of fully diluted
earnings per share is based on the weighted average number of
ordinary shares in issue plus the dilutive effect of outstanding
share options being 748,097 (2009: 100,622). The number of shares
included in the calculation of fully diluted earnings per share was
80,930,666 (2009: 80,283,191).
7. The Group derives turnover from the sale of its POS-GRIP
friction grip technology and associated products, the rental of
wellheads utilising the POS-GRIP friction grip technology and
service income principally derived in assisting with the
commissioning and ongoing service requirements of its equipment.
These income streams are all derived from the utilisation of the
technology which the Group believes is its only segment. Business
activity is not subject to seasonal or cyclical fluctuations.
8. During the period, the Group acquired the remaining 51% of
the shares of Plexus Ocean Systems (Malaysia) Sdn Bhd bringing its
shareholding up to 100%. As a result the company has been
reclassified as a subsidiary undertaking having previously been
held as an associate undertaking.
9. During the period, Mr. B. van Bilderbeek, a director,
advanced monies to the Group totalling GBP500k. At 31 December
2010, this amount remained outstanding and is included within Trade
and Other Payables on the Balance Sheet.
10. The comparative figures for the financial year ended 30 June
2010 are not the company's statutory accounts for that financial
year. Those accounts have been reported on by the company's
auditors, Crowe Clark Whitehill LLP, and delivered to the registrar
of companies. The report of the auditors was (i) unqualified, (ii)
did not include a reference to any matters to which the auditors
drew attention by way of emphasis without qualifying their report
and (iii) did not contain a statement under section 498(2) or (3)
of the Companies Act 2006.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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