Plexus Makes Solid Progress in 2009

Plexus Holdings plc announced its interim results for the six months to December 31, 2009.


  • Sales of rental POS-GRIP wellheads and support services total £6.5m (2008: £6.7m)
  • EBITDA of £1.4m (2008: £1.2m) - (before IFRS2 share based payment charges)
  • Profit before tax £0.13m (2008: £0.04m)
  • Growing recognition of the benefits of POS-GRIP for high pressure/high temperature ('HP/HT') applications with sales up 59% versus same period last year
  • HP/HT contract wins with Talisman Energy Inc at £1.5m, GDF Suez Egypt at £600,000, and Maersk Oil North Sea UK Limited ('Maersk') for an estimated £3m
  • Further contract wins for POS-GRIP wellhead technology with Dubai Petroleum Establishment, Transocean Drilling U.K. Limited, and Wintershall Noordzee B.V.
  • Post period end awarded three contracts with new customers in new territories - a subsidiary of Bowleven plc in Cameroon, Cairn Energy PLC Group in Tunisia, and Sonangol Pesquisa e Producao ('Sonangol') in Angola
  • 15,000 psi HP/HT Mudline Tieback project attracted initial financing commitments from two large international operators
  • Continued capital investment of £1.1m (2008: £1.6m)
  • R & D spend increased to £0.36m (2008: £0.18m)
  • 5.8% increase in interim dividend of 0.33p per share approved for payment on April 1, 2010
  • Basic and fully diluted earnings per share of 0.11p (2008: 0.04p)

Plexus' Chief Executive Ben van Bilderbeek said, "Plexus has continued to make solid progress resulting in first half results ahead of management expectations. As has been widely reported, 2009 was a difficult period for the oil services sector where a combination of global uncertainty, worldwide financial pressures, and depressed oil prices impacted operators' investment decision making and resultant initiation of new projects. Whilst Plexus was not immune from these adverse conditions, we have continued to win new clients. Indeed since the end of December we secured contracts with major new customers in North Africa and West Africa, which has seen the Company further expand its geographic footprint into Tunisia, Cameroon, and Angola.

"As a result of our progress, I am pleased to announce that the directors have approved the payment of an increased interim dividend of 0.33p per share which will be paid on Thursday April 1, 2010 to members appearing in the register on the record date of March 26, 2010.

"Looking to the future we are beginning to see signs of increased activity and expect a stronger order book to develop in the second half of the calendar year and beyond. At the same time we have a number of exciting initiatives underway relating to the continued development of our proprietary POS-GRIP method of engineering as well as progressing what we see as a clear need to improve the existing industry wellhead equipment standards, particularly for HP/HT applications. I firmly believe that such activities and the operational advantages of POS-GRIP including improved technical performance, installation time savings, and reduced operating costs and enhanced safety will play a key role in POS-GRIP gaining wider recognition and acceptance within the industry. This ultimately will enable us to engage in a significant way with potential licensees and alliance partners over the coming years."