REG - Plexus Holdings Plc - Interim Results
28/03/2025 07:15
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RNS Number : 5941C Plexus Holdings Plc 28 March 2025
PLEXUS HOLDINGS PLC
("Plexus" or the "Company" or the "Group")
INTERIM RESULTS FOR THE 6 MONTHS TO 31 DECEMBER 2024
Plexus Holdings plc, the AIM quoted oil and gas engineering services business
and owner of the proprietary POS-GRIP® method of wellhead engineering,
announces its interim results for the six months to 31 December 2024 (H1
2025).
Financial Performance
· Sales revenue: £2.9m (H1 2024: £5.1m)
o Excluding last year's £4.1m ($5.2m) one-off SLB licensing deal, organic
operational revenue increased by £1.9m year-on-year.
· Loss before tax: £1.3m (H1 2024 profit: £2.2m)
· EBITDA loss: £0.2m (H1 2024 profit: £3.1m)
· Cash and cash equivalents: £1.4m as at the date of this announcement
Operational Highlights:
· Board changes: Ben van Bilderbeek appointed as Non-Executive Chair,
Craig Hendrie as CEO, and Mike Park as CFO (July 2024).
· Key contract expansion: Dutch North Sea P&A campaign increased
from £1m to circa £2m, with additional deployment of proprietary technology
(operations commenced August 2024).
· New contract win: $1m Middle East contract for an exploration well
(awarded November 2024). Operations expected to begin in Q3 2025.
· Major project completion: Specialised subsea abandonment project
successfully materially completed in December 2024, with final revenues
exceeding £9m.
· Master Services Agreement: Signed with a well management company,
expected to generate additional work in P&A and jack-up exploration.
· Capital investment: Four new Exact rental wellhead sets completed
(March 2025) and now available for allocation, doubling the available rental
fleet to eight sets.
· Loan note extension: Outstanding loan notes (originally due October
2024) extended by six months to mature in April 2025.
Strategic & Financial Positioning:
· £3.5m fundraising: Launched post-period end (March 2025), through a
proposed placing, intended subscription and retail offer, alongside conversion
of outstanding loan notes.
· Use of funds: Purchase of eight new wellhead sets, doubling again the
rental fleet and strengthening Plexus' position to capitalise on growing
international opportunities.
· Shareholder approval for the fundraising and loan conversion to be
sought at a General Meeting on 7 April 2025.
· Continued focus on leveraging proprietary technology and securing
high-value contracts to drive sustainable growth.
Plexus CEO Craig Hendrie said: "I am excited to lead Plexus into this next
phase of growth, leveraging our superior wellhead technology and excellence in
operations to meet the evolving needs of the energy sector. Our solutions now
extend beyond oil and gas exploration and production to encompass Plug &
Abandonment ('P&A'), and gas and carbon capture storage wells, among other
emerging applications. Having recently announced a well-supported fundraise,
the expansion of our rental fleet will represent a major milestone, enabling
us to serve a broader client base and maximise returns from our unique IP.
With strong market demand, a clear strategy, and a commitment to engineering
and project delivery excellence, we are well-positioned to drive sustainable
growth while delivering the highest standards of safety and performance."
CHAIRMAN'S STATEMENT
Business Progress and Operations Review
Over the past six months, Plexus has made significant strategic progress,
strengthening its position in the global wellhead market while ensuring that
its proprietary technology, products and services continue to deliver
industry-leading safety, reliability, and environmental benefits.
The Company has successfully transitioned to a new executive leadership team,
with Craig Hendrie stepping into the role of CEO and Mike Park as CFO. Their
combined expertise and deep understanding of the business has already brought
renewed momentum, ensuring that Plexus remains at the forefront of operational
excellence and prepares for a period of growth.
Our near-term strategy is primarily focused on the high-margin wellhead rental
market, particularly within Jack-up exploration and decommissioning
activities. Market demand for our Exact-EX wellhead systems is growing, with
strong interest from both new and existing clients. Accordingly, we were
delighted to announce a £3.5 million fundraise last week, which if approved
by our shareholders will enable us to double our rental fleet and positions
Plexus to capitalise on growing international opportunities.
Looking further ahead, our medium-term focus is towards high value 'special'
projects, such as the £9 million special project completed in January 2025,
and specialised surface production wellhead opportunities. Over the longer
term, we believe that our growth opportunities lie in subsea wellhead
development, additional POS-GRIP products, and potential licensing of POS-GRIP
technology in other markets. Additionally, our collaboration with SLB
continues to demonstrate the strength of our IP-led model, reinforcing our
ability to expand into new geographies and market segments.
Safety is deeply embedded in Plexus' culture, with a commitment to
continuously enhance standards and foster a strong safety-first mindset across
the organisation. This is evident in our track record, as we have once again
maintained a zero lost time injury (LTI) record this year - an achievement we
have upheld for over nine years as of September 2024.
In terms of our target markets, as the oil and gas industry is undergoing
significant change, we have strategically positioned ourselves to support this
evolving landscape with a single, optimised wellhead product designed for use
on Jack-up rigs across a wide variety of applications. Whether it is
decommissioning and Plug & Abandonment ('P&A'), carbon capture
drilling, offshore drilling for oil and gas, or hydrogen storage, our
technology provides a reliable and effective solution. By broadening our scope
beyond traditional oil and gas markets, we are ensuring strong growth
potential regardless of political and regulatory shifts.
Interim Results
Plexus' results for the six months to 31 December 2024 demonstrate the early
progress that has been made during the period in relation to organic
activities and the Board's strategy for growth. Results for the period under
review are in line with the Company's expectations and are on track to meet
the full year targets.
Revenue for the six-month period ended 31 December 2024 has decreased to
£2.87m, compared to the previous year's figure of £5.09m. Last year's figure
included the one-off licensing agreement with SLB generating revenues of
£4.08m ($5.2m). Therefore, underlying organic revenues based on operational
activities excluding the licensing revenue have increased by £1.86m.
Administrative expenses for the six months to 31 December 2024 were £2.79m
(2023: £2.64m). The increase is driven by an increase in depreciation charges
following investment in the rental fleet in the prior year. Personnel numbers,
including non-executive board members are also broadly in line with the prior
year at 40 (2023: 38). Future growth in employee numbers is anticipated,
driven by expected expansion in operational activities.
The Group has reported a loss of £1.31m in the period, compared to a profit
in the prior year of £2.93m. As noted above, profit for the six-month period
in the prior year had been driven by the SLB licensing agreement which
generated revenue of £4.08m with no associated costs.
The Group has not provided for a charge or a credit to UK Corporation Tax at
the prevailing rate of 25%. This is consistent with the prior year.
Basic loss per share for the period was 1.25p per share, which compares to
2.83p profit per share for the same period last year.
The balance sheet continues to remain strong, with the current level of
intangible and tangible property, plant and equipment asset values at £8.07m
and £3.50m respectively, illustrating the amount of cumulative investment
that has been made in the business. Total asset values at the end of the
period were £17.5m compared to £19.9m at the prior year end.
At the date of this report, the Group had cash and cash equivalents of £1.40m
and no bank borrowings.
Outlook
With a robust pipeline of potential opportunities, a clear strategy, a
strengthened balance sheet, and an experienced leadership team, I am confident
in Plexus' ability to deliver sustained growth and value for our shareholders.
I would like to thank our employees, partners, and investors for their
continued support. As we build on our recent successes, we remain committed to
driving innovation, operational excellence, and shareholder value creation.
Ben van Bilderbeek
Non-Executive Chairman
27 March 2025
Plexus Holdings Plc
Unaudited Interim Consolidated Statement of Comprehensive Income
For the Six Months Ended 31 December 2024
Six months to Six months to Year to
31 December 31 December 2023 30 June
2024 2024
£'000 £'000 £'000
Revenue 2,873 5,087 12,723
Cost of sales (1,372) (203) (3,541)
------- ------- -------
Gross profit 1,501 4,884 9,182
Administrative expenses (2,792) (2,637) (5,579)
Non-recurring - Compensation for loss of office - - (693)
Operating (loss) / profit (1,291) 2,247 2,910
Finance income 1 1 4
Finance costs (24) (112) (196)
Other income - - 2
Non-recurring items
Gain on sale of associate undertaking - 83 83
------- ------- -------
(Loss) / profit before taxation (1,314) 2,219 2,803
Income tax credit (note 6) - - 130
------- ------- -------
(Loss) / profit for year (1,314) 2,219 2,933
Other comprehensive income - - -
------- ------- -------
Total comprehensive (Loss) / income for the year attributable to the owners of (1,314) 2,219 2,933
the parent
------- ------- -------
(Loss) / profit per share (note 7)
Basic (1.25p) 2.19p 2.83p
Diluted (1.25p) 2.19p 2.83p
Plexus Holdings PLC
Unaudited Interim Consolidated Statement of Financial Position
As at 31 December 2024
31 December 2024 31 December 2023 30 June
2024
£'000 £'000 £'000
ASSETS
Goodwill 767 767 767
Intangible assets 8,076 8,517 8,312
Property, plant and equipment (note 10) 3,502 2,283 3,908
Right of use asset 182 486 334
------- ------- -------
Total non-current assets 12,527 12,053 13,321
------- ------- -------
Corporation tax - - 132
Inventories 2,066 2,528 1,099
Trade and other receivables 1,561 7,129 2,874
Cash and cash equivalents 1,299 833 2,486
------- ------- -------
Total current assets 4,926 10.490 6,591
------- ------- -------
TOTAL ASSETS 17,453 22,543 19,912
------- ------- -------
EQUITY AND LIABILITIES
Called up share capital (note 11) 1,054 1,054 1,054
Share based payments reserve 674 674 674
Retained earnings 12,368 12,977 13,682
------- ------- -------
Total equity attributable to equity holders of the parent 14,096 14,705 15,410
Lease liabilities - 280 88
------- ------- -------
Total non-current liabilities - 280 88
Trade and other payables 2,223 5,444 3,217
Convertible loans (note 12) 875 1,798 856
Lease liabilities 259 316 341
------- ------- -------
Total current liabilities 3,357 7,558 4,414
------- ------- -------
Total liabilities 3,357 7,838 4,502
------- ------- -------
TOTAL EQUITY AND LIABILITIES 17,453 22,543 19,912
------- ------- -------
Plexus Holdings Plc
Unaudited Interim Statement of Changes in Equity
For the Six Months Ended 31 December 2024
Called Up Shares Held in Treasury Share Based Payments Reserve Retained Total
Earnings
Share Capital
Balance as at 30 June 2023 1,054 (2,500) 674 12,292 11,520
Total comprehensive income for the period - - - 2,219 2,219
Sale of shares held in treasury - 966 - - 966
Loss on sales share held in treasury - 1,534 - (1,534) -
------- ------- ------- ------ ------
Balance as at 31 December 2023 1,054 - 674 12,977 14,705
Total comprehensive income for the period - - - 714 714
Sale of shares held in treasury (adjustment) - (9) - - (9)
Loss on sales share held in treasury (adjustment) - 9 - (9) -
------- ------- ------- ------- -------
Balance as at 30 June 2024 1,054 - 674 13,682 15,410
Total comprehensive income for the period - - - (1,314) (1,314)
------- ------- ------- ------- -------
Balance as at 31 December 2024 1,054 - 674 12,368 14,096
------- ------- ------- ------- -------
Plexus Holdings Plc
Unaudited Interim Statement of Cash Flows
For the Six months ended 31 December 2024
Six months to 31 December 2024 Six months to 31 December 2023 Year to
30 June
2024
£ 000's £ 000's £ 000's
Cash flows from operating activities
(Loss) / profit before tax (1,314) 2,219 2,803
Adjustments for:
Depreciation, amortisation and impairment charges 1,073 836 1,841
Redemption premium on convertible loans 19 - 174
Gain on sale on disposal of associate undertaking - (83) (83)
Other income - - (2)
Investment income (1) (1) (4)
Interest expense 5 106 22
Changes in working capital:
Increase in inventories (967) (263) 1,166
Decrease / (increase) in trade and other receivables 1,313 (4,811) (556)
(Decrease) / increase in trade and other payables (994) 797 (1,430)
------- ------- -------
Cash (used) / generated from operating activities (866) (1,200) 3,931
Net income taxes received 132 153 151
------- ------- -------
Net cash (used) / generated in operating activities (734) (1,047) 4,082
------- ------- -------
Cash flows from investing activities
Purchase of intangible assets (258) (271) (558)
Interest and investment income received 1 1 -
Purchase of property, plant and equipment (18) (1,078) (3,064)
Net proceeds from sale of associate undertaking - 987 987
------- ------- -------
Net used in investing activities (275) (361) (2,635)
------- ------- -------
Cash flows from financing activities
Proceeds from sale of treasury shares - 966 957
Repayment of convertible loans - - (1,020)
Repayments of lease liability (174) (174) (347)
Interest paid (4) - -
------- ------- -------
Net cash (outflow) / inflow from financing activities (178) 792 (410)
------- ------- -------
Net (decrease) / increase in cash and cash equivalents (1,187) (616) 1,037
Cash and cash equivalents brought forward 2,486 1,449 1,449
------- ------- -------
Cash and cash equivalents carried forward 1,299 833 2,486
------- ------- -------
Notes to the Interim Report for the Six Months ended 31 December 2024
1. This interim financial information does not constitute statutory accounts
as defined in section 435 of the Companies Act 2006 and is unaudited.
The comparative figures for the financial year ended 30 June 2024 are not the
Company's statutory accounts for that financial year. Those accounts have been
reported on by the company's auditors, Crowe U.K. LLP, and delivered to the
registrar of companies. The report of the auditors was (i) unqualified, (ii)
included a material uncertainty as the going-concern assumption was subject to
additional funding (iii) did not contain a statement under section 498(2) or
(3) of the Companies Act 2006.
The interim financial information is compliant with IAS 34 - Interim Financial
Reporting.
2. Except as described below the accounting policies applied in these
interim financial statements are the same as those applied in the Group's
consolidated financial statements as at and for the year ended 30 June 2024
and which are also expected to apply for 30 June 2025.
There are a number of standards, amendments to standards, and interpretations
which have been adopted by the UK Endorsement Board that are effective in
future accounting. The Directors' have assessed the impact of these standards
and do not expect any significant impact to the Group on their adoption. The
Group financial statements are presented in sterling and all values are
rounded to the nearest thousand pounds except where otherwise indicated.
3. This interim report was approved by the board of directors on 27 March
2024.
4. The directors do not recommend payment of an interim dividend in relation
to this reporting period.
5. There were no other gains or losses to be recognised in the financial
period other than those reflected in the Statement of Comprehensive Income.
6. No corporation tax provision has been provided for the six months ended
31 December 2024 (2023: nil). As a result, there is no effective rate of tax
for the six months ended 31 December 2024 (2023: 0%).
7. Basic (loss) / earnings per share are based on the weighted average of
ordinary shares in issue during the half-year of 105,386,239 (2023:
101,107,831).
8. The Group derives revenue from the sale of its POS-GRIP friction-grip
technology and associated products and services, and licence income derived
from its various licensing agreements. 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 fluctuations.
9. The company accounts for convertible loans having regard to the specific
terms of the instrument. The company considers the instrument to be made up of
a host instrument that it is measured at amortised cost and a derivative
forward contract that is recognised at fair value through the profit and loss
account. The company has elected to account for the two elements separately
rather than assign a fair value to the instrument as a whole. The redemption
premium is recognised over the life of the instrument and an accelerated
charge will be recognised if a conversion event occurs prior to the end of the
term.
10. Property plant and equipment
Tenant Assets under construction Motor vehicles
Buildings Improvements Equipment £000 £000 Total
£000 £000 £000 £000
Cost
As at 30 June 2023 685 859 5,850 385 17 7,796
Additions - - 183 2,881 - 3,064
Transfers - - 2,862 (2,862) - -
----- ----- ----- ----- ----- -----
As at 30 June 2024 685 859 8,895 404 17 10,860
Additions - - 18 - - 18
Disposals (6) - - (6)
Transfers - - 312 (312) - -
----- ----- ----- ----- ----- -----
As at 31 December 2024 685 859 9,219 92 17 10,872
----- ----- ----- ----- ----- -----
Depreciation
As at 30 June 2023 685 680 5,010 - 17 6,392
Charge for the year - 76 484 - - 560
----- ----- ----- ----- ----- -----
As at 30 June 2024 685 756 5,494 - 17 6,952
Charge for the period - 38 386 - - 424
Disposals (6) (6)
----- ----- ----- ----- ----- -----
As at 31 December 2024 685 794 5,874 - 17 7,370
----- ----- ----- ----- ----- -----
Net book value
As at 31 December 2024 - 65 3,345 92 - 3,502
----- ----- ----- ----- ----- -----
As at 30 June 2024 - 103 3,401 404 - 3,908
----- ----- ----- ----- ----- -----
11. Share Capital
Six months to 31 December 2024 Six months to Year to
31 December 2023 30 June
2024
£'000 £'000 £'000
Authorised:
Equity: 115,924,863 (June 2024 & Dec 2024: 110,000,000) Ordinary shares of 1,159 1,100 1,100
1p each
Allotted, called up and fully paid: ----- ----- -----
Equity: 105,386,239 (June 2024 & Dec 2024: 105,386,239) 1,054 1,054 1,054
----- ----- -----
12. Convertible loans
£'000
Amortised cost at 30 June 2023 1,702
-----
Redemption premium to 31 January 2024 113
Repayment of Convertible loans (1,020)
Redemption premium as a result of cash repayment 25
-----
Amortised cost at 31 January 2024 820
Redemption premium 36
-----
Amortised cost at 30 June 2024 856
Redemption premium 19
-----
Amortised cost at 31 December 2024 875
-----
In October 2022 Plexus raised £1,550,000 through the issue of 1,550,000
convertible loan notes of £1 each. The loan notes are non-interest bearing
and had an original maturity date being 24 months after issue.
The loan notes can be settled in cash, with an additional 20% redemption
interest premium on the principal amount or converted into new shares where
the principal amount will be settled at a 20% discount to the share price paid
by investors in a qualifying financing event. The 20% discount noted above
equates to a 25% premium on the principal amount. Therefore, a redemption
premium of up to £387,500 was to be recognised over the two-year term.
On 31 January 2024 it was announced that the company had made a cash payment
to redeem £849,992 loan notes, plus redemption premium of £169,998, a total
payment of £1,019,990, leaving £700,008 of loan notes outstanding.
Additionally, following discussions between the Noteholders and the Company in
October 2024, the maturity date for the remaining 700,008 Loan Notes was
extended for six months, until 19 April 2025.
Redemption premium of £19k has been recognised in the period to 31 December
2024. The redemption premium has now been fully recognised as either paid or
accrued in the accounts.
13. Subsequent Event
On 19 March 2025 the Company announced a proposed placing, subscription and
retail offer of up to £3.5 million, subject to the approval of shareholders
at a General Meeting convened for 7 April 2025, and subject to uptake of the
retail offer. On 21 March the Company announced that the retail offer had been
oversubscribed and therefore was capped at the maximum value of £0.5m,
bringing the total of new funds raised to the full £3.5m. It is expected that
following the General Meeting, 67,305,127 new shares will be issued as a
result of the fundraising and the conversion of all outstanding convertible
loan notes, and that trading in these new shares will commence on 8 April
2025.
For further information please visit www.plexusplc.com
(http://www.plexusplc.com) or contact:
Plexus Holdings PLC Tel: 01224 774222
Craig Hendrie, CEO
Mike Park, CFO
Cavendish Capital Markets Limited Tel: 0131 220 6939
Derrick Lee
Adam Rae
St Brides Partners Ltd plexus@stbridespartners.co.uk
Isabel de Salis
Paul Dulieu
Will Turner
NOTES
Plexus Holdings plc (AIM: POS) is an IP-led company specialising in developing
and providing wellhead systems and associated products and services for
offshore operations.
Headquartered in Aberdeen, the company focuses on providing wellheads for
Jack-up rig operations such as exploration and appraisal drilling, Plug &
Abandonment work and emerging markets for Carbon Capture & Storage,
hydrogen production and storage and geothermal. Plexus has a collaboration
agreement with SLB to supply Exact adjustable wellhead systems for Jack-up
applications and supports these operations with a range of proprietary
equipment and tools, and project engineering services.
Plexus is known for its highly innovative POS-GRIP® wellhead technology and
HG® metal-to-metal sealing systems, for which licences have been sold to
major industry players such as SLB and TechnipFMC for limited applications.
Plexus continues to develop products based on POS-GRIP technology for
challenging surface production wellhead platforms, special projects and
connector and subsea applications such as the Python® subsea wellhead system.
Plexus has always been at the forefront of innovation to reduce risk and
improve performance in the energy industry, such as developing through-BOP
wellhead systems which help to prevent blow-outs, and POS-GRIP "HG" Seals
which are leak-free throughout field life and so reduce methane emissions and
minimise maintenance costs. These innovations support the oil and gas
industry's ESG and NetZero, and in recognition of this, Plexus was Awarded the
London Stock Exchange's Green Economy Mark in 2021.
For more information visit: https://www.plexusplc.com/
(https://www.plexusplc.com/)
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