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| 04-11-09 | RNS |
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RNS Number : 9026B Plexus Holdings Plc 04 November 2009 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services 4 November 2009 Plexus Holdings PLC ('Plexus' or 'the Company') Extended Contract with Transocean Drilling U.K. Limited Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® method of wellhead engineering, has signed a further two year frame work agreement with Applied Drilling Technology International ('ADTI'), a turnkey drilling division of Transocean Drilling U.K. Limited, the world's largest offshore drilling contractor, to supply its standard 10,000 psi POS-GRIP wellhead technology with mudline suspension systems. The estimated value of this agreement could reach £2 million over the next two years, with initial revenues anticipated to commence from December 2009. This two year frame work agreement marks a strengthening working relationship between Plexus and ADTI, which began six years ago. Under the extended agreement, ADTI will continue to utilise Plexus' POS-GRIP wellhead technology, known for its safety, cost and time saving benefits, for contracted exploration work in the North Sea. Plexus CEO Ben van Bilderbeek said, "Plexus is delighted to extend its working relationship with ADTI as it continues to increase its stronghold within the important North Sea oil and gas market. It is Plexus' objective to continue to champion POS-GRIP within the oil and gas arena, increasing its exposure to make it the industry wellhead standard of necessity, recognised for its superior technical performance and safety benefits. Therefore it is fundamental, in order for Plexus to achieve this, that strong relationships such as these with key turnkey players are formed and maintained in the long-term."
For further information please visit www.posgrip.com or contact:
Notes to Editors: Plexus, which began trading on AIM in December 2005, is an established oil and gas engineering and services business which supplies wellhead and mudline suspension equipment for exploration and production applications based in Aberdeen, with an office in London, Cairo, Kuala Lumpur and a presence in Houston, Texas. It has developed and patented a method of engineering for oil and gas field wellheads and connectors, POS-GRIP, which involves deforming one tubular member against another to effect gripping and sealing. POS-GRIP wellhead systems have to date been used or selected to be used in over 140 oil and gas wells by international companies including BHP Billiton, BG International, BP, Brunei Shell Petroleum, Centrica, ConocoPhillips, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall. The Company plans to accelerate the roll out of POS-GRIP technology as a superior alternative to current wellhead technology. It has particular advantages in HP/HT (High Pressure/High Temperature) and X-HP-HT (Extreme High Pressure/High Temperature) oil and gas environments for which there is increasing demand throughout the world. The Company's long-term goal is to develop POS-GRIP technology as the future industry standard for wellhead design. This objective includes the distribution of POS-GRIP technology through licensees to maximise market penetration. This information is provided by RNS The company news service from the London Stock Exchange END
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| 29-10-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 5447B
Plexus Holdings Plc
29 October 2009
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services
29 October 2009
Plexus Holdings PLC ('Plexus' or 'the Company')
Final Dividend
Plexus Holdings PLC, the AIM listed oil and gas engineering services business and owner of the proprietary POS-GRIP method of wellhead engineering, is pleased to announce that the proposed final dividend of 0.38p per share will, if approved at the Annual General Meeting on Tuesday 1 December 2009, be paid on 4 December 2009 to all members appearing on the register of members on the record date 6 November 2009. The ex-dividend date for the shares is 4 November 2009.
* * ENDS * *
For further information please visit www.posgrip.com or contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Alex Dewar Brewin Dolphin Tel: 0845 213 2076
Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7236 1177
Isabel Crossley St Brides Media & Finance Ltd Tel: 020 7236 1177
Notes to Editors:
Plexus, which began trading on AIM in December 2005, is an established oil and gas engineering and services business which supplies wellhead and mudline suspension equipment for exploration and production applications based in Aberdeen, with an office in London, Cairo, Kuala Lumpur and a presence in Houston, Texas. It has developed and patented a method of engineering for oil and gas field wellheads and connectors, POS-GRIP, which involves deforming one tubular member against another to effect gripping and sealing.
POS-GRIP wellhead systems have to date been used or selected to be used in over 140 oil and gas wells by international companies including BHP Billiton, BG International, BP, Brunei Shell Petroleum, Centrica, ConocoPhillips, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall.
The Company plans to accelerate the roll out of POS-GRIP technology as a superior alternative to current wellhead technology. It has particular advantages in HP/HT (High Pressure/High Temperature) and X-HP-HT (Extreme High Pressure/High Temperature) oil and gas environments for which there is increasing demand throughout the world. The Company's long-term goal is to develop POS-GRIP technology as the future industry standard for wellhead design. This objective includes the distribution of POS-GRIP technology through licensees to maximise market penetration.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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| 20-10-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 0488B
Plexus Holdings Plc
20 October 2009
PLEXUS HOLDINGS
Plexus Holdings plc ("Plexus" or "the Group")
Preliminary Results for the year to 30 June 2009
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 preliminary results for the year ending 30 June 2009.
Results
* 14% increase in turnover to £15.1m (2008: £13.3m)
* 13% increase in EBITDA to £4.3m before IFRS 2 share based payment charges of £0.19m (2008: £3.8m before IFRS 2 share
based payment charges of £0.18m)
* Profit before tax of £1.8m (2008: £1.9m)
* Gross margin increase to 57.9% (2008: 54.7%)
* Net cash inflow of £1.8m before drawdown of bank loan of £4m (2008: net cash outflow of £1.4m)
* Basic earnings per share of 1.27p (2008: 1.61p)
Highlights
* Continuing to secure and extend contracts with major international oil and gas companies to supply its proprietary POS-GRIP® wellhead equipment
* 35% increase in High Pressure/High Temperature (*HP/HT*) sales
* Secured £1.7m HP/HT and Extreme High Pressure/High Temperature (*X-HP/HT*) contract with ConocoPhillips * revenues impacting Q2 FY 2010
* Continued to develop working relationship with Royal Dutch Shell plc (*Shell*)
* First contract win with Shell Egypt August 2008 worth £0.75m commencing Q2 FY 2010
* Brunei Shell Petroleum Sdn Bhd (*Shell Brunei*) committed to a second contract for four years in January 2009, with an
initial value of £0.8m commencing Q4 FY 2010
* £1.6m contract extension with BP Egypt May 2009 to supply HP/HT wellhead systems with revenues continuing into 2010
* £1.2m new customer contract with Red Sea Petroleum Operating Company (*RSPOC*) June 2009 to supply HP/HT equipment for exploration wells in the Red Sea
* Further penetration into the significant Egyptian market with a first £0.6m contract with GDF Suez (*GDF Suez*) secured post-period July 2009
* £1.5m two year contract with Talisman Energy Inc. for the supply of both HP/HT and standard pressure POS-GRIP wellhead equipment in the Norwegian North Sea signed post-period July 2009
* Capital expenditure of £3.2m made during the year, of which £2.7m was in property, plant and equipment reflecting the 20% growth in rental inventory over the past year
* 20% increase in personnel to 89 as at year end (2008: personnel 74)
* Renewal, increase, and extension of bank facilities in January 2009***25% increase, £4m credit facility on a three year revolving basis with additional £1m overdraft on yearly term
* Payment of maiden dividend 30 June 2009 of 0.3118p per share
* Board is today proposing a final dividend of 0.38p per share, which will be subject to shareholder approval at the Annual General Meeting (*AGM*) to be held on 1 December 2009
* Anticipate challenging market conditions to continue into 2010***Company well positioned with strong client base validating its POS-GRIP wellhead technology and robust balance sheet
For further information please visit www.posgrip.com or contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7589 8555
Graham Stevens Plexus Holdings PLC Tel: 020 7589 8555
Alex Dewar Brewin Dolphin Tel: 0845 213 2076
Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7236 1177
Isabel Crossley St Brides Media & Finance Ltd Tel: 020 7236 1177
Results
Chief Executive Ben van Bilderbeek said:
'I am pleased with the financial results and overall operational performance Plexus has delivered during this period of global uncertainty and financial pressures, which also impacted the oil and gas industry in terms of oil price volatility and resultant investment decisions.
"Despite these challenges Plexus has delivered record sales and profits at the EBITDA level, resulting in healthy positive cash flow. This has enabled your Board to initiate the payment of a maiden dividend and to adopt a progressive dividend policy subject to trading results, the economic outlook, and availability of distributable reserves. With this in mind I am pleased to confirm that the Directors propose a final dividend of 0.38p per share totalling £0.3m for the year ended 30 June 2009 which will be submitted for formal approval at the Annual General Meeting.
"Our ongoing capital investment in additional rental inventory, particularly HP/HT exploration wellhead equipment has enabled us to continue to grow sales revenues and win new customers. Although there are some reports of excess industry capacity and caution being aired by operators, resulting in the shortening of forward order visibility, our POS-GRIP wellhead technology continues to be selected against established alternative standards for its ability to deliver a range of operational advantages including improved technical performance, installation time savings, reduced operating costs and enhanced safety. For this reason we firmly believe that our Company and POS-GRIP technology will play a major role in the industry in the years ahead and will in due course be able to penetrate the volume production wellhead market either through organic expansion or in conjunction with potential licensees and alliance partners which will in turn deliver significant value to shareholders."
Summary of Results for the year ended 30 June 2009
2009 2008
£'000 £'000
Turnover 15,105 13,275
EBITDA - before the effect of IFRS 2 4,316 3,810
EBITDA - after the effect of IFRS 2 4,126 3,628
Profit before taxation 1,798 1,905
Basic earnings per share (pence) 1.27 1.61
Chairman's Statement
Business progress
I am pleased to report that the Group made strong progress in the second half of the financial year, and consequently reports a 14% increase in turnover to £15.1m for the year to 30 June 2009, and a 13% increase in EBITDA to £4.3m (before IFRS share based payment charges of £0.19m), resulting in earnings per share of 1.27p.
Strategy
Plexus continued to make excellent progress during the last financial year which saw, as anticipated at the time of our interim results, sales revenues and margins being weighted towards the second half, mostly driven by our HP/ HT POS-GRIP wellhead rental activities. The growing recognition of the benefits of our proprietary POS-GRIP technology for HP/HT and X-HP/HT applications has been a key part of the strategy that we have pursued since our AIM admission in December 2005. It is therefore pleasing to see the significant levels of investment that we have made over the past few years in rental inventory, infrastructure, and personnel coming together and to enable us to support a growing number of customers around the world. In Egypt for example we now supply BP, Shell, and GDF Suez, which demonstrates how it is possible to establish an initial presence in a new market with new technology and then grow both our reputation and sales revenues.
At the same time however it is impossible to ignore the challenging and volatile global economic trading conditions which have inevitably caused disruption to a number of operators' spending plans which has in turn led to some delays and postponement of planned projects. Bain & Company Inc. ('Bain'), a leading global management consulting firm, in its recent mid-year review explained that operators cutting costs and stalling expansion plans is affecting various projects and reducing oil production capacity that will further add to price volatility when the major markets eventually pick up in North America, China and India. The impact of this is to reduce forward order book levels and associated visibility. However despite these short to medium term considerations from which Plexus is not immune, we will continue to invest in capital equipment, infrastructure, and people as our goal has always been to establish over time POS-GRIP technology as a new industry standard for wellheads and to migrate our equipment from primarily the jack-up rig sector into both subsea and the major production wellhead market. We believe that this is the right course of action, particularly as Bain estimates that for upstream oil projects the tipping point where industry's need to contain costs is overtaken by the desire to expand and grow is around US$65 per barrel. Therefore it is important that Plexus is ready to benefit from what will at some point be an increased level of new exploration, development and production.
Whilst we continue to pursue organic growth from existing activities and seek to encourage interest from potential third party licensees and alliance partners, Plexus maintains an active product research and development programme. These activities not only support our core technology and applications, but also work to identify additional commercial opportunities for exploiting our POS-GRIP technology. The importance of such a strategy is underlined in a recent Ernst & Young oilfield service sector update report where it was concluded that the most successful oil field service companies are likely to be those with a number of specific attributes which include the "development or ownership of specialist proprietary technology".
One such exciting strategic initiative that is currently being pursued by the Company concerns HP/HT exploration wells drilled from a jack-up rig where the weight of casing strings needs to be suspended at the sea bed. Currently once the well has been drilled, irrespective of whether the well is assessed as being commercially viable as a producing well or not, the well has had to be permanently abandoned at the sea bed as no products currently exist which can achieve a tieback to these wells under HP/HT conditions. This is because existing standard mudline suspension technology, unlike POS-GRIP, uses threaded connections which cannot be reliably reconnected or tested with the corrosion resistant materials required for HP/HT production and as each well could cost anywhere from £50m to £200m to drill these are very expensive "throw away" wells. Plexus however has already completed a "proof of concept" exercise using field proven POS-GRIP technology which demonstrates that a 15,000 psi HP/HT Mudline Tieback can be achieved which does not require any rotation to make up and uses POS-GRIP to set metal to metal "HG"® seals (offering a tieback connection which can be qualified to the same standards as existing casing connections in the well). We believe that the potential of POS-GRIP in this application is one of the most far reaching developments in many years for the economics of HP/HT jack-up drilling programmes. We are already in preliminary discussions with several large international oil companies about a Joint Industry Project which would take approximately twelve months to bring the technology to realisation. A further commercial benefit to Plexus would be that any customer wanting to take advantage of this innovation would have to use a Plexus POS-GRIP exploration wellhead for the initial drilling of any well.
Additionally we were delighted to be able to secure a 25% increase in our banking facilities with the Bank of Scotland Corporate. Plexus now has a £4m credit facility on a three year revolving basis with an additional £1m overdraft facility agreed on a yearly term.
A further development of a financial nature concerned the Board's announcement at the end of June 2009 of a maiden interim dividend of 0.3118p per share, totalling £0.25m. We see this milestone as a demonstration of the confidence the Board has in the Group's cashflow, the financial strength of our Group's business model and future prospects. We intend to maintain a progressive dividend policy, but subject always to trading results, economic outlook, and the availability of distributable reserves. Accordingly, the Directors have also decided to propose a final dividend of 0.38p per share, totalling £0.3m. This will be submitted for formal approval at the Annual General Meeting.
Staff
On behalf of the Board, I would like to thank all of our employees, many of whom are new to the Company, for their dedication and hard work during a year that has delivered excellent results and further strengthened our reputation in the HP/HT sector.
Outlook
The last financial year was challenging for the global economy, the oil and gas industry, and for Plexus, and these trading conditions have continued into this financial year even if there are signs of recovery in certain sectors of the economy. We have been fortunate as a combination of longer term contracts with blue chip international oil companies, resultant forward order visibility, and the more stable trading platform that comes from owning a patented proprietary technology has allowed us to report an excellent set of results. However we view the current year with a degree of caution, remaining mindful of the economic slowdown and the resulting postponement of certain oil company investment decisions and associated exploration activity. The impact of these factors is a reduced forward order book as compared to this time last year and therefore less visibility, although with an extensive equipment inventory we are in a position to respond quickly to customer needs as they arise which has already proved to be advantageous. Looking to the future it is important to note that we continue to dialogue with key organisations within the industry about the role that we feel POS-GRIP will be able to play. I therefore remain confident that Plexus and its POS-GRIP technology will gain the recognition of the industry as a key component to be selected in preference to traditional alternatives for the unconventional and HP/HT and X-HP/HT applications arena, and that this will deliver significant shareholder value.
Robert Adair
Non-Executive Chairman
19 October 2009
Chief Executive's Review
Plexus had another successful year despite challenging market conditions dominated by falling oil prices causing a number of oil service companies to report a slowdown in activity. As reported at the half year, turnover geared towards the second half impacted significantly as a result of higher sales revenues and gross margins associated with HP/HT contracts.
Despite the presence of a number of uncertainties in the global economy Plexus has continued to pursue its goal of expanding its rental exploration equipment activities through a combination of winning new blue chip customers and building on relationships with existing customers. These organic activities have resulted in Plexus winning a number of important contracts during the year the most significant of which together with certain commercial developments were as follows:
* In August last year efforts to build on existing activities in the North African region successfully resulted in an inaugural contract with Shell Egypt for the supply of HP/HT exploration rental systems anticipated to be worth £0.75m.
* In September 2008 the developing relationship with ConocoPhillips resulted in a £1.7m contract for the supply of 15,000 psi HP/HT and 20,000 psi X-HP/HT exploration rental systems for two wells being drilled in the Norwegian North Sea. This further enhances our reputation in both the HP/HT arena and in the North Sea where we see the opportunity for similar contracts growing over time.
* In January 2009 Shell Brunei committed to a second contract for four years following on from the successful execution of the first contract which had been for a period of two years. The new contract operates on a well to well call-off basis and has an initial value of £0.8m for two wells, one of which is HP/HT, with revenues commencing in the second half of the financial year.
* In May 2009 BP Egypt awarded a contract extension for the supply of HP/HT wellhead systems together with service and support for the Nile delta. The value of the contract is estimated at £1.6m and follows on from the first contract awarded in 2006, and which expired at the end of 2008.
* In June 2009 Plexus signed an agreement with RSPOC to supply HP/HT exploration rental equipment for wells being drilled in the Red Sea. The value of the contract is estimated at £1.2m and could increase to £2.4m if RSPOC takes up an option to increase the order if further wells are required.
* Post year end in July 2009 two new contracts were awarded to Plexus. Firstly a two year contract awarded by Talisman Energy Inc. (*Talisman*) for the supply of both HP/HT and standard pressure POS-GRIP wellhead and mudline suspension equipment in the Norwegian North Sea with an initial value of approximately £1.5m. Secondly, GDF Suez Egypt awarded a first time £0.6m contract for two wells against a competitive tender amongst international suppliers for the supply of both HP/HT and standard pressure exploration wellhead systems. This GDF Suez contract further expands Plexus* reputation and range of activities in the North African region which now include BP Egypt and Shell Egypt.
* As announced in August 2009 we undertook the construction of a new assembly and test facility at our premises in Dyce, Aberdeen at a capital cost of approximately £0.5m. This new development will provide 4,000 sq. ft. of additional workshop area and at 60ft high has been specifically designed to allow more efficient handling, assembly and testing of POS-GRIP HP/HT wellhead systems. It will include 50 tonne and 25 tonne overhead cranes and a test pit to enable the function of pressure testing of larger HP/HT and X-HP/HT equipment and assemblies which we see as essential for supporting the future growth of these more technically challenging applications.
Having a number of existing and new long-term contracts with many of the international oil and gas companies has provided Plexus with a degree of stability and visibility which has allowed us to continue to invest for the future both in the development of our POS-GRIP technology and rental inventory. This has underpinned our ability to service a larger number of customers and to operate and support a wider range of geographical locations, and I believe demonstrates that our wellhead technology is increasingly being recognised for its ability to deliver a range of operational advantages including improved technical performance, installation time savings, reduced operating costs and enhanced safety.
The success of this strategy and the growing awareness of POS-GRIP technology in areas outside of the North Sea delivered a year on year revenue growth of 14% resulting in sales of £15.1m. Once again, rental of exploration wellhead equipment accounted for the majority of sales revenue with HP/HT generating the largest year on year sales increase of 35% which helped to increase gross margins to 57.9% compared to 54.8% in the prior year. The combination of growth in sales and spread of areas of operation resulted in the need to increase both the number of personnel, general overhead, and investment in rental inventory. As at the year end the number of personnel had grown by 20% to 89 from 74 at the same time last year, total overheads rose to £5.9m against £4.5m in the prior year and capital expenditure totalled £3.2m. I am especially pleased that these results achieved a balance between profitability, cash flow, and capital expenditure that enabled Plexus, as indicated at the half year to initiate the payment of a maiden dividend on the 30 June 2009 and for this to be followed up with a full year dividend subject to shareholder approval at the forthcoming AGM.
Looking to the future I am confident that the long term prospects for the oil and gas industry in general and Plexus together with our POS-GRIP technology in particular remain. Despite the recent oil price declines and related uncertainties the consensus appears to be that the outlook for energy demand and the prospect of a rise in the oil price remains strong. Indeed, even following the recent announcement of a number of large finds in Brazil, Africa, and the Gulf of Mexico which will take some years to come on stream, it is reported that a number of influential organisations see demand exceeding supply if the world economy returns to previous growth rate levels. The importance of enabling technology and new methods of engineering like POS-GRIP to combat such trends is illustrated by a recent warning by an analyst at Wood Mackenzie, the oil and gas consultancy, who stated that supply forecasters already factor into their projections "yet to be discovered fields" because of the incremental technology advances the industry makes, allowing companies to drill deeper and more challenging wells.
I am confident that POS-GRIP is moving ever closer to the point where it will be widely recognised as an essential component of the complex technologies required to exploit the growing number of unconventional reservoirs that exist around the world. Such progress will be key to translating the market success we have had with our exploration equipment methods into the significantly larger volume production wellhead market, and to attracting the support of potential licensees and alliance partners who we continue to interact with as part of our strategy of helping to raise the operational standards, performance, and safety levels of the wellhead industry.
Ben van Bilderbeek
Chief Executive
19 October 2009
Financial Review
Turnover
Turnover for the year was £15.1m, up 14% from £13.3m in the previous year.
The rental business and related equipment and services accounted for over 85% of turnover which was unchanged from last year. Rental of HP/HT exploration equipment once again generated the largest year on year sales increase of 35% as Plexus continued to gain market share in this specialised field. Turnover includes £0.1m of engineering and testing which is significantly reduced from the prior year's level of £1.5m as the need for ongoing development of POS-GRIP technology reduces as a result of our technology being developed to a level where we can now offer POS-GRIP wellhead equipment from inventory across a range of pressures.
Margin
Gross margins have increased to 57.9% from 54.8% in the previous year as HP/HT rental sales further increased as a percentage of total revenues and related economies of scale benefits flowed through.
Overhead expenses
Overhead expenses have increased so as to be able to provide the necessary operational support structure to service an expanding number of customers around the world. Furthermore the increase in overheads that took place in Q4 2008 have now been incurred for a full year. This resulted in total overheads increasing to £5.9m from £4.5m in the previous year, an increase of 31%. Of this increase, overhead staff costs increased by 25% to £3.5m from £2.8m, reflecting the ongoing need to expand headcount to support increased activity levels and more complex projects. Employee headcount at the year end was 89 compared to 74 for the prior year. Other items which increased significantly year on year were overseas base costs, rent and rates related to additional warehousing and storage capacity, travel, and equipment hire costs as a result of the international profile of customers and business activities.
EBITDA
The EBITDA for the year (before IFRS2 share based payment charges of £0.19m) was £4.3m, up from £3.8m (before IFRS2 share based payment charges of £0.18m) the previous year, an increase of 13%. EBITDA margin for the year was marginally lower at 28.6% as compared to 28.7% last year. The Group's ongoing significant investment in people, infrastructure, and inventory has enabled Plexus to in particular grow HP/HT rental sales and this has helped to deliver the year on year EBITDA growth due to the higher gross margins that are generated from these activities.
Profit before tax
Profit before tax of £1.8m compares to a profit last year of £1.9m. It should be noted that although a small decrease this profit is achieved after absorbing a 35% increase in rental asset and other property, plant and equipment depreciation and amortisation of £2.1m, up from £1.6m last year reflecting ongoing significant levels of capital expenditure, and in particular a further expansion of the rental asset inventory. The profit before tax is stated after the IFRS2 charge for share based payments under reporting standard IFRS 2; the charge for the full year is £0.19m compared to £0.18m last year.
Tax
The Group UK Corporation Tax charge was slightly higher than the prior year. This resulted in a tax charge of £0.78m for the year as compared to £0.62m last year.
EPS
The Group reports basic earnings per share of 1.27p compared to 1.61p.
Cash and Balance Sheet
The balance sheet reflects the development of the business during the year and ongoing capital expenditure with the net book value of property, plant and equipment including items in the course of construction increasing to £8.3m from £7.3m last year. Debtors decreased to £4.8m as compared to £6.9m as a result of a number of large contracts being settled during the period. Net bank borrowings closed at £1.3m compared to a £3.1m last year reflecting net cash inflow for the year of £1.8m before the drawdown on the bank loan of £4m, as compared to net cash outflow of £1.4m last year. This was driven by a combination of debtor inflows and growth in profits at the EBITDA level combined with a reduction in capital expenditure. In recognition of the turbulent nature of the capital markets in 2008, and the restrictions being placed on banks' lending capacity the Group took the decision to review the annual overdraft facility arrangement of £4m with the Bank of Scotland Corporate. As a result in January 2009 bank facilities available to the Group were increased to £5m of which £4m of the credit facility is on a three year revolving basis, and £1m is an overdraft facility on a yearly term.
Intellectual property
The Group carries in its balance sheet goodwill and intangible assets of £7.3m. The Directors have considered whether there have been any indications of impairment and have concluded that there have been no such indications. The Directors therefore consider the current carrying values to be appropriate. Indications of impairment are considered annually.
IFRS 2 (Share Based Payments)
IFRS2 charges have been included in the accounts, in line with reporting standards. The "fair value" of share based payments has been computed independently by specialist consultants and is amortised evenly over the expected vesting period from the date of grant. The charge for the year was £0.19m which compares to £0.18m for last year.
Dividends
The Company announced on 17 June 2009 the payment of a maiden interim dividend of 0.3118p per share, totalling £0.25m. This was paid on 30 June 2009.
The Directors have further decided to propose a final dividend of 0.38p per share, totalling £0.3m, for the year ending 30 June 2009, and which will be recommended for formal approval at the Annual General Meeting to be held on 1 December 2009. Subject to this the dividend will be paid before the end of 2009.
Graham Stevens
Finance Director
19 October 2009
Consolidated Income Statement
for the year ended 30 June 2009
2009 2008
Notes £'000 £'000
Revenue 1 15,105 13,275
Cost of sales (6,364) (6,003)
Gross profit 8,741 7,272
Administrative expenses (6,799) (5,167)
Operating profit 1,942 2,105
Finance income 8 14
Finance costs (197) (156)
Share of profit/(loss) of associate 45 (58)
Profit before taxation 1,798 1,905
Income tax expense (780) (616)
Profit after taxation being profit for the
financial year 1,018 1,289
Earnings per share
Profit for the year attributable to Plexus Holdings
shareholders
Basic 1.27p 1.61p
Diluted 1.27p 1.60p
Consolidated Balance Sheet
at 30 June 2009
2009 2008
Notes £'000 £'000
Assets
Goodwill 722 722
Intangible assets 5 6,618 6,661
Financial assets 60 -
Investment in associate 1 -
Property, plant and equipment 6 8,335 7,329
Total non-current assets 15,736 14,712
Non-current assets
Inventories 3,794 3,478
Trade and other receivables 4,799 6,907
Cash and cash equivalents 2,655 456
Total current assets 11,248 10,841
Total Assets 26,984 25,553
Equity and Liabilities
Called up share capital 7 802 802
Share premium account 15,596 15,596
Share based payments reserve 550 360
Retained earnings 1,499 787
Total equity 18,447 17,545
Liabilities
Deferred tax liabilities 546 377
Bank loans 4,000 -
Total non-current liabilities 4,546 377
Trade and other payables 3,331 3,521
Current income tax liabilities 660 510
Borrowings - 3,600
Total current liabilities 3,991 7,631
Total liabilities 8,537 8,008
Total Equity and Liabilities 26,984 25,553
These financial statements were approved and authorised for issue by the board of directors on 19 October 2009 and were signed on its behalf by:
B van Bilderbeek G Stevens
Director Director
Consolidated Statement of Changes in Equity
for the year ended 30 June 2009
Share
Called Up Share Share Premium Based
Capital £'000 Account £'000 Payments
Reserve Retained Earnings
£'000 £'000
Total
£'000
Balance as at 1 July 2007 802 15,596 179 (502) 16,075
Profit for the year - - - 1,289 1,289
Share based payments reserve - - 181 - 181
charge
Balance as at 30 June 2008 802 15,596 360 787 17,545
Profit for the year - - - 1,018 1,018
Share based payments reserve - - 190 - 190
charge
Deferred tax movement on share - - - (56) (56)
options
Interim ordinary dividends - - - (250) (250)
Balance as at 30 June 2009 802 15,596 550 1,499 18,447
Consolidated Cash Flow Statement
for the year ended 30 June 2009
2009 2008
£'000 £'000
Cash flows from operating activities
Profit before taxation 1,798 1,905
Adjustments for:
Depreciation, amortisation and impairment charges 2,139 1,581
Loss on disposal of property, plant and equipment 24 84
Charge for share based payments 190 181
Investment income (8) (14)
Interest expense 197 156
Changes in working capital:
Increase in inventories (316) (355)
Decrease/(increase) in trade and other receivables 2,084 (1,920)
(Decrease)/increase in trade and other payables (29) 27
Cash generated from operations 6,079 1,645
Income taxes paid (517) (155)
Net cash generated from operations 5,562 1,490
Cash flows from investing activities
Acquisition of subsidiary entity - (254)
Deferred consideration in respect of acquisition of (151) -
subsidiary entity
Acquisition of financial asset (80) -
Adjustment to value of associate undertaking (1) -
Purchase of intangible assets (370) (356)
Purchase of property, plant and equipment (2,736) (2,360)
Proceeds of sale of property, plant and equipment - 258
Net cash used in investing activities (3,338) (2,712)
Cash flows from financing activities
Loans drawn down 4,000 -
Interest paid (207) (152)
Interest received 32 3
Equity dividends paid (250) -
Net cash generated from/(used in) financing activities 3,575 (149)
Net increase/(decrease) in cash and cash equivalents 5,799 (1,371)
Cash and cash equivalents at 1 July 2008 (3,144) (1,773)
Cash and cash equivalents at 30 June 2009 2,655 (3,144)
Notes to the Consolidated Financial Statement
1. Revenue
2009 2008
£'000 £'000
By geography
UK 5,314 6,391
Europe 4,933 3,235
Rest of World 4,858 3,649
15,105 13,275
By type
Sale of goods 2,193 1,960
Services 11,613 11,315
Construction contract 1,299 -
15,105 13,275
Turnover is shown by destination as the origin of turnover is all from the UK.
2. Segment reporting
The Group derives turnover from the sale of its POS-GRIP technology and associated products, the rental of wellheads utilising the POS-GRIP technology and service income principally derived in assisting with the commissioning and ongoing service requirements of our equipment. These income streams are all derived from the utilisation of the technology which the Group believes is its only segment.
3. Dividends
2009 2008
£'000 £'000
Ordinary Shares
Interim paid of 0.3118p (2008: nil) per share for the year 250 -
ended 30 June 2009
Ordinary Shares
Final dividend after the year end of 0.38p (2008: nil) per 305 -
share
The proposed final dividend has not been accrued at the balance
sheet date.
4. Earnings per share
2009 2008
£'000 £'000
Profit attributable to shareholders 1,018 1,289
Number Number
Weighted average number of shares in issue 80,182,569 80,182,569
Dilution effects of share schemes 205,301 409,284
Diluted weighted average number of shares in issue 80,387,870 80,591,853
Basic earnings per share 1.27p 1.61p
Diluted earnings per share 1.27p 1.60p
Basic earnings per share is calculated on the results attributable to ordinary shares divided by the weighted average number of
shares in issue during the year.
Diluted earnings per share calculations include additional shares to reflect the dilutive effect of employee share schemes and
share option schemes.
5. Intangible fixed assets
Patent and
Intellectual Other Computer
Property Development Software
£'000 £'000 £'000 Total
£'000
Cost
As at 1 July 2007 5,403 708 62 6,173
Additions 1,037 344 12 1,393
As at 1 July 2008 6,440 1,052 74 7,566
Additions - 331 39 370
As at 30 June 2009 6,440 1,383 113 7,936
Amortisation
As at 1 July 2007 443 85 34 562
Charge for the year 270 46 27 343
As at 1 July 2008 713 131 61 905
Charge for the year 330 61 22 413
As at 30 June 2009 1,043 192 83 1,318
Net Book Value
As at 30 June 2009 5,397 1,191 30 6,618
As at 30 June 2008 5,727 921 13 6,661
As at 30 June 2007 4,960 623 28 5,611
Patent and other development costs are internally generated.
6. Property, plant and equipment
Assets under
Construction
£'000 Motor
Vehicles
Equipment £'000 Total
£'000 £'000
Cost
As at 1 July 2007 6,400 1,570 27 7,997
Additions 78 2,281 1 2,360
Transfers 3,629 (3,629) - -
Disposals (413) - (6) (419)
As at 1 July 2008 9,694 222 22 9,938
Additions 189 2,547 - 2,736
Transfers 2,631 (2,631) - -
Disposals (63) - - (63)
As at 30 June 2009 12,451 138 22 12,611
Depreciation
As at 1 July 2007 1,432 - 16 1,448
Charge for the year 1,234 - 4 1,238
On disposals (71) - (6) (77)
As at 1 July 2008 2,595 - 14 2,609
Charge for the year 1,702 - 4 1,706
On disposals (39) - - (39)
As at 30 June 2009 4,258 - 18 4,276
Net book value
As at 30 June 2009 8,193 138 4 8,335
As at 30 June 2008 7,099 222 8 7,329
As at 30 June 2007 4,968 1,570 11 6,549
7. Share Capital
2009 2008
£'000 £'000
Authorised:
Equity: 110,000,000 Ordinary shares of 1p each 1,100 1,100
Allotted, called up and fully paid:
Equity: 80,182,569 Ordinary shares of 1p each 802 802
8. Reconciliation of net cash flow to movement in net debt
2009 2008
£'000 £'000
Increase/(decrease) in cash in the year 5,799 (1,371)
Cash inflow from increase in net debt (4,000) -
Movement in net debt in year 1,799 (1,371)
Net debt at start of year (3,144) (1,773)
Net debt at end of year (1,345) (3,144)
9. Analysis of net debt
At beginning At end
of year Cash flow of year
£'000 £'000 £'000
Cash in hand and at bank 456 2,199 2,655
Overdrafts (3,600) 3,600 -
Bank loans - (4,000) (4,000)
Total (3,144) 1,799 (1,345)
The financial information above does not constitute the company's statutory accounts for the year ended 30 June 2009.
The statutory financial statements for the year ended 30 June 2009 were approved by the Board on 19 October 2009. On the same date the company's auditors, Horwath Clark Whitehill LLP. issued an unqualified report on those financial statements. The audit report did not include reference to any matters to which the auditor drew attention by way pf emphasis without qualifying the report or contain a statement under section 498(2) or (3) of the Companies Act 2006. A copy of the statutory accounts will be delivered to the Registrar of Companies in due course.
The Annual Report will be circulated to all shareholders and thereafter, copies will be available from the registered office of the Company, Plexus House, 1 Cromwell Place, London, SW7 2JE.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GUGPPUUPBGBB
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| 19-10-09 | RNS |
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RNS Number : 9556A Plexus Holdings Plc 19 October 2009 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services 19 October 2009 Plexus Holdings PLC ('Plexus' or 'the Company') Second contract with Dubai Petroleum Establishment Plexus Holdings PLC, the AIM listed oil and gas engineering services business which supplies wellhead and mudline suspension equipment for exploration and production applications, has been awarded a second contract with Dubai Petroleum Establishment ('Dubai Petroleum'), a leading oil and gas company in the Middle East, to supply the Company's 10,000 psi POS-GRIP wellhead technology with mudline suspension systems for exploration activities offshore United Arab Emirates in the Arabian Gulf. The contract is anticipated to commence in H1 of our financial year to 30 June 2010. This agreement marks a strengthening relationship between the two companies which began in June 2008, and represented Plexus' first foothold in the Middle East. Since that time, Plexus has continued its sales and marketing drive in the region, which it believes offers many new business opportunities. The consecutive contract win will help in this respect, providing POS-GRIP with increased exposure in the region and acting as further testament to the commercial strengths and capabilities of our POS-GRIP® technology. Plexus CEO Ben van Bilderbeek said, "Naturally we are delighted to have secured this second contract win with Dubai Petroleum. The cost, safety and time advantages attained when using POS-GRIP wellhead technology on the previous exploration well were believed to be determining factors when Dubai Petroleum came to choose its supplier for this contract. With this in mind, it is pivotal to our business model that we utilise POS-GRIP's advantages to increase the awareness of our technology within the international oil and gas community to eventually secure its position as an industry standard for wellhead design; with each new or extended contract secured we take one more step forward in reaching this goal."
For further information please visit www.posgrip.com or contact:
Notes to Editors: Plexus, which began trading on AIM in December 2005, is an established oil and gas engineering and services business which supplies wellhead and mudline suspension equipment for exploration and production applications based in Aberdeen, with an office in London, Cairo, Kuala Lumpur and a presence in Houston, Texas. It has developed and patented a method of engineering for oil and gas field wellheads and connectors, POS-GRIP, which involves deforming one tubular member against another to effect gripping and sealing. POS-GRIP wellhead systems have to date been used or selected to be used in over 140 oil and gas wells by international companies including BHP Billiton, BG International, BP, Brunei Shell Petroleum, Centrica, ConocoPhillips, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall. The Company plans to accelerate the roll out of POS-GRIP technology as a superior alternative to current wellhead technology. It has particular advantages in HP/HT (High Pressure/High Temperature) and X-HP-HT (Extreme High Pressure/High Temperature) oil and gas environments for which there is increasing demand throughout the world. The Company's long-term goal is to develop POS-GRIP technology as the future industry standard for wellhead design. This objective includes the distribution of POS-GRIP technology through licensees to maximise market penetration. This information is provided by RNS The company news service from the London Stock Exchange END
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Will let me sell 5000 @ 41.25
can only buy max 2500 @ 45 So you can see they just want our shares..... More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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The MM's are walking this price up and down weekly, every buy puts the price right up then a small sell will see it come tumberling down again. Nothing to worry about we should be seeing 50p buy early Jan. IMO. DYOR. GL all
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Weird,
No trades but were down 7-8% ???????? More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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tess ma dog would you be able to share this information with me? email address to follow if so. Cheers!
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The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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