Aberdenn firm posts 97% rise in pre-tax profits to £3.09m
Oil and gas engineering services firm Plexus Holdings has hiked its final dividend to shareholders after posting a 97 per cent rise in pre-tax profits to £3.09 million.
The Aberdeen-based firm, whose POS-GRIP wellhead technology is used all over the world, said revenues rose by 28 per cent in the year to June 30 to £19.7 million and gross margins were up from 60.1 per cent to 70.9 per cent.
Plexus said in an update last week sales of its POS-GRIP high pressure/high temperature (HP/HT) adjustable wellhead technology lifted profits and earnings per share “materially in excess of current analysts' forecasts”.
In full-year results posted today, Plexus said the majority of its revenues last year - £16.1 million – came from rentals of HP/HT exploration equipment, a rise of 51 per cent on the previous year.
In the past year Plexus has secured new contracts for its HP/HT technology with Vantage Drilling Company Inc. for the supply of wellhead equipment to a major Malaysian national oil and gas operator and Santos Ltd for offshore Australia.
It has also secured a number of contracts with existing customers included Gaz de France Suez E&P Ltd, Centrica Energy, Bowleven, Niko Resources and Applied Drilling Technology International, a subsidiary of Transocean Drilling UK Ltd.
Plexus said it had also secured a further four contracts globally since the year end with Brunei Shell Petroleum Sdn Bhd, Talisman Energy Inc, Lotos Exploration and Production Norge AS.
The company reports “customer demand continues to exceed our current capacity to deliver”.
Plexus said it was continuing to focus on development, which saw overheads rise from £7.59 million a year ago to £10.78 million, with the company now employing 113 staff compared to 91 the previous year.
Capital expenditure also increased by 97.6 per cent year on year to £4.62 million, most of which was adding new rental wellhead sets.
Plexus said it will continue to add to its rental wellhead inventory in the coming year to meet growing consumer demand.
A successful new share placing in January which raised £6.2 million is allowing the company to invest in research and development (R&D) projects to further develop new applications from its POS-GRIP wellhead equipment and friction-grip technology.
In the past year Plexus increased its R&D spending by 104 per cent to £1.38 million.
Chief executive Ben van Bilderbeek said as a result of “record performance in terms of revenues, margins, and profitability” the board was proposing a 16.3 per cent increase in the final dividend of 0.5 pence.
He said: “These results were achieved during a period where the group has been particularly active at both the organic and strategic levels.
“At the corporate level, we successfully completed a share placing in January 2012 which had the benefit of increasing the liquidity in our shares whilst helping to finance our various R&D projects and growing rental inventory.”
Basic earnings per share increased by 92.9 per cent in the past year, from 1.55 pence to 2.99 pence.