Plexus gives confident outlook

Plexus Holdings, the engineering company which serves the oil and gas industries, rose strongly after its chairman gave a bullish outlook on the year ahead.

Speaking in a statement at its annual general meeting (AGM), Robert Adair said that it has won several new customers and contracts in the first four months of the year, including GDF Suez E&P, Centrica Energy and Transocean Drilling UK.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

POS-GRIP is used for engineering oil and gas field wellheads and connectors "which involves deforming one tubular member against another to effect gripping and sealing", the firm's website said.

"The board believes that the positive combination of organic activity and strategic initiatives will enable Plexus to make further advances in terms of reputation and market growth," Adair said.

The share price rose 3.61% to 86p by 12:42 on Wednesday.

In October, the firm released its full-year results in which it reported a 17% increase in revenues to £15.4m and a 144% jump in pre-tax profits to £1.6m. Plexus also raised its final dividend by 10% to 0.43p per share, which will be submitted for formal approval at the AGM today.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.