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.

"We now have a larger number of international oil and gas operator customers, in a greater range of territories, than ever before and believe this trend of winning new customers is set to continue as the demand for our POS-GRIP proprietary friction-grip wellhead equipment, particularly for high pressure/high temperature ('HP/HT') exploration rental applications continues to grow," Adair said.

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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.

NR