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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
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.
NR
-
Spot the Dog: £67bn in underperforming funds revealedAround 137 funds consistently underperformed their benchmark, BestInvest's Spot the Dog report finds. Which funds are in the dog house?
-
What does a BP and Shell merger mean for the UK oil industry?BP’s struggles have made it vulnerable to a takeover. Could it merge with Shell to create a British behemoth?
