REG - Plexus Holdings Plc - Interim Results For The 6 Months To 31 Dec. 2023
18/03/2024 07:00
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RNS Number : 1238H Plexus Holdings Plc 18 March 2024
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment &
services
This announcement contains inside information.
18 March 2024
PLEXUS HOLDINGS PLC
("Plexus" or the "Company" or the "Group")
INTERIM RESULTS FOR THE 6 MONTHS TO 31 DECEMBER 2023
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 interim results for the six months to 31 December 2023.
FINANCIAL RESULTS
• Sales revenue £5,087k (2022: £709k)
• EBITDA £3,083k (2022: £1,098k loss)
• Operating profit £2,247k (2022: £2,018k loss)
• Profit before tax £2,219k (2022: £2,073k loss)
• Earnings per share 2.19p (2022: 2.06p loss)
• Cash of £0.83m (2022: £1.14m)
• Total assets of £22.5m (2022: £17.3m)
• Total liabilities of £7.8m (2022: £3.9m)
OPERATIONAL OVERVIEW
• August 2023 - the value of specialised subsea project application announced in
March 2023 was increased from c.£5m to c.£8m.
• September 2023 - entered into loan agreements with a total value of £0.7m
with Plexus' CEO Ben van Bilderbeek related entities.
• October 2023 - completion of Oceaneering Plug and Abandonment ('P&A')
campaign originally announced in June 2022. Plexus Mud Containment System used
sequentially on four different wells generated revenues of £0.85m, a 70%
increase on original estimates.
• October 2023 - placing of 2,750,000 Treasury Shares raising gross proceeds of
£0.55m.
• October 2023 - contract for a P&A project secured through licensor SLB for
the rental of Exact adjustable wellhead system and Centric Mudline tooling for
a leading North Sea operator.
• November 2023 - rental contract with a value of c. £0.18m awarded by Neptune
Energy UK for Exact adjustable wellhead system and Centric Mudline Suspension
equipment to allow the permanent abandonment of a UK North Sea well.
• December 2023 - placing of 2,200,495 Treasury Shares raising gross proceeds of
£0.42m.
• December 2023 - further loan agreement with Ben van Bilderbeek related
entities to raise £0.3m (in addition to the £0.7m September 2023 loan). The
option attached to these loans was then exercised resulting in the sale of the
Group's 49% investment in Kincardine Manufacturing Services Limited ('KMS')
for £1m and the paydown of the associated loans.
• December 2023 - completed an agreement with SLB replacing an existing surface
production wellhead licence (see RNSs dated 10.11.2020 and 16.12.2021) with a
new licence with a wider field of use for a cash consideration to Plexus of
US$5.2m.
• Post period end - February 2024 - £1m+ contract awarded to provide
specialised equipment and services for multiple P&A activities in the
North Sea.
• Post period end - February 2024 - announcement of the completion of a customer
sponsored R&D project to develop a replacement Tubing Hanger Neck Seal
('HG-R') to upgrade and extend the field life of existing surface production
wellheads by addressing a key industry challenge of the systemic failure of
conventional annular seals.
TRADING UPDATE
The Company's performance for the first half of the financial year to 30 June
2024 ("FY24") is in line with management's expectations and the Board
anticipates that the Company's performance for FY24 will be in line with
current market forecasts.
Two significant events, one operational and one corporate, had a particularly
positive impact on the Group's performance in the first half of FY24. Firstly,
on 6 March 2023, the Company announced that Plexus had secured a £5m+ order
for its proprietary POS-GRIP HG® wellhead equipment and sealing technology
for a special subsea project application, and it was subsequently announced in
August 2023 that the project value was likely to increase by £3m+, with the
majority of this revenue to be recognised in the second half of FY24.
Secondly, in December 2023 Plexus completed a further intellectual property
("IP") licencing agreement with SLB, which generated revenue US$5.2m
(c.£4.08m) in the first half of FY24.
The Company continues to pursue a pipeline of opportunities, particularly in
the rental exploration from Jack-up rigs and P&A sectors with new and
existing customers and maintains an active R&D strategy which continues to
result in additional Plexus products to add to the Company's extensive
equipment suite.
Chief Executive Ben van Bilderbeek said: "While the shift to sustainable
energy is underway, oil and gas ('O&G') remain vital to the global energy
mix, albeit with a growing emphasis on efficiency, safety, and environmental
responsibility. Accordingly, Plexus is positioned to play a pivotal role in
this revived industry given its ability to prevent and mitigate wellhead
related methane leaks at O&G sites.
"The recent IP license agreement with SLB clearly underscores the value of our
proprietary technology. Beyond endorsing Plexus' Leak-Free technology with its
integral "HG®" metal seal solution, we believe the expanded collaboration
with SLB will help raise our profile in the industry as we look to position
our technology as a future industry standard for wellhead design and
associated products. Other positives include providing Plexus with access to
SLB valves and trees on a project-by-project basis, which enables us to offer
more comprehensive packaged solutions and will enhance our responsiveness to
customer needs.
"Furthermore, the SLB agreement injected $5.2m of cash which will be used to
support the accelerated growth of our core historical market, the jack-up
exploration rental wellhead and associated mudline hanger sales business, a
sector we have re-entered in collaboration with SLB with our Exact and Centric
equipment designs. In addition to the SLB transaction, the successful placing
of two tranches of treasury shares, and the divestment of a non-core asset in
December 2023, a 49% shareholding in Kincardine Manufacturing Services
Limited, has significantly strengthened our balance sheet.
"Our timing to enter and focus on the P&A sector is proving well judged,
as an increasing number of aging wells now require decommissioning. Demand for
Plexus' P&A related technology, recognised for its role in safe and
eco-friendly well closure, is building as highlighted by recent contract wins
with several leading North Sea operators.
"Looking ahead, Plexus remains committed to advancing its POS-GRIP
friction-grip engineering methodology to align with the energy sector's
increased focus on sustainability and regulatory compliance, especially in
relation to reducing methane emissions and anticipates broader adoption of our
technology across the value chain."
CHAIRMAN'S STATEMENT
Business Progress and Operating Review
The six-month period to 31 December 2023 has been critical for Plexus and has
resulted in positive operational and corporate developments that have
significantly increased shareholder value.
We were delighted to announce post period end a new IP Licence Agreement with
SLB on 2 January 2024, clearly demonstrating the inherent value of our IP, and
potentially helping us build our profile in the surface production wellhead
domain. Furthermore, the partnership enables Plexus to offer comprehensive
packaged solutions, whilst also providing us with a US$5.2 million cash
injection that will in part be allocated towards bolstering rental inventory
for our historical core jack-up exploration rental wellhead and associated
mudline hanger sales business, a sector we have re-entered in collaboration
with SLB.
A key development area for us is the P&A sector, which is experiencing
rapid growth as ageing O&G wells reach the end of their productive lives.
In the UK North Sea alone, the Offshore Energies UK suggests 283 active
O&G fields will cease production by 2030, and that more than 1,000 North
Sea wells will be plugged and abandoned by 2027. Our P&A related
technology is gaining increasing recognition in this sector for its proven
capabilities to support the safe and environmentally responsible
decommissioning of these wells.
During the period, we announced several contracts in the P&A space
including one for a leading North Sea operator utilising the Exact and Centric
technology specifically designed to provide the safest and quickest tieback
and drilling solutions for both P&A wells and appraisal wells. Similarly,
we were awarded a contract with Neptune Energy to allow the permanent
abandonment of a UK North Sea well, with operations planned to commence and
complete during Q2 2024. These were subsequently followed post period end in
February 2024 by a contract with a value in excess of £1m to provide
specialised equipment and services for multiple P&A activities in the
Dutch sector of the North Sea, and we hope to secure further P&A contracts
over the coming months.
Other important news announced during the period included an increase in the
value of a specialised rental contract project including leak proof metal to
metal HG seals in a subsea environment from c.£5 million to c.£8 million. We
anticipate that this is unlikely to be the last time that the value of a
project increases given the complexities that often arise.
During the period, the Company also sold its non-core 49% holding in KMS for
£1m which resulted in the pay down of loans that had been secured on the
shares.
Key functions that support our operations are Human Resources, Quality Health
and Safety, Information Technology and Engineering through the generation of
Intellectual Property.
The Company maintains its Competency Management System through an internally
developed system 'Competency@Plexus' ('C@P'). This is monitored and accredited
by OPITO, the training and qualifications standards board. The annual
monitoring audit was successfully conducted in November 2023, where full
accreditation was maintained with no findings raised by the auditor. Since
outright approval was achieved, and as the system continues to demonstrate it
is robust and well-established, the reduced site audit frequency of every 15 -
24 months has been retained.
Health and Safety remains at the centre of Plexus' culture. The Group is fully
committed to continually improving safety standards, and the safety culture
across the business and its people. This is reflected in the business being
once again lost time injury ('LTI') free this year. Plexus passed its eighth
anniversary of this milestone in September 2023.
In September 2023 Plexus undertook a surveillance audit with API for API
Q1/ISO 9001 and an annual audit with LRQA for ISO 45001 in November 2023. No
major findings were raised in either audit, resulting in continued
certification. Therefore, Plexus continues to comply with the requirements of
API Q1/ISO 9001 and ISO 45001 standards while retaining their API 6A and 17D
Licences. These accreditations demonstrate Plexus' capability and
determination to operate to the highest standards, and this will assist in
gaining new work.
Plexus has been able to rely on robust IT and security systems, including its
self-written ERP system, which are constantly under review for improvement.
We continue to develop our suite of IP both through patent protection,
know-how, and ongoing research and development. An example of such initiatives
was the announcement in February regarding the completion of a tubing hanger
neck seal replacement product launch. Capitalised R&D salary costs for the
six months ended 31 December 2023 was £215k.
Interim Results
Plexus' results for the six months to December 2023 demonstrate the key
progress that has been made during the period in relation to organic and
corporate activities. These activities reflect the Group's ongoing investment
in and support for its strategy of growing both Plexus' existing and new
revenue streams with licencing partners.
During the period, Plexus has raised funds to support ongoing operations and
R&D activities through various fund-raising initiatives. These include the
sale of the shares held in treasury generating a total net cash inflow of
£0.97m, and the Group's sale of its 49% investment in KMS generating net
proceeds of £0.98m.
Revenue for the six-month period ended 31 December 2023 increased to £5.09m,
compared to the previous year's figure of £0.71m. This significant 617%
increase is driven by the recently announced licensing agreement with SLB
generating revenues of £4.08m ($5.2m).
Administrative expenses for the six months to December 2023 are in line with
the prior year at £2.64m (2022: £2.64m). Personnel numbers, including
non-executive board members are also broadly in line with the prior year at 38
(2022: 36). Future growth in employee numbers is anticipated, driven by
expected expansion in operational activities.
The Group has reported a profit of £2.22m in the period, compared to loss in
the prior year of £2.07m. As noted above, profit for the six-month period has
been driven by the new SLB licensing agreement which generated revenue of
£4.08m. The profit comes after absorbing depreciation and amortisation costs
of circa £0.84m.
Also included in the statement of comprehensive income is the gain on sale on
the disposal of the associate 49% shareholding in KMS undertaking of £0.08m.
The Group has not provided for a charge to UK Corporation Tax at the
prevailing rate of 25%. This is consistent with the prior year.
Basic earnings per share for the period was 2.19p per share, which compares to
a 2.06p loss per share for the same period last year.
The balance sheet continues to remain strong, with the current level of
intangible and tangible property, plant, and equipment asset values at £8.52m
and £2.3m respectively, illustrating the amount of cumulative investment that
has been made in the business. Total asset values at the end of the period
stood at £22.5m compared to £17.3m in the prior year.
As at 31 December 2023, the Group had cash and cash equivalents of £0.83m and
no bank borrowings. Post period end the $5.2m due from the SLB licencing
agreement was received in January 2024.
Outlook
Plexus maintains its commitment to advancing its POS-GRIP friction-grip
engineering methodology for O&G applications and beyond. The endorsement
of our technology by industry giants such as SLB and TechnipFMC, which are
integrating our "Friction-Grip" method into their product portfolios, instils
confidence in the belief that exploration and production operators will
increasingly embrace Plexus' POS-GRIP technology in the coming years.
At a macro level, while the momentum toward sustainable energy is growing, the
transition will likely be gradual and complex. In the meantime, O&G will
continue to be essential energy sources for many years to come, albeit with an
increasing emphasis on efficiency combined with environmental stewardship
particularly in relation to reducing methane emissions. Overall, market
demand, especially for natural gas remains the key factor in the growth of the
sector, driven by a growing world population, economic developments, and
related activities. In addition, the world is increasingly using energy
intensive technologies, such as online artificial intelligence search
applications, which, as recently highlighted by BP CEO Murray Auchincloss,
consume about ten times the energy of a standard browser search, and predicts
that this will trigger a global surge in gas demand.
For such reasons your Board believes that Plexus' technology stands as a
pivotal solution particularly regarding the mitigation of methane leaks at the
wellhead. Methane, a potent greenhouse gas, is now recognised as posing
significant environmental concerns due to its contribution to climate change.
By utilising our wellhead and related equipment HG sealing technology, O&G
companies can both enhance operational efficiency and mitigate methane leaks,
thereby reducing their environmental footprint and complying with regulatory
requirements.
With this background, and as the O&G industry continues to evolve, Plexus
is poised for sustained expansion, offering innovative solutions that enhance
efficiency, safety, and environmental performance from exploration through to
the end of a well's life. This is anticipated to translate into increased
value for shareholders.
J Jeffrey Thrall
Non-Executive Chairman
15 March 2024
Plexus Holdings Plc
Unaudited Interim Consolidated Statement of Comprehensive Income
For the Six Months Ended 31 December 2023
Six months to Six months to Year to
31 December 31 December 2022 30 June
2023 2023
£'000 £'000 £'000
Revenue 5,087 709 1,487
Cost of sales (203) (91) (400)
------- ------- -------
Gross profit 4,884 618 1,087
Administrative expenses (2,637) (2,636) (5,348)
Operating profit / (loss) 2,247 (2,018) (4,261)
Finance income 1 4 7
Finance costs (112) (40) (175)
Other income - 38 69
Remeasurement of financial instrument - (122) -
Share in profit of associate - 115 182
------- ------- -------
Non-recurring items
Gain on sale of associate undertaking 83 - -
Fair-value adjustment on asset held for sale (note 11) - (50) (50)
Profit / (loss) before taxation 2,219 (2,073) (4,228)
Income tax credit (note 6) - - 213
------- ------- -------
Profit / (loss) for year 2,219 (2,073) (4,015)
Other comprehensive income - - -
------- ------- -------
Total comprehensive Income / (loss) for the year attributable to the owners of 2,219 (2,073) (4,015)
the parent
------- ------- -------
Profit / (loss) per share (note 7)
Basic 2.19p (2.06p) (4.00p)
Diluted 2.19p (2.06p) (4.00p)
Unaudited Interim Consolidated Statement of Financial Position
As at 31 December 2023
31 December 2023 31 December 2022 30 June
2023
£'000 £'000 £'000
ASSETS
Goodwill 767 767 767
Intangible assets 8,517 8,948 8,731
Property, plant and equipment (note 10) 2,283 779 1,404
Investment in associate - 838 -
Right of use asset 486 876 638
------- ------- -------
Total non-current assets 12,053 12,208 11,540
------- ------- -------
Asset held for sale (note11) - 1,050 905
Corporation tax - - 153
Inventories 2,528 2,109 2,265
Trade and other receivables 7,129 805 2,318
Cash and cash equivalents 833 1,142 1,449
------- ------- -------
Total current assets 10.490 5,106 7,090
------- ------- -------
TOTAL ASSETS 22,543 17,314 18,630
------- ------- -------
EQUITY AND LIABILITIES
Called up share capital (note 12) 1,054 1,054 1,054
Shares held in treasury - (2,500) (2,500)
Share based payments reserve 674 674 674
Retained earnings 12,977 14,234 12,292
Total equity attributable to equity holders ------- ------- -------
of the parent 14,705 13,462 11,520
Convertible loans (note 13) 1,798 1,576 1,702
Lease liabilities 280 782 428
------- ------- -------
Total non-current liabilities 2,078 2,358 2,130
Trade and other payables 5,444 1,056 4,647
Derivative financial instrument - 122 -
Lease liabilities 316 316 333
------- ------- -------
Total current liabilities 5,760 1,494 4,980
------- ------- -------
Total liabilities 7,838 3,852 7,110
------- ------- -------
TOTAL EQUITY AND LIABILITIES 22,543 17,314 18,630
------- ------- -------
Unaudited Interim Statement of Change in Equity
For the Six Months Ended 31 December 2023
Called Up Shares Held in Treasury Share Based Payments Reserve Retained Total
Earnings
Share Capital
Balance as at 30 June 2022 1,054 (2,500) 674 16,307 15,535
Total comprehensive loss for the year - - - (4,015) (4,015)
------- ------- ------- ------ ------
Balance as at 30 June 2023 1,054 (2,500) 674 12,292 11,520
Total comprehensive income for the period - - - 2,219 2,219
Sale of shares held in treasury - 966 - - 966
Loss on sales share held in treasury - 1,534 - (1,534) -
------- ------- ------- ------- -------
Balance as at 31 December 2023 1,054 - 674 12,977 14,705
------- ------- ------- ------- -------
Unaudited Interim Statement of Cash Flows
For the Six months ended 31 December 2023
Six months to 31 December 2023 Six months to 31 December 2022 Year to
30 June
2023
£ 000's £ 000's £ 000's
Cash flows from operating activities
Loss before tax 2,219 (2,073) (4,228)
Adjustments for:
Depreciation, amortisation and impairment charges 836 768 1,560
Redemption premium on convertible loans - - 152
Gain on sale on disposal of associate undertaking (83) - -
Remeasurement of financial instrument - 122 -
Fair value adjustment of on financial assets - 1 1
Fair value adjustment on asset held for sale - 50 50
Share in profit of associate - (115) (182)
Other income - (38) (69)
Investment income (1) (4) (7)
Interest expense 106 40 23
Changes in working capital:
Increase in inventories (263) (715) (871)
(Increase) / decrease in trade and other receivables (4,811) 166 (1,347)
Increase / (decrease) in trade and other payables 797 (189) 3,401
------- ------- -------
Cash used in operating activities (1,200) (1,987) (1,517)
Net income taxes received 153 - 80
------- ------- -------
Net cash used in operating activities (1,047) (1,987) (1,437)
------- ------- -------
Cash flows from investing activities
Funds divested in financial instruments - 100 102
Other income - 38 50
Purchase of intangible assets (271) (256) (516)
Interest and investment income received 1 4 7
Purchase of property, plant and equipment (1,078) (102) (890)
Net proceeds from sale of associate undertaking 987 - -
Net proceeds from of sale of property, plant and equipment - - 1,052
------- ------- -------
Net used from investing activities (361) (216) (195)
------- ------- -------
Cash flows from financing activities
Proceeds from sale of treasury shares 966 - -
Repayment of banking facility - (3,958) (3,958)
Repayments of lease liability (174) (87) (347)
Convertible loan funding received - 1,550 1,550
Interest paid - - (4)
------- ------- -------
Net cash inflow / (outflow) from financing activities 792 (2,495) (2,759)
------- ------- -------
Net decrease in cash and cash equivalents (616) (4,698) (4,391)
Cash and cash equivalents at brought forward 1,449 5,840 5,840
------- ------- -------
Cash and cash equivalents carried forward 833 1,142 1,449
------- ------- -------
Notes to the Interim Report December 2023
1. This interim financial information does not constitute statutory
accounts as defined in section 435 of the Companies Act 2006 and is unaudited.
The comparative figures for the financial year ended 30 June 2023 are not the
Company's statutory accounts for that financial year. Those accounts have been
reported on by the company's auditors, Crowe U.K. LLP, and delivered to the
registrar of companies. The report of the auditors was (i) unqualified, (ii)
included a material uncertainty as the going-concern assumption was subject to
additional funding (iii) did not contain a statement under section 498(2) or
(3) of the Companies Act 2006.
The interim financial information is compliant with IAS 34 - Interim Financial
Reporting.
2. Except as described below the accounting policies applied in these
interim financial statements are the same as those applied in the Group's
consolidated financial statements as at and for the year ended 30 June 2023
and which are also expected to apply for 30 June 2024.
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting.
The Directors' have assessed the impact of these standards and do not expect
any significant impact to the Group on their adoption. The Group financial
statements are presented in sterling and all values are rounded to the nearest
thousand pounds except where otherwise indicated.
3. This interim report was approved by the board of directors on 15 March
2024.
4. The directors do not recommend payment of an interim dividend in
relation to this reporting period.
5. There were no other gains or losses to be recognised in the financial
period other than those reflected in the Statement of Comprehensive Income.
6. No corporation tax provision has been provided for the six months
ended 31 December 2023 (2022: nil). As a result, there is no effective rate of
tax for the six months ended 31 December 2023 (2022: 0%).
7. Basic earnings per share are based on the weighted average of ordinary
shares in issue during the half-year of 101,107,831 (2022: 100,435,744).
8. The Group derives revenue from the sale of its POS-GRIP friction-grip
technology and associated products, and licence income derived from its
various licensing agreements. These income streams are all derived from the
utilisation of the technology which the Group believes is its only segment.
Business activity is not subject to seasonal fluctuations.
9. The company accounts for convertible loans having regard to the
specific terms of the instrument. The company considers the instrument to be
made up of a host instrument that it is measured at amortised cost and a
derivative forward contract that is recognised at fair value through the
profit and loss account. The company has elected to account for the two
elements separately rather than assign a fair value to the instrument as a
whole. The redemption premium is recognised over the life of the instrument
and an accelerated charge will be recognised if a conversion event occurs
prior to the end of the term.
10. Property plant and equipment
Tenant Assets under construction Motor vehicles
Buildings Improvements Equipment £000 £000 Total
£000 £000 £000 £000
Cost
As at 30 June 2022 685 844 5,360 - 17 6,906
Additions - 15 123 752 - 890
Transfers - - 367 (367) - -
----- ----- ----- ----- ----- -----
As at 30 June 2023 685 859 5,850 385 17 7,796
Additions - 127 951 - 1,078
Transfers - - 548 (548) - -
----- ----- ----- ----- ----- -----
As at 31 December 2023 685 859 6,525 788 17 8,874
----- ----- ----- ----- ----- -----
Depreciation
As at 30 June 2022 685 606 4,779 - 15 6,085
Charge for the year - 74 231 - 2 307
----- ----- ----- ----- ----- -----
As at 30 June 2023 685 680 5,010 - 17 6,392
Charge for the year - 38 161 - - 199
On disposals - - - - - -
----- ----- ----- ----- ----- -----
As at 31 December 2023 685 718 5,171 - 17 6,591
----- ----- ----- ----- ----- -----
Net book value
As at 31 December 2023 - 141 1,354 788 - 2,283
----- ----- ----- ----- ----- -----
As at 30 June 2023 - 179 840 385 - 1,404
----- ----- ----- ----- ----- -----
11. Asset held for sale
6 months to December Year ended 30 June
2023 2023
£'000 £'000
Cost - -
Accumulated depreciation - -
----- -----
Reclassified from investment in associate - 905
----- -----
Fair value - 905
----- -----
During the prior year the Directors were committed to a plan to sell the
Group's investment in associate this along with the other recognition criteria
included within "IFRS 5, Non-current assets held for sale and discontinued
operations" including the asset being available for immediate sale in its
present condition and the sale is considered to be highly probable meant the
asset had been presented as an asset held for sale.
The sale of the associate undertaking completed in December 2023.
12. Share Capital
Six months to 31 December 2023 Six months to Year to
31 December 2022 30 June
2023
£'000 £'000 £'000
Authorised:
Equity: 110,000,000 (June 2023 & Dec 2023: 110,000,000) Ordinary shares of 1,100 1,100 1,100
1p each
Allotted, called up and fully paid: ----- ----- -----
Equity: 105,386,239 (June 2023 & Dec 2023: 105,386,239) 1,054 1,054 1,054
----- ----- -----
During the 6 month period, the Group sold the shares held in treasury.
13. Convertible loans
Non-current liabilities £'000
Convertible loan notes issued 1,550
Redemption premium 152
-----
Fair value at 30 June 2023 1,702
Redemption premium 96
-----
Fair value at 31 December 2023 1,798
-----
In October 2022 Plexus raised £1,550,000 through the issue of 1,550,000
convertible loan notes. The loan notes are non-interest bearing and have a
maturity date being 24 months after issue.
The loan notes can be settled in cash, with an additional 20% redemption
interest on the principal amount or converted into new shares where the
principal amount will be settled at a 20% discount to the share price paid by
investors in a qualifying financing even. The 20% discount noted about equates
to a 25% premium on the principal amount. Therefore, a redemption premium of
£387,500 will be recognised over the two-year term. At the reporting date
finance costs include £96k in relation to the accrued redemption premium.
14. Subsequent Event
In February 2024 the Company agreed to redeem loan notes with an aggregate
value of £849,992, through a cash payment of the principal amount plus
interest of an amount equal to 20% of the principal amount, in accordance with
the terms of the Loan Notes, which resulted in a total cash payment to
Noteholders of £1,019,990.40. After the redemption of these Loan Notes, there
are a total of 700,008 Loan Notes outstanding.
**ENDS**
For further information please visit www.plexusplc.com
(http://www.plexusplc.com) or contact:
Plexus Holdings PLC Tel: 020 7795 6890
Ben van Bilderbeek, CEO
Graham Stevens, CFO
Cavendish Capital Markets Limited Tel: 0131 220 6939
Derrick Lee
Adam Rae
St Brides Partners Ltd plexus@stbridespartners.co.uk
Isabel de Salis
Ana Ribeiro
Notes to Editors
Plexus Holdings plc (AIM: POS)
Plexus is an IP led company focussed on establishing its patented leak-proof
POS-GRIP® wellhead and associated equipment as the go-to technology for
energy markets whilst making a genuine contribution to the oil and gas
('O&G') industry's ESG and NetZero goals by championing "through the BOP"
(Blow-out Preventer) designs, and lifetime leak-proof HG® metal-to-metal
sealing systems. Having protected the environment for many years through these
technological innovations, the Company was awarded the London Stock Exchange's
Green Economy Mark in July 2021 and continues to place emphasis on its ability
to reduce harmful methane emissions and unnecessary maintenance and
intervention costs.
Headquartered in Aberdeen, the Company has provided leak-free wellhead
performance in over 400 wells worldwide and worked with an array of blue-chip
O&G company clients. As well as generating direct revenues from securing
orders for surface production wellheads in the UK and European North Sea
regions, the Company has several licencing/collaboration agreements with major
partners including SLB and TechnipFMC.
Notably, the agreement with SLB was expanded in December 2023 (see RNS
2.1.2024) for a cash consideration payable to Plexus of US$5.2m to enable SLB
to use certain POS-GRIP technology including HG® seal technology for standard
surface wellhead applications for all pressure and size ranges on a worldwide
basis. The in-perpetuity royalty free licence scope includes O&G surface
production and storage applications, as well as CO(2) storage ('CCS') and
hydrogen storage, and water and cuttings injection. The Agreement also
includes a non-exclusive licence to SLB for Adjustable Surface Production
Wellheads, and HG Trees with the potential to generate royalties for Plexus
from such special applications of the POS-GRIP technology. Plexus may also
quote customers for SLB Valves and Trees combined with Plexus wellheads on a
project basis subject to SLB approval where a full package of equipment is
required. Plexus retains the original IP, and the intention is that Plexus
continues to operate in the surface production wellhead sector on a limited
basis, as an innovative and specialised wellhead equipment supplier, whilst
also pursuing opportunities in exploration rental wellheads from Jack-up rigs,
subsea, connectors (such as metal sealing HP/HT Tie-Back applications),
P&A, special applications, geothermal, hydrogen and all non-oil and gas
applications.
The Company also has a separate exploration wellhead equipment related
licensing arrangement with SLB subsidiary Cameron, which has enabled Plexus to
re-enter the Jack-up Exploration (Adjustable) Rental Wellhead market, with
Cameron providing manufacturing support and assisting in sales leads
generation in return for a licence royalty fee.
Plexus' current suite of products include Exact-15 exploration rental
wellheads, Adjustable HG surface production wellheads, which combine POS-GRIP
technology with gas tight leak free metal-to-metal sealing; the Python®
subsea wellhead, developed in a Joint Industry Project with several industry
leaders; the POS-SET™ Connector for the de-commissioning and P&A market;
and Tersus-PCT, an innovative HP/HT tie back connector product.
Having proved the superior uniquely enabling qualities of POS-GRIP Technology
both organically and with licencees, Plexus is now focused on establishing its
technology and related equipment in other markets and sectors both in the
UKCS, ECS and around the world where the directors believe it can play an
important role in reducing harmful fugitive methane emission risks as
operators strive to deliver on ESG commitments and NetZero goals in a safe and
cost-effective way.
For more information visit: https://www.plexusplc.com/
(https://www.plexusplc.com/)
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. END IR ZZGMFNKKGDZMRecent news on Plexus Holdings
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