Plexus returns to losses, shares slide

(Sharecast News) - Plexus Holdings reported a return to losses in its latest financial year, reflecting the absence of a one-off licence deal that boosted the prior year and a strategic shift towards reinvestment in its rental wellhead fleet.

For the year ended 30 June, the AIM-traded wellhead services group recorded sales revenue of �4.48m, down sharply from �12.7m a year earlier.

The company posted an adjusted EBITDA loss of �1.1m, compared with a �5.4m profit in 2024, while the reported loss before tax was �3.3m, against a reported profit of �2.8m in the prior year.

Losses after tax came in at �3.3m, with a basic loss per share of 2.7p, compared with earnings of 2.83p a year earlier.

Cash and cash equivalents were unchanged at �2.5m, while total assets declined to �17.7m from �19.9m, with total equity rising slightly to �16.1m from �15.4m.

The group said the 2024 results had been materially influenced by a one-off exceptional licence transaction, which elevated both revenue and profit, while the latest year reflected deliberate reinvestment in the rental model.

During the period, Plexus completed a North Sea special project generating more than �9m of revenue and secured a Middle East gas exploration contract worth around $1m, using its Exact jack-up rental wellhead equipment, which was now expected to commence in the first quarter of 2026.

It also completed the build of four new sets of Exact rental wellhead equipment, raised �3.5m in April 2025 to fund fleet expansion and strengthen the balance sheet, and ordered a further four sets of Exact wellheads for delivery in January 2026.

Operational activity in the North Sea continued, including the completion of the first phase of a Dutch sector plug and abandonment contract, which generated �1.9m of revenue, and the pre-engineering phase of a subsea intervention project.

Research and development expenditure, including patents, totalled �442,000, down from �558,000, as the group continued to invest in product development, while it retained its API Q1 accreditation following its annual audit.

Since the period ended, Plexus said it had secured additional rental wellhead contracts in North America, completed a North Sea subsea intervention well, and signed a two-year framework agreement with a North Sea operator covering wellhead services and associated equipment in the UK offshore sector.

The group also agreed a loan facility of up to �2m to provide additional financial flexibility and support operations and growth initiatives, and announced board changes including the appointment of Stuart Paton as a non-executive director.

"This year has been one of active rebuilding, with significant progress made in expanding our rental wellhead fleet and reestablishing momentum in our core Jack up business," said chief executive Craig Hendrie.

"While last year's �2.93m profit was driven by a one-off licence transaction, this year the Group reported a loss before tax of �3.27m which is consistent with our strategic decision to reinvest in the rental model and strengthen our rental operations."

Hendrie said activity in the North Sea had been steady, but several projects were postponed amid continued uncertainty.

"The lack of clarity around proposed changes to the Energy Profits Levy has slowed not only new exploration and development drilling but also decommissioning and Carbon Capture and Storage (CCS) work across the UK."

He said the group had increased its focus on international markets, with new rental work expected to begin in the US and Middle East in the first quarter of 2026, and described the Middle East as a key strategic region.

"These steps give us a strong foundation to advance the wider suite of POS GRIP applications that Plexus retains," Hendrie said, adding that this included production wellhead remediation, plug and abandonment products and subsea infrastructure solutions.

At 1537 GMT, shares in Plexus Holdings were down 19.12% at 5.05p.

Reporting by Josh White for Sharecast.com.