This was another solid set of half-year numbers from Plexus (POS), with double-digit revenue growth driven by a succession of contract wins in the North Sea. Aberdeen-based Plexus posted operating profit of £1.86m, a 3 per cent increase on last year even though the company was forced to absorb a 20 per cent hike in depreciation and amortisation charges.
The bulk of Plexus's revenues are derived from the supply of proprietary POS-GRIP well-head connectors to the oil and gas industry. The technology is designed to prevent the types of blow-out that devastated BP's (BP.) Macondo well in 2010, but it also offers specific advantages for drilling in areas prone to extreme pressures and temperatures. Statoil sets the industry standard in terms of rig quality, so it's instructive that Plexus secured another £2.5m in well-head contracts from the Norwegian heavyweight.
Yet Plexus continues to diversify beyond its traditional North Sea catchment, securing its third client in Australia in the form of Eni, while deals were completed with Glencore Exploration and Svenska Petroleum for drilling in West Africa. And Plexus is uniquely positioned to profit from the eventual changes made in the wake of Sir Ian Wood's report on the UK North Sea oil and gas industry.
| PLEXUS HOLDINGS (POS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 284p | MARKET VALUE: | £241m | |
| TOUCH: | 275-288p | 12-MONTH HIGH: | 300p | Low: 170p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 73 | |
| NET ASSET VALUE: | 37p* | NET CASH: | £2.7m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 11.3 | 1.7 | 1.7 | 0.44 |
| 2013 | 12.6 | 1.9 | 1.9 | 0.48 |
| % change | +12 | +10 | +12 | +9 |
Ex-div: 2 Apr Payment: 25 Apr *Includes intangible assets of £9.9m, or 12p a share | ||||
