Plexus warns on revenues

Engineering services group Plexus told investors at its annual general meeting on Thursday that its full-year revenues looked set to slide - erasing much of the goodwill garnered from a ten-fold increase in revenues during the prior year.

Sales for the current financial year to June 2020 were expected to be lower than the £3.6m recorded in the 2019 trading year.

Although the AIM-listed firm said much work remained to be done to regain, and surpass, previous revenue and profit levels, Plexus strongly believed that it had a solid foundation upon which it could build a successful future.

While the group acknowledged that lead times associated with the sale of production wellheads were much longer, Plexus said it was now well-positioned to continue growing revenues generated from continuing operations.

Chairman Jeff Thrall said: "At a time when there is increasing pressure on the oil & gas industry to eradicate harmful gas and methane emissions from operations through the use of advanced technologies across the supply chain from well site to consumer, we believe that a major opportunity has opened up for our leak-proof technology, one we are focused on taking full advantage of for the benefit of our customers, our shareholders and the environment in which we operate."

As of 1130 GMT, Plexus shares had tumbled 11.54% to 23p.