Plexus reports steady losses and targets Russian market

For the year ended 30 June, its pretax losses from continuing operations remained broadly stable at £5.3m, though revenue increased from £0.2m to £0.3m and the company received an initial cash injection of £14.1m from the aforementioned sale during in the period.

As a condition of the sale agreed with TFMC, Plexus will receive a third of rental revenues generated from the Jack-up Business up to a cap of £27.5m.

Ben van Bilderbeek, chief executive of Plexus, said: "The year under review has seen considerable progress made in delivering our strategy."

Moving forward, the oil and gas drilling equipment provider will focus on its POS-GRIP technology, which the board believes is “starting to establish itself as the go-to technology solution”, and attempt to penetrate the Russian market.

Early progress has seen the sale of two POS-GRIP HP/HT rental wellhead sets and associated equipment for roughly £1.4m to Gusar, Plexus' partner and licensee in Russia, as well as a breakthrough agreement signed by Gusar to supply Gazprom with well drilling equipment.

"Our overriding aim is to build a portfolio of multiple earnings streams for the company on a product by product basis, either organically or with partners including licencees," said van Bilderbeek.

Plexus’ shares were down 4.72% at 50.50p at 1324 GMT.