Plexus Holdings (LSE:POS) reported revenue of £4.48 million for the year ended 30 June 2025 and a pre-tax loss of £3.3 million, reflecting the absence of a one-off licence transaction recorded in the prior year and a planned investment phase to rebuild its rental wellhead fleet. The company said the period was also affected by softer market conditions and project delays in the UK North Sea, driven in part by ongoing uncertainty around the Energy Profits Levy.

Despite the challenging backdrop, Plexus completed a £9 million North Sea project and a £1.9 million plug-and-abandonment phase in the Dutch sector. During the year, the group raised £3.5 million in equity to expand its Exact rental fleet, finished the period with cash of £2.5 million and strengthened its balance sheet, supported by a new £2 million loan facility to enhance financial flexibility.

Operationally, the group is increasingly focused on overseas growth. A US$1 million Middle East gas exploration contract and a North American rental agreement are both expected to commence in the first quarter of 2026. Plexus has also established a business development presence in the UAE and secured a two-year framework agreement with a North Sea operator.

Management said these steps, alongside continued investment in research and development, retention of API Q1 accreditation and the ongoing strategic value of its POS-GRIP intellectual property and collaboration with SLB, are intended to underpin future rental-led revenue growth across offshore oil and gas, carbon capture and storage and geothermal markets.

From an investment standpoint, Plexus is seen to benefit from positive corporate developments and signs of financial recovery. However, the absence of dividends and a negative earnings multiple weigh on valuation, while revenue and cash flow volatility remain key factors to watch, despite technical indicators supporting a cautiously optimistic outlook.

More about Plexus Holdings

Plexus Holdings PLC is an AIM-listed wellhead services provider focused on offshore oil and gas markets. The company supplies jack-up and subsea wellhead equipment and rental services for exploration, intervention and plug-and-abandonment activities. Its proprietary POS-GRIP and Exact technologies support a range of production, subsea and decommissioning solutions across the North Sea, Middle East, North America and other international regions.

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