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With a new, revolutionary product for the oil drilling industry in hand, Plexus Holdings (LSE:POS) floated on the London Stock Exchange less that seven years ago, in December 2005. Just over three years later, in April 2009, its share price was valued in the mid-20.00 range.
One year later, in April 2010, its value had reached 38.00. By April 2011, it was trading in the high 50.00 to low 60.00 range. By this April it had crossed the 120.00 horizon. Yesterday it closed at 150.00. And it doesn’t appear that it is about to lose momentum.
Yesterday Plexus revealed that it had iced a £1.15 million deal with Talisman Energy to supply equipment for two projects in the North Sea. It was just two weeks ago that the company announced a £2.0 million deal with Brunei Shell. Ben van Bilderbeek, Plexus CEO, attributed his company’s success to a healthy, growing industry and to a broadening awareness of Plexus’ unique POS-GRIP® well-head equipment.
This morning Plexus published a trading statement as a precursor to releasing its annual results, which is set for October 16, one week from today. The announcement declared that “Full year 2012 earnings, which are still subject to external audit, are now expected to be ahead of market expectations with after tax profits and earnings per share materially in excess of current analysts’ forecasts.” The outlook is also apparently looking well as Plexus says that it continues to gain new contracts with both new and existing customers.
The Plexus share price soared as high as 175.00 – a new record for the company – in early trading, settling in at 171.50 by the end of the noon hour.
The annual report ought to expound on the success of Plexus strategic plans for the worldwide marketing of its products, particularly through licensing agreements. Plexus indicates that they expect continued increasing interest in its HP/HT (high temperature/high pressure) well head equipment, most of which is available on a rental basis, therefore require less capital investment for its customers.
The Company’s long term goal is to develop POS-GRIP® technology as the future industry standard for wellhead design. This objective includes the distribution of POS-GRIP® technology through licensees to maximise market penetration. The Directors believe that over time the Plexus Group can become a member of the ‘first tier’ of global wellhead systems suppliers.
Looking back from where we are today, it looks like Plexus has made a good start. From the information we have at this point, the future isn’t looking too bad either.
