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LONDON (Alliance News) - Plexus Holdings PLC on Monday said annual revenue is "broadly in line with expectations", however, lower margins and higher overheads will hurt earnings.
Shares in the jack-up exploration wellhead equipment manufacturer were trading down 8.3% at 44.94 pence each.
For the year ending June 30, the company anticipates earnings before interest, taxes, depreciation and amortisation and loss before tax to be "below market expectations".
A year ago, adjusted Ebitda loss amounted to GBP2.5 million and pretax loss totalled GBP7.0 million.
"The reduced margins are associated with certain key contracts where the company has factored in the importance of showcasing Plexus' technology, raising its profile and proving it in the field," Plexus explained.
Plexus added that it has been "encouraged" by an increasing level of incoming enquiries for its POS-GRIP-enabled products during the last seven months.
"We believe that the company's short-term financial performance should not be seen as the key performance indicator, with the critical strategic goal being the continued and growing interest in Plexus' POS-GRIP technology," Chief Executive Officer Ben Van Bilderbeek said.
