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LONDON (Alliance News) - Oil and gas engineering services company Plexus Holdings PLC issued a profit warning on Monday as the group took a heavy hit from the sharp downturn in activity in the oil and gas industry.
Plexus said that, amid the oil price dropping heavily and a subsequent slowdown in activity by its customers, it cannot see the reduced level of activity being recovered in its current financial year to the end of June, which will hit those results significantly.
Plexus said it anticipates its revenue for the first half to the end of December will be below GBP7.0 million, with revenue in the second half to fall around 20% from the first half. Due to this weakness, Plexus said it financial results for the year to the end of June will be "very significantly below" market expectations.
The company is now taking steps to try and boost its cash conversion, cutting capital expenditure, operating expenditure and jobs, which it said should help to stabilise its position amid the tough oil market environment.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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