(Alliance News) - Plexus Holdings PLC on Friday reported lower interim earnings as expenses increased amid the company's transition towards the development of new revenue streams.
The stock closed 0.6% higher at 10.56 pence each on Friday afternoon in London.
For the six month period to the end of December, the engineering services firm reported revenue of GBP49,000, down from GBP2.3 million year-on-year. Pretax loss widened to GBP2.8 million from GBP2.3 million the year before. Administrative expenses rose to GBP3.0 million from GBP2.8 million.
No dividend was declared for the period.
Looking ahead, Plexus said it expects trading for its financial year to the end of June to be in line with expectations but warned that that trading in its sector may be hurt by the shift of the world's focus towards net zero and the lowering of the consumption of hydrocarbon. It also said that global stock and energy markets may be hurt by disruption to the supply chain amid the Covid-19 outbreak.
The company also said that the conflict between Saudi Arabia and Russia which is linked to the United States ongoing elevated oil and gas production levels, may lead to a fall in global oil demand in 2020.
"It is important to acknowledge the ongoing disruption to the general global economy and resultant uncertainty for companies and workforces caused by the Covid-19 virus and the impact this may have on Plexus. The company also notes the actions of Saudi Arabia and Russia in terms of increasing production of crude oil to record levels which has, in conjunction with the impact of coronavirus on demand for oil, had a material impact on the oil price."
By Ife Taiwo; ifetaiwo@alliancenews.com
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Plexus (POS)