(Alliance News) - Plexus Holdings PLC on Monday announced it secured an order for its wellhead equipment and sealing technology for a specialised project application.
Plexus shares jumped 40% to 4.00 pence each in London on Monday morning.
The West Sussex-based engineering services provider company said under the GBP5 million contract, its POS-GRIP "HG" equipment and technology will be deployed over the next 12 months. About GBP2.5 million will be received via milestone payments in the current financial year ending June 30, with the remainder to be recognised as sales revenue in financial 2024.
"POS-GRIP technology is a patented method of engineering which can be applied to a wide variety of oil and gas products, such as wellheads and connectors. When combined with "HG" seals, the technology can create weld quality gas tight connections, which are instantaneous and fully reversible, adjustable and repeatable," the company explained on its website.
Plexus Chief Executive Officer Been van Bilderbeek said the contract "significantly increases the visibility of our future revenue and cash flow projections, and Plexus' reputation as a "can do" surface or subsea equipment solutions provider.
"This contract win is an example of how POS-GRIP's proprietary subsea engineering can be deployed as a bespoke solution for a unique application, which bodes well for the role Plexus can play in the future of the growing decommissioning market," the CEO said.
He added: "I believe Plexus is finally turning the corner and will prosper in the coming years."
By Tom Budszus, Alliance News reporter
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Plexus (POS)