Plexus Regulatory News (POS)

16 May 2007 07:01

Plexus Holdings Plc16 May 2007 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services 16 May 2007 Plexus Holdings PLC ('Plexus' or 'the Company') Sale and Assignment of Non-Core Share Option Plexus Holdings PLC, the AIM quoted oil and gas engineering services businessand owner of the proprietary POS-GRIPTM method of wellhead engineering, has soldits option to acquire 50% of the shares in a private engineering company toAfrotel Corporation Ltd for £1,000,000 cash. The disposal of the share optionincludes related interest free loans totalling £200,000, which on exercise ofthe option would convert into the shares. This transaction results in an£800,000 profit on disposal for Plexus. The £1,000,000 net cash received byPlexus will be used as additional working capital, principally to invest inadditional inventory to support its sales growth. The unaudited short formmanagement accounts of the private engineering business for the financialyear-end 28 February 2007 reported that the business generated a trading profitafter tax of £286,000. Plexus CEO Ben van Bilderbeek said, "I am pleased to announce the disposal ofthis non-core asset, which has proven to be an excellent investment for Plexus.The proceeds of the sale will principally be re-invested in additional inventoryto accelerate the expansion of our overseas activities, where recognition forour proprietary method of engineering continues to gain momentum. "At the same time I can report that the Company is trading in line with theBoard's expectations." * * ENDS * * For further information please visit www.posgrip.com or contact: Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7589 8555 Graham Stevens Plexus Holdings PLC Tel: 020 7589 8555 Ken Fleming Bell Lawrie Tel: 0141 221 7733 Isabel Crossley St Brides Media & Finance Ltd Tel: 020 7242 4477 Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes Plexus Holdings PLC Plexus, which began trading on AIM in December 2005, is an established oil andgas engineering, and services business based in Aberdeen, with an office inLondon and a presence in Houston, Texas. It has developed and patented a methodof engineering for oil and gas field wellheads and connectors, POS-GRIPTM, whichinvolves deforming one tubular member against another to effect gripping andsealing. POS-GRIP wellhead systems have to date been used in over 100 oil and gas wellsby international companies including BHP Billiton, BP, Brunei Shell Petroleum,ConocoPhillips, Gaz de France, Global Santa Fe, Maersk, Petro-Canada Trinidad &Tobago, Talisman Energy, Tullow Oil, and Wintershall. The Group plans to accelerate the roll out of POS-GRIP technology as a superioralternative to current wellhead technology. It has particular advantages in HP/HT oil and gas environments for which there is increasing demand throughout theworld. The Company's long-term goal is to develop POS-GRIP technology as thefuture industry standard for wellhead design. This objective includes thedistribution of POS-GRIP technology through licensees to maximise marketpenetration. This information is provided by RNS The company news service from the London Stock Exchange