Business
New Contract Win
New Contract Win.
About this update from Plexus Holdings
[{"type":"text","content":"\n Plexus Holdings Plc\n28 March 2008\n\nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services\n\n28 March 2008\n\n\n\n Plexus Holdings PLC ('Plexus' or 'the Company')\n\n £800,000 Contract with CNR International (U.K) Limited\n\n\n\nPlexus Holdings PLC, the AIM quoted oil and gas engineering services business,\nhas reached an agreement with an international oil and gas exploration,\ndevelopment and production company, CNR International (U.K) Limited ('CNR') to\nsupply, subject to completion of relevant contract terms, the Company's\nproprietary POS-GRIP(R) High Pressure/High Temperature ('HP/HT') exploration\nrental wellhead system for exploration activities in the North Sea. The value\nof the contract is estimated at £800,000 pounds sterling, with revenues\ncommencing in the last quarter of 2008.\n\n\n\nThis agreement marks a new working relationship between the two companies, which\nPlexus hopes to build further upon in the future.\n\n\n\nPlexus CEO Ben van Bilderbeek said, 'Our continued success in attracting new\ncustomers for our proprietary exploration rental wellhead business, has now\nadded CNR as a new customer. We are gaining market share because POS-GRIP\ntechnology has been tested to higher standards, is safer to use, and reduces rig\ntime.\n\n\n\n'I believe that our current share price does not accurately reflect the returns\nwe are making from our growing rental business, and it would seem that our\nearnings multiples ignore the underlying potential for our proprietary\ntechnology. Plexus is valued as if it were an established technology firm, which\nhas already matured, although, by our own estimates, we only hold a 7.5% share\nof a niche application, which itself represents in turn about 5% of the overall\nmarket for POS-GRIP technology.\n\n\n\n'The growing Jack-up fleet, which independent surveyors predict will add, over\nthe next four years, as many as 52 rigs, equipped with BOP's designed to take\nadvantage of our HP/HT technology, offers substantial scope for expansion.\n\n\n\n'We however will have to find a better way to articulate that Plexus remains\nprimarily an emerging technology company, which invests a significant percentage\nof its revenue to fund additional facilities and personnel in support of new\nproduct development and R&D. Our remaining target markets repre...