TIDMPOS
RNS Number : 7473O
Plexus Holdings Plc
16 October 2012
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
16 October 2012
Plexus Holdings plc ('Plexus' or 'the Group')
Preliminary Results for the year to 30 June 2012
Plexus Holdings plc, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R) method
of wellhead engineering, announces its preliminary results for the
year ending 30 June 2012.
Results
-- Record revenue, EBITDA, and profit after tax
-- 27.8% increase in revenue to GBP19.71m (2011: GBP15.42m)
-- 96.8% increase in profit before tax to GBP3.09m (2011: GBP1.57m)
-- 95.9% increase in profit after tax to GBP2.43m (2011: GBP1.24m)
-- 33.0% increase in EBITDA to GBP6.24m (2011: GBP4.69m)
-- Gross margin increase to 70.9% (2011: 60.1%)
-- 92.9% increase in basic earnings per share to 2.99p (2011: 1.55p)
Highlights
-- Strong forward order book as POS-GRIP(R) friction-grip
wellhead equipment continues to gain market share, winning business
from new international oil and gas operators in new territories, as
well as repeat business from existing customers
-- Increased industry receptiveness to new and superior
technology as a result of regulatory and government initiatives
focused on safety standards and operational performance in a number
of oil equipment related areas, particularly subsea following the
Gulf of Mexico incident in 2010
-- First relief well standby contract with a value in excess of
GBP4.0m over three years for the supply of back-up High
Pressure/High Temperature ('HP/HT') wellhead equipment with a
leading global oil and gas operator as part of contingency planning
arrangements in the event that a relief well is needed during the
drilling programme in the North Sea
-- Joint Industry Project ('JIP') for the new Plexus POS-GRIP
subsea wellhead design ('HGSS(TM)') gains significant support -
major consulting partners now include Shell International
Exploration and Production B.V., Maersk Oil North Sea UK Ltd.
('Maersk'), Wintershall Noordzee B.V., the UK entity of the world's
largest offshore drilling company, Tullow Oil plc, Eni S.p.A., and
Oil States International Inc.
-- Maersk agreed as part of the on-going JIP to contribute
GBP0.26m towards the development and final testing of the HP/HT
Tie-Back wellhead system; subsea related activities extended to the
award of a GBP0.5m engineering design contract for a subsea
wellhead HP/HT crossover system from Wintershall Noordzee B.V.
which includes prototype qualification testing
-- New HP/HT customer contract wins with Vantage Drilling
Company Inc. for the supply of wellhead equipment to a major
Malaysian national oil and gas operator, and Santos Ltd for
offshore Australia (following on from a first time contract in
Australia for Apache Energy Australia in 2010)
-- HP/HT contract wins with existing customers included Gaz de
France Suez E&P Ltd, Centrica Energy, Bowleven plc; a further
X-HP/HT contract with BG International Ltd, a 10,000 psi standard
pressure contract win with Niko Resources (Trinidad and Tobago)
Limited; and for the fourth time, a two year extension framework
agreement with Applied Drilling Technology International (the
turnkey drilling division of Transocean Drilling U.K. Limited)
-- Post period end, secured a further 4 year contract with
Brunei Shell Petroleum Sdn Bhd for the supply of HP/HT and standard
pressure exploration wellhead equipment and services with a minimum
value of GBP2m; a GBP1.15m two well standard pressure and HP/HT
order from Talisman Energy Inc.; and a GBP1.0m HP/HT equipment
contract for new customer Lotos Exploration and Production Norge
AS
-- First licensing, manufacturing, distribution, and agency
agreement signed with Breda Energia S.p.A ('Breda') for the supply
and servicing of POS-GRIP products worldwide to Italian oil and gas
major ENI S.p.A
-- American Petroleum Institute ('API') awarded the Plexus
Aberdeen facility two licences in relation to the API Monogram
Programme so that all equipment designed and manufactured in
accordance with the relevant licences can now be stamped with an
API Monogram - should further improve Plexus' equipment
marketability internationally where such Monogramming is
required
-- Successful placing of GBP6.2m of new and existing ordinary
shares - GBP2.0m raised before expenses to support growth strategy,
increase liquidity and broaden the institutional shareholder
base
-- Board changes - Robert Adair retired as non-executive
Chairman, Christopher Fraser joined as a non-executive director,
and Jeff Thrall moved from non-executive director to non-executive
Chairman
-- Capital investment increased by 97.6% to GBP4.62m (2011: GBP2.34m)
-- Research and Development ('R&D') spend increased by
68.7%, excluding costs of building new test fixtures, to GBP1.20m
(2011: GBP0.67m)
-- The Board is today proposing a 16.3% increased final dividend
of 0.5p per share (2011: 0.43p), which will be subject to
shareholder approval at the Annual General Meeting ('AGM') to be
held on 28th November 2012. If approved the dividend will be paid
on 14th December 2012 to all members appearing on the register of
members on the record date 26th October 2012. The ex-dividend date
for the shares is 24th October 2012
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Jon Fitzpatrick Cenkos Securities PLC Tel: 020 7397 8900
Ken Fleming Cenkos Securities PLC Tel: 0131 220 6939
Felicity Edwards St Brides Media & Finance Tel: 020 7236 1177
Ltd
Frank Buhagair St Brides Media & Finance Tel: 020 7236 1177
Ltd
Chief Executive Ben van Bilderbeek said:
"I am pleased to report an excellent set of financial results
for the year which include a record performance in terms of
revenues, margins, and profitability. Such strong on-going progress
means that I am delighted to announce that the Board proposes a
16.3% increase in the final dividend of 0.5p per share for the year
ended 30 June 2012, which will be submitted for approval at the
Annual General Meeting.
"These results were achieved during a period where the Group has
been particularly active at both the organic and strategic levels.
Important rental exploration contracts were secured with both
existing and new major international oil and gas operators across
the world, particularly for HP/HT applications where our reputation
goes from strength to strength, and we also increased the number of
consulting partners to our pioneering HGSS subsea wellhead design
JIP, signed an inaugural POS-GRIP licensing agreement with Breda,
progressed our HP/HT Tie-Back wellhead system JIP, and achieved API
Monogram Licence status.
"At the corporate level, we successfully completed a share
placing in January 2012 which had the benefit of increasing the
liquidity in our shares whilst helping to finance our various
R&D projects and growing rental inventory. This placing
broadened our institutional shareholder base and I would like to
warmly welcome our new blue chip investors and thank our existing
shareholders for their continued support. Such developments are
part of the on-going development of Plexus both at an operational
and corporate level and come at a time when there are growing signs
of merger and acquisition activity in the oil services sector where
the need for innovative technology such as ours is becoming
increasingly recognised.
"These positive developments continue to reinforce our belief
that whether the growing support for the POS-GRIP friction-grip
method of engineering comes from our customers or investors, the
unique advantages that our technology offers in terms of
operational performance, safety, time, and cost savings will
continue to drive market share gains both for existing surface and
in due course subsea applications, whilst significantly improving
current wellhead standards. However, it is important to stress that
even though customer demand continues to exceed our current
capacity to deliver as a result of our equipment being selected in
preference to established conventional alternatives, we will
continue to ensure that we maintain the high standards that we set
ourselves and which our customers expect from us.
"In summary the Board remains confident that the future looks
highly positive for Plexus. Our message to the industry is simple
and gaining traction - wellhead equipment qualification test
standards need to match as close as possible those of real field
life conditions, as well as the same higher standards required of
other critical performance items in the well such as casing and
tubing couplings. Indeed, a major international oil and gas
operator has recently issued a new set of test standard
requirements for Surface and Subsea Wellhead and Christmas Tree
Equipment, and we believe that Plexus is in a unique position to
address this challenge. Such developments can only help accelerate
our goal of becoming a leading specialist oil and gas services
company by generating further interest from potential commercial
and licensing partners, thereby delivering significant shareholder
value in the years to come.
"Finally I would to thank Robert Adair who retired from the
board this year after six years' service, and welcome Christopher
Fraser onto the board as a new non-executive director."
Summary of Results for the year ended 30 June 2012
2012 2011
GBP'000 GBP'000
Revenue 19,706 15,421
EBITDA - before the effect of
IFRS 2 6,238 4,690
EBITDA - after the effect of IFRS
2 5,987 4,504
Profit before taxation 3,088 1,569
Basic earnings per share (pence) 2.99 1.55
Chairman's Statement
Business progress
I am pleased to report that the Group made significant financial
progress during the year as the increase in activity levels seen in
the first half continued into the second half, resulting in a 27.8%
increase in turnover to GBP19.71m for the year to 30 June 2012
(2011: GBP15.42m), a 33.0% increase in EBITDA to GBP6.24m (2011:
GBP4.69m), and a 96.8% increase in profit before tax to GBP3.09m
(2011: GBP1.57m), delivering a 92.9% increase in basic earnings per
share of 2.99p (2011: 1.55p). In addition to making excellent
organic progress with our exploration wellhead rental activities
including the winning of new customers, which has ensured a healthy
forward order book, we have continued to raise the awareness of our
proprietary POS-GRIP method of engineering which has led to a
significant level of industry support for various product
development initiatives, in particular our new HGSS subsea wellhead
design JIP. Such initiatives further extend the reach of our
proprietary technology and, importantly, enable us to continue to
further expand our extensive patent suite.
Strategy
Plexus owns a patented proprietary friction-grip method of
engineering called POS-GRIP which to date we have applied with
increasing success to the design and development of innovative
wellhead equipment for supply to the oil and gas industry where we
have secured a growing reputation with many major international and
national operators around the world. Although conventional wellhead
technologies have been around for decades, and the wellhead market
is dominated by major international oil service supply companies,
the benefits of POS-GRIP in terms of safety, operational
efficiencies, and time savings, particularly for HP/HT and X-HP/HT
applications, have enabled Plexus to compete directly against these
formidable competitors and gain increasing market share around the
world where we have chosen to focus to date on exploration jack-up
surface drilling.
It has always been a key strategic goal of ours to firstly
secure a place in the industry for POS-GRIP technology through our
organic jack-up drilling activities, where we are now seeing clear
evidence of a growing momentum. Our second aim was to leverage that
success into other applications such as the volume production
wellhead market, the fast growing subsea market, and related new
product development opportunities, where we are now making
significant progress. The end goal, which we feel increasingly
confident of achieving, is the establishment of POS-GRIP as a new
wellhead standard, where we move from being what we see as a
wellhead of necessity to a natural wellhead of choice, and indeed
preference. This strategy has been given a material boost by a
significant increase in the level of governmental and regulatory
scrutiny of oil and gas industry safety standards since the Gulf of
Mexico incident in 2010, both in terms of preventative and response
initiatives with regard to both personnel and the environment. Such
events have had a direct impact on Plexus' activities and have
already resulted in the launch of a number of directly related
product and JIP initiatives, as well as additional rental contract
activity such as the recently announced GBP4.0m relief well standby
contract in the North Sea where it was determined that as a
contingency planning measure back-up equipment needs to be readily
available. We also believe that the proven safety benefits of
'through the blow-out-preventer' wellhead equipment will continue
to gain ground, especially following the offshore Australia Montara
incident where removing the blow out preventer ('BOP') was
highlighted in the subsequent report.
When looking at the tremendous commercial opportunities that
exist for expanding the range of POS-GRIP applications, the
increased scrutiny by regulatory bodies regarding for example the
selection of the 'best available and safest' technology ('BAST');
the renewed focus on addressing well known challenges and issues
such as sustained casing pressure, known as SCP; and the proper
installation, sealing, and locking down of the casing or lining has
already ensured direct encouragement and input from major
international operators as well as a greater receptiveness to new
technology. These initiatives are particularly relevant to the
predictable nature and simplicity of our technology, and the
benefits of non rotation and preloaded lockdown as friction works
in all directions (i.e. tubular members are held axially and
radially).
The first of these announced some time ago is our HP/HT Tie-Back
system to enable HP/HT exploration and pre-drilled production wells
to be converted to either subsea or platform producing wells. No
product currently exists on the market which can achieve a casing
string tie-back to such wells in HP/HT conditions this is due in
part to conventional technology using threaded connections which
cannot be reliably engaged and disengaged in the uncontrolled
remote environment in which subsea tie-back operations take place.
The design contains unique patented features, and will utilize
Plexus' metal-to-metal HG(R) seals which uniquely elevate the
POS-GRIP Tie-Back connection to a standard that exceeds those of
casing or tubing couplings. By 'saving' or 'converting' such wells
significant financial benefits can be delivered to operators who
would previously have abandoned such a well and 'written off' the
cost, which we estimate as ranging from GBP50m to GBP300m, whilst
also shortening the development cycle of an oil and gas field by
several years with resultant significant cash flow benefits for the
operator. This tie-back project was given a further boost in
January 21012 when Maersk provided GBP0.26m of funding towards the
development programme which is now approaching its final stages.
There have been some delays due to issues relating to the test
fixture, which interestingly can be a problem where the first time
qualifying of equipment to such high specifications means that the
test fixture itself has to be able to be built to endure the
testing of such equipment. However, failure mode, effects, and
criticality analysis (FMECA) is complete, hydraulic function and
gas testing to high pressure has been successful, and temperature
and bending testing is now underway. Encouragingly the anticipated
first time user of the system estimates a saving per well in the
region of GBP80m for the scope of work being considered. In
addition the ability to 'make and break' high pressure connections
remotely could in our opinion play an increasingly critical role in
the emerging Artic exploration and subsequent production projects
where there is already consensus that there is a need for equipment
to be engaged and re-engaged as a result of various factors such as
ice flows.
The second JIP that we are particularly excited about is the new
subsea wellhead HGSS design project. This is gaining momentum and
working towards the goal of taking our proven surface technology
and equipment subsea by 2014. The POS-GRIP HGSS subsea wellhead is
currently being designed to be safer and have fewer parts in the
well bore than any other competing system whilst also sealing and
locking down hangers as soon as cementing of the well is complete.
The system will be inherently resistant to contamination as it will
have no moving parts exposed to well bore fluids. The support from
the industry is significant and the consulting partners to the
project who attend and contribute to the regular JIP meetings both
in terms of the design and engineering process now include Maersk,
Shell, Wintershall, ENI, Tullow, and Oil States. It is our
intention that the members of the JIP will potentially become
end-users and commercial partners once the wellhead is fully built,
tested and commercialised. Importantly, all intellectual property
generated by the project will be owned by Plexus and will be added
to our extensive and unchallenged patent suite. The project is
making good progress - the technical specification of the 'base
product' has been finalised, detailed engineering design is now
underway, the conceptual detail of the subsea hydraulics and
interface with control systems is complete, design of qualification
test fixtures has begun and it is expected that physical testing of
various elements of the system will begin in Q1 2013. The next
stage is to complete full qualification testing, after which an
opportunity to field test the system will be sought. Commercially,
it is of further encouragement that in addition to the range of
safety and operational features that are being engineered, initial
assessments of the HGSS system also show significant time savings
on installation as being achievable - estimated currently at over 3
days in 10,000 ft of water which would mean that, as with our HP/HT
surface wellhead systems, the installation time savings alone could
be greater than the capital value of the equipment.
We have identified a third sizeable commercial opportunity
concerning subsea well abandonments and we have already received
encouragement from a number of UK operators for this new project.
In the future operators will benefit from tax incentives to abandon
depleted wells that have been drilled in the North Sea and are
deemed non-commercial. Plexus has been led to believe that there
have been various major issues with re-attaching to these old wells
in order to provide integrity so that abandonment work can then be
safely carried out. Initial analysis suggests that wells may take
some 30 days to be abandoned properly, resulting in costs of more
than GBP15m per well. Some of these wells are 20-30 years old and
there is much uncertainty as to the condition of the wellhead
gasket and subsea wellhead profile resulting in damaged or corroded
seal surfaces. Indeed the subsea wellhead may even be of an
obsolete design. The nature of POS-GRIP technology is such that
re-engagement to such wells could be deployed more safely, easily,
and with significant time savings, so we are now assessing the
opportunity for the development of a "POS-GRIP Subsea Well
Abandonment Overshot Connector and Spool" product which would grip
and seal direct to the old wellhead body outside diameter and offer
a far larger seal area.
To support these various growth and product expansion strategies
it is essential that we continue to invest in the business to
ensure that we can meet the growing demand for our products and
services, whilst executing our contracts in an efficient and safe
manner. The key areas for such investment include the expansion of
our HP/HT wellhead rental inventory pool where we have committed
further significant capex, whilst also increasing our overhead
including human resources ('HR') activities, R&D, IP, IT, and
infrastructure. The benefits of such investment can already be
seen, and in the case of HR we were able to increase our staff
numbers by approximately 25% this year which was our largest annual
percentage increase to date in one of the tightest labour markets
in the world. Post period end we have continued this momentum and
have already further increased staff numbers by over 7% during the
first quarter of the current financial year. Importantly, we have
recently appointed a HR Director in the Group whose main focus will
be to ensure that our HR strategy is aligned with the business
strategy, and that proactive HR plans are implemented to enable us
to attract, recruit, retain, and develop the Plexus team. R&D
continues to be a core part of our activities and ensures that we
are continually innovating and expanding the range of POS-GRIP
applications, as well as generating new IP such as subsea
technology, that we can patent and protect for a further 20 years.
We are also hopeful that the Group will in due course be able to
benefit from the pending 'Patent Box' tax regime whereby subject to
suitable qualification from 2013 profits generated may attract a
reduced corporation tax rate from as low as 10%. The importance of
successful R&D cannot be underestimated and, as Sir James Dyson
recently wrote it is essential that engineers should both invent
new technology and also evolve existing ones and that "too much
focus on one and not the other you risk stagnation", whilst
"investment into research and development, old and new, is the
surest bet a technology company can make". I am pleased to say this
is the ethos that Plexus has been pursuing for many years and will
most certainly continue to do so, and which longer term we believe
will take us into new markets such as geothermal, fracking, and CO2
storage where long-term seal performance is so important.
We are confident that we can fund such activities through
existing cash resources, increased cash flow from operations, and
that we will continue to operate comfortably within our established
bank facilities which are currently GBP6.0m with Bank of Scotland
Corporate.
Staff
On behalf of the Board, I would like to thank all our employees
for their dedication and hard work during another successful year
that has not only delivered record financial results but,
importantly, has also seen us increase our staff numbers by a
quarter as we continue to expand our organic business activities
and progress various strategic initiatives to meet growing industry
support for and acceptance of our friction-grip method of
engineering. In addition to welcoming our new employees, I would
also like to welcome Christopher Fraser as a non-executive director
to the board who has the experience to help us navigate the various
international regulatory and legislative initiatives that are being
placed on our industry.
Outlook
As this year's results have demonstrated, the benefits that
POS-GRIP wellhead equipment and friction-grip technology can
deliver to major oil and gas operators are becoming increasingly
clear and better understood, not just by our expanding customer
base but also by regulators and industry partners.
This progress is taking place against a global back-drop where
the growing demand for energy is underpinning the need for
increased exploration and production activity, as evidenced by
higher capital expenditure projections than previously reported in
key regions of the world, and in particular Europe and Asia which
we see as important markets for Plexus over the coming years. In
Asia we recently incorporated a Brunei subsidiary, Plexus Ocean
Systems (Brunei) Sdn Bhd, to build on the on-going business we have
secured with Brunei Shell Petroleum, and are strengthening and
expanding our interests in Malaysia, as well as looking at
establishing a base in Singapore. Positive geo-political
developments include the opening up of new acreage such as more
than 68,000 sq. miles in the Barent Sea following the settlement of
a forty year dispute between Russia and Norway, and the recently
announced tax allowances for the North Sea to encourage the
successful extraction of the remaining estimated 24 billion barrels
of oil and gas. Recovering these UK reserves is technically
demanding and ever more expensive and, therefore, it is important
to deliver investment conditions that allow the UK to compete
against other less costly regions in the world. With this in mind
it was gratifying to hear the Chancellor speak of the government's
"absolute determination to get more investment in the North Sea, a
huge national asset". Furthermore, a recent North Sea licencing
round attracted 224 applications covering 418 blocks of the UK
Continental Shelf, and it was reported that the UK Department of
Energy and Climate Change believes it was the largest licensing
round that it has seen since beginning offshore licencing in 1964.
This certainly bodes well for increased exploration activity over
the coming years in the UK, a region which accounted for 47% of our
sales during the year.
As shareholders will note, a number of organic, strategic, and
geo-political factors are combining together to reinforce our
positive view of the future, which in turn is being reflected by
our existing order book, and recent post period end contract
awards, providing us with excellent visibility for the current
year. This level of activity has to be balanced with our ability to
execute in terms of staffing, infrastructure and inventory levels
as these directly influence our organic growth rate. We are
addressing such constraints by continuing to invest significantly
in capacity expansion and therefore we expect to see on-going
steady organic growth in sales and profitability, whilst at the
same time progressing various strategic projects which have the
potential of being transformational in terms of shareholder
value.
A good summary of the reasons for the increasingly exciting
prospects for an innovative oil services company like Plexus with a
suite of patented proprietary technology was provided recently by
the head of KKR's energy group in Europe following their
acquisition of a 52% interest in offshore oil and gas services
group Acteon Group Limited when he said - "as exploration and
production shifts into more complex environments, like deepwater
offshore, the oil and gas industry will increasingly need more
third-party expertise and specialised services". Such developments
support our view that we will in the future be able to secure the
interest of potential licencees and alliance partners as a way of
accelerating the roll out of our technology. The 16.3% proposed
final dividend increase is a clear indication of the Board's
positive view of the future.
J Jeffrey Thrall
Non-Executive Chairman
15 October 2012
Chief Executive's Review
Plexus has continued to make strong progress in the second half
of the year and this, combined with an excellent second half
performance, has resulted in record revenues and profits for the
Group. These results have been achieved against a back-drop of
continuing volatility in oil prices that, according to Oil and Gas
UK, has seen the price for Brent crude oil swing from USD$127 a
barrel in May 2011 in response to the Arab uprisings, up from a low
of USD$93 in January 2011, and then fall by 25% in early June 2012
compared with its peak earlier in the year.
Despite a challenging macro environment, Plexus' sales increased
both in the UK continental shelf ('UKCS') where sales rose by 27.3%
to GBP9.17m compared to GBP7.21m last year, and the Norwegian North
Sea and Netherlands where sales grew 233.3% to GBP7.01m compared to
GBP2.10m last year. This success has been largely driven by the
growing reputation of our HP/HT rental wellhead equipment where the
operational, safety, and time saving advantages are becoming more
obvious to the oil and gas operators leading to an increase in
repeat business activity and the winning of new customers. It is
also pleasing to note that the vibrant Asia region also saw growth
in revenues to GBP1.34m compared to GBP0.83m last year, an increase
of 63.4%.
The financial progress made during the year must importantly be
considered alongside various strategic and commercial initiatives
both on-going and newly launched. Such initiatives will, I believe,
deliver considerable shareholder value over the coming years and
are supported by our cash generative rental business model where we
are pursuing a strategy of considered and controlled growth that
balances infrastructure, personnel, and operational efficiencies.
The most significant contract wins which underpin our forward order
book were as follows:
-- July 2011 - contract signed to supply Niko Resources Limited
in Trinidad, with a value of between GBP1m and GBP3.25m
-- August 2011 - HP/HT contract win with Gaz de France Suez
E&P Ltd for the North Sea with a value of GBP1.7m
-- August 2011 - fourth successive two year framework agreement
signed with Transocean Drilling U.K. Limited for the supply of
standard 10,000 psi wellhead equipment to Applied Drilling
Technology International ('ADTI') with an estimated value of
GBP2m
-- September 2011 - new customer win via Vantage Drilling
Company Inc. to supply HP/HT wellhead equipment to the major
Malaysian oil and gas operator with a value in excess of $1m
-- September 2011 - second contract with Centrica Energy for an
HP/HT well in the North Sea with a value of GBP800k
-- December 2011 - new customer win with Santos Ltd for the
supply of HP/HT equipment with a value of GBP800k, which is the
second contract in Australia
-- April 2012 - contract with Bowleven plc for supply of HP/HT
equipment in Cameroon with a value of GBP1.05m
-- May 2012 - following on from a five year framework agreement
signed in 2006 BG International Ltd ordered additional 20,000 psi
X-HP/HT wellhead equipment for the North Sea with a value of
GBP1.3m
Post year end, we continue to be very encouraged by the level of
new enquiries and this activity supports our on-going organic
growth plans, particularly in terms of continued high levels of
capital expenditure, where we plan to increase the number of HP/HT
wellhead sets in our rental inventory by a record number over the
next twelve months:
-- October 2012 - Brunei Shell Petroleum Sdn Bhd have awarded a
further four year contract for the supply of HP/HT and standard
pressure wellhead systems for a multi-well exploration programme in
Brunei. The value of the initial contract is already estimated at
GBP2m over the next eighteen months
-- October 2012 - Talisman Energy Inc. contract for a standard
pressure and an HP/HT well in the Norwegian North Sea with a value
of GBP1.15m
-- October 2012 - new customer Lotos Exploration and Production
Norge AS contract for supply of HP/HT equipment in the Norwegian
North Sea with a value of GBP1m
The most notable business and strategic developments during the
period fall into three broad categories: the growing importance of
increased regulatory scrutiny; subsea; and POS-GRIP IP leveraging
which together create significant commercial opportunities for our
proprietary technology. Of particular relevance is the fact that
there is now a worldwide focus on creating and delivering the
safest standards possible to address real concerns about safety
issues relating to personnel and the environment. As Oil and Gas IQ
recently reported post the Gulf of Mexico incident, "it is an
inescapable reality that HP and/or HT drilling environments could
pose significant dangers to people, property and the natural world"
and that "these risks make equipment more likely to fail, which may
lead to pressure issues and spills...".
These circumstances have led to an increase in the declared need
for operators to select BAST which has in turn heightened interest
in our POS-GRIP method of engineering and increased receptiveness
as to how we can expand our success with jack-up exploration
activities at the surface to other applications, particularly
subsea. This combination of factors enables us to report a number
of related developments as follows:
-- July 2011 - award of a GBP0.5m engineering design contract by
Wintershall Noordzee B.V. for the development of an HP/HT subsea
wellhead crossover system that will enable Wintershall to complete
and then produce from a previously drilled temporarily abandoned
exploration well
-- August 2011 - new customer Dana Petroleum PLC contracts for
the supply of standard pressure wellhead equipment also with subsea
crossover to production well capability, initially for one well,
with an approximate value of GBP0.25m. The enabling abilities of
POS-GRIP technology means that a surface wellhead, surface BOP and
casing riser are used, eliminating the requirement for a high
pressure drilling riser or a subsea BOP, delivering significant
time and cost savings
-- December 2011 - signed licensing, manufacturing,
distribution, and agency agreement with Breda for the supply and
servicing of POS-GRIP products worldwide to Italian oil and gas
major ENI S.p.A
-- January 2012 - Maersk agreed to contribute GBP0.26m towards
the development and final testing of our HP/HT Tie-Back wellhead
system development JIP programme
-- June 2012 - GBP4.0m three year agreement with a leading oil
and gas operator for the supply of HP/HT relief well standby
equipment and drilling equipment which forms part of contingency
planning in the event that a relief well is needed during their oil
and gas development programme in the UK North Sea
-- June 2012 - ENI S.p.A and Oil States Industries Inc. join existing consulting partners Shell International Exploration and Production B.V., Maersk, Wintershall Noordzee B.V., and Tullow Oil plc as members of the Plexus new HGSS subsea wellhead design JIP, the objective of which is to develop and commercialise a new and safer subsea wellhead utilising Plexus' patented POS-GRIP technology
These initiatives bode well for future business opportunities,
development, and growth. The combination of current organic and
strategic activities are ensuring that our POS-GRIP technology is
making real progress in persuading the industry that we offer a
very real alternative to established conventional wellhead systems,
and one which we have demonstrated is genuinely safer and better.
During the year, we also had the opportunity to promote these
technical advantages at the bi-annual international "Offshore
Europe" trade show that took place in Aberdeen in September 2011.
Plexus had one outdoor and one indoor stand and it was gratifying
to see a tremendous level of interest in our method of engineering
and wellhead equipment. In addition the quality of the operating
systems and procedural capabilities at our Aberdeen facility were
demonstrated in April 2012 by the award of two API Monogram
Programme licences so that all equipment designed and manufactured
in accordance with these licences can now be stamped with an API
Monogram which can be helpful in some markets.
The momentum generated throughout the year has delivered a
record set of results with a 27.8% year on year revenue increase
resulting in sales of GBP19.71m, out of which rental of HP/HT
exploration equipment accounted for the majority at GBP16.11m, an
increase of 51.4% over the prior year. The fast growing HP/HT
business activities, supported by the growth in the number of new
HP/HT capable jack-up rigs coming into service, helped to further
increase gross margins to 70.9% as compared to 60.1% last year,
while EBITDA increased by 33.0% to GBP6.24m from GBP4.69m. Profits
before tax increased by 96.8% to GBP3.09m compared to GBP1.57m last
year and profit after tax increased 95.9% to GBP2.43m, against
GBP1.24m last year. The spread of sales by territory continued to
ensure that the UK accounted for less than half of sales at 47%,
with Europe at 36%, Asia 7%, Africa 6%, Americas 3%, and Australia
1%.
As I have always stressed it is essential with the introduction
of a new technology into a major market such as the oil and gas
industry (which is known to be slow moving where the adoption of
new technology is concerned), that our growth strategy is properly
supported by necessary investment in people and infrastructure. It
is no good being able to win contracts and then have difficulties
fulfilling them and not meeting the needs of the customer.
Significant investment, therefore, continues to be made in
supporting our operational activities, particularly in the areas of
IT hardware and software, and human resources in organisation,
development, communication, recruitment, as well as competency and
training disciplines. For these reasons, our total overheads
increased as planned to GBP10.78m from GBP7.59m in the previous
year, and our employee headcount increased to 113 at the year end
as compared to 91 in the prior year. This increase was a great
achievement in what is recognised as being one of the tightest
labour markets and our employee numbers will be increased further
in line with our planned organic and strategic growth activities.
Alongside overhead and staff costs, we also continued with our
capital expenditure programme of which the biggest element is the
addition of new rental wellhead sets, and where year on year capex
spend increased by 97.6% to GBP4.62m compared to GBP2.34m last
year. Significant capex spend will continue in 2012/13 as we
continue to add to our rental wellhead inventory to help meet
customer demand. A further important element which has always been
a key component in the development of Plexus is R&D where
spend, (inclusive of new test fixtures), totalled GBP1.38m, a
104.6% increase over the GBP0.67m in the prior year.
In summary, I am extremely pleased with this record set of
results which have been achieved as a result of increasing organic
activity combined with various strategic initiatives which together
enabled Plexus to advance its reputation and gain market share
which is key to the future growth of our company. Such progress is
being made at a time when the oil and gas industry is entering a
new phase in which it faces greater challenges than ever before in
terms of operating in more extreme environments (of which the Artic
is a good example), whilst at the same time having to embrace new
health and safety standards and regulatory scrutiny. This new
paradigm is helpful for an innovative technology such as POS-GRIP
as it encourages the support of the industry and lowers barriers to
entry in terms of the willingness of operators and standard setters
to consider and assess the development and adoption of superior
proprietary technology. In addition to moving from surface to
subsea, I am confident that the unique features and benefits of our
non rotational method of engineering in terms of operational
performance, safety, and time savings has the potential to expand
our target markets to areas outside traditional oil and gas
including fracking, CO2 storage, and geothermal where long term
metal-to-metal sealing is essential. I am further encouraged by a
step-up in activity amongst exploration and production ('E&P')
companies around the world, and indeed the "Barclays Global 2012
E&P Spending Outlook" reported that global E&P spending in
2012 will increase to circa USD$600 billion versus USD$544 billion
in 2011. I am in no doubt that these positive developments will
help ensure that Plexus and POS-GRIP will continue to play an
increasingly important role in the supply of wellhead technology
and equipment and that this is likely to be, at some point in the
future, in conjunction with suitable industry partners, as our
first licencing agreement with Breda has demonstrated.
Ben van Bilderbeek
Chief Executive
15 October 2012
Financial Review
Revenue
Revenue for the year was GBP19.71m, up 27.8% from GBP15.42m in
the previous year, reflecting a strong sales performance
underpinned by a series of on-going and new contract wins including
the gaining of new customers in new territories around the
world.
The rental of exploration wellhead equipment and related
equipment and services accounted for over 92.9% of revenue which
was essentially unchanged from last year and which continues to
reflect the fact that the company's business model is currently
centred on the supply of rental exploration equipment and services
as opposed to sold production well equipment. This is anticipated
to change over the coming years as the Group begins to extend the
reach of its POS-GRIP technology beyond the rental of surface
wellhead equipment. HP/HT equipment sales generated the largest
year on year sales increase of GBP16.11m up from GBP10.64m last
year, an increase of 51.4%, and accounted for 81.7% of total sales.
This growth resulted from the increase in demand for our equipment
and services from our broadening customer base combined with our
greater ability to meet that demand as we continue to invest in
building our HP/HT wellhead set rental inventory fleet. Standard
pressure equipment sales reduced by 35.2% to GBP2.35m from GBP3.63m
in the prior year, and accounted for 11.9% of total sales. This
decline reflected the UKCS reduced exploration activity during the
period, and which in 2011 according to Oil & Gas UK was 50%
less than 2010 making it the lowest year for exploration since the
mid-1960s. This decline is anticipated to reverse in the future.
This year, revenues of GBP0.70m were generated by engineering and
testing as opposed to none last year as tangible customer support
for the on-going development of our technology continues to gather
momentum.
Margin
Gross margins have increased strongly to 70.9% from 60.1% in the
previous year as HP/HT rental activity continues to dominate sales
and generate higher margins than low pressure equipment contracts,
and as operational efficiencies flow through as a result of
increased sales revenues. Further margin enhancing factors include
lower equipment refurbishment costs for on-going contracts where
equipment has not yet had to be returned to the Plexus Aberdeen
facility and where costs related to equipment mobilisation and
logistics are inevitably lower.
Overhead expenses
As anticipated overhead expenses have increased to provide the
necessary additional infrastructure and personnel to support
various new product development projects, and in particular the new
subsea wellhead as well as increasing numbers of customers around
the world. This resulted in total overheads increasing to GBP10.78m
from GBP7.59m in the previous year, of which overhead staff costs
increased to GBP4.81m from GBP3.39m, demonstrating the need to
ensure that the Group's increased activity levels are able to be
managed in line with customer and operational requirements. The
staff cost increase can be clearly seen in the employee headcount
which at the year end was 113 compared to 91 for the prior year, an
increase of 24.2%. Other items which increased significantly year
on year as a result of the increased activity levels and staff
increases were recruitment fees, training, travel and subsistence,
rent and rates, freight and couriers.
EBITDA
EBITDA for the year (before IFRS2 share based payment charges of
GBP0.25m) was ahead of market expectations at GBP6.24m, increased
from GBP4.69m (before IFRS2 share based payment charges of
GBP0.19m) the previous year, an increase of 33.0%. EBITDA margin
for the year was also higher at 31.6% as compared to 30.4% last
year. This further strong EBITDA performance was delivered as a
result of a combination of higher margins associated with HP/HT
rental activity, operational efficiencies gained from on-going
contracts, and the proprietary nature of the Plexus POS-GRIP
friction-grip technology which has the advantage of delivering
enhanced safety, operational, and time saving advantages which
customers value.
Profit before tax
Profit before tax increased significantly to a record GBP3.09m
compared to a profit last year of GBP1.57m, an increase of 96.8%.
This increase has been achieved after absorbing rental asset and
other property, plant and equipment depreciation and amortisation
charges of GBP2.71m, down marginally from GBP2.83m last year, and
which in particular continues to reflect the on-going investment in
Plexus' rental inventory. The profit before tax is stated after an
IFRS2 charge for share based payments under reporting standard IFRS
2; the charge for the full year is GBP0.25m compared to GBP0.19m
last year.
Tax
Group UK Corporation Tax resulted in a tax charge of GBP0.66m
for the year as compared to GBP0.33m for the prior year. The Group
has provided for a charge to UK Corporation tax at a rate of 21%
for the full year, which continues to be below normal corporation
tax rates mostly as a result of R&D related tax credits
resulting from the Group's continued investment in and development
of its proprietary technology.
EPS
The Group reports basic earnings per share of 2.99p compared to
1.55p in the prior year, an increase of 92.9%.
Cash and Statement of Financial Position
The statement of financial position reflects the growth in
operations during the year. The net book value of property, plant
and equipment including items in the course of construction
increased by 14.4% to GBP9.14m compared to GBP7.99m last year.
Capital expenditure on tangibles totalled GBP3.47m compared to
GBP1.64m last year, an increase of 111.6%. Of this significant
increase GBP2.49m was for the addition of three more HP/HT wellhead
equipment sets as a result of a necessary step up in capital
expenditure levels to meet increased order levels. Receivables
increased to GBP6.05m as compared to GBP3.54m. Net bank borrowings
closed at GBP0.26m compared to GBP0.56m last year reflecting net
cash inflow for the year of GBP0.3m after absorbing a significant
increase in total capital expenditure of GBP4.62m (2011: GBP2.34m),
and receipt of GBP1.68m from the placing of new shares in January
2012. This compares to net cash inflow of GBP2.34m last year. In
recognition of the continuing difficulties in the credit markets
and the constraints on banks' lending capacities the Group has
decided to retain its existing GBP6.0m lending facilities structure
with Bank of Scotland Corporate. These facilities are anticipated
to be more than adequate to meet on-going capital expenditure,
R&D, and related project commitments.
Intellectual Property
The Group carries in its statement of financial position
goodwill and intangible assets of GBP8.52m, increased from GBP7.89m
last year reflecting the Group's on-going investment in the
development of its POS-GRIP technology. The Directors have
considered whether there have been any indications of impairment
and have concluded that there have been no such indications. The
Directors therefore consider the current carrying values to be
appropriate. Indications of impairment are considered annually.
Research and Development
Significant on-going R&D investment continues to play a key
role in Plexus' future growth plans both for existing wellhead
equipment sales activities, and the on-going development of new
patent initiatives for the Group's proprietary method of
engineering in conjunction with various product design and
development programmes that utilise and incorporate the unique
advantages of POS-GRIP technology. A key example of this strategy
is the important JIP for the development of a new POS-GRIP HGSS
subsea wellhead design which was launched in response to the 2010
incident in the Gulf of Mexico, and which is planning to deliver
specific safety, operational, and cost saving features in a way
that conventional equipment does not. The R&D investment being
made in this project has been validated by a number of major
international oil and gas operators joining the JIP as consulting
partners and they are contributing their experience and future
requirements to the design and development process. A second
project is the HP/HT Mudline Tie-Back wellhead system product which
has benefitted from Maersk contributing GBP0.26m towards the final
development stage and on-going testing. A third project is a
GBP0.5m design project for a subsea wellhead HP/HT crossover system
for Wintershall Noordzee B.V. R&D spend increased by 104.6%,
including cost of building new test fixtures, to GBP1.38m from
GBP0.67m in the prior year, and is expected to continue during the
2012/13 financial year.
IFRS 2 (Share Based Payments)
IFRS2 charges have been included in the accounts, in line with
reporting standards. The "fair value" of share based payments has
been computed independently by specialist consultants and is
amortised evenly over the expected vesting period from the date of
grant. The charge for the year was GBP0.25m which compares to
GBP0.19m last year.
Dividends
The Company announced on 29 March 2012 the payment of an
increased interim dividend of 0.39p per share which was approved
for payment on 27 April 2012.
In further recognition of the Group's on-going progress the
Directors have decided to propose a 16.3% increase in the final
dividend of 0.5p per share for the year ending 30 June 2012
compared to 0.43p last year, which will be recommended for formal
approval at the Annual General Meeting to be held on 28 November
2012. Subject to this the dividend will be paid on 14 December
2012.
Graham Stevens
Finance Director
15 October 2012
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2012
2012 2011
Notes GBP'000 GBP'000
Revenue 1 19,706 15,421
Cost of sales (5,727) (6,152)
Gross profit 13,979 9,269
Administrative expenses (10,770) (7,594)
Operating profit 3,209 1,675
Finance income 8 16
Finance costs (129) (121)
Share of loss of associate - (1)
Profit before taxation 3,088 1,569
Income tax expense 3 (657) (326)
Profit after taxation and comprehensive income
for the year attributable to the owners of
the parent 2,431 1,243
Earnings per share 5
Profit for the year attributable to Plexus
Holdings shareholders
Basic 2.99p 1.55p
Diluted 2.92p 1.53p
All income arises from continuing operations.
Consolidated Statement of Financial Position
at 30 June 2012
2012 2011
Notes GBP'000 GBP'000
Assets
Goodwill 760 760
Intangible assets 6 7,762 7,128
Financial assets 60 60
Property, plant and equipment 7 9,145 7,992
Deferred tax asset 473 -
Total non-current assets 18,200 15,940
Inventories 6,047 4,049
Trade and other receivables 6,060 3,543
Cash and cash equivalents 3,739 3,441
Total current assets 15,846 11,033
Total Assets 34,046 26,973
Equity and Liabilities
Called up share capital 8 827 802
Share premium account 17,280 15,596
Share based payments reserve 1,201 950
Retained earnings 4,582 2,293
Total equity 23,890 19,641
Liabilities
Deferred tax liabilities - 299
Bank loans 4,000 4,000
Total non-current liabilities 4,000 4,299
Trade and other payables 5,332 2,687
Current income tax liabilities 824 346
Total current liabilities 6,156 3,033
Total liabilities 10,156 7,332
Total Equity and Liabilities 34,046 26,973
Consolidated Statement of Changes in Equity
for the year ended 30 June 2012
Called Share
Up Share Share Based
Capital Premium Payments Retained Total
GBP'000 Account Reserve Earnings GBP'000
GBP'000 GBP'000 GBP'000
Balance as at 1 July 2010 802 15,596 764 1,674 18,836
Total comprehensive income
for the period - - - 1,243 1,243
Share based payments reserve
charge - - 186 - 186
Deferred tax movement on share
options - - - (31) (31)
Dividends - - - (593) (593)
Balance as at 30 June 2011 802 15,596 950 2,293 19,641
Total comprehensive income
for the period - - - 2,431 2,431
Share based payments reserve
charge - - 251 - 251
Issue of ordinary shares 25 1,975 - - 2,000
Share issue costs - (291) - - (291)
Deferred tax movement on share
options - - - 525 525
Dividends - - - (667) (667)
Balance as at 30 June 2012 827 17,280 1,201 4,582 23,890
Consolidated Statement of Cash Flows
for the year ended 30 June 2012
2012 2011
GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 3,088 1,569
Adjustments for:
Depreciation, amortisation and impairment
charges 2,709 2,830
Loss on disposal of property, plant and equipment 70 83
Charge for share based payments 251 186
Investment income (8) (16)
Interest expense 129 121
Changes in working capital:
Increase in inventories (1,998) (717)
(Increase)/decrease in trade and other receivables (2,517) 3,090
Increase/(decrease) in trade and other payables 2,645 (2,086)
Cash generated from operating activities 4,369 5,060
Income taxes (paid)/repaid (426) 268
Net cash generated from operating activities 3,943 5,328
Cash flows from investing activities
Acquisition of subsidiary entity - (10)
Adjustment to value of associate undertaking - (18)
Purchase of intangible assets (1,150) (699)
Purchase of property, plant and equipment (3,471) (1,640)
Proceeds of sale of property, plant and equipment 55 83
Net cash used in investing activities (4,566) (2,284)
Cash flows from financing activities
Proceeds from issue of new ordinary shares 2,000 -
Transaction costs from issue of new ordinary (291) -
shares
Interest paid (129) (121)
Interest received 8 14
Equity dividends paid (667) (593)
Net cash generated from/(used in) financing
activities 921 (700)
Net increase in cash and cash equivalents 298 2,344
Cash and cash equivalents at 1 July 2011 3,441 1,097
Cash and cash equivalents at 30 June 2012 3,739 3,441
Notes to the Consolidated Financial Statement
1. Revenue
2012 2011
GBP'000 GBP'000
By geography
UK 9,172 7,209
Europe 7,009 2,103
Rest of World 3,525 6,109
19,706 15,421
Revenue is shown by destination as the origin of revenues is all
from the UK.
2. Segment reporting
The Group derives revenue from the sale of its POS-GRIP
technology and associated products, the rental of wellheads
utilising the POS-GRIP technology and service income principally
derived in assisting with the commissioning and ongoing service
requirements of our equipment. These income streams are all derived
from the utilisation of the technology which the Group believes is
its only segment.
Per IFRS 8, the operating segment is based on internal reports
about components of the group, which are regularly reviewed and
used by the board of directors being the Chief Operating Decision
Maker ("CODM").
All of the Group's non-current assets are held in the UK.
The following customers each account for more than 10% of the
Group's revenue:
2012 2011
GBP'000 GBP'000
Customer 1 2,978 2,502
Customer 2 2,929 193
Customer 3 2,554 2,199
Customer 4 2,108 -
3. Income tax expense
(i) The taxation charge for the year comprises: 2012 2011
GBP'000 GBP'000
UK Corporation tax:
Current tax on income for the year 919 582
Adjustment in respect of prior years (42) (245)
877 337
Foreign tax:
Current tax on income for the year 27 190
Total current tax 904 527
Deferred tax:
Origination and reversal of timing differences (243) (236)
Adjustment in respect of prior years (4) 35
Total deferred tax (247) (201)
Total tax charge 657 326
The effective rate of tax is 21% (2011: 21%)
(ii) Factors affecting the tax charge for the
year
Profit on ordinary activities before tax 3,088 1,569
Current tax charge at 24% (2011: 26%) 741 408
Effects of:
Expenses not deductible for tax purposes 98 101
Capital allowances for the year less than depreciation 40 120
Foreign tax 12 119
Adjustments in respect of prior year (42) (245)
Effect of change in tax rate 55 24
Current tax charge for the year 904 527
(iii) Movement in deferred tax balance
Deferred tax liability at beginning of year 299 469
Charge to Statement of Comprehensive Income (247) (201)
Deferred tax movement on share options (525) 31
Deferred tax (asset)/liability at end of year (473) 299
(iv) Deferred tax balance
The deferred tax balance is made up of the
following items:
Difference between depreciation and capital
allowances 336 423
Share based payments (776) (88)
Tax losses (33) (36)
Deferred tax (asset)/liability at end of year (473) 299
4. Dividends
2012 2011
GBP'000 GBP'000
Ordinary Shares
Interim paid of 0.39p (2011: 0.35p) per share
for the year ended 30 June 2012 322 281
Ordinary Shares
Final dividend after the year end of 0.5p (2011:
0.43p) per share 414 345
The proposed final dividend has not been accrued at the balance
sheet date.
5. Earnings per share
2012 2011
GBP'000 GBP'000
Profit attributable to shareholders 2,431 1,243
Number Number
Weighted average number of shares in issue 81,331,287 80,182,569
Dilution effects of share schemes 2,054,063 789,827
Diluted weighted average number of shares in
issue 83,385,350 80,972,396
Basic earnings per share 2.99p 1.55p
Diluted earnings per share 2.92p 1.53p
Basic earnings per share is calculated on the results attributable
to ordinary shares divided by the weighted average number of
shares in issue during the year.
Diluted earnings per share calculations include additional shares
to reflect the dilutive effect of employee share schemes and
share option schemes.
6. Intangible fixed assets
Patent and
Intellectual Other Computer
Property Development Software Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 1 July 2010 6,440 2,084 119 8,643
Additions - 674 25 699
As at 1 July 2011 6,440 2,758 144 9,342
Additions - 1,137 13 1,150
As at 30 June 2012 6,440 3,895 157 10,492
Amortisation
As at 1 July 2010 1,372 277 97 1,746
Charge for the year 330 122 16 468
As at 1 July 2011 1,702 399 113 2,214
Charge for the year 330 163 23 516
As at 30 June 2012 2,032 562 136 2,730
Net Book Value
As at 30 June 2012 4,408 3,333 21 7,762
As at 30 June 2011 4,738 2,359 31 7,128
As at 30 June 2010 5,068 1,807 22 6,897
Patent and other development costs are internally generated.
7. Property, plant and equipment
Assets
Tenant under
Improvements Construction Motor
Buildings GBP'000 Equipment GBP'000 Vehicles Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 1 July
2010 661 - 14,246 176 14 15,097
Arising on acquisition - - - - 14 14
Additions 24 81 212 1,323 - 1,640
Transfers - - 947 (947) - -
Disposals - - (666) - (1) (667)
As at 1 July
2011 685 81 14,739 552 27 16,084
Additions - 132 573 2,734 32 3,471
Transfers - - 2,435 (2,435) - -
Disposals - - (653) - (12) (665)
As at 30 June
2012 685 213 17,094 851 47 18,890
Depreciation
As at 1 July
2010 10 - 6,209 - 12 6,231
Charge for the
year 125 - 2,233 - 4 2,362
On disposals - - (500) - (1) (501)
As at 1 July
2011 135 - 7,942 - 15 8,092
Charge for the
year 124 39 2,022 - 9 2,194
On disposals - - (530) - (11) (541)
As at 30 June
2012 259 39 9,434 - 13 9,745
Net book value
As at 30 June
2012 426 174 7,660 851 34 9,145
As at 30 June
2011 550 81 6,797 552 12 7,992
As at 30 June
2010 651 - 8,037 176 2 8,866
8. Share Capital
2012 2011
GBP'000 GBP'000
Authorised:
Equity: 110,000,000 (2011: 110,000,000) Ordinary
shares of 1p each 1,100 1,100
Allotted, called up and fully paid:
Equity: 82,746,672 (2011: 80,182,569) Ordinary
shares of 1p each 827 802
Share issue during the year:
Number Share Share
of shares capital premium Total
GBP'000 GBP'000 GBP'000
At 1 July 2011 80,182,569 802 15,596 16,398
On 17 January 2012 2,564,103 25 1,975 2,000
Less share issue costs - - (291) (291)
At 30 June 2012 82,746,672 827 17,280 18,107
On 17 January 2012, 2,564,103 ordinary shares with an aggregate
nominal value of GBP25,641 were issued at a price of 78p per share,
with an aggregate value of GBP2m before expenses. The excess net
proceeds have been credited to the share premium account.
9. Reconciliation of net cash flow to movement in net debt
2012 2011
GBP'000 GBP'000
Increase in cash in the year 298 2,344
Cash inflow from increase in net debt - -
Movement in net debt in year 298 2,344
Net debt at start of year (559) (2,903)
Net debt at end of year (261) (559)
10. Analysis of net debt
At At
beginning end
of year Cash flow of year
GBP'000 GBP'000 GBP'000
Cash in hand and at bank 3,441 298 3,739
Overdrafts - - -
3,441 298
Bank loans (4,000) - (4,000)
Total (559) 298 (261)
The financial information above does not constitute the
company's statutory accounts for the year ended 30 June 2012 but is
derived from those statements.
The statutory financial statements and this preliminary
statement for the year ended 30 June 2012 were approved by the
Board on 15 October 2012. On the same date the company's auditors,
Crowe Clark Whitehill LLP issued an unqualified report on those
financial statements. The audit report did not include reference to
any matters to which the auditor drew attention by way of emphasis
without qualifying the report or contain a statement under section
498(2) or (3) of the Companies Act 2006. The Company's financial
statements have been prepared in accordance with International
Financial Reporting Standards, as adopted by the EU. A copy of the
statutory accounts will be delivered to the Registrar of Companies
in due course.
The Annual Report will be circulated to all shareholders and
thereafter, copies will be available from the registered office of
the company, Thames House, Portsmouth Road, Esher, Surrey, KT10
9AD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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