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Article: Plexus invests for growth.
- Article from:
- Investors Chronicle - magazine and web content
- Article date:
- March 27, 2009
CopyrightCOPYRIGHT 2009 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Martin Li
TIP UPDATE: Significant contract wins and secure financing leave Plexus looking well placed to invest for growth.
Plexus continues to win large contracts for its proprietary POS-GRIP well head technology, particularly in high pressure and high temperature environments - that included a second four-year framework agreement with Shell Brunei. Other awards included a GBP1.7m contract with ConocoPhillips, and a GBP0.75m contract for Shell Egypt.
Still, the cashflow profile of these contracts, as well as other orders, is geared towards the second half - which explains the flat turnover and reduced profits in the period. Moreover, ...