Tax cuts welcomed
Plexus falls to loss but predicts oil recovery in two years
Revenue for the six month period ended 31 December was £6.76m, a 49.9% reduction on the previous year’s figure of £13.51m.
This resulted in a loss of £3.5m compared to a profit before tax of £2.2m in the equivalent period last year. The loss came after absorbing higher rental asset and other property, plant and equipment depreciation and amortisation costs totalling £2.19m up from £1.85m for the same period last year, an increase of 15.5%.
Plexus laid off 50 of its 130 staff, reducing payroll costs from £8.15m to £4.27m.
Welcoming recent measures by Chancellor George Osborne to cut taxes, chairman Jeff Thrall said he expectst the oil price to recover over the next two years.
“While our business has been impacted by the falling oil price, the outcome would have been more acutely felt but for the efforts we have made in recent years to diversify our geographic exposure into other regions which have different cost and pricing regimes to the North Sea,” he said.
“We are of course not in the business of calling the peaks and troughs of markets, but there is a growing view that the industry will overshoot on the downside and that the severe cut back in planned or new exploration activity that has taken place as a result of this being the one activity that can be “turned off” the quickest, is likely to lead to a supply constraint over the next 12 to 24 months and a corresponding increase in the oil price.”