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FY2021 Annual Report · Poseidon Nickel
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safer  performance    |    leak-proof    |    reduced  costs

A N N U A L   R E P O R T
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Plexus in July 2021 was recognized by the London 
Stock Exchange as contributing to the global green 
economy by deriving more than 50% of revenues 
from environmental solutions. Plexus has been 
protecting the environment for over 30 years, 
initially with its ‘through the BOP’ (Blow Out 
Preventer) wellhead designs, and subsequently with 
its POS-GRIP® proprietary metal-to-metal  
leak-proof wellhead sealing system.

W W W . P L E X U S P L C . C O M

 
 
 
 
 
 
 
 
 
 
 
mechanism.

markets.

P L E X U S 

P O S - G R I P   T E C H N O L O G Y 

P O S - G R IP ®
P R O P R I E TA R Y   M E T H O D   O F 
F R I C T I O N   G R I P   E N G I N E E R I N G

POS-GRIP friction-grip technology is based 
on a very simple concept. A compressive 
force is applied on the outside of a wellhead 
or pipe, to flex it inwards. As the bore of 
the vessel moves inwards, it makes contact 
with an inner pipe (or hanger) on the inside. 
Sufficient contact force is generated to fix 
the inner member (hanger) in place through 
friction between the two components.

In wellheads, POS-GRIP can replace the 
conventional load shoulder or slips to 
provide an improved hanger support 

Utilising our patented POS-GRIP technology, 
we are continually developing new wellhead 
equipment to meet our customers’ 
requirements, delivering solutions for 
the surface, subsea and decommissioning 

P O S - G R IP ®
P O S - G R I P ®
P ROPRIETARY METHOD O F 
P ROPRIETARY METHOD O F 
F RICTION GRIP EN GIN EERING
F RICTION GRIP EN GIN EERING

POS-SET Connector recently deployed 
for a well decommissioning project

Plexus HG® technology, is a simple scientific 
POS-GRIP friction-grip technology is based 
method of design for metal interface seals, used to 
on a very simple concept. A compressive 
permanently contain METHANE GAS in wellheads, 
force is applied on the outside of a wellhead 
throughout the life of a producing well.
or pipe, to flex it inwards. As the bore of 
the vessel moves inwards, it makes contact 
The seal system comprises of multiple integral 
with an inner pipe (or hanger) on the inside. 
radiused bump rings, which interact directly with 
Sufficient contact force is generated to fix 
the wellhead bore, to halve the number of leak paths 
the inner member (hanger) in place through 
past the annulus, using a series of redundant gallery 
friction between the two components.
seals. A preload above yield is carefully delivered 
and recorded by the externally controlled horizontal 
In wellheads, POS-GRIP can replace the 
deflection of the housing wall against solid hanger 
conventional load shoulder or slips to 
bodies, thereby equally distributing perimeter 
provide an improved hanger support 
stress, in compliance with the principles of Hertzian 
mechanism.
Stress Theory (HST).

POS-GRIP is ideal for high integrity, low 
fatigue connector applications. Wellhead 
connectors, riser connectors, subsea jumper 
connectors, pipeline connectors, and even 
vessel mooring connectors can benefit from 
the simplicity of POS-GRIP.

Production wellheads and surface subsea 
have all benefitted from POS-GRIP. Casing and 
tubing hangers can be gripped, but POS-GRIP 
can also be used to support wearbushings, 
BOP test tools and seal sleeves.

P O S - G R I P   A P P L I C AT I O N S

Connectors

Wellheads

A potential low cost application of 
POS-GRIP in an “HG” Tubing Head

Metal-to-metal sealing

Wellheads and connectors can both benefit 
from the direct contact created when the 
POS-GRIP metal to metal HG® seal is activated, 
delivering an unrivalled gas-proof seal.

Utilising our patented POS-GRIP technology, 
The system stays permanently rigid, guarantees 
we are continually developing new wellhead 
life-cycle integrity and is maintenance-free, using 
equipment to meet our customers’ 
re-usable components. By matching materials at the 
requirements, delivering solutions for 
seal interface, bi-metallic corrosion is prevented and 
the surface, subsea and decommissioning 
multiple metal seals are used to anticipate the pace 
markets.
of chemical degradation, throughout field-life.

POS-GRIP in OPEN Position

A potential low cost application of 
POS-GRIP in CLOSED Position
POS-GRIP in an “HG” Tubing Head

P L E X U S 
P L E X U S 
P O S - G R I P   T E C H N O L O G Y 
P O S - G R I P   T E C H N O L O G Y 

Plexus has always maintained that 
PREVENTION is a better way of addressing 
fugitive emissions as well as being a more 
effective way of achieving Net Zero at the 
wellhead, compared to simply pursuing a 
monitoring and cure approach. 

Such logic has been clear to see for 
hundreds of years:

Benjamin Franklin famously  
advised fire-threatened Philadelphians  
in 1736 that:

“ An ounce of 

prevention is worth 
a pound of cure.”

POS-GRIP “HG” production wellhead is assembled ready for testing ahead of 
drilling and producing a new North Sea well

P L E X U S 
P O S - G R I P   T E C H N O L O G Y 

POS-SET Connector recently deployed 
POS-GRIP
POS-GRIP
for a well decommissioning project
Production Wellhead System
Production Wellhead System

POS-GRIP “HG” production wellhead is assembled ready for testing ahead of 
drilling and producing a new North Sea well

P L E X U S 
P O S - G R I P   T E C H N O L O G Y 

P OS-G RIP AP PL ICAT IO NS
P OS-G R IP APP LIC AT ION S
Wellheads

Production wellheads and surface subsea 
Wellheads
have all benefitted from POS-GRIP. Casing and 
Production wellheads, both surface and subsea 
tubing hangers can be gripped, but POS-GRIP 
have all benefitted from POS-GRIP. Casing 
can also be used to support wearbushings, 
and tubing hangers can be gripped, but 
BOP test tools and seal sleeves.
POS-GRIP can also be used to support 
wearbushings, BOP test tools and seal 
Connectors
sleeves.
POS-GRIP is ideal for high integrity, low 
fatigue connector applications. Wellhead 
Connectors
connectors, riser connectors, subsea jumper 
POS-GRIP is ideal for high integrity, low 
connectors, pipeline connectors, and even 
fatigue connector applications. Wellhead 
vessel mooring connectors can benefit from 
connectors, riser connectors, subsea jumper 
the simplicity of POS-GRIP.
connectors, pipeline connectors, and even 
vessel mooring connectors can benefit from 
Metal-to-metal sealing
the simplicity of POS-GRIP.
Wellheads and connectors can both benefit 
from the direct contact created when the 
Metal-to-metal sealing
POS-GRIP metal to metal HG® seal is activated, 
Wellheads and connectors can both benefit 
delivering an unrivalled gas-proof seal.
from the direct contact created when the 
POS-GRIP metal to metal HG® seal is 
activated.

Financial and Corporate Overview 

Following  the  sale  in  2018  of   Plexus’  wellhead  exploration  equipment  services  business  for  Jack-up 
applications (‘the Jack-up Business’) to FMC Technologies Limited (‘TFMC’), a subsidiary of one of the 
leading oil and gas service and equipment companies TechnipFMC (Paris:FTI) (NYSE:FTI), the year-end 
results and comparative prior year period have been reported as required on a continuing and a discontinued 
operations basis. 

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Continuing operations sales revenue £2,017k (2020: £525k) 

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Discontinued operations sales revenue £nil (2020: £nil) 

Adjusted EBITDA on continuing activities £2.69m loss (2020: £3.08m loss), (page 10). 

Continuing operations operating loss £4,546k (2020: £5,681k) 

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Discontinued operations operating profit £20k (2020: loss £2,432k) 

Continuing operations operating loss after tax £4,110k (2020: £4,058k) 

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Discontinued operations loss after tax £392k (2020: £2,549k loss) 

Basic loss per share from continuing activities 4.09p (2020: 3.92p loss) 

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Basic loss per share from discontinued activities 0.39p (2020: 2.47p earning) 

Cash and cash equivalents of £5.18m (2020: £4.09m) 

Bank borrowing of £2.04m (2020: nil) relating to a drawn down Lombard facility 

The Group has £3.04m invested in financial assets (2020: £3.0m) 

Operational Overview 

Building a portfolio of licensing and direct sales revenue streams centred around establishing Plexus’ leak-proof 
POS-GRIP®  wellhead  equipment  as  the  go-to  technology  for  energy  markets  whilst  making  a  genuine 
contribution to the oil and gas industry’s ESG and NetZero goals by championing “through the BOP” (Blow-out 
Preventer) designs, and lifetime leak-proof wellhead metal-to-metal sealing systems 

Licence Agreements 

New Licence Agreement 

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November 2020 – non-exclusive licence signed with Cameron International Limited (‘Cameron’) for 
POS-GRIP surface production wellhead technology – Cameron is a group company of Schlumberger, 
the world’s leading oilfield services provider 

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Agreement allows Cameron to use the Company’s POS-GRIP and “HG” metal to metal seal 
method of engineering for the development of conventional and unconventional oil and gas surface 
wellheads 

Currently collaborating with Cameron on the development of  an inaugural low-cost wellhead 
design incorporating the POS-GRIP method of engineering 

Existing Licence Agreements 

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Continued focus on IP and R&D to support licensees and generate future revenue through royalties and 
new Plexus products 

Existing IP Collaboration Agreement in place with TFMC 

In Russia, strategy centred on supporting licensing partner Gusar’s ongoing efforts to pursue contract 
opportunities for POS-GRIP Jack-up exploration rental wellheads 

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Following successful installation of first wellhead in 2019 under inaugural contract secured by 
Gusar with global energy giant Gazprom, a planned second well did not go ahead in 2020 due to 
COVID-19 

Drilling programmes have begun to resume this year, which potentially will deliver further revenues 
under this contract 

New markets 
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Active targeting of new markets in line with strategy to deliver safe, reliable and cost-effective 
solutions to the energy industry resulted in post period end re-entry into the Jack-up Exploration 
(Adjustable) Wellhead rental business

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Plexus Holdings plc Annual Report 2021 

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August  2021  –  Agreement  with  Cameron  will  see  Exact-15  (“Exact”)  system  rental  wellhead 
inventory and Centric-15 (“Centric”) mudline system equipment transferred to Plexus – Cameron 
to provide manufacturing support and assistance in sales lead generation in return for royalty fee 

Exact is a ‘through the BOP’ (“Blow-out Preventer”) wellhead system originally designed by Plexus 
that  delivers  improved  rig  personnel  safety  by  enabling  the  BOP  to  be  kept  in  place  during 
operations and thereby importantly reducing the risk of blow outs 

Plexus intends to build on the historic success of the Jack-up Business which the Company sold to 
TFMC in 2018 

Direct sales activity 

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Focused on securing orders for surface production wellheads, particularly in the UK and European 
North Sea regions 

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Surface production wellhead system order awarded by Spirit Energy in July 2020 for North Sea 

Participating  in  the  tender  process  for  a  range  of   projects  which  have  been  delayed  due  to 
COVID-19 associated economic downturn 

Post period end 

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July  2021  –  Plexus  received  London  Stock  Exchange’s  Green  Economy  Mark  in  recognition  of 
contributing  to  the  global  green  economy,  and  demonstrating  alignment  with  Net  Zero  and  ESG 
principles 

Plexus Holdings plc Annual Report 2021

2

Chief Executive Ben van Bilderbeek said: 

“There were a number of positive milestones during the year – a near quadrupling in full year revenues to £2 
million; the signing of a non-exclusive licensing agreement with top tier supplier Cameron for our POS-GRIP 
surface production wellhead technology; and the award of a surface production wellhead order from Spirit 
Energy. However, I am particularly proud of one more – Plexus receiving the London Stock Exchange’s Green 
Economy Mark in July 2021 in recognition of its contribution to the global green economy. This achievement 
best sums up what the Company is about, what we are looking to achieve, and the important role our green 
leak proof technology can play in the energy transition as the focus on ESG and NetZero goals intensifies. 
This is particularly relevant in view of this year’s COP 26 climate change conference in Glasgow where the 
reduction of methane emissions is high on the agenda. 

“What we are about. Plexus is the developer and owner of POS-GRIP, a friction grip method of engineering, 
which  has  been  deployed  on  over  400  wells  by  blue-chip  operators  all  around  the  world.  Our  wellhead 
equipment has raised the bar in terms of gas proof sealing performance, safety, and reliability not only out 
in the field but also in testing, both in-house and externally. Apart from offering safer “through the BOP” 
(Blow-out  Preventer)  operating  procedures,  POS-GRIP  can  also  deliver  true  and  verifiable  leak-proof 
performance during the life of a well and beyond where patented HG® metal-to-metal seals are used. This is 
achieved by applying an external force to squeeze a housing until it engages with the components inside 
(casing or tubing hangers in wellheads). This generates a gripping force that eliminates assembly clearances 
and activates the “HG” seals, delivering what is believed to be a lifetime leak-proof metal seal solution. As 
the  process  is  controlled  by  hydraulic  pressure  and  occurs  within  the  elastic  limits  of   the  material,  the 
connection is reversible. Compare all this with rival ‘conventional’ systems, which typically comprise a far 
higher number of individual components – the more components, the more chance there is for seal integrity 
to be compromised and for individual pieces to succumb to fretting/movement caused by temperature and 
pressure variations, requiring in some cases expensive ‘shut-ins’ and regular seal maintenance. 

“What we are looking to achieve. Having set a higher standard in terms of wellhead performance, reliability, 
and safety and by offering operators considerable cost savings via reduced installation and downtime, we are 
looking to establish POS-GRIP as the go-to leak-proof technology for the energy sector as a whole. Wherever 
metal to metal wellhead sealing and Tie-Back capabilities are required, POS-GRIP can deliver a leak-proof 
solution whether at the surface or subsea. Existing wells: the POS-GRIP “HG” Tubing Spool delivers leak-
free  performance  at  the  “HG”  seals  for  the  entire  field  life,  eliminating  the  requirement  for  any  annual 
maintenance, which in turn generates substantial savings for operators. New wells: used on over 400 wells, 
Plexus’ exploration and production wellheads are proven to deliver superior performance and cost savings. 
Abandoned wells: our POS-SET Connector facilitates abandonment operations by delivering a best-in-class 
solution to re-establish a connection onto rough conductor casing that has been previously cut above the 
seabed – in full testing, the POS-SET Connector achieved 80% of the bending and tensile strength of the 
parent pipe, a significantly superior capability when compared to conventional alternatives. Renewables: focus 
is being given to develop POS-GRIP applications for the renewables sector, including geothermal, hydrogen 
and nuclear. Such initiatives can also extend to the important gas storage sector whether for gas, CO2 or 
hydrogen. Here the need for equipment that can offer decades of leak-proof integrity is obviously critical, 
both for commercial and green reasons, and especially where equipment is inaccessible subsea. Clearly, there 
is no point in using conventional equipment that may have been designed to have a lifespan of 25 years, when 
a storage facility may be required for 100 years or more. 

“The important role we can play in the energy transition. EU: net zero greenhouse gas emissions by 2050. US: 
50-52 percent reduction from 2005 levels in economy-wide net greenhouse gas pollution by 2030. China: peak 
carbon emissions by 2030 and net zero by 2060. There can be no doubt an energy transition is underway. 
Hitting  the  above  self-imposed  targets  however  will  require  an  enormous  effort  and  considerable  will, 
particularly when one considers that the energy transition is set to coincide with a period of sustained energy 
demand  growth  –  in  its  annual  International  Energy  Outlook  report,  the  US  Energy  Information 
Administration states, ‘If current policy and technology trends continue, global energy consumption and 
energy-related carbon dioxide emissions will increase through 2050 as a result of population and economic 
growth.’ The report’s accompanying presentation attaches a number to the forecast, ‘By 2050, global energy 
use increases nearly 50%.’ 

“Renewables will not on their own be able to meet the forecast rise in energy demand. The EIA report goes 
on to say that while renewables are expected to become ‘the primary source for new electricity generation…
oil and natural gas production will continue to grow…’ Liquid fuels will therefore have to play a major role 
in  energy  generation  for  decades  to  come.  This  does  not  mean,  however,  that  a  rise  in  harmful  carbon 
emissions has to be a given. The oil and gas industry is in a position to take meaningful steps to satisfy rising 
demand for energy while at the same time reduce its carbon footprint. The solution is centred around natural 
gas, the cleanest fossil fuel by far in terms of carbon emissions when combusted. At least that is the case in 
the laboratory. In the real world, the benefits to the environment from using natural gas are less clear cut as 

3

Plexus Holdings plc Annual Report 2021 

by allowing harmful emissions, notably methane which comprises circa 80% of natural gas, to escape into 
the atmosphere from leaky equipment, the advantages of natural gas over dirtier fossil fuels, such as coal, are 
largely negated. This is particularly the case because methane is estimated to be up to circa 80 times more 
potent in relation to climate change than carbon dioxide. If the world is serious about reaching net zero, and 
if all that additional demand for energy is to be satisfied, eliminating harmful emissions from gas operations 
from the well site, and in particular the wellhead all the way through to the consumer, is critical. 

“For that to happen, a change of mindset among operators is required. The tried but no longer wholly trusted 
approach of monitoring hardware for leaks and, when one is detected, taking remedial action which cannot 
be guaranteed to be effective, is no longer sufficient. Preventing leaks from happening in the first place by 
ensuring leak-proof equipment is deployed whenever and wherever possible across the supply chain is surely 
what is required. Prevention after all is the best medicine and by delivering a leak-proof POS-GRIP seal 
wellhead solution, POS-GRIP is the best medicine for a well site. As Benjamin Franklin famously said in 
1736 “An ounce of prevention is worth a pound of cure”. If the industry changes its ways and takes action 
to eliminate methane leaks from the supply chain, the prize is potentially huge, not just in terms of value 
generation for stakeholders simply by avoiding economic gas loss, but also in terms of making meaningful 
inroads towards achieving carbon neutrality and combatting climate change. Leak prevention promises to 
set off a virtuous circle for both the industry and the environment: eliminating leaks from operations would 
bolster the argument for natural gas to be formally classified as a transition fuel, which in turn would likely 
spur much needed investment in gas exploration and production activity, resulting in higher levels of supply 
to meet the strong growth in demand for energy expected during the transition. 

“Gas supply is of course highly relevant to today’s markets, and I believe will be a key component of Plexus’ 
future  success.  There  are  many  reasons  behind  this  year’s  extraordinary  spike  in  global  gas  prices  to 
unprecedented levels, but years of underinvestment have contributed to today’s keenly felt shortages. The 
need for more gas exploration drilling has been a central tenet of ours for some time and it was in anticipation 
of this that we signed a second agreement with Cameron post period end in August 2021 to re-enter the jack-
up exploration rental wellhead market, a market we know well having run our Jack-up Business successfully 
for many years before selling it on to TFMC in 2018. This latest Cameron agreement involves Plexus acquiring 
and marketing proven wellhead technology which we pioneered years ago and are therefore extremely familiar 
with. Together with the agreement we signed with Cameron for our POS-GRIP surface production wellhead 
equipment in November 2020, Plexus is well on the road to becoming the provider of enabling technology 
for the oil and gas industry that we set out to build. 

“Our post period end July 2021 announcement stated that the LSE Green Economy Mark ‘is designed to 
recognise  both  pure-play  green  technology  companies,  as  well  as  those  across  all  industries  that  make 
significant contributions to the transition to a sustainable, low carbon economy…For over 30 years, Plexus 
has been protecting the environment, initially with its ‘through the BOP’ (Blow-out Preventer) wellhead 
designs, and subsequently with its POS-GRIP® proprietary metal-to-metal leak-proof  wellhead sealing 
system.’  Despite  being  in  the  business  for  many  years,  we  believe  our  work  is  only  half   done.  We  have 
developed proven proprietary technology to support the transition to a sustainable low carbon economy. 
Now we need the industry to embrace our equipment wholeheartedly to enable us to finish the job, and by 
doing so this would, in my opinion, evidence ‘real washing’ as opposed to ‘green washing’. As the respective 
agreements we have in place with both Cameron and TFMC demonstrate, tier one suppliers recognise the 
value of our technology. Now is the time for the industry to do the same.” 

Summary of Results for the year ended 30 June 2021 

2021                   2020 
£’000                  £’000 

Revenue (continuing operations)                                                                                         2,017                     525 
Adjusted EBITDA (continuing operations)                                                                      (2,692)               (3,076) 
Operating Loss (continuing operations)                                                                            (4,546)               (5,681) 
Loss after taxation (continuing operations)                                                                      (4,110)               (4,058) 
Loss profit after taxation (discontinued operation)                                                             (392)               (2,549) 
Loss after taxation (combined)                                                                                          (4,502)               (6,607) 
Basic loss per share (pence) (continuing operations)                                                        (4.09p)               (3.92p) 
Basic (loss) / earning per share (pence) (discontinued operation)                                   (0.39p)               (2.47p) 

Plexus Holdings plc Annual Report 2021

4

Contents

Chairman’s Statement

Strategic Report

6 

9 

– Principal Activity                                                                                                                                                   9 

– Financial Results                                                                                                                                                   9 

– Operations                                                                                                                                                            11 

– Strategy and Future Developments                                                                                                                   12 

– Key Performance Indicators                                                                                                                               14 

– Principal Risks and Risk Management                                                                                                             14 

– Section 172 Statement                                                                                                                                         17 

Board of Directors

Directors’ Report

Corporate Governance

Audit Committee Report

Remuneration Committee Report

Statement of Directors’ Responsibilities

Independent Auditor’s Report to the Shareholders of Plexus Holdings plc

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Parent Company Statement of Financial Position

Parent Company Statement of Changes in Equity

Parent Company Statement of Cash Flows

Notes to the Parent Company Financial Statements

Corporate Information

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Plexus Holdings plc Annual Report 2021 

Chairman’s Statement 

Business progress 

With the impact of the Covid-19 pandemic on the energy market beginning to stabilise, the Company achieved 
a material increase in revenues in the 12 months to 30 June 2021 amounting to £2,017k (2020: £525k). 
Significantly, the global outlook on the requirement for further oil and gas development in the coming years 
is becoming more positive, especially for operators and products which manage to achieve this in the most 
environmentally conscious and responsible ways. There is a growing recognition that gas has an important 
transitional  role  to  play  as  the  world  moves  from  traditional  hydrocarbon  energy  sources  to  greener 
alternatives such as solar, wind, tidal, hydrogen, and even nuclear, but that this has to be done as cleanly as 
possible, which is where leak free equipment, and in particular wellheads and connectors, are so essential. 

The Company’s goal is to add a diverse set of revenue streams to its portfolio: the licence agreement with 
Cameron for the first time brings a focus to the US and Middle East markets and complements the licence 
already in place in Russia with our partner Gusar, Plexus’ organic growth in the local market in the UK and 
the North Sea, and specialised projects worldwide. The post period end re-entry into the Jack-up exploration 
rental wellhead business adds another dimension to this, especially as it is a market that has already been 
successfully tried and tested by Plexus in the past, and where a good reputation was established. 

The August 2021 cooperation agreements with Cameron allows Plexus to immediately enter the Jack-up 
exploration rental wellhead market, with the proven Exact and Centric wellhead and mudline suspension 
products. Plexus knows these products well, as they were initially invented and developed by Plexus in the 
1980s, before being acquired by Cameron in 1996. The Exact 15 wellhead was the first through the BOP 
wellhead to be introduced for Jack-up drilling, and with some modernisation and additions to the product 
range over the years, together with Plexus’ reputation for agility and customer focus on a per well basis, there 
is significant potential for rapid expansion of this business and revenue stream. 

Beyond exploration activities, the Board remains convinced that POS-GRIP Technology is a key enabler for 
the surface production and subsea wellhead markets, especially with the increasing pressure of Net Zero and 
requirements for positive ESG (Environmental, Social, and Governance) credentials. Not only can POS-
GRIP deliver the technically best solution, which makes it the safest and highest integrity solution – it can 
also become the most cost-effective solution. When life cycle costs are taken into account, Plexus’ technology 
can be significantly better than conventional solutions. With a focus on greener, leak-free, and more efficient 
operations, operators are increasingly looking to embrace the full potential of products they specify in their 
procurement strategies. Plexus believes that such considerations should extend beyond simply looking at 
Capex and Opex costs but should extend to Totex (total capital and operating costs over the life of a well), 
which is where leak free equipment comes into its own as a result of minimising the need for intervention 
and lost production down time. 

This year saw signs of a pick-up in activity in Russia, and it is hoped that there will be a resumption of Jack-
up exploration drilling opportunities for Gusar, our licensee for Russian and the CIS with Gazprom. This 
would build on the successful POS-GRIP wellhead deployment for a Gazprom offshore gas shallow water 
exploration well that took place in the prior year. We are hopeful that this bodes well for significant further 
potential for Gusar and its developing relationship not only with Gazprom, but also with other local Russian 
operators. 

Plexus’ 49% shareholding investment in Kincardine Manufacturing Services Limited (‘KMS’) resulted in the 
receipt of £100,000 dividends in the period despite KMS revenues and profits being adversely impacted by 
the Covid pandemic related downturn, which resulted in a scaling back of staff and operations. However, on 
a positive note, KMS is seeing a pickup in activity and expects 2021 going into 2022 to deliver a significant 
uplift in revenues as its order book continues to build. It is anticipated that dividend payments will continue, 
and hopefully at an increased level. 

Plexus’ primary and core strength is its patented POS-GRIP Intellectual Property (‘IP’), together with the 
broad family of products and associated equipment, which is enabled by this technology. Although individual 
product patents inevitably expire over time, importantly continuations and ongoing R&D form a key part of 
our ongoing IP strategy, and of course it is the body of additional registered IP, including new apparatus and 
method  patents  which  we  file,  together  with  unregistered  and  confidential  test  results,  know-how  and 
experience which give us the ability to continue to supply uniquely different friction grip technology.

Plexus Holdings plc Annual Report 2021

6

Chairman’s Statement continued

Overview 

Plexus is a wellhead technology business, but unlike all other wellhead companies, our value is underpinned 
by  POS-GRIP  and  associated  and  derived  proprietary  products.  Where  others  compete  on  a  volume 
manufacturing basis and fight for margins with very similarly conventional products, Plexus’ POS-GRIP 
proposition is truly different and delivers enhanced value to customers. The Company has demonstrated that 
its  products  perform  and  can  be  profitable  without  a  low-cost  volume  manufacturing  base  not  only 
organically, but also by adopting a licensing model to reach markets that Plexus cannot naturally access. 

Plexus has already demonstrated significant commercial success with POS-GRIP in the Jack-up exploration 
drilling wellhead market, and we now believe that the time is right for similar success in the Production 
Wellhead market – both surface and in due course subsea. The Production Wellhead licensing deal with 
Cameron  will  shortly  see  the  world’s  largest  oilfield  service  provider  begin  to  market  products  using 
POS-GRIP. Meanwhile there is also renewed urgency in Plexus’ direct sales markets, as operators react to the 
increase in energy prices, together with demands for improved leak free and maintenance free products as 
part of Net Zero goals, particularly in relation to methane. Plexus also continues to see significant future 
potential for the patented POS-GRIP Python wellhead in the subsea market. 

With significant experience and a profitable track record in the Jack-up exploration wellhead market, Plexus’ 
return to this sector using Cameron’s tried and tested through the BOP products is an opportunity to expand our 
revenue base further as well as to re-engage with customers at the exploration stage of their development cycle. 

Staff 
On behalf of the Board, I would once again like to thank all our employees for their dedication and hard 
work during another very challenging year. While ongoing Covid lockdown measures where appropriate and 
working from home have made online video meetings the norm, there has continued to be pressure on the 
industry and employment uncertainty. We are in the process of reconsolidating all Aberdeen staff back into 
the Plexus House facility, which will allow a transition back to more frequent face to face meetings. Having 
weathered this difficult period, I am sure that the coming developments and increase in activity will be positive 
for our staff, and for future employment opportunities within Plexus. 

Outlook 
The recent downturn in the oil and gas sector, which was exacerbated by the global Covid-19 pandemic and 
the resultant fall in economic activity, seems to be nearing the end as we start to see a cycle of rapidly rising 
oil and gas prices. It is now obvious there will continue to be demand for hydrocarbons for decades to come, 
particularly  gas  although  the  focus  will  be  increasingly  on  extracting  these  resources  in  the  most 
environmentally responsible way possible, which in the case of oil and gas drilling should logically mean 
specifying leak-free equipment whenever and wherever possible. We are far from being the only ones to believe 
this. 

The below extract taken from the website of the UK’s Oil and Gas Authority is not only in line with this 
view, but it also highlights the important role technology must play if the sector is to contribute to the NetZero 
energy transition whilst meeting ESG goals: 

“The Oil and Gas Authority’s (‘OGA’) role is to work with the industry and government on economic recovery 
of the UK’s oil and gas resources, whilst also supporting the move to net zero carbon by 2050. Our ambition is 
to be a world-leading authority setting the framework for a sustainable and competitive UK oil and gas industry. 

“We believe that economic recovery of oil and gas is not in conflict with the transition to net zero carbon and 
that the industry has the skills, technology and capital to help unlock solutions to help the UK achieve the net 
zero target. All forecasts show that oil and gas will remain a vital part of the UK’s energy mix as we move towards 
net zero”. 

In terms of the industry having the skills and technology, we wholeheartedly concur with the OGA: our 
POS-GRIP enabled equipment can prevent leaks and reduce maintenance at the wellhead; our re-entry into 
the Jack-up exploration market via Cameron’s ‘through the BOP’ (“Blow-out Preventer”) wellhead systems 

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Plexus Holdings plc Annual Report 2021 

Chairman’s Statement continued

will enable us to deliver improved rig personnel safety by allowing the BOP to be kept in place during operations 
and thereby cutting the risk of blow outs, and in particular ‘super-emitters’ which can leak methane in kilotons. 

Reducing the risk of super-emitters neatly encapsulates the argument for using technology to prevent harmful 
emissions occurring in the first place. So too does the specifying and installation of leak-free wellheads for 
long term production, as well as gas storage whether gas, CO2 or hydrogen. Prevention is a win-win for all. 
For operators it complements the status quo that is monitoring and potentially having to administer time 
consuming and costly cures. For the environment it helps avoid emissions incidents which in the case of 
‘super-emitters’ are believed to account for 75% of all methane emissions. 

Interestingly, there is a growing recognition that the move to NetZero does not need to be all about ‘grand 
gestures’ which can arguably create too many bumps in the road for a smooth transition. An opinion piece in 
the Financial Times in September was headlined as “Forget COP26 boasts – decarbonising takes thousands 
of tiny, boring steps”, and that “Truly green companies redesign their products rather than buying offsets or 
planting trees”. This was clearly intended to start a debate, and Plexus would certainly subscribe to the concept 
in relation to the oil and gas supply chain that every piece of equipment should be the best it can be, especially 
in  relation  to  leak-proof   performance  and  long-term  integrity.  We  believe  that  Plexus  can  meet  such  a 
challenge, particularly in relation to our wellheads and connector applications. 

This increased scrutiny and targeting of methane emissions gives us confidence that as the oil and gas market 
starts to recover and subsequent investment by operators begins to gain momentum, we should see those 
sales prospects for our leak-proof solutions that had been on hold for the duration of the downturn begin to 
make progress. As well as new opportunities arising in oil and gas, we see opportunities arising in alternative 
energy markets and applications, such as geothermal and gas storage. Even if activity only partially returns, 
Plexus requires only a small percentage of market share to see significant growth in the specialised wellhead 
market, as well as the considerable growth and market share potential arising from the licence agreements we 
have in place with Cameron. 

Following the two Cameron deals, the focus for the year ahead will be to use these, along with our own organic 
sales activities, as a platform with which to capitalise on both the recovery in the global economy and also 
the need to satisfy the world’s clear need for the ongoing recovery of hydrocarbons, particularly cleaner natural 
gas, in a responsible and sustainable manner, as evidenced by our gaining the LSE “Green Economy Mark”. 
Taking into consideration standard industry lead times, this would suggest shareholders will start to see the 
benefits of the IP-led strategy we have put in place gain traction in the 2022/2023 financial year. 

In conclusion, challenging times are often generators of significant change. We feel that now is the time for 
POS-GRIP technology to come into its own. The combination of POS-GRIP’s operational, environmental, 
and financial benefits ought to resonate strongly with companies operating across the energy sector. The 
Board is confident that there will be an increased focus on equipment integrity and guaranteed leak-free 
operation, and that this will lead to the further monetisation of our POS-GRIP technology through licensing 
and direct sales which in turn will lead to growth and value for our shareholders. 

J Jeffrey Thrall 
Non-Executive Chairman 
19 November 2021 

Plexus Holdings plc Annual Report 2021

8

 
Strategic Report

Principal Activity 

The Group markets oil and gas industry wellhead and associated equipment that utilises its patented friction 
grip method of engineering known as POS-GRIP Technology. This involves squeezing one tubular member 
against another within the elastic range to effect gripping between the components, and can also set metal to 
metal seals, known as “HG” Seal Technology. This superior method of load support and sealing for wellheads 
offers several important and unique advantages to operators, particularly for HP/HT surface and subsea 
production applications, and can include improved technical performance, improved integrity of metal-to-metal 
seals, significant installation time savings, reduced operating and maintenance costs and enhanced safety. 

The Company has developed a range of products based on this technology, and is focused on pursuing surface 
production, abandonment, subsea and geothermal wellhead opportunities, as well as connectors and the 
subsea market. 

In addition to Plexus’ organic activities, the Company also pursues licencing opportunities, and in November 
2020 granted a non-exclusive licence for certain surface wellhead applications to Cameron International 
Limited,  a  Schlumberger  group  company  to  enable  Cameron  to  use  the  Company’s  technology  for  the 
development of conventional and unconventional oil and gas surface production wellheads. Cameron has 
since been working on developing its own surface wellhead products incorporating POS-GRIP technology. 
Following successful testing of its new POS-GRIP products, Cameron will begin to market these products, 
which should lead to a royalty revenue stream for the Company. 

As the relationship with Cameron develops, it is anticipated that further opportunities will arise. This has 
already resulted in Plexus entering a cooperation agreement with Cameron in August 2021, which gives Plexus 
access to Exact -15 system wellhead inventory, and Centric-15 mudline system suspension products. This 
enables the Company to return to the Jack-up Exploration (Adjustable) Wellhead market where wellheads 
are rented for the duration of  the well, rather than sold with proven technology. Cameron will provide 
manufacturing support and assist in sales leads generation in return for a licence royalty fee. 

The Company retains the right to pursue Jack-up exploration rental wellhead related business with POS-GRIP 
products in Russia and the CIS where it has existing licence agreements with LLC Gusar and CJSC Konar. 

Business review 
A review of the development and performance during the year consistent with the size and complexity of the 
business together with commentary on future developments including the main trends and factors likely to affect 
the business is given in the Chairman’s Statement on page 6. Where guidelines make reference to the provision 
of key performance indicators the directors are of the opinion certain financial and non-financial indicators 
included in the highlights on page 1, and the Directors’ Report on page 20 meet this requirement. The Directors 
have provided a description of the principal risks and uncertainties facing the Group on page 14. 

Financial Results 

Statement of Comprehensive Income 

Revenue 
Continuing revenue for the year was £2,017k, an increase from £525k in the previous year. The increase in 
continuing sales revenue is a result of operational project work taking place during the year compared to 
none in the prior year, with the main component being licensing income. 

Margin 
Gross margin on continuing operations decreased to 47.3% (compared to 57.1% in the previous year). The 
decrease in margin is largely driven by a change in the sales mix, with a significant portion of the prior year 
revenue including royalty income which has no associated cost of sale. 

Overhead expenses 
Continuing  activities  administrative  expenses  have  decreased  when  compared  to  the  prior  year  with 
expenditure of  £5.50m (2020: £5.98m). Within this total, the continuing salary component remained the 
largest at £2.79m compared to £2.90m in the prior year.

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Plexus Holdings plc Annual Report 2021 

Strategic Report continued

Adjusted EBITDA 
The Directors use, amongst other things, Adjusted EBITDA on continuing operations as a non-GAAP 
measure  to  assess  the  Group’s  financial  performance.  The  Directors  consider  Adjusted  EBITDA  on 
continuing operations, which approximates the operational cash generated by, or used in the business, to be 
the most appropriate measure of the underlying financial performance of the Group in the period. 

Adjusted EBITDA on continuing operations for the year was a loss of £2.69m, compared to a loss of £3.08m 
in the previous year. Adjusted EBITDA on continuing operations is calculated as follows: 

Operating loss
Add back: 
–Depreciation
–Amortisation
Share in (loss) / profit of associate
Fair value adjustment on financial assets and investments
Other income

Adjusted EBITDA on continuing operations

2021                   2020 
£’000                  £’000  
(4,546)               (5,681) 

482                     680 
1,219                  1,216 
(77)                    265 
19                     159 
211                     285 
–––––––            ––––––– 
(2,692)               (3,076) 
–––––––           –––––––  

Loss Before Tax 
Loss before tax on continuing operations of £4.37m compared to a loss in the prior year of £5.05m. The loss 
on discontinued operations was £nil compared to a loss of £2.55m in the prior year. 

Tax 
The Group shows a total income tax charge of £0.15m for the year compared to a tax credit of £0.87m for 
the prior year. The income tax charge has been split between continuing activities (£0.26m, 2020: £0.99m) 
and discontinued activities (£0.41m charge, 2020: £0.12m charge). The total income tax charge for the year is 
driven by the receipt of the deferred consideration from TFMC. 

Investments 
In  December  2018  Plexus  acquired  a  49%  shareholding  in  Kincardine  Manufacturing  Services  Limited 
(‘KMS’), for a consideration of £735k plus associated legal fees of £50k. At the year-end a share in loss of 
associate of  £77k (2020: profit £265k) has been recognised. The loss in the period has been driven by a 
reduction  in  business  during  the  peak  of   the  Covid  pandemic  Following  an  impairment  review  of   the 
investment overhead expenses include an impairment charge of £nil (2020: £134k). 

EPS 
The Group reports basic loss per share on continuing activities of 4.09p compared to a loss per share of 3.92p 
in the prior year. The basic loss per share on discontinued activities of 0.39p, compared to a loss per share of 
2.47p in the prior year. 

Statement of Financial Position 

Intangible Assets and Intellectual Property (‘IP’) 
The net book value of goodwill and intangible assets was £9.64m, a decrease of 6.7% from £10.33m last year. 
This movement represents investment of £0.24m less the annual amortisation charge of £0.92m. 

Plexus owns an extensive range of IP which includes many registered patents and trademarks across a number 
of jurisdictions, and actively works to develop and protect new POS-GRIP methods and applications where 
deemed commercially advantageous to do so. In addition to registered IP, Plexus has developed over many 
years a vast body of specialist know-how in relation to the POS-GRIP friction grip method of engineering 
and related activities.

Plexus Holdings plc Annual Report 2021

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Strategic Report continued

The Directors have considered whether there have been any indications of impairment of its IP and have 
concluded, following a detailed annual asset impairment review, that there is no evidence of impairment. 
Therefore, the Directors consider the current carrying values to be appropriate. 

Research and Development (‘R&D’) 
R&D expenditure including patents decreased from £0.36m in 2020 to £0.24m in 2021. Continued investment 
as and where necessary in R&D demonstrates the Group are protecting, developing, and broadening the 
range of proprietary POS-GRIP friction-grip method of engineering applications and related IP. 

Tangible Assets 
The net book value of property, plant and equipment including items at the year-end was £2.96m compared 
to £3.27m last year. Capital expenditure on tangible assets decreased to £0.17m compared to £0.19m last year. 

Cash and Cash Equivalents 
Net cash at the year-end was £3.14m (cash and cash equivalents of £5.18m less the bank Lombard facility of 
£2.04m) compared to net cash of £4.09m (cash and cash equivalents of £4.09m with no borrowing – in the 
prior year reflecting a net cash outflow for the year of £0.95m (net increase in cash of £1.09m per Statement 
of Cash Flows plus net increase in bank borrowings of £2.04m). 

The increase in bank borrowing represents £2.04m which has been drawn down on a Lombard facility. 

It should also be noted that the Group has financial asset investments with a value of £3.04m (2020: £3.00m) 
at the reporting date. These investments are included in non-current financial investments in the statement 
of financial position. 

The expected future cash inflows and the cash balances held are anticipated to be adequate to meet current 
on-going working capital, capital expenditure, R&D and project related commitments. 

Dividends 
The Company has not paid any dividends in the year and does not propose to pay a final dividend at this 
time. Whilst the Company remains committed to distributing dividends to its shareholders when appropriate, 
the Directors believe that it is prudent to consider the payment of dividends in light of the ongoing capital 
and operational requirements of the business. 

Operations 

Progress has continued during the year with the Company’s strategy to build a portfolio of revenue streams 
based on its POS-GRIP technology and associated products and services. 

The Company’s main focus continues to be the marketing of its POS-GRIP-enabled products and supporting 
licensees of the technology. Plexus continues to supply surface production wellheads and is also pursuing 
supplemental business opportunities relating to well abandonments and decommissioning, which are anticipated 
to be growth areas as the North Sea’s older producing oil and gas fields come to the end of their lives. 

Licensing opportunities remain a key strategy for the Company. The markets with the most potential are 
thought to be in geographical locations and low-cost volume markets that Plexus cannot reach. Important 
progress was made during the financial year with the conclusion of a licensing deal with Cameron, a division 
of Schlumberger in November 2020. The non-exclusive licence allows Cameron to use POS-GRIP technology 
in a specific range of conventional and unconventional oil and gas surface production wellhead applications. 
Plexus  has  since  been  working  with  Cameron  to  develop  Cameron  products  incorporating  the  Plexus 
technology, and it is anticipated that Cameron will begin start marketing these products in the first quarter 
of calendar year 2022 after successful protype testing and qualification. 

Plexus continued to invest in R&D during the year, albeit it at a lower level than prior years in reflection of 
reduced activity, and the fact that Plexus’ product portfolio is well developed. Nevertheless, R&D remains an 
important operational activity and further develops the value of our IP and ability to extend the range of 
applications of POS-GRIP technology. Innovation in the oil and gas industry continues to be an essential 

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Plexus Holdings plc Annual Report 2021 

Strategic Report continued

part of  developing both cost saving initiatives and ever safer drilling methods, particularly in relation to 
greener leak-proof technologies and equipment, and the Board is confident that Plexus can continue to play 
an important role in delivering such solutions whilst raising wellhead standards to a level that conventional 
technology cannot reach, such as passing test standards equivalent to those used for premium couplings. 

Staff at the end of June 2021 (excluding non-executive directors) comprised of 33 employees, including 1 
international employee, which compared to a weighted average total of 33 in the current year and 34 in the 
prior year. 

The OPITO accredited competency system was updated after the disposal transaction to TechnipFMC in 
order to better reflect production equipment and to enhance the robust assessment of employees in safety 
critical roles. A thorough review of all standards across the system took place which resulted in a complete 
restructure and rework of the workshop and field service technician scopes. The revised system underwent 
monitoring audits in 2019 and 2020 and post year end in September 2021 and resultantly the Company has 
successfully maintained its OPITO approval throughout this period. 

As part of the continuing commitment to the health and wellbeing of employees, the Healthy Working Lives 
programme aims to encourage habits of wellbeing and inspires individuals to take responsibility for their 
own health. Plexus continues to hold the Gold Award. 

Health and Safety continues to be a pivotal part of the business and remains at the centre of everything we 
do. Plexus remains fully committed to continually improving safety standards and the safety culture across 
the business, and this is reflected in the business being once again lost time injury (‘LTI’) free this year. Plexus 
has now passed the sixth anniversary of this milestone, in September 2021. 

Plexus  enhanced  its  Business  Management  System  (BMS)  in  order  to  comply  with  the  new  ISO  45001 
standard  which  replaces  OHSAS  18001:2007  which  became  discontinued  in  2021.  Plexus  achieved 
accreditation under the new standard in May 2020. This followed the Quality Management System achieving 
API Q1 accreditation in February 2020. Plexus continues to hold Licences for both API 6A and 17D. These 
accreditations demonstrate Plexus’ capability and determination to operate under the highest standards. 

The IT Department provides technology leadership for Plexus, including governance, information security, 
software development and expertise in deploying modern information technologies to improve company 
efficiency. During these challenging times for all industries due to COVID-19, Plexus has continued to develop 
its in-house systems to ensure the Company is able to react swiftly to changing market requirements, and to 
enhance the capability of all office-based employees to work from home as necessary, safely and securely. 

Strategy and Future Developments 

Technology 
Plexus’ proprietary POS-GRIP technology involves applying compressive force to the outside of a wellhead 
or pipe, to flex it inwards. As the bore of the vessel moves inwards, it makes contact with an inner pipe (or 
hanger) on the inside. Sufficient contact force is generated to hold the inner member in place through friction 
between the two components, whilst at the same time creating a superior metal to metal seal. The Company’s 
strategy is primarily focused on delivering the highest standard of wellhead design for the upstream oil and 
gas markets around the world, and one which has already proven to be uniquely advantageous in terms of 
safety features, operational efficiency, and cost savings for Jack-up drilling, especially HP/HT applications. 
The Company is now focused on replicating this past success in other wellhead markets including surface 
production,  subsea  and  geothermal,  as  well  as  other  initiatives  such  as  a  POS-GRIP  Crown  Plugs  and 
POS-GRIP Lateral Trees. 

POS-GRIP wellhead designs deliver many advantages over conventional “slip and seal” and “mandrel hanger” 
wellhead technologies for surface exploration and land and platform production applications. These include 
larger metal to metal seal contact areas, virtual elimination of movement between parts, fewer components, 
simplified design and assembly, enhanced corrosion resistance, simpler manufacture, long term integrity, 
annulus management, and reduced installation and maintenance costs. 

Plexus Holdings plc Annual Report 2021

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Strategic Report continued

Plexus’ POS-GRIP enabled product suite also includes the innovative Python® subsea wellhead as well as the 
POS-SET Connector® for use in the growing decommissioning market. We believe the Python subsea wellhead 
is important as it can eliminate the need for wear bushings, pack-offs, lock-rings, and lockdown sleeves, whilst 
delivering instant rigid lock-down in all directions, and is fully reversible for ease of workover, side-tracking or 
abandonment. These design simplifications and features not only reduce the risk of installation problems and 
safety issues, they also significantly reduce installation time and the number of trips that are needed such that 
it has been independently estimated that over ten days of savings per well can be achieved in deep-water under 
certain conditions which, depending on water depth, Plexus estimates could result in a saving of over $10m for 
the operator. The POS-SET Connector, which is designed to re-connect to bare conductor pipe for well re-entry 
or permanent abandonment operations, creates a solid connection with reliable sealing directly against the pipe, 
and retains bend and load capabilities at 80% of pipe strength. The Directors believe that such features mean 
that Plexus’ wellhead equipment sets and delivers a new and superior standard. Apart from the operational time 
savings and related safety benefits, at an engineering level the Company has demonstrated that its technology 
can raise and even exceed the integrity of wellhead testing and sealing to that of premium couplings, which 
supports its claim that wellheads no longer need to be the weak link in the well architecture chain. 

POS-GRIP friction-grip technology has wide ranging applications both within and outside the oil and gas 
industry. As POS-GRIP is a method of engineering and not a product in its own right, where there is an 
opportunity for the technology to improve the performance of conventional products the Company will look 
to integrate POS-GRIP so that the benefits together with “HG” sealing can be realised organically or in 
conjunction with partners, including licensees. In line with this strategy, in November 2020 Plexus entered 
into a licence agreement with Cameron International Limited, which grants the Schlumberger group company 
a non-exclusive licence to use the POS-GRIP and HG® metal-to-metal seal method of wellhead engineering 
for the development of conventional and unconventional oil and gas surface wellheads. 

In addition to POS-GRIP Technology, Plexus is now in the process of re-entering the Jack-up Exploration 
Wellhead market with Cameron’s Exact and Centric wellhead and mudline suspension products following 
the Cooperation Agreement with Cameron agreed in August 2021. These products are tried and tested, and 
well suited to the exploration market as they are “through the BOP” products which deliver crucial time 
savings and safety benefits over conventional wellhead products. 

Business Model and Markets 
The Company is proprietary technology driven and its extensive patent protected IP and many years’ worth 
of specialist know-how has been successfully deployed in hundreds of wells around the world. Its superior 
performance, safety and operational advantages led to the Company becoming established initially as a leading 
equipment and services provider to the niche Jack-up exploration wellhead market. The Directors believe 
that this success can be replicated and extended to the wider and much larger energy sectors including surface 
production, subsea, geothermal and fracking applications based on its POS-GRIP technology. 

The licensing deal agreed with Cameron in November 2020 is an important advancement in the Company’s aim 
to achieve widespread use of POS-GRIP Technology. The licence allows Cameron to pursue opportunities for 
low-cost wellheads in the volume market, as well as develop POS-GRIP equipment in larger Schlumberger EPIC 
(Engineering, Procurement, Installation & Commissioning) contracts which Plexus could not otherwise access. 

Plexus has a good reputation for the agility and customer focus required to succeed in the Jack-up Exploration 
Wellhead market, and so the recent collaboration agreement announced in August 2021 with Cameron to 
allow Plexus to re-enter this market with field proven products is welcome and should see an addition to 
revenues as global exploration activity increases. 

Strategy 
Plexus’ long-term goal is to establish POS-GRIP technology as a new industry standard for wellhead and 
metal sealing designs, whilst continuing to develop new products, which can also offer multiple benefits and 
advantages to the industry in terms of improved safety, functionality, and cost and time savings. An example 
of such extensions for POS-GRIP technology is the Company’s connector technology, which is ideal for high 
integrity, low fatigue applications. The Directors believe wellhead connectors, riser connectors, subsea jumper 
connectors, pipeline connectors, tether tensioners and even vessel mooring connectors can all benefit from 
the simplicity of POS-GRIP. Plexus continues to pursue direct sales to customers, and the November 2020 
licensing deal with Cameron will further help develop this goal. 

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Plexus Holdings plc Annual Report 2021 

Strategic Report continued

Following the sale of the Jack-up Wellhead Business to TFMC in 2018, Plexus has signed in August 2021 a 
collaboration agreement with Cameron to take on Cameron’s Exact and Centric adjustable wellhead and 
mudline suspension products to re-enter the market. We expect that the increase in activity and revenue from 
this business will be positive and will also allow Plexus to reengage with customers at the exploration stage, 
which then has the potential to lead to further production and subsea opportunities. In view of lead times 
associated with such projects the benefits of this new Cameron relationship will most likely be seen in the 
next financial year. 

As the world and the oil and gas industry strives to implement a range of ESG initiatives, particularly in 
relation to achieving Net-Zero in relation to climate change, Plexus believes that its technology can make a 
valuable contribution in terms of  its leak-free sealing capabilities, and its ‘through the BOP’ (Blow-out 
Preventer) wellhead designs. These ‘green’ features were recognised in July 2021 with the receipt of the London 
Stock Exchange’s “Green Economy Mark” in recognition of contributing to the global green economy 

Key Performance Indicators 

The Directors monitor the performance of the Group by reference to certain financial and non-financial key 
performance indicators. The financial indicators include revenue, EBITDA, profit and loss, earnings per share, 
cash balances, and working capital resources and requirements. The analysis of  these is included in the 
financial results section of this report. Non-financial indicators include Health and Safety statistics, equipment 
utilisation rates, geographical diversity of revenues and customers, the level of ongoing customer interest and 
support, geo-political considerations such as emissions concerns and awareness, effectiveness of  various 
research and development initiatives, for example, in relation to new patent activity and inventions, and 
appropriate employee headcount numbers and turnover rates. The non-financial key performance indicators 
are included within the strategic report on page 9. 

Principal Risks and Risk Management 

There are a number of potential risks and uncertainties that could have an impact on the Group’s performance 
which include the following. 

(a) Political, legal and environmental risks 

Plexus participates in a global market where the exploration and production of oil and gas reserves, and 
even the access to those reserves can be adversely impacted by changes in political, operational, and 
environmental circumstances. The current global political and environmental landscape, particularly in 
relation to climate change issues and Net-Zero goals, and the relentless move away from hydrocarbons 
to, for example renewables, continues to demonstrate how any combination of such factors can generate 
risks and uncertainties that can undermine commercial opportunities and trading conditions. Some 
risks are of  course unforeseen, and one such significant risk took the form of  the global pandemic 
caused by COVID-19 which materialised last year and continued throughout the current year. Although 
Plexus has taken all reasonable steps to mitigate the effects of this risk, both economic and to the health 
and well-being of our employees, customers and suppliers by complying with legislation and taking 
measures to ensure business continuity, the negative impact has clearly been felt. Such risks also extend 
to legal and regulatory issues, and it is important to understand that these can change at short notice. 
To help address and balance such risks, the Group where possible seeks to broaden its geographic 
footprint and customer base, as well as actively looking to forge commercial relationships with large 
industry players. 

The Company continues to closely monitor the potential impact and risks of the UK’s exit (‘Brexit’) 
from the European Union (‘EU’). This includes assessing the potential impact of the introduction of 
trade tariffs and the potential supply chain disruption that could result from increased customs checks 
at borders and related matters. Plexus has an IP-led business model which provides it with operational 
flexibility and the ability to respond to and mitigate some of  the potential impacts of  the different 
scenarios resulting from the UK’s exit from the EU. In the meantime, Plexus has amongst other activities 
obtained  an  Economic  Operator  Registration  and  Identification  (‘EORI’)  number  to  enable  the 
Company to continue to import and export with the EU. 

Plexus Holdings plc Annual Report 2021

14

Strategic Report continued

(b) Oil and Gas Sector Trends 

It is readily understood that the world continues to move away from coal as part of the COP21 as well 
as the recent COP26 pronouncements, together with other climate change objectives in relation to the 
ongoing need to urgently reduce CO2 and CH4 (methane) emissions. However, the commercial and 
environmental dynamics between traditional hydrocarbons in terms of coal, oil and gas is not the only 
trend to consider. New technologies, particularly in relation to renewables such as wind and solar, 
alternative energies and developments such as the increasing use of electric vehicles and corresponding 
improvements in battery storage life, and wave energy, could all in the future prove very disruptive to 
the traditional oil and gas industry and the corresponding demand for exploration and production 
equipment and services. However, it is also recognised that the world will continue to need hydrocarbons 
as an energy and materials source, and in particular gas for many years to come, and indeed currently 
global demand for hydrocarbons is forecast to continue to grow for the foreseeable future. It should be 
noted  that  the  climate  change  impact  of   methane  is  now  better  understood  by  environmentalists, 
regulators and the oil and gas industry and that it is essential that methane wellhead leaks are prevented 
whenever  and  wherever  possible.  As  part  of   this  movement,  the  impending  Methane  Emissions 
Reduction Act in the United States and similar legislation being progressed in Europe demonstrate, 
regulations are increasingly becoming more stringent. 

(c) Technology 

Having originally proved the superior qualities of POS-GRIP technology within the Jack-up wellhead 
exploration market which culminated in the sale of  that business to FMC Technologies Limited, a 
subsidiary of TechnipFMC (Paris:FTI, NYSE:FTI) (jointly “TFMC”), in early 2018, the Company has 
focused on establishing its technology and equipment in other markets including surface production 
wellheads, subsea and de-commissioning, both organically and through licence partners. In line with 
this, in November 2020 Plexus entered into a licence agreement with Cameron International Limited, 
which grants the Schlumberger group company a non-exclusive licence to use the POS-GRIP and HG® 
metal-to-metal  seal  method  of   wellhead  engineering  for  the  development  of   conventional  and 
unconventional oil and gas surface wellheads. 

(d) Competitive risk 

The Group operates in highly competitive markets and often competes directly with large multi-national 
corporations  who  have  greater  resources  and  are  more  established,  and  who  are  more  resilient  to 
extended adverse trading conditions. This risk has become more concentrated over recent years as a 
result of the large oil service company competitors becoming even larger and more influential through 
a series of mergers and acquisitions. These major oil service and equipment company consolidations 
have therefore magnified such issues as competitors reduce in number but increase in size, influence, 
and reach. Unforeseen product innovation or technical advances by competitors could adversely affect 
the Group, and lead to a slower take up of the Group’s proprietary technology. To mitigate this risk 
Plexus maintains an extensive suite of patents and trademarks, and actively continues to develop and 
improve its IP, including adding to its existing extensive ‘know-how’ to ensure that it continues to be 
able to offer unique superior wellhead design solutions. 

(e) Operational 

Plexus, like many other oil service companies, has had to make significant reductions in its workforce 
numbers over the past few years as a result of a lower oil price and a corresponding reduction in drilling 
activity and related levels of capex spend. These adverse trading conditions have been magnified since 
early 2020 by the Covid-19 pandemic, which in turn has coincided with an acceleration in the world’s 
desire to reduce its dependence on hydrocarbons. Therefore, although there are now some encouraging 
signs  of   a  pick-up  in  drilling  activity,  it  is  possible  that  the  industry  and  Plexus  could  experience 
difficulties  in  rehiring  past  or  new  employees  and  this  could  deprive  Plexus  of   the  key  personnel 
necessary for expanding operational activities, as well as research and development initiatives, at the 
rate that may be required. To help mitigate this risk Plexus has developed effective recruitment and 
training procedures, which combined with the appeal of working in a company with unique technology 
and engineering solutions will hopefully help to mitigate such risks. 

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Plexus Holdings plc Annual Report 2021 

Strategic Report continued

(f) Liquidity and finance requirements 

In an economic climate that in many ways remains uncertain it has become increasingly possible for 
potential sources of finance to be closed to businesses for a variety of reasons that have not been an 
issue in the past. Some of these may even relate to the lender itself in terms of its own capital ratios and 
lending capacity where financial pressures and constraints can apply. Furthermore, a number of large 
and influential institutions have actively divested oil and gas investments and declared that further 
investments and funding will not be made available for oil and gas projects as a result of climate change 
concerns and as part of the move to Net-Zero. 

(g) Credit 

The  main  credit  risk  is  attributable  to  trade  receivables.  Where  the  Group’s  customers  are  large 
international oil and gas companies the risk of non-payment is significantly reduced, and therefore is 
more likely to be related to client satisfaction and/or trade sanction issues. Where smaller independent 
oil and gas companies are concerned, credit risk can be a factor. Customer payments can potentially 
involve extended periods of time especially from countries where exchange control regulations can delay 
the  transfer  of   funds  outside  those  countries.  As  Plexus  begins  to  establish  international  licensee 
relationships there may be instances whereby certain capital and royalty payments could be due some 
way into the future and as such greater credit risk than exists under normal payments terms could apply. 
The Group’s exposure to credit risk is monitored continuously. 

(h) Risk assessment 

The Board has established an on-going process for identifying, evaluating and managing the more 
significant risk areas faced by the Group. One of the Board’s control documents is a detailed “Risks 
assessment & management document”, which categorises risks in terms of – business (including IT), 
compliance,  finance,  cash,  debtors,  fixed  assets,  other  debtors/prepayments,  creditors,  legal,  and 
personnel. These risks are assessed and updated on a regular basis and can be associated with a variety 
of internal and external sources including regulatory requirements, disruption to information systems 
including cyber-crime, control breakdowns and social, ethical, environmental and health and safety 
issues. 

(i) COVID-19 

Plexus places the health and safety of  its employees as its highest priority and in line with this has 
implemented various protocols in relation to the ongoing COVID-19 pandemic. Accordingly, a business 
continuity programme has been put in place to protect employees whilst ensuring the safe operation of 
the Company. Following consultations with, amongst others, relevant authorities, staff and contractors, 
strict protocols have been implemented to reduce the risk of  transmission of  COVID-19 at all the 
Company’s operations. The situation in respect of COVID-19 continues to be an evolving one and the 
Board will therefore continue to review its potential impact on its staff and the business. 

Plexus Holdings plc Annual Report 2021

16

Strategic Report continued

Section 172 Statement 

This section serves as the section 172 statement and should be read in conjunction with the full Strategic Report 
and the Corporate Governance Report. Section 172 of the Companies Act 2006 requires directors to take into 
consideration the interests of stakeholders in their decision making. The Directors continue to have regard to 
the  interests  of  the  Company’s  employees  and  other  stakeholders,  including  shareholders,  customers  and 
suppliers, Licence Partners and the community and environment, through positive engagement and when making 
decisions. Acting in good faith and fairly between members, the Directors consider what is most likely to promote 
the success of the Company for its members in the long term and to protect the reputation of the Company. 

Shareholders 
Plexus  seeks  to  develop  an  investor  base  of   long-term  holders  that  are  aligned  to  our  strategy.  By 
communicating our strategy and objectives, we seek to maintain continued support from our investor base. 
Important issues include financial stability and protecting and strengthening the value of our intellectual 
property. Engagement with shareholders is a key element to this objective and methods of engagement are 
detailed in the Corporate Governance Report on pages 23 to 35, although as a result of the Covid pandemic 
such interactions have been adversely impacted. During the year, the Finance Director supported by other 
members of the executive team, the Company’s broker, and the Investor Relations advisor, engaged where 
possible with investors by email, presentations, direct conversations and ad-hoc meetings. The Company has 
in recent times re-launched its website to provide investors and other stakeholders with an improved platform 
to access information about the Company. The website includes details of the LSE “Green Economy Mark” 
status, which was awarded in July 2021, and associated Net-Zero commentary. 

Employees 
The Group’s UK staff are engaged by the Company’s subsidiary Plexus Ocean Systems Limited based in 
Aberdeen, Scotland. Being a relatively small company with just over 30 employees largely operating in one 
location, there is a high level of visibility regarding employee engagement and satisfaction. The Company is 
engaged with a specialist firm of benefits advisers who are able to offer a comprehensive service to employees 
as well as to the Company. The Company consults with employees on matters of competency, training, and 
health and safety as detailed in the Corporate Governance Report on pages 23 to 35. During the year, the 
Company successfully achieved six continuous years with no Lost Time Incidents (LTI’s) and this successful 
safety culture has continued beyond that anniversary to the date of writing. In the previous year, the impact 
of COVID-19 and Government regulations caused a sudden migration of many staff to be required to work 
from home and this has continued throughout the year under review. The challenges of maintaining close 
contact with employees presented by this have been very successfully managed by use of appropriate software 
such as Microsoft Teams alongside the use of a secure VPN and other network security protocols. A gradual 
easing of restrictions has enabled more in-person contact to be achieved and the Company plans to have a 
full return to normality as the conditions allow both internally and externally. 

Customers and Suppliers 
The Company is committed to acting ethically and with integrity in all business dealings and relationships. 
Fostering good business relationships with key stakeholders including customers and suppliers is important 
to the Company’s success. The Board seeks to implement and enforce effective systems and controls to ensure 
its supply chain is maintaining the highest standard of business conduct in line with best practice including 
in relation to anti-bribery and modern slavery. 

Licence Partners 
The Company engages with Licence Partners in a way that follows the same principles as those applied to 
relationships with other customers and suppliers. Additionally, the Company engages with its Licence Partners 
to support their efforts to achieve commercial success by holding as and when required technical workshops, 
technical training and data transfer. As part of the transaction with TFMC in 2018, a five-year Collaboration 
Agreement was signed between the two companies to explore areas where new products with commercial 
opportunities can be jointly developed. The Collaboration Steering Committee contains representatives from 
both companies and meets on a regular basis at each quarter. In addition, following the entering into the 
non-exclusive surface wellhead licencing agreement with Cameron in November 2020 regular Teams meetings 

17

Plexus Holdings plc Annual Report 2021 

Strategic Report continued

have been held as part of the process of transferring Plexus’ relevant IP so that Cameron can design and 
develop their own low-cost wellhead with POS-GRIP technology inside. 

Community and Environment 
The Company has minimal environmental impact in the localities in which it operates. This clearly helps the 
Company meet its corporate objectives in this regard but is never taken for granted. In the year under review, 
the Company met its target for waste management and in general continues to operate in a manner that is 
open, honest, and socially responsible. 

G Stevens 
Director 
19 November 2021

Plexus Holdings plc Annual Report 2021

18

 
Board of Directors

Jerome Jeffrey Thrall BBA MBA (aged 72), Non-Executive Chairman 
Jeff joined Thrall Enterprises, Inc. (‘TEI’), a family owned holding company headquartered in Chicago, USA, 
in 1980 as vice president of corporate development of TEI’s subsidiary, Nazdar Company, a manufacturer 
and distributor of ink jet, screen printing, flexo inks and supplies. Jeff was named President of TEI in 1995. 
Prior to joining TEI, Jeff’s professional career included a number of appointments in investment banking, 
commercial lending and administration. 

Bernard Herman van Bilderbeek BSc M.Eng (aged 73), Chief Executive 
Ben founded the Plexus business in 1986. He has over 40 years’ experience in the industry in both engineering 
and management roles, and previously held senior positions with Vetco Offshore Industries, Dril-Quip, and 
Ingram Cactus. Following a career at Vetco, where Ben rose to the position of  General Manager of  UK 
Engineering, he went on to found his own oil and gas consultancy company, VBC Consultants, in 1982. 
During this time, his clients included Amoco, Marathon Oil, FMC Corporation and Dril-Quip. In 1986, Ben 
founded Plexus and went on to merge the wellhead division of his company with Ingram Cactus where he 
became President Eastern Hemisphere. In 1996 Ben regained the Plexus Ocean Systems Limited name through 
which POS-GRIP technology was invented and then developed and commercialised for the oil services 
wellhead equipment market. 

Graham Paul Stevens BA (Hons) (aged 63), Finance Director 
Graham has broad experience in financial, corporate, and operational management within both public and 
private companies including J Sainsbury plc, BSM Group Limited, Sketchley Group plc, and Fii Group plc. 
He has been involved in a range of industries as a director, investor, and advisor, and overseen a number of 
acquisitions and disposals, as well as the implementation of turn around and growth strategies. Graham was, 
until its sale to Betsson AB in 2017, a non-executive director of Netplay TV PLC, the AIM listed largest UK 
interactive TV gaming company. He was previously a non-executive director of NRX Global Inc. a worldwide 
Asset Information Management solutions provider used by leading companies in asset intensive industries, 
including oil and gas. 

Craig Francis Bryce Hendrie M.Eng (Oxon) (aged 48), Technical Director 
After gaining a Master’s Degree in Engineering Science from the University of Oxford, Craig began his career 
with  ICI  plc  in  1996  as  a  machines  engineer.  He  joined  Plexus  in  1998  and  was  instrumental  in  the 
development,  testing  and  analysis  of   the  original  POS-GRIP  products.  As  Technical  Director,  Craig  is 
responsible for overseeing new technology and concept development, product testing and analysis, as well as 
pursuing new applications for POS-GRIP technology both internally and externally. 

Charles Edward Jones BSc M.Eng (Age 62), Non-Executive Director 
Charles has over 30 years of senior management and Board experience in the energy sector. In 2007, Charles 
was  CEO  of   Houston-based  Forum  Oilfield  Technology,  a  global  oilfield  products  company  which  he 
successfully merged with three other companies in 2010 to create Forum Energy Technologies (NYSE: FET) 
and where he remained as President until 2013. Prior to Forum, Charles was COO of privately owned Hydril 
Company LP, where he played a leading role in the US based drilling and downhole products company’s IPO 
in 2000 and subsequent sale for USD$2.1 billion. Before joining Hydril, Charles served as Director of Subsea 
Businesses for Cooper Cameron Corporation where he developed the global subsea production business. 
Charles is a former Chairman of the Petroleum Equipment Suppliers Association, a Distinguished Alumni 
of   the  Cullen  College  of   Engineering  at  the  University  of   Houston  and  graduate  of   the  Advanced 
Management Program a Harvard Business School. 

Kunming Liu (Aged 44), Non-Executive Director 
Kunming has over 20 years’ experience in corporate finance and financial accounting. She currently holds 
the  position  of   Vice  President  and  Chief   Administrator  of   HITIC  Energy,  an  emerging  oil  and  gas 
development company based in Canada, which is a subsidiary of Jereh Oilfield Services Group, a multi-
billion-dollar Chinese oil services provider. Prior to this, Ms Liu was the Financial Director of Jereh Energy 
Services Corporation, a wholly owned subsidiary of Jereh. Additionally, Ms Liu holds a major in financial 
accounting from Shandong Cadres Institute of Economics and Management in China.

19

Plexus Holdings plc Annual Report 2021

Directors’ Report

The directors present their annual report together with the audited financial statements for the year ended 30 
June 2021. 

Directors who served during the year 
J. Jeffrey Thrall 
Ben van Bilderbeek 
Graham Stevens 
Craig Hendrie 
Charles Edward Jones 
Kunming Liu 

Research and development 
The Group actively engages in various on-going research and development initiatives designed to expand and 
develop the range of commercial applications deriving from its proprietary POS-GRIP technology. For the 
year research and development expenditure including capitalised wage and salary costs totalled £0.24m (2020: 
£0.36m). 

Results and dividends 
The results for the year show a loss from continuing operations before taxation of £4.37m (2020: loss £5.05m), 
and a loss from discontinued operations before taxation of £nil (2020: loss £2.43m) and are set out on page 47. 

The directors do not recommend the payment of a final dividend for the year ended 30 June 2021 (2020: nil). 

Corporate governance 
This is the subject of a separate report set out on page 23. This is an expanded report following the adoption 
of the Quoted Companies Alliance Corporate Governance Code in line with the AIM Rules of the London 
Stock Exchange that require all AIM-listed companies to adopt a recognised corporate governance code 
against which they must comply or explain why there is any divergence in complying with that code. 

Related party transactions 
Details of related party transactions are set out in Note 28 in the financial statements. 

Financial instruments and risk management 
The Group maintains a commercial objective of contracting in sterling whenever possible. In circumstances 
where this is not possible, the Group converts foreign currency balances into sterling on receipt so far as they 
will not be used for future payments in the foreign currency. The Group maintains risk management policies 
which are set out in more detail in Note 25 to the accounts. 

Streamlined Energy and Carbon Reporting Summary 
The Group are below the threshold to report on its Greenhouse gas emissions and energy consumption. 

Significant post year-end event 
In August 2021, Plexus entered into a cooperation agreement with Cameron in relation to Jack-up exploration 
(adjustable) wellheads. This gives Plexus access to Exact-15 system exploration wellhead inventory, and 
Centric-15 mudline system suspension products. This allows Plexus to return to the Jack-up exploration 
wellhead market where wellheads are rented for the duration of the well, rather than sold, and with proven 
technology. Cameron will also provide manufacturing support and assist in sales leads generation in return 
for a licence royalty fee. 

Going concern 
The directors, having made appropriate enquiries, believe that the Group has adequate resources to continue 
in operational existence for the foreseeable future. The Group continues to adopt the going concern basis in 
preparing the financial statements. 

Plexus Holdings plc Annual Report 2021

20

Directors’ Report continued

Directors’ interests 
The directors who served during the year and to the date of this report are listed below. 

The interests of the directors who held office during the year in the shares of the Company at 30 June 2021 
were as follows: 

Number of

Number of 
Ordinary Shares Ordinary Shares 
of 1p each 
2020 

of 1p each
2021

J. Jeffrey Thrall1 
Ben van Bilderbeek2 
Graham Stevens
Craig Hendrie
Charles Edward Jones
Kunming Liu

44,307,513
58,077,461
15,100
12,600
–
–

44,307,513 
58,077,461 
15,100 
12,600 
– 
– 

1.  J.  Jeffrey  Thrall  has  an  indirect  beneficial  interest  in  a  company  which  controls  32.477%  of   Mutual 
Holdings Limited. The number of Ordinary shares held by Mutual Holdings Limited in the Company at 
30 June 2021 was 42,700,001 (2020: 42,700,001). Additionally, J. Jeffrey Thrall has both a direct and an 
indirect beneficial interest in Nazdar Limited, a company which holds 1,591,512 Ordinary shares in the 
Company, and he holds 16,000 Ordinary shares directly. 

2.  Ben van Bilderbeek is settlor of a trust which controls 59.962% of the shares of Mutual Holdings Limited 
and the entire issued share capital of OFM Investment Limited. At 30 June 2021, Mutual Holdings Limited 
held 42,700,001 shares and OFM Investment Limited held 15,069,767. Additionally, Ben van Bilderbeek 
holds 307,693 Ordinary shares directly. 

Retirement and re-election of Directors 
Mr van Bilderbeek and Mr Hendrie will retire by rotation at the Annual General Meeting and, being eligible, 
will offer themselves for re-election. 

Substantial shareholdings and interests in Shares 
At the date of this Annual Report the Company is aware of the following shareholdings in excess of 3% of 
the Company’s issued ordinary share capital: 

Shareholder

Mutual Holdings Limited 
OFM Investment Limited 
Liontrust Asset Management 
CGWL Nominees Limited 
Jereh International (Hong Kong) Co. Ltd 

Shares Held

42,700,001
15,069,767
14,880,000
6,527,132
4,468,537

% Issued 
 share capital 

42.51% 
15.00% 
14.82% 
6.50% 
4.45% 

Executive 2005 Share Option Scheme and Non-Executive 2005 Share Option Scheme 
Details of the Executive and Non-Executive Schemes in addition to details of the directors’ remuneration 
can be found in the Remuneration Committee Report on page 38. 

Plexus  is  a  non-discriminatory  employer  who  aim  to  eliminate  unfair  discrimination,  harassment, 
victimisation, and bullying. The Group is committed to ensuring that all individuals are treated fairly, with 
respect and are valued irrespective of disability, race, gender, health, social class, sexual preference, marital 
status, nationality, religion, employment status, age or membership or non-membership of a trade union.

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Plexus Holdings plc Annual Report 2021

Directors’ Report continued

Disclosure of information to auditors 
The directors who held office at the date of approval of this Directors’ Report confirm that, so far as they 
are each aware, there is no relevant audit information of which the Company’s auditor is unaware; and each 
director has taken steps that they ought to have taken as a director to make themselves aware of any relevant 
audit information and to establish that the Company’s auditor is aware of that information. 

Annual General Meeting 
The Annual General Meeting of the Company will be held on 20 December 2021. The Notice convening the 
meeting may be found on the Company’s website www.plexusplc.com under the Investors tab. 

Because of ongoing concerns and uncertainties about potential future restrictions that could be imposed by 
the Government as a consequence of the COVID-19 pandemic, the Directors consider it prudent to hold this 
year’s AGM in the same manner as for the prior year, with the intention of holding a conventional AGM in 
2022. The detailed arrangements are set out in the Notice convening the meeting which will be sent to all 
shareholders and available on the Company’s corporate website as herein mentioned. 

The Notice comprises the usual resolutions that will be proposed at the Annual General Meeting. Your 
attention is drawn to the Notes on each of  these resolutions at the foot of  the Notice and to the Notes 
generally. 

Your attention is drawn to the Notes on each of these resolutions at the foot of the Notice and to the Notes 
generally. 

Auditors 
Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor. In accordance with 
Section 489 of the Act, two resolutions for the re-appointment of Crowe U.K. LLP as auditor of the Company 
and authorising the directors to determine its remuneration will be proposed at the forthcoming Annual 
General Meeting. 

Company number 
The Company is registered in England and Wales under Company Number 03322928. 

By order of the Board 

G Stevens  
Director 
19 November 2021 

Plexus Holdings plc Annual Report 2021

22

Corporate Governance

Chairman’s Introduction 

Plexus’ long-term goal is to establish POS-GRIP friction grip technology as a superior industry standard for 
wellhead and metal sealing systems, whilst continuing to develop new POS-GRIP based products, which can 
also offer multiple benefits and advantages to the industry in terms of improved safety, functionality, and 
cost and time savings. Key to this is the Board ensuring the Company is managed for the long-term benefit 
of all shareholders, by effective and efficient decision making which may only happen where a culture of 
corporate governance is engendered. 

Plexus remains committed to a culture built on its objectives of developing the products described above for 
the stated purposes, and its strategic aims and business model are consistent with that culture. The Board 
promotes a healthy culture within the business by actively encouraging a collegiate manner of  working 
amongst all staff. It monitors and assesses the culture from time to time through contact as appropriate with 
staff at all levels which it is able to do because of the relatively small number of staff Plexus employs. The 
Board also has the benefit if required of feedback from the annual personal development appraisal reviews 
which all staff are required to complete. 

The Board has adopted the Quoted Companies Alliance Corporate Governance Code in line with the AIM 
Rules of  the London Stock Exchange that require all AIM companies to adopt a recognised corporate 
governance code against which they must comply or explain why there is any divergence in complying with 
that code. The Board considers Plexus complies in all material respects with the principles of  the QCA 
Corporate Governance Code although as indicated in the summary below, the adoption of certain informal 
procedures rather than formal procedures to reflect the size of the Company and the composition of the 
Board,  does  not  constitute  full  compliance  in  all  respects.  The  disclosures  made  within  the  principles 
comprising the QCA Corporate Governance Code are anticipated to evolve over time. 

Principle 1: Establish a strategy and business model which promotes long-term value for shareholders 
Plexus  has  developed  a  range  of   products  and  applications  based  on  its  patent-protected  POS-GRIP 
friction-grip method of wellhead engineering. The Company is focused on establishing this technology and 
equipment in a range of sectors including surface production wellheads, subsea and de-commissioning, both 
organically and through licence partners. In line with this strategy, in November 2020 Plexus entered into a 
licence agreement with Cameron International Limited, which granted the Schlumberger group company a 
non-exclusive licence to use the POS-GRIP and HG® metal-to-metal seal method of wellhead engineering 
for the development of conventional and unconventional oil and gas surface wellheads. 

Even more recently, in August 2021 Plexus has taken the opportunity to re-enter the exploration rental 
wellhead market from Jack-up rigs market which it had previously been successful in before selling the division 
(with the exception of Russia and the CIS) to TechnipFMC in February 2018. 

Since  it  was  established,  Plexus  has  focused  on  being  an  innovative,  IP-led  company  built  around  its 
proprietary  POS-GRIP  technology.  POS-GRIP  was  designed  to  address  limitations  associated  with 
conventional wellhead technology particularly in terms of metal sealing and has subsequently raised standards 
for HP/HT wellhead applications. POS-GRIP enables Plexus to provide operators with superior solutions, 
offering unique safety and operational advantages, while at the same time delivering significant time and cost 
savings on the surface and, the Board in due course anticipates moving into the subsea sector. Thanks to 
POS-GRIP, Plexus has successfully raised wellhead test standards to equal or exceed those of  premium 
couplings and there are numerous applications and products beyond Jack-up exploration drilling which the 
Board believes could benefit from the POS-GRIP method of engineering now and in the future. 

The Company has, over many years, invested, and indeed continues to invest in research & development and 
IP development and areas and applications outside of Jack-up exploration wellheads, including in addition 
to surface production and subsea wellhead equipment, proprietary connector technology. This suite of new 
products and applications has grown significantly and includes: the Python Subsea Wellhead (a new standard 
for subsea wellheads – where a JIP was supported by BG, Royal Dutch Shell, Wintershall, Maersk, Total, 
Tullow Oil, Eni, Senergy, and Oil States Industries Inc); the development of  the POS-SET Connector® 
(‘POS-SET’) product for the growing de-commissioning and abandonment market; development of HP/HT 
dual marine barrier risers to provide an efficient, safe and cost effective solution for use on Jack-up rigs; an 

23

Plexus Holdings plc Annual Report 2021

Corporate Governance continued

innovative HP/HT Tie-Back connector product and a Well Tree product. Plexus is also assessing opportunities 
in geothermal drilling. Plexus can also offer outlet valves and Xmas trees, resulting in a complete package 
offering to the end customer. 

Prior to the sale of the POS-GRIP Jack-up rental wellhead business to TFMC, Plexus successfully expanded 
its focus as part of its strategy to raise the awareness of its superior technology with contracts extending to 
Asia, Australia, China, Egypt, Middle East, Russia, and West Africa from the UKCS, and in the process 
became  a  supplier  to  a  wide  customer  base,  including  blue-chip  customers.  An  Asian  business  hub  was 
established to increase the supply of POS-GRIP wellhead equipment and services to the Australian, Brunei, 
Indonesian, Malaysian, Thai, and Singaporean oil and gas exploration and production markets. Strategic 
licence agreements were pursued, including in 2016 with Gusar, and Konar, two independent Russian oil and 
gas equipment manufacturers, for the rental, manufacture, and servicing of Plexus’ Jack-up drilling exploration 
wellhead equipment into the Russian Federation and the other CIS states’ oil and gas markets. The licencing 
relationship with Gusar continues and is outside of the business activities that were sold to TFMC. 

One of the key challenges faced by the Company continues to be the impact of a volatile oil price, which 
combined with the impact of Covid-19 has resulted in a significant decline in capital spending and exploration 
activity by the major E&P operators over the last couple of years The Board is hopeful that this trend is now 
reversing as the impact of under investment by the industry, partly due to the downturn in economic activity 
caused by Covid, and partly due to the desire to reduce dependence on hydrocarbons appears to be causing 
supply problems and a significant spike in oil and gas prices. 

Plexus’ long-term goal is to establish POS-GRIP technology as a superior industry standard for wellhead 
and leak-free metal sealing designs, whilst continuing to develop new products, which can also offer multiple 
benefits and advantages to the industry in terms of improved safety, functionality, and cost and time savings. 
An example of such extensions for POS-GRIP technology is the Company’s connector technology, which is 
ideal for high integrity, low fatigue applications. The Directors believe wellhead connectors, riser connectors, 
subsea jumper connectors, pipeline connectors, tether tensioners and even vessel mooring connectors can all 
benefit from the simplicity of POS-GRIP. 

Production wellheads are required for the entire field life, and the size of the market for production wellheads 
is many times that of Jack-up exploration wells. At the same time as the market shows signs of recovery there 
is a major shift from coal and even oil to cleaner natural gas production. This should be a positive trend for 
Plexus as it is widely recognised that gas leaks are very damaging to the atmosphere in terms of  climate 
change, particularly with regard to the impact of methane on the environment, and therefore the need for 
superior and reliable long-term metal-to-metal leak-free sealing technology and integrity has never been 
greater. 

In terms of performance the Board monitors the Group by reference to certain financial and non-financial 
key  performance  indicators.  The  financial  indicators  include  revenue  and  margins,  overhead  expenses, 
EBITDA, profit and loss, earnings per share and both fixed and working capital resources and requirements. 
Non-financial indicators include Health and Safety statistics, employee welfare, geographical diversity of 
revenues  and  customers,  geopolitical  considerations,  effectiveness  of   various  research  and  development 
initiatives, for example, in relation to new patent activity and inventions and appropriate employee headcount 
numbers and turnover rates. The key performance indicators of the Group are currently focussed on both 
financial and non-financial key performance indicators such as cash resources, research and development 
activities  and  commercialization  objectives,  including  licencing  initiatives.  Over  time,  as  financial  key 
performance indicators such as revenue streams become more established it may be that for example licence 
income rather than sales revenue becomes more relevant. 

Seek to understand and meet shareholder needs and expectations 

2:
The Company remains committed to regular dialogue and communications with its shareholders to ensure 
that  its  strategy,  business  model  and  performance  are  understood  by  the  market.  Inevitably  the  Covid 
pandemic has had an adverse impact on such activities. Understanding what analysts and investors think 
about Plexus, and helping these audiences understand our business, is part of moving our business forward 
and we welcome dialogue with the market with the support of our broker Cenkos Securities and Investor 
Relations advisors St Brides Partners. Such communications when and where appropriate include investor 

Plexus Holdings plc Annual Report 2021

24

Corporate Governance continued

presentations, RNS updates, responding to specific phone calls and emails, ad hoc meetings as required and 
results period meetings, and our regular reporting. The Company also maintains a dedicated email address 
which  investors  can  use  to  contact  the  Company  which  is  displayed  on  the  website  together  with  the 
Company’s address and phone number – http://www.plexusplc.com/contact-us 

As the Company is too small to have a dedicated investor relations department, the Finance Director is 
responsible for reviewing all communications received from members, and in conjunction as necessary with 
the CEO and if appropriate the Board, before determining the most appropriate response. 

Responses to shareholders are typically sent by email or letter in a timely manner. 

Private shareholders 
Our  AGM  is  the  main  forum  for  dialogue  with  private  shareholders.  The  Notice  of   Meeting  is  sent  to 
shareholders at least 21 days before the meeting. The chairs of the Board and all committees, together with 
all other Directors, routinely attend the AGM and are available to answer questions raised by shareholders. 
Time is set aside specifically to allow such questions from attending members to any board member. For each 
vote, the number of proxy votes received for, against and withheld is announced at the meeting. The results 
of the AGM are subsequently published on the Company’s corporate website under the Stock Exchange 
(RNS) Announcements tab – https://www.plexusplc.com/rns/. However, as per last year, because of ongoing 
concerns and uncertainties about potential future restrictions that could be imposed by the Government as 
a consequence of the COVID-19 pandemic, where it is not yet understood what winter conditions may bring, 
and the prohibitively high costs associated in convening a virtual AGM where very specific rules along with 
an amendment to the Company’s articles of association would be required, this year’s meeting will be a closed 
meeting held at an undisclosed address in London where a quorum will be present in a COVID-19 secure 
and compliant arrangement. Instead of shareholders attending the meeting to vote, they are being encouraged 
to register their vote by completing and returning a Form of Proxy. Unlike a usual AGM where a vote on a 
resolution is put to the meeting initially on a show of hands, the chairman of the meeting will demand a poll 
of votes on each resolution to determine whether or not a particular resolution has been passed. As stated 
above,  the  results  of   the  AGM  will  be  published  on  the  London  Stock  Exchange  and  available  on  the 
Company’s website. 

Institutional shareholders 
The Directors seek to build relationships with institutional shareholders, as well as long term private investors 
who continue to remain supportive of  the Company and its strategy. Shareholder relations are managed 
primarily by the CEO and Finance Director, and supported by the Technical Director, as appropriate. The 
CEO  and  Finance  Director  make  presentations  as  required  to  institutional  shareholders  and  analysts 
following the release of the full-year and half-year results. Such procedures have inevitably been impacted in 
recent times by the various restrictions imposed by COVID-19. 

The Board as a whole is kept informed as necessary of the views and concerns of major shareholders, and is 
aware that a number of institutions and sources of finance have actively begun to move away from investing 
in oil and gas related companies. However, the Board believes that as the Company’s technology can claim to 
be greener than conventional wellhead designs in terms of its leak proof sealing capabilities, that a case can 
be made for investing in the technology not just on superior technology grounds, but also on green ones. Any 
significant investment reports from analysts are also circulated to the Board. The Non-Executive Chairman 
and Non-Executive Directors are available to meet with major shareholders if required to discuss issues of 
importance to them. 

3: Take into account wider stakeholder and social responsibilities and their implications for long-term success 
During the year Plexus entered into a licencing agreement with Cameron and post year-end re-entered the 
exploration wellhead market in conjunction with Cameron. Despite Plexus’ strategy continuing to evolve 
around such different ways of exploiting its proprietary POSGRIP IP, the key stakeholders (both internal 
and  external)  and  the  way  we  engage  with  them  has  not  changed  (subject  to  Covid-19  constraints). 
Stakeholders continue to consist of shareholders, employees, suppliers, customers, licensees and advisers. 

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Corporate Governance continued

Engaging with all our stakeholders as constructively as possible is important to Plexus, and we understand 
that good relations and sound business practices and principles all contribute to helping make a business a 
success. Feedback from shareholders is responded to where possible through interaction via letters, emails, 
phone calls, meetings and, in prior years, the AGM. 

Where necessary the Board is updated on stakeholder engagement feedback should any issues arise, to stay 
abreast of stakeholder insights into what matters most to them and our business, and to enable the Board to 
understand and consider such issues in relevant decision-making. Aside from our shareholders, suppliers and 
customers, our employees are one of our most important stakeholder groups and the Board monitors relevant 
employee issues through regular operating company operations reports. 

Employees 
Plexus  is  a  non-discriminatory  employer  which  aims  to  eliminate  unfair  discrimination,  harassment, 
victimisation and bullying. The Group is committed to ensuring that all individuals are treated fairly, with 
respect and are valued irrespective of disability, race, gender, health, social class, sexual preference, marital 
status, nationality, religion, employments status, age or membership or non-membership of a trade union. 

Staff and staff development continues to be important to the Group and following a sustained period of 
depressed operational activity there was concern the technical skills of those who fulfil specific technical roles 
would diminish and would find it challenging to perform their role effectively and efficiently when activity 
increases again. To help address such a possibility, in-house training and accredited competency programmes 
ensure that necessary skill levels are maintained. 

Additionally,  competency  across  the  business  has  continued  to  evolve  and  broaden;  particularly  within 
workshop and office-based staff  areas. The workshop competency system has been developed under the 
OPITO standards with a view to being accredited by OPITO. The office-based competency system will not 
be  developed  under  the  OPITO  standard  as  it  is  a  concise  system  that  supports  the  requirements  of 
ISO9001:2015, for which Plexus has received Lloyd’s Register accreditation. 

Importantly Health and Safety is an operational area for employee stakeholders where Plexus remains fully 
committed to delivering the highest practical safety standards in everything we do. The Group continue to 
maintain a positive safety culture which is aligned with our Company Safety Values and are pleased to report 
our HSE culture remains strong across the business, and this is reflected by our LTCF and TRCF percentages 
both being zero, with no major findings during our most recent LRQA certification surveillance audits set 
against the ISO 45001:2018 standard. 

Suppliers 
The Plexus business model has been built around the conscious decision of not having its own manufacturing 
facilities,  and  thereby  avoids  incurring  fixed  overheads  associated  with  such  activities.  This  means  that 
manufacturing is sub-contracted to carefully selected and assessed manufacturers and machine shops who 
must operate to prescribed high standards and requirements for delivering Plexus’ products’ high-quality 
threshold levels. Such relationships are of course important to Plexus and tend to be of a long-term nature 
reflecting the professional manner in which business is conducted. 

Customers 
We continue to seek opportunities for continual improvement regarding our relationships with customers, and 
our Business Management System complies with the ISO 45001 standard, demonstrating our commitment to 
attain and sustain the highest standards possible and allow us to respond quickly to client demands. 

Quality  also  remains  a  key  focus  in  the  delivery  of   our  products  and  services  demonstrated  by  our 
accreditation of API Q1 certification in February 2020 along with ISO 45001 accreditation in May 2020. 

Modern Slavery 
In light of the ongoing activities and resultant human misery that have brought about the Modern Slavery 
Act 2015, in 2018 a review of the requirements was carried out and a focus group was formed (HR, Executive 

Plexus Holdings plc Annual Report 2021

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Corporate Governance continued

Assistant, Contracts & Supply Chain) to create a Business Code of Conduct, Supplier Code of Conduct, 
Modern Slavery Statement and Whistleblowing procedure suitable for the business needs. Plexus takes such 
matters seriously, and it is considered good practice that Plexus manages its supply chain in line with the 
Modern Slavery Act to support the legislative requirement placed on the majority of our clients. In addition, 
these business tools have proven to be relevant for tendering processes as companies’ awareness levels about 
this pernicious crime increase. 

4: Embed effective risk management, considering both opportunities and threats, throughout the organisation 

Audit, risk and internal control 

Financial controls 
The Company has an established framework of internal financial controls. These are reviewed by the Executive 
Management, the Audit Committee and the Board as part of an ongoing assessment of significant risks by 
category facing the Company. 

The Group does not currently have an internal audit function due to the small size of the administrative 
function and the level of Director review and authorisation of transactions. 

The Board is responsible for reviewing and approving overall Company strategy, approving revenue and 
capital budgets and plans, and for determining the financial structure of the Company including treasury, 
tax and relevant dividend policy. Monthly results and variances from plans and forecasts are reported to the 
Board. In addition, the Board has a formal schedule of matters reserved for its decision which includes the 
setting of  Company goals, objectives, budgets and other plans. All directors have access to independent 
professional advice at the Company’s expense, if required, as well as to the advice and services of the company 
secretary. 

The Audit Committee assists the Board in discharging its duties regarding the interim and full year results, 
financial statements, accounting policies, and operational and financial controls. Duties include: 

(A)  to consider and recommend to the Board the approval of the appointment of the external auditors of 
the Company, the audit fee and other external remuneration of  the auditors, and any questions of 
resignation or dismissal; 

(B) 

to ensure the independence and objectivity of the external auditors; 

(C)  to discuss with the external auditors before each annual audit commences the nature and scope of the 

audit, and other relevant matters; 

(D)  to  review  the  half   year  and  annual  financial  statements  before  submission  to  the  Board,  focusing 

any changes in accounting policies and practices; 

particularly on: 
(1)
(2) major judgmental areas; 
(3)
(4)
(5)
(6)

significant adjustments resulting from the audit; 
the going concern assumption; 
compliance with accounting standards; and 
compliance with legal requirements. 

(E) 

to discuss problems and reservations arising from final audits, interim reviews or otherwise (if any), and 
any matters the external auditors may wish to discuss (in the absence of the executive directors where 
necessary); 

(F)

to review management’s letter of representation; 

(G)

 to review the nature and extent of non-audit services provided by the external auditors (if any) and be 
satisfied that the auditors’ independence and objectivity is maintained; 

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Corporate Governance continued

(H)

to keep under review the effectiveness of the Company’s internal controls and risk management systems; 

(I)

to undertake an annual assessment of internal controls and risk management; 

(J)

to review the Company’s statement on internal control systems prior to endorsement by the Board; 

(K)

to consider the major findings of any internal investigations and management’s response; 

(L)

to  review  any  internal  audit  programme  and  ensure  that  it  is  adequately  resourced  (currently  not 
applicable); 

(M) to consider other topics, as defined by and referred to the Audit Committee by the Board; and 

(N)

to review the Company’s arrangements for its employees to raise concerns, in confidence, about possible 
wrongdoing in financial reporting or other matters. The Committee shall ensure that these arrangements 
allow proportionate and independent investigation of such matters and appropriate follow up action. 

Risk assessment & management controls 
The Board recognises that maintaining sound controls and discipline is key to managing the downside risks 
to our plan. The Board has ultimate responsibility for the Group’s internal controls and for reviewing their 
effectiveness. However, any such system of internal control can provide only reasonable, but not absolute, 
assurance against material misstatement or loss. The Board considers that the internal controls in place, as 
summarised and explained below are appropriate for the size, complexity and risk profile of the Group. The 
principal elements of the Group’s internal control system include: 

l Management of the day-to-day activities of the Group by the Executive Directors; 

l An organisational structure with defined levels of responsibility, which promotes responsible decision-

making and implementation while minimising risks; 

l A comprehensive annual budgeting process producing an income statement, balance sheet and cash flow, 

which are approved by the Board; 

l Detailed monthly reporting of performance against budget; 

l Control over key areas such as capital expenditure authorisation and banking facilities; and 

l The Group continues to review its system of internal control to ensure compliance with best practice, while 
also having regard to its size and the resources available. As part of such controls the Company maintains 
a “Risk assessment & management document” which reviews both financial and non-financial controls 
areas and risks including Business (including IT); Compliance; Finance; Cash; Debtors; Fixed Assets; 
Other Debtors/Pre-payments; Creditors; Legal and Personnel. Such risks are assessed and reviewed, and 
changes made where appropriate. The key elements of the non-financial controls are set out below. 

Standards and policies 
The Board is committed to maintaining appropriate standards for the Company’s business activities and 
ensuring that these standards are set out in written policies. Key examples of such standards and policies 
include the ‘Anti Modern Slavery Policy’ and ‘Employee Code of Conduct’. Operating procedures for control 
of  operations are clearly documented and set out in operation manuals where a key emphasis is on the 
Company actively assessing and minimising health and safety risks in all areas of the business and educating 
the  workforce  to  provide  as  safe  a  working  environment  as  possible.  Managers  are  responsible  for  the 
implementation of these procedures and compliance is monitored. 

Approval process 
Material contracts are required to be reviewed by a senior Director of the Company and where necessary 
reviewed by external legal Counsel. 

Code of Conduct 
Our  internal  Code  of  Conduct  includes  guidance  to  employees  on  business  integrity,  anti-bribery,  gifts, 
intellectual property and design rights. Every year senior managers and above declare compliance to this code. 

Plexus Holdings plc Annual Report 2021

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Corporate Governance continued

Legal controls 
Contracting with customers that include large international oil companies inevitably requires the entering into 
at times complex contracts where the need to address such issues as limitation of liability need careful review 
and negotiation. The Company’s commercial personnel have full access to external legal advice to ensure that 
appropriate steps are taken to help mitigate the damage that can result from poorly negotiated contracts. 

5: Maintain the board as a well-functioning, balanced team led by the chair. 
The Board currently comprises the Non-Executive Chairman, J. Jeffrey Thrall; three Executive Directors 
comprising Ben van Bilderbeek (CEO), Graham Stevens (FD); and Craig Hendrie (Technical Director); and 
two Non-Executive Directors, Kunming Liu and Charles Jones; and a Company Secretary (non-director) is 
in attendance at board meetings. 

The Audit Committee comprises two Non-Executive Directors, J. Jeffrey Thrall and Charles Jones and is 
scheduled  to  meet  twice  a  year.  It  is  the  Audit  Committee’s  role  to  provide  formal  and  transparent 
arrangements for considering how to apply financial reporting and internal controls, whilst maintaining an 
appropriate relationship with the independent auditors of the Group. In order to comply with best practice 
that at least one member has relevant financial experience, the Chairman of  the Board sits on the Audit 
Committee. The Audit Committee review the Group’s policy on auditor rotation. The current auditors have 
served for 14 years and there are no plans to retender. 

The Remuneration Committee comprises two Non-Executive Directors, J. Jeffrey Thrall and Charles Jones 
and meets when required. It is the Remuneration Committee’s role to set remuneration packages for individual 
Directors. Where necessary the Remuneration Committee obtains advice and research material from external 
remuneration specialists. There was no requirement for the Remuneration Committee to meet during the year. 

The Board considers that the Non-Executive Directors bring an independent judgement to bear, although it 
is recognised that factors such as length of  service and shareholdings can have an impact. The Board is 
satisfied that it has a suitable balance between independence on the one hand, and knowledge of the Company 
on the other, to enable it to discharge its duties and responsibilities effectively. In view of the specialist nature 
of the Company’s technology and IP, knowledge gained over time is considered an important part of the 
Non-Executives understanding and therefore contribution to the business. The executive members of the 
Board have considered the independence of their non-executive colleagues and have concluded they remain 
independent in the context that they provide independent oversight of the Company removed from day-to-
day operations and constructively challenge the executive members of the Board. 

All Directors are encouraged to apply their independent judgement and to challenge all matters, whether 
strategic or operational. 

During the last financial year seven Board meetings took place (including Board Committee meetings, but 
excluding meetings of the Audit Committee, and, as disclosed above, the Remuneration Committee did not 
meet during the last financial year), and key Board activities as listed below are included but are not exclusive: 

l Discussed strategic priorities 

l Discussed the Group’s financial strength and strategy, including capital investments, shareholder returns 

and the dividend policy 

l Reviewed the performance of the Company’s licensees 

l Discussed actual and potential M&A activity 

l Discussed the internal risk management and assessment report 

l Reviewed feedback where relevant from shareholders post full and half year results 

Details of the dates of meetings during the last financial year of the Board, Board Committee, and Audit 
Committee, together with attendees are set out in the tables below. 

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Corporate Governance continued

All members of the Board are expected to attend all scheduled main Board meetings whenever possible, but 
for practical purposes, the completion of the interim or full year accounts, or certain corporate transactions 
are delegated to a committee of the board to which all directors are entitled to attend by whatever practical 
means possible. The directors receive timely notice of each meeting along with an agenda and supporting 
papers which they review in advance of each meeting. 

Directors’ conflicts of interest 
The Company has effective procedures in place to monitor and deal with conflicts of interest. The Board is 
aware of  the other commitments and interests and if  necessary, the relevant Board member will recuse 
themselves from the matter at hand so as to avoid any conflicts for the individual or the Company. 

Directors and Non-Executive Directors are expected to be available in person or virtually, and to have spent 
sufficient time studying all papers relevant to the regular meetings. Additionally, they are required to similarly 
attend meetings whenever required where non-routine course of business activity is going on, such as the 
Board approval of the Licence Agreement with Cameron in November 2020, and the Jack-up Exploration 
Wellhead Agreements in August 2021. 

The executive members of the Board have considered the independence of their non-executive colleagues and 
have concluded they remain independent in the context that they provide independent oversight of the Company 
removed from day-to-day operations and constructively challenge the executive members of the Board. 

Details of the Directors may be found here https://www.plexusplc.com/board-of-directors/ 

                                                                                                                                      Audit                                         Board 
                                                         Board               Board               Board           Committee           Board           Committee 
2020:                                             30.09.2020       02.11.2020       09.11.2020       25.11.2020       25.11.2020       01.12.2020 

Jeff Thrall                                                                                                                        
Ben van Bilderbeek                                             
Graham Stevens                                                                                                                                  
Craig Hendrie                                                                                                                                      
Kunming Liu                                                                                                                            
Charles Jones                                                                                                                      

2021:                                                            

Jeff Thrall                                             
Ben van Bilderbeek                            
Graham Stevens                                 
Craig Hendrie                                    
Kunming Liu                                      
Charles Jones                                     

                      Audit 
                 Committee
                 24.03.2021

                    Board 
Board           Committee 
24.03.2021       26.03.2021

                      

                  

                     
 
 
 
 


 

As already disclosed above, the Remuneration Committee did not meet during the last financial year. 

6: Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities 
The Board is satisfied that, between the Directors, it has an effective and appropriate balance of skills and 
experience, including in the areas of finance, governance, commercial experience, public markets, oil and gas 
industry,  and  international  trade.  All  Directors  receive  regular  and  timely  information  on  the  Group’s 
operational and financial performance. Relevant information is circulated to the Directors in advance of 
Board and Committee meetings. The business reports regularly on its headline performance against its agreed 
budget, and the Board reviews updates on performance and any significant variances are reviewed at each 
Board meeting. Directors’ Service contracts are available for inspection at the Company’s registered office 
and at the Annual General Meeting (“AGM”). Further details of the Directors’ experience and skills are set 
out on page 19 of this report. 

Plexus Holdings plc Annual Report 2021

30

 
                                                                     
                                                                     
 
 
                    
                    
                    
                    
Corporate Governance continued

The Directors are experienced in their own fields, and they act on their own initiative in ensuring they remain 
up to date in their respective skills where relevant by being members of relevant professional organisations, 
attending seminars and conferences, attending continuing professional development courses to maintain any 
current  accreditation  and  approaching  the  Company  to  arrange  training  where  and  if   it  is  considered 
appropriate. The Board does not at the current time undertake specific due diligence on or carry out a formal 
review of an individual Director’s skills and training but is comfortable with such experience being appropriate 
from regular engagement and dialogue with each Director. No such review is anticipated at the current time. 

All Directors retire by rotation at regular intervals in accordance with the Company’s Articles of Association. 

Appointment, removal and re-election of Directors 
The Board makes decisions regarding the appointment and removal of Directors. As and when necessary 
suitable candidates are identified and put forward for consideration and additionally external views are sought, 
and, if relevant, background checks are undertaken in addition to any regulatory checks that are required. 
The process is formal and transparent, and consideration is given to what skills the candidate brings to the 
Board and how they will work and fit in with other Board members. The Company’s Articles of Association 
require that one-third of the Directors must stand for re-election by shareholders annually in rotation and 
that  any  new  Directors  appointed  during  the  year  must  stand  for  re-election  at  the  AGM  immediately 
following their appointment. Ben van Bilderbeek and Craig Hendrie will retire by rotation this year, and, 
being eligible, offer themselves for re-election. 

Independent advice 
All Directors can take independent professional advice in the furtherance of their duties, if necessary, at the 
Company’s expense. In addition, the Directors have direct access to the advice and services of the Company 
Secretary, whose role is to consider compliance with primarily the Companies Act 2006 along with all other 
relevant legislation, the Finance Director, and the Company’s nominated adviser. 

The Company has not had to engage external advisers to the Board other than its usual professional advisers 
during the normal course of business. 

The Company out-sources the company secretarial duties and responsibilities to a firm of  professional 
company secretaries, (“the Out-Sourced Provider”), which engagement is overseen by the Finance Director. 
In  addition  to  the  routine  company  secretarial  compliance  work,  the  Out-Sourced  Provider  fulfils  a 
wide-ranging  support  role  to  the  FD  on  matters  pertaining  to  the  Companies  Act,  regulatory  matters, 
transactional support, and ad hoc assistance generally. Its services are also available to any other board 
director who may wish to make an approach for independent advice which the Out-Sourced Provider strives 
to deliver in an impartial manner. 

7: Evaluate board performance based on clear and relevant objectives, seeking continuous 
improvement 
On  an  informal  basis  the  Chairman  Jeff   Thrall  and  CEO  Ben  van  Bilderbeek  monitor  the  individual 
contributions of each of the members of the team to ensure that: 

l Their contribution is relevant and effective; 
l That they are committed; 
l Where relevant, they have maintained their independence; and 
l The skills of the board members are appropriate for the size and complexity of the Group. 

The responsibilities of the Chairman and CEO are summarised below: - 

The Chairman’s primary responsibility is to lead the Board effectively and to oversee the adoption, delivery 
and communication of the Company’s corporate governance model. The Chairman has sufficient separation 
from the day-to-day business to be able to make independent decisions. The Chairman is also responsible for 
making sure that the board agenda concentrates on the key issues, both operational and financial, including 
reviews of the Company’s strategy and its overall implementation. 

The CEO is responsible for the delivery of the business model within the timetable agreed by the Board. Keeps 
the Chairman and Board up to date with operational performance, risks and other issues to ensure that the 
business remains aligned with the agreed strategy. 

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Corporate Governance continued

Because of the relative size of the Company, the composition of the Board and the level of experience of 
each Board member, the Company has not adopted a formal board evaluation process although keeps the 
topic under review and would conduct an assessment of the effectiveness of the whole Board’s performance 
if it were considered beneficial. 

The Board is mindful of the subject of succession planning, although has yet to adopt a formal process. At 
the present time, any succession planning deemed necessary would be carried out on an ad hoc basis. The 
Board keeps this subject under review. The Board is aware of the current shareholding structure and the 
significance of the founder’s shareholding and is always mindful of the need to balance the interests of all 
shareholders and stakeholders alike. 

8: Promote a corporate culture that is based on ethical values and behaviours 
The culture of the Group is to treat all of our customers, suppliers, shareholders and staff fairly and with 
respect and to be responsive and professional in all that we do whilst at all times being aware of the critical 
nature of the industry we operate in and the importance of monitoring and managing a range of risks that 
include political, legal, environmental, IP infringement, competitive risk, operational, liquidity and financial 
requirements, and credit. 

The risk assessment of such areas is an ongoing process, and the Board has established a process for identifying, 
evaluating  and  managing  the  more  significant  risk  areas  faced  by  the  Group.  One  of  the  Board’s  control 
documents is a detailed “Risks assessment & management document” which categorises risks in terms of – 
Business (including IT), Compliance, Finance, Cash, Debtors, Fixed assets, other Debtors/prepayments, Creditors, 
Legal, and Personnel. These risks are assessed and updated on a regular basis and can be associated with a variety 
of internal and external sources including regulatory requirements, disruption to information systems including 
cyber-crime, control breakdowns and social, ethical, environmental and health and safety issues. 

The Company ensures that ethical values and behaviours are recognised and respected by the adoption of 
appropriate policies which all members of staff are required to read and have ready access. 

9: Maintain governance structures and processes that are fit for purpose and support good 
decision-making by the board 

Board programme 
The Board meets regularly during each year and in accordance with its scheduled meeting calendar as listed 
below through a formal schedule of reserved matters for its decision. 

Companies Act Requirements 
1. Approval of interim and final financial statements. 
2. Approval of the interim dividend and recommendation of the final dividend. 
3. Approval of any significant changes in accounting policies or practices. 
4. Appointment or removal of the company secretary. 
5. Remuneration of  the auditors and recommendations for the appointment or  removal of  auditors, 

following recommendation of the Audit Committee. 

6. Resolutions and corresponding documentation to be put forward to shareholders at a General Meeting. 

Stock Exchange/Financial Services Authority 
7. Approval of all circulars, listing particulars and announcements. 
8. Approval of press releases concerning matters decided by the board. 

Board membership and board committees 
9.

Board appointments and removals, the overall remuneration policy and any special terms and conditions 
attached to the appointment (subject to the recommendations of the Remuneration Committee). 

10. Selection and terms of reference of chairman, chief executive and other executive directors. 
11. Terms of reference and membership of board committees. 
12. Where applicable, appointment of the senior independent director. None is currently appointed, and 
the role would be defined appropriate to requirements and circumstances applicable at the time. 

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Corporate Governance continued

13. Succession planning for the board and senior management. 
14. Continuance in office of  directors at the end of  their office, where they are due to be re-elected by 
shareholders in general meeting or at any other time, subject to the law and the director’s service contract. 

15. Reviewing reports from committees on activities and progress. 

Strategy and Management 
16. Overall management of the group. 
17. Approval of the group’s long-term objectives and commercial strategy. 
18. Approval of the annual group budgets and any material changes to them. 
19. Changes relating to the group’s capital structure, listing or its status as a plc. 
20. Oversight  of   the  group’s  operations  to  ensure  competent  management,  sound  planning,  adequate 
systems of  internal control, adequate accounting and other records are kept, and compliance with 
statutory and regulatory obligations are achieved. 

21. Review of performance against strategy, budgets, business plans and set objectives and implementation 

of necessary corrective action. 

22. Extending the group’s activities into new business or geographic areas or ceasing all or any material 

part of the group’s business. 

23. Changes to the group’s management and control structure. 
24. Capital expenditure projects. 
25. Material, either by reason of  size or strategically such as the granting of  licences in relation to the 
Company’s IP, contracts of the company in the ordinary course of business (defined as the sale and 
rental of wellhead equipment), above £750,000 for rental equipment, or above £350,000 p.a. for contracts 
of one year or more. 

26. Major investments including the acquisition or disposal of interests of more than 5 percent in the voting 

shares of any company or the making of any takeover bid. 

27. Risk management strategy and review. 
28. Treasury policies including foreign currency exposure 

Miscellaneous 
29. Review of the company’s overall corporate governance arrangements and performance of the board, 

its committees and the individual directors. 

Investor relations management. 

30. Determining ‘independence’ of the directors. 
31.
32. Major changes in the rules of the company pension scheme. 
33. Major changes in employee share schemes. 
34. Formulation of policy regarding charitable donations. 
35. Political donations. 
36. Approval of the company’s principal professional advisers. 
37. Litigation of any nature to be notified to the board and any settlements above £5,000. 
38.

Internal  control  arrangements,  annual  review  and  statement  in  the  annual  report,  subject  to 
recommendations of the Audit Committee as appropriate. 

39. Directors’ & Officers’ liability insurance. 
40. Approval of the group’s share dealing, code of conduct, health and safety, environmental and corporate 

social responsibility policies. 
41. Approval of third-party guarantees. 
Prior to the start of each financial year, a schedule of Key Dates for that year’s Board and associated meetings 
is compiled to align as far as reasonably practicable with the Company’s financial calendar, while also ensuring 
an appropriate spread of meetings across the financial year. 

The Key Dates schedule is updated throughout the year as necessary. This may be supplemented by additional 
meetings as and when required, for example in relation to corporate activity. The Board and its Committees 

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Corporate Governance continued

receive appropriate and timely information prior to each meeting; a formal agenda is produced for each 
meeting, and Board and Committee papers are distributed several days before meetings take place. Any 
Director may challenge Company proposals and decisions are taken democratically after discussion. Any 
Director who feels that any concern remains unresolved after discussion may ask for that concern to be noted 
in the minutes of the meeting, which are then circulated to all Directors. Any specific actions arising from 
such meetings are agreed by the Board or if relevant by a Committee, and then followed up by the Company’s 
management. 

Roles of the Board, Chairman and Chief Executive Officer. 
The Board is responsible for the long-term success of the Company. There is a formal schedule of reserved 
Board matters, and it is responsible for overall Group strategy; approval of major investments (whether Capex 
or Opex); approval of the annual and interim results; annual budgets; dividend policy; and Board structure. 
It also monitors the exposure to key business risks. There is a clear division of responsibility at the head of 
the  Company.  The  Chairman  is  responsible  for  running  the  business  of   the  Board  and  for  reviewing 
appropriate strategic focus and direction. The Chief Executive Officer is responsible for proposing the strategic 
focus  to  the  Board,  implementing  it  once  it  has  been  approved  and  overseeing  the  management  of   the 
Company through the Executive Team. 

All Directors receive regular information on the Group’s operational and financial performance. Relevant 
information is circulated to the Directors in advance of meetings. The business regularly reports on its headline 
performance against its agreed budget, and the Board reviews updates on performance and any significant 
variances are reviewed at each Board meeting. Senior executives below Board level attend Board meetings 
where appropriate to present business updates. 

Executive Team 
The Executive Team consists of  Ben van Bilderbeek (CEO), Graham Stevens (CFO) and Craig Hendrie 
(Technical Director), with input from the subsidiary company Directors and teams, all of which are full-time 
staff members and are responsible for the day-to-day management of the Group’s businesses and its overall 
trading, operational and financial performance in fulfilment of that strategy, as well as plans and budgets 
approved by the Board of Directors. They in conjunction with the Board manage and oversee key risks, and 
where appropriate management development. Graham Stevens is responsible for overseeing shareholder 
communications,  and  Craig  Hendrie  leads  on  R&D  and  engineering  development  activities.  The  Chief 
Executive Officer reports to the plc Board on issues, progress and recommendations for change. The controls 
applied by the Executive Team to financial and non-financial matters are set out earlier in this document. 

Board Committees 
The Board is supported by the Audit Committee and where necessary the Remuneration Committee. Each 
committee has access to such resources, information and advice as it deems necessary, at the cost of  the 
Company, to enable each committee to discharge its duties. The duties of the Audit Committee have been 
outlined in the detail on Principle 4 in this report. The overall duties of the Remuneration Committee are 
determining the policy and all elements of the remuneration of the executive directors of the Company and 
other senior executives (“the Executives”) of the Group and the duties of the Remuneration Committee are: 

l to consider the basic salary paid to the Executives and any recommendations made by the Chairman of 

the Company for changes to that basic salary 

l to consider any bonuses to be paid to the Executives and, in respect of any element of remuneration of an 
Executive which is performance related, to formulate suitable performance-related criteria and monitor 
their operation, and to consider any recommendations of the Chairman of the Company regarding bonuses 
or performance-related remuneration 

l to advise on and determine all performance-related formulae relevant to the remuneration of the Directors 
of the Company and to consider the eligibility of Directors for annual bonuses and benefits under long 
term incentive schemes 

l to administer all aspects of any executive share option scheme operated by or to be established by the 
Company including but not limited to (subject always to the rules of that scheme and any applicable legal 
and Stock Exchange requirements): 

Plexus Holdings plc Annual Report 2021

34

Corporate Governance continued

(1)

(2)
(3)
(4)
(5)

the selection of those eligible Directors of the Company and its subsidiary companies to whom options 
should be granted 
the timing of any grant 
the numbers of shares over which options are to be granted 
the exercise price at which options are to be granted 
the imposition of any objective condition which must be complied with before any option may be exercised 

l to  have  regard  in  the  performance  of   the  duties  set  out  in  this  clause  to  any  published  guidelines  or 
recommendations  regarding  the  remuneration  of   directors  of   listed  companies  and  formation  and 
operation of share option schemes (in particular the guidelines published by the Association of British 
Insurers and National Association of  Pension Funds) which the Remuneration Committee considers 
relevant or appropriate 

l to consider and make recommendations to the Directors of the Company concerning disclosure of details 

of remuneration packages and structures in addition to those required by law 

l to consider other benefits granted to the Executives and any recommendations of the Chairman of the 

Company for changes in those benefits 

l to consider the pension arrangements applicable to the Executives 
l to consider and make recommendations in respect of the terms of the service contracts of the Executives 
and any proposed changes to these contracts (including, without limitation, any compensation payments, 
notice periods, or other entitlements under these contracts) 

l to  consider  other  matters  relating  to  the  remuneration  of   or  terms  of   employment  applicable  to  the 

Executives and referred to the Remuneration Committee by the Board 

The governance framework is subject to review on an ongoing basis. No changes to the governance framework 
are currently planned. 

10: Communicate how the company is governed and is performing by maintaining a dialogue 
with shareholders and other relevant stakeholders 
The  Company  communicates  with  shareholders  through  Regulatory  News  Service  announcements,  the 
Annual Report and Accounts, full-year and half-year announcements, the Annual General Meeting (AGM) 
(under  normal  non-pandemic  circumstances)  and  when  required  one-to-one  meetings  with  existing  or 
potential institutional new shareholders. 

Most day to day shareholder interaction and communication is the responsibility of the CEO and the CFO. 

A range of corporate information (including all Company announcements) is also available to shareholders, 
investors and the public on the Company’s corporate website, www.plexusplc.com 

The Board receives when relevant updates on the views of shareholders through briefings and reports from 
the Company’s brokers, Cenkos Securities Plc. 

The Company communicates with institutional investors where requested through briefings with management. In 
addition, analysts’ notes and brokers’ briefings are reviewed to achieve a wide understanding of investors’ views. 

Regular and open communication is encouraged between all layers of management to ensure that any issues 
or concerns can be raised. 

The Company announces the results of  all votes on resolutions proposed at any general meeting of  the 
members  of   the  Company  by  releasing  an  RNS  to  the  London  Stock  Exchange  immediately  upon  the 
conclusion of the meeting. It has not had occasion to announce where a significant proportion of votes (e.g. 
20% or more of independent votes) has been cast against any particular resolution, although intends to include 
this information in the future, should such an occasion arise, including a summary of the actions it would 
take  to  understand  the  reasons  behind  such  a  voting  result.  The  Company  maintains  on  its  website  an 
increasing library of  documents including all circulars to shareholders, RNS news releases and historic 
documents which the Board considers adequate – https://www.plexusplc.com/aim-rule-26/ 

35

Plexus Holdings plc Annual Report 2021

Audit Committee Report

Introduction 
This report details how the Audit Committee (“the Committee”) has met its responsibilities under its terms 
of reference. The Committee is a sub-committee of the Board and the ultimate responsibility for reviewing 
and approving the Annual Report and Accounts and interim financial statements remains with the Board. 
The Committee does not believe it is appropriate to have an internal audit function at this point in time as 
the Group is relatively small and not sufficiently complex. 

Members 
The members of the Audit Committee are Jerome Jeffrey Thrall (Chairman) and Charles Jones. The Executive 
Directors and the external auditors attend the meetings by invitation. The Board considers that the Committee 
has an appropriate and experienced blend of commercial, financial and industry expertise to enable it to fulfil 
its duties, and that the Committee Chairman has appropriate recent and relevant financial experience. 

Committee Meetings 
The Committee met twice during the year to 30 June 2021. One meeting related to the 2019-20 Annual Report 
and Accounts, and the second meeting was to review and sign off the 2021 Interim Financial Statements. The 
external auditors attended both meetings. 

Role and Responsibilities 
The Board has established an Audit Committee and set clear Terms of Reference so as to monitor the integrity 
of the Group’s financial statements and the effectiveness of the Group’s internal financial controls. 

The Terms of Reference are reviewed annually and amended where appropriate. During the year the Committee 
worked with management, the external auditors, and other members of the senior management team in fulfilling 
these responsibilities. The Committee considers financial reporting and internal controls. It also reviews the 
scope and results of the external audit and the independence and objectivity of the auditors. It meets at least 
twice a year and reviews the interim and annual financial statements before they are submitted for approval by 
the  Board  upon  its  recommendation.  The  Committee  considers  annually  whether  the  auditors  remain 
independent for the purposes of the audit and whether a separate internal audit function is required. As 
referenced above, the Committee does not believe it is appropriate to have an internal audit function at this time 

Financial reporting and related primary areas of judgement; 
The external audit process; 

The  Committee  report  deals  with  the  key  duties  and  areas  in  which  it  plays  an  active  role  and  has 
responsibility. These duties and areas include the following: 
i)
ii)
iii) Risk management and internal controls; 
iv) Whistleblowing procedures 
v) Consider and approve the appointment of the external auditors of the Company, the audit fee and other 

fees for non-audit related services; 

vi) Ensure the independence and objectivity of the external auditors; and 
vii) Review the external auditor’s management representations letter and management’s response. 

Annual Report and Accounts 
General 
The  Committee  has  satisfied  itself  that  the  2020-21  Annual  Report  and  Accounts  have  been  prepared  in 
accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, are 
fair, balanced and provide the information necessary for shareholders to assess the Group’s performance, business 
model and strategy. The Committee reviewed the key risk areas as identified in the Audit Plan document including: 
revenue recognition and management override of controls. The Committee understands that the auditors have 
followed their procedures for reviewing these risks and have undertaken detailed testing as appropriate. 

In preparing the financial statements for the period, the main area requiring the exercise of management 
judgement or a high degree of estimation was the valuation, and possible impairment, of intangibles. This 
was discussed with the auditor. The Committee, having reviewed management’s assessment of impairment, 
concluded that the relevant value in use was above the carrying value of the assets and hence no impairment 

Plexus Holdings plc Annual Report 2021

36

Audit Committee Report continued

provision was required. Further information on the methodology and assumptions used in the valuation of 
intangible assets and the assessment of impairment thereof is given in notes 1.g and 1.h to the consolidated 
accounts on page 53, and in the Parent company accounts on page 81. 

Going Concern 
The Committee reviewed the going concern paper prepared by management including detailed monthly 
financial forecasts, which included the twelve months from the date of signing the financial statements for 
2020-21 and included related assumptions, risks and opportunities, sensitivities, areas for mitigation and 
contingency plans. Based on this review, the Committee has a reasonable expectation that the Group has 
adequate resources to continue in operational existence for the foreseeable future, being the period of twelve 
months from the date of signing the financial statements for 2020-21. Accordingly, the Committee concluded 
that it is appropriate to adopt the going concern basis in preparing the annual financial statements. 

Internal Control Systems 
The Committee ensures that it monitors internal control systems reporting by the auditors and that there are 
no issues. 

Risk Management 
The Board has established an on-going process for identifying, evaluating and managing the more significant 
risk areas faced by the Group. One of  the Board’s control documents is a detailed “Risks assessment & 
management document” which categorises risks in terms of – Business (including IT), Compliance, Finance, 
Cash, Debtors, Fixed Assets, Other debtors/prepayments, Creditors, Legal, and Personnel. These risks are 
assessed and updated when necessary and can be associated with a variety of internal and external sources 
including  regulatory  requirements,  disruption  to  information  systems  including  cyber-crime,  control 
breakdowns and social, ethical, environmental and health and safety issues. Further details on the Principal 
Risks and Risk Management may be found in the Strategic Report on page 9 of the financial statements. 

Board Conduct and Effectiveness Review 
As reported in the Corporate Governance section of the financial statements because of the relative size of 
the Company, the composition of the Board and the level of experience of each Board member, the Company 
has not adopted a formal whole board evaluation process although keeps the topic under review and would 
conduct one if it were considered necessary. 

The Board is mindful of the subject of succession planning, although has yet to adopt a formal process and, 
the Company having been in transition since the disposal of the rental wellhead Jack-up business in 2018, 
any succession planning deemed necessary would be carried out on an ad hoc basis. The Board keeps this 
subject under review. The Board is aware of the current shareholding structure and the importance of the 
founder’s shareholding and is always mindful of the need to balance the interests of all shareholders and 
stakeholders alike. 

Auditor Independence 
The  Committee  satisfied  itself   on  the  auditors’  independence.  Mr  Stephen  Bullock  has  been  the  senior 
statutory auditor for five years. Non-audit services provided by the Group’s auditors have been considered 
and has had no impact on the auditors’ independence. 

Whistleblowing 
The Committee had no whistleblowing incidents reported directly or indirectly during the year to 30 June 2021. 

The Report of the Audit Committee was approved by a Committee of the Board of Directors on 19 November 
2021 and signed on its behalf by: 

J Jeffrey Thrall 
Chairman of the Audit Committee

37

Plexus Holdings plc Annual Report 2021

 
Remuneration Committee Report 

Introduction 
Companies trading on AIM are not required to provide a formal remuneration report. However, in line with 
current best practice this report provides information to enable a greater level of understanding as to how 
Directors’ remuneration is determined. 

The Remuneration Committee of the Board is responsible for considering Directors’ remuneration packages. 
The Committee comprises two Non-Executive Directors J. Jeffrey Thrall and Charles Jones. There was no 
requirement for the Remuneration Committee to meet during the last financial year. 

Remuneration policy 
The Group’s policy is to attract, retain and motivate high calibre executives capable of achieving the Group’s 
objectives. Executive Directors receive salaries, annual bonuses (as and when appropriate), medical cover, and 
pension scheme contributions. 

The Committee determines the policy of the overall remuneration package for Executive Directors and other 
senior executives. Basic salaries and benefits of all employees are normally reviewed every year, and the Group 
and the Committee as part of this process may seek advice from external remuneration consultants as and 
when appropriate. In reviewing salaries, consideration is given to personal performance, the Group’s overall 
performance and external comparative information. 

An annual performance or transaction related bonuses may be payable to Executive Directors and senior 
staff, and when appropriate an exercise is undertaken, again in conjunction where appropriate with external 
remuneration  consultants  to  look  at  market  comparisons,  benchmarks,  relative  performance  as  well  as 
consideration of strategic progress in addition to simply financial ones. Comparator group analysis includes 
oil and gas exploration companies with broadly similar market capitalisations and numbers of employees, as 
well as oil and gas service companies where, although the market capitalisation range is wide, it is still relevant 
as these are the sort of companies with which Plexus may compete for talent. 

Service contracts 
The Executive Directors have service agreements with the Company dated 25 November 2005 subject to 
termination upon twelve months’ notice being given by either party. 

Pensions 
The Group offers a contributory group stakeholder pension scheme, into which the Group makes matching 
contributions up to a pre-agreed level of base salary; the scheme is open to Executive Directors and permanent 
employees. Directors may alternatively choose to have contributions paid into existing personal pension plans, 
or to receive salary in lieu. 

Non-executive Directors 
The Non-Executive Chairman, J. Jeffrey Thrall, entered into a Letter of Appointment with the Company 
dated 25 November 2005 for an initial term through to the first AGM and having been re-elected as a director 
either party can terminate upon three months’ notice being given. The subsequently appointed Non-Executive 
Directors, Charles Jones and Kunming Liu, entered into their Letters of Appointment with the Company 
dated 18 September 2014, and 17 December 2015 respectively, and having been re-elected as a director at the 
first respective AGM following their appointment, are subject to the same termination conditions as those 
applicable to Mr Thrall. 

Plexus Holdings plc Annual Report 2021

38

Remuneration Committee Report continued

Directors’ remuneration 
Details of Directors’ remuneration for the year are set out below: 

Executive Directors 
Ben van Bilderbeek
Graham Stevens
Craig Hendrie
Non-executive Directors 
J Jeffrey Thrall
Charles Jones
Kunming Liu

Total

Salary & Fees
£

Benefits
£

Pension
£

2021
Total
£

2020 
Total 
£ 

293,982
166,791
138,377

–
–
–
––––––––––
599,150
––––––––––

54,613 
18,425 
1,154 

– 
– 
– 
––––––––––
74,192 
––––––––––

–
–
19,858

348,595
185,216 
159,389

339,285 
182,526 
159,346 

–
–
–
––––––––––
19,858
––––––––––

–
–
–
––––––––––
693,200
––––––––––

19,500 
18,000 
18,000 
–––––––––– 
736,657 
–––––––––– 

The highest paid director is the Group CEO with total remuneration for the year of £349k (2020: £339K). This 
compares to the average of all company employees (salaries and benefits plus pension) of £78k (2020: £72k). 

Directors’ interest in share options 
The  options  and  awards  have  been  granted  pursuant  to  the  Executive  2005  Share  Option  Scheme  and 
Non-Executive 2005 Share Option Scheme to the following Directors: 

Executive 2005 Share Option Scheme 

Name
B. van Bilderbeek
B. van Bilderbeek
B. van Bilderbeek
B. van Bilderbeek
G. Stevens
G. Stevens
G. Stevens
G. Stevens
C. Hendrie
C. Hendrie
C. Hendrie
C. Hendrie

No of 
options at 
30/06/20 &
30/06/21
194,152
65,902
332,110
169,642
138,407
43,177
217,795
101,042
254,407
43,177
217,79
105,853

No of
Options 
Vested at 
30/06/21
194,152
65,902
332,110
169,642
138,407
43,177
217,795
101,042
254,407
43,177
217,79
105,853

Date of
Grant
09/12/05
20/06/07
17/12/09
25/03/11
09/12/05
20/06/07
17/12/09
25/03/11
09/12/05
20/06/07
17/12/09
25/03/11

Expiry 
Date
08/12/25
19/07/27
13/12/29
24/03/31
08/12/25
19/07/27
13/12/29
24/03/31
08/12/25
19/07/27
13/12/29
24/03/31

Exercise  
Price 
0.59 
0.385 
0.41 
0.60 
0.59 
0.385 
0.41 
0.60 
0.59 
0.385 
0.41 
0.60 

No executive share options have been granted, lapsed, forfeited or exercised during the years to 30 June 2021 
and 2020. No share options have been exercised since 2015. 

39

Plexus Holdings plc Annual Report 2021

 
 
 
Remuneration Committee Report continued

Non-executive 2005 Share Option Scheme 

No of 
options at
30/06/20

No of 
Lapsed 
during options at 
30/06/21
20/21
40,169
40,169                   –

No of
Options 
Date of  Vested at 
30/06/21
40,169

Grant
09/12/05

Expiry 
Date
08/12/25

Exercise  
Price 
0.59 

Name
J. Thrall

The  non-executive  share  options  granted  on  08/06/10  lapsed  during  the  year  to  30  June  2020.  No  other 
non-executive share options have been granted, forfeited or exercised during the years to 30 June 2021 and 2020. 

No options are expected to lapse at the AGM. 

On 9 July 2015 the Board of Plexus approved certain amendments to the rules of the Plexus Holdings plc 
2005 Share Option Scheme (the “Plan”) such that the Company is permitted to extend the exercise period for 
options granted under the Plan by a further ten years. On 9 July 2015 the directors approved an amendment 
to the rules of  the scheme such that the Company is permitted to extend the exercise period for options 
granted under the scheme by a further ten years. Subsequently on 8 June 2017, 13 December 2019 and 
25 March 2021 the Company entered into deeds of amendment with Ben van Bilderbeek, Graham Stevens, 
Craig Hendrie, and eleven employees in respect of options granted to them on 20 June 2007 and 17 December 
2009 and 25 March 2011 under the scheme, to extend the exercise period by ten years, subject to all other 
terms of the scheme rules. 

The  lowest  mid-market  price  of   the  Company’s  shares  in  the  year  to  30  June  2021  was  8.50p  on  the 
24th September 2020. The high price in the period to 30 June 2020 was 24.00p on 19th November 2020. The 
mid-market price on 30 June 2021 was 13.25p. 

The 6-year history of the share price on reporting date (30 June) is as follows, 2021: 13.25p, 2020:14.00p, 
2019: 40.50p, 2018: 46.90p, 2017: 57.00p and 2016: 40.63p 

Total staff remuneration costs for the year, as set out in note 5 was £2.81m (2020: £2.90m). This compares to 
distributions to shareholders of nil (2020: £nil). 

Plexus Holdings plc Annual Report 2021

40

 
 
 
Statement of Directors’ Responsibilities

The  directors  are  responsible  for  preparing  the  Directors’  Report,  Strategic  Report  and  the  financial 
statements in accordance with applicable law and regulations. 

Company law requires the directors to prepare financial statements for each financial year. Under that law 
the directors have elected to prepare the group and parent company financial statements in accordance with 
International Financial Reporting Standards (IFRSs) as adopted by the European Union. Under company 
law the directors must not approve the financial statements unless they are satisfied that they give a true and 
fair view of the state of affairs of the Company and of the Group and of the profit or loss of the Group for 
that period. In preparing these financial statements, the directors are required to: 

l

l

l

l

select suitable accounting policies and then apply them consistently; 
make judgements and accounting estimates that are reasonable and prudent; 
state whether applicable accounting standards have been followed, subject to any material departures 
disclosed and explained in the financial statements; 
prepare the financial statements on the going concern basis unless it is inappropriate to presume that 
the Group and the parent company will continue in business. 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain 
the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the 
Company and enable them to ensure that the financial statements comply with the Companies Act 2006. 
They have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets 
of the Group and to prevent and detect fraud and other irregularities. 

The directors are further responsible for ensuring that the Strategic Report and the Report of the Directors 
and other information included in the Annual Report and Financial Statements is prepared in accordance 
with applicable law in the United Kingdom. 

The directors are responsible for the maintenance and integrity of the corporate and financial information 
included on the Group’s website (www.plexusplc.com). The work carried out by the auditors does not involve 
the consideration of these matters and, accordingly, the auditors accept no responsibility for any changes 
that may have occurred in the accounts since they were initially presented on the website. Legislation in the 
UK governing the preparation and dissemination of financial statements may differ from legislation in other 
jurisdictions. 

By order of the Board 

G Stevens 
Director 
19 November 2021

41

Plexus Holdings plc Annual Report 2021

Independent Auditor’s Report to the Shareholders of Plexus Holdings plc

Opinion 
We have audited the financial statements of Plexus Holdings Plc (the “Parent Company”) and its subsidiaries 
(the “Group”) for the year ended 30 June 2021, which comprise: 

l

l

l

l

l

the Group statement of comprehensive income for the year ended 30 June 2021; 
the Group and Parent Company statements of financial position as at 30 June 2021; 
the Group and Parent Company statements of changes in equity for the year then ended 30 June 2021; 
the Group statement of cash flows for the year then ended 30 June 2021; and 
the notes to the financial statements, including a summary of significant accounting policies. 

The financial reporting framework that has been applied in the preparation of the Group financial statements 
is  applicable  law  and  in  accordance  with  International  Accounting  Standards  in  conformity  with  the 
requirements of the Companies Act 2006, and, as regards the parent company, as applied in accordance with 
the Companies Act 2006. 

In our opinion: 

l

l

l

l

the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s 
affairs as at 30 June 2021 and of the Group’s loss for the period then ended; 
the group financial statements have been properly prepared in accordance with International Accounting 
Standards in conformity with the requirements of the Companies Act 2006; 
the Parent Company financial statements have been properly prepared in accordance with International 
Accounting Standards in conformity with the Companies Act 2006 and as applied by the Companies 
Act 2006; and 
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. 

Basis for opinion 
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and 
applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities 
for the audit of the financial statements section of our report. We are independent of the Group in accordance 
with the ethical requirements that are relevant to our audit of the financial statements in the UK, including 
the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these 
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 
basis for our opinion. 

Conclusions relating to going concern 
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of 
accounting in the preparation of  the financial statements is appropriate. Our evaluation of  the directors 
assessment of  the group’s and parent company’s ability to continue to adopt the going concern basis of 
accounting included: 

l

l

l

l

l

l

Reviewing management’s financial projections for the Group and Parent Company for a period of more 
than 12 months from the date of approval of the financial statements. 
Checking the numerical accuracy of management’s financial projections 
Challenging management on the assumptions underlying those projections and sensitised them to reduce 
anticipated net cash inflows from future trading activities. 
Obtaining the latest financial results post the year end to review how the Group and Parent Company 
is trending toward achieving the forecast. 
Performing  sensitivity  analysis  on  key  inputs  of   the  forecast  by  calculating  the  impact  of   various 
scenarios and considering the impact on the Group and Parent Company’s ability to continue as a going 
concern in the event of not meeting the forecast. 
Assessing the completeness and accuracy of the matters described in the going concern disclosure within 
the significant accounting policies as set out in Note 1b. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or 
conditions that, individually or collectively, may cast significant doubt on the Group’s and Parent Company’s 
ability to continue as a going concern for a period of at least twelve months from when the financial statements 
are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going 
concern are described in the relevant sections of this report. 

Plexus Holdings plc Annual Report 2021

42

Independent Auditor’s Report to the Shareholders of Plexus Holdings plc continued

Overview of our audit approach 

Materiality 
In planning and performing our audit we applied the concept of materiality. An item is considered material 
if it could reasonably be expected to change the economic decisions of a user of the financial statements. We 
used  the  concept  of   materiality  to  both  focus  our  testing  and  to  evaluate  the  impact  of   misstatements 
identified. 

Based on our professional judgement, we determined overall materiality for the Group financial statements 
as a whole to be £205,000 (2020: £375,000) based on approximately 4.6% (2020: 7%) of the Group’s loss before 
taxation for the period. Materiality for the parent company financial statements was set at £40,000 (2020: 
£50,000) based on a percentage of net assets. 

We use a different level of materiality (‘performance materiality’) to determine the extent of our testing for 
the audit of the financial statements. Performance materiality is set based on the audit materiality as adjusted 
for the judgements made as to the entity risk and our evaluation of the specific risk of each audit area having 
regard to the internal control environment. We determined performance materiality for the Group financial 
statements as a whole to be £143,500 (2020: £262,500). Performance materiality for the Parent Company 
financial statements was set at £28,000 (2020: £35,000). 

Where considered appropriate performance materiality may be reduced to a lower level, such as, for related 
party transactions and directors’ remuneration. 

We agreed with the Audit Committee to report to it all identified errors in excess of £20,000 (2020: £20,000). 
Errors below that threshold would also be reported to it if, in our opinion as auditor, disclosure was required 
on qualitative grounds. 

Overview of the scope of our audit 
The Group and its subsidiaries are accounted for from one central operating location, the Group’s registered 
office. There are two significant components in the group; the Parent Company and Plexus Ocean Systems 
Limited.  The  Parent  Company  and  Plexus  Ocean  Systems  Limited  were  subject  to  full  scope  audit  by 
ourselves. 

Key Audit Matters 
Key audit matters are those matters that, in our professional judgement, were of most significance in our 
audit of the financial statements of the current period and include the most significant assessed risks of 
material misstatement (whether or not due to fraud) that we identified. These matters included those which 
had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the 
efforts of the engagement team. These matters were addressed in the context of our audit of the financial 
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on 
these matters. 

This is not a complete list of all risks identified by our audit. 

43

Plexus Holdings plc Annual Report 2021

Independent Auditor’s Report to the Shareholders of Plexus Holdings plc continued

Key audit matter

How the scope of our audit addressed the key  
audit matter 

Impairment of intangible assets, including goodwill 
The Group carries intangible assets at a net book 
value of £10.4 million (2020: £11.09 million). This 
balance  is  primarily  represented  by  intellectual 
property, patent and other development expenditure. 

prepares 

Management 
impairment 
calculations  to  assess  the  carrying  value  of 
intangible assets as set out in the accounting policy 
in notes 1f and 1g to the financial statements.

annual 

to  make  key 

The performance of the impairment review requires 
judgements  and 
management 
identified  the 
assumptions.  As  a  result,  we 
impairment of intangible assets, including goodwill, 
as  a  significant  risk,  which  was  one  of   the  most 
significant assessed risks of material misstatement.

l We evaluated, in comparison to the requirements 
set  out  in  IAS  36,  management’s  assessment 
(using  discounted  cash  flow  models)  as  to 
whether goodwill or other intangible assets were 
impaired. 

l We  challenged,  reviewed  and  considered  by 
reference  to  external  evidence,  management’s 
impairment and fair value models as appropriate 
and their key estimates, including the discount 
rate.  We  reviewed  the  appropriateness  and 
consistency  of   the  process  for  making  such 
estimates.

l We obtained management’s discounted cash flow 
models supporting the intangible asset valuation. 
We  challenged  the  key  assumptions  into  the 
model, including the forecast revenue and gross 
margin, discount rates and growth rates. 

l We  compared  cash  flow  forecasts  used  in  the 
impairment  review  to  historical  performance, 
and  challenged  where 
indicated 
performance  that  deviated  significantly  from 
historical  performance, 
in  the  absence  of 
significant  changes  in  the  business  or  market 
environment.

forecasts 

Revenue recognition 
Revenue  is  recognised  in  accordance  with  the 
accounting policy set out in the financial statements. 
The  accounting  policy  contains  a  number  of 
judgements,  particularly  in  recognising  when  the 
performance  obligations  are  satisfied.  This  is 
determined with reference to the underlying contract 
with the customer.

l

l

Discount rates and terminal growth rates were 
benchmarked to externally derived data and our 
knowledge of sector performance, to evaluate the 
reasonableness of these assumptions. 
Sensitivity 
analysis  was  performed  by 
management  on  the  key  assumptions  such  as 
growth,  margin  and  discount  rates  to  identify 
those assumptions to which that the goodwill or 
intangible asset valuation was highly sensitive. 
We  have  applied  further  sensitivity  to  create  a 
worst case scenario and challenged management 
on the likelihood of such a scenario occurring, 
and on what remedial actions would be taken 

l We  assessed 

that 

the  accounting  policy 
conformed with the requirements of IFRS15 and 
then  tested  its  application  to  a  sample  of 
contracts. 

l We performed cut off testing to ensure revenue is 

being recorded in the correct period.

Plexus Holdings plc Annual Report 2021

44

 
 
 
Independent Auditor’s Report to the Shareholders of Plexus Holdings plc continued

Our audit procedures in relation to these matters were designed in the context of our audit opinion as a whole. 
They were not designed to enable us to express an opinion on these matters individually and we express no 
such opinion. 

Other information 
The directors are responsible for the other information. The other information comprises the information 
included in the annual report, other than the financial statements and our auditor’s report thereon. Our 
opinion on the financial statements does not cover the other information and, except to the extent otherwise 
explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information 
and,  in  doing  so,  consider  whether  the  other  information  is  materially  inconsistent  with  the  financial 
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we 
identify such material inconsistencies or apparent material misstatements, we are required to determine 
whether there is a material misstatement in the financial statements or a material misstatement of the other 
information. If, based on the work we have performed, we conclude that there is a material misstatement of 
this other information, we are required to report that fact. 

We have nothing to report in this regard. 

Opinion on other matter prescribed by the Companies Act 2006 
In our opinion based on the work undertaken in the course of our audit 

l

l

the information given in the Strategic Report and the Directors’ Report for the financial year for which 
the financial statements are prepared is consistent with the financial statements; and 
the Strategic Report and Directors’ Report have been prepared in accordance with applicable legal 
requirements. 

Matters on which we are required to report by exception: 
In light of  the knowledge and understanding of  the Group and Parent Company and their environment 
obtained in the course of the audit, we have not identified material misstatements in the strategic report or 
the directors’ report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to 
report to you if, in our opinion: 

l

l

l

l

adequate accounting records have not been kept by the Parent Company, or returns adequate for our 
audit have not been received from branches not visited by us; or 
the Parent Company financial statements are not in agreement with the accounting records and returns; 
or 
certain disclosures of directors’ remuneration specified by law are not made; or 
we have not received all the information and explanations we require for our audit. 

Responsibilities of the directors for the financial statements 
As explained more fully in the directors’ responsibilities statement on page 41, the directors are responsible 
for the preparation of the financial statements and for being satisfied that they give a true and fair view, and 
for  such  internal  control  as  the  directors  determine  is  necessary  to  enable  the  preparation  of   financial 
statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the directors are responsible for assessing the Group’s and Parent 
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern 
and using the going concern basis of accounting unless the directors either intend to liquidate the Group or 
the Parent Company or to cease operations, or have no realistic alternative but to do so. 

45

Plexus Holdings plc Annual Report 2021

Independent Auditor’s Report to the Shareholders of Plexus Holdings plc continued

Auditor’s responsibilities for the audit of the financial statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise 
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be 
expected to influence the economic decisions of users taken on the basis of these financial statements. 

Explanation as to what extent the audit was considered capable of detecting irregularities, 
including fraud 
Irregularities,  including  fraud,  are  instances  of   non-compliance  with  laws  and  regulations.  We  design 
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of 
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, 
including fraud, is detailed below however the primary responsibility for the prevention and detection of 
fraud lies with management and those charged with governance of the Company. 

l

l We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group 
and the procedures in place for ensuring compliance. The most significant identified was the Companies 
Act 2006. Our work included direct enquiry of the directors who oversee all legal proceedings, reviewing 
Board and relevant committee minutes and inspection of correspondence. 
As part of our audit planning process we assessed the different areas of the financial statements, including 
disclosures, for the risk of material misstatement. This included considering the risk of fraud where direct 
enquiries were made of management and those charged with governance concerning both whether they 
had any knowledge of actual or suspected fraud and their assessment of the susceptibility of fraud. We 
considered the risk was greater in areas that involve significant management estimate or judgement. Based 
on this assessment we designed audit procedures to focus on the key areas of estimate or judgement, this 
included specific testing of journal transactions, both at the year end and throughout the year. 

l We used data analytic techniques to identify any unusual transactions or unexpected relationships, 

including considering the risk of undisclosed related party transactions. 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements 
of the financial statements may not be detected, even though the audit is properly planned and performed in 
accordance with the ISAs (UK). 

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from 
fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including 
deliberate failure to record transactions, collusion or intentional misrepresentations being made to us. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial 
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 
auditor’s report. 

Use of our report 
This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of 
Part 16 of  the Companies Act 2006. Our audit work has been undertaken so that we might state to the 
company’s members those matters we are required to state to them in an auditor’s report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other 
than the company and the company’s members as a body, for our audit work, for this report, or for the 
opinions we have formed. 

Stephen Bullock (Senior Statutory Auditor) 
for and on behalf of  
Crowe U.K. LLP 
Statutory Auditor 
London 
19 November 2021

Plexus Holdings plc Annual Report 2021

46

Consolidated Statement of Comprehensive Income 
for the year ended 30 June 2021

Revenue
Cost of sales

Gross profit
Administrative expenses

Operating loss
Finance income
Finance costs
Share in (loss) / profit of associate
Other income

Loss before taxation
Income tax credit

Loss after taxation from continuing operations
Loss after taxation from discontinued operations

Loss for year
Other comprehensive income

Total comprehensive 
income for the year attributable to the owners of the parent

Loss per share
Basic from continuing operations
Diluted from continuing operations
Basic from discontinued operations
Diluted from discontinued operations

Notes

2

4
6
7
14

8

9

10 

2021
£’000

2,017
(1,062)
–––––––
955
(5,501)
–––––––
(4,546)
143
(103)
(77)
211
–––––––
(4,372)
262
–––––––
(4,110)
(392)
–––––––
(4,502)
–
–––––––

(4,502)
–––––––

(4.09p)
(4.09p)
(0.39p)
(0.39p)

2020 
£’000 

525 
(225) 
––––––– 
300 
(5,981) 
––––––– 
(5,681) 
192 
(111) 
265 
285 
––––––– 
(5,050) 
992 
––––––– 
(4,058) 
(2,549) 
––––––– 
(6,607) 
– 
––––––– 

(6,607) 
––––––– 

(3.92p) 
(3.92p) 
(2.47p) 
(2.47p) 

47

Plexus Holdings plc Annual Report 2021

 
 
Consolidated Statement of Financial Position 
at 30 June 2021

Assets 
Goodwill
Intangible assets
Property, plant and equipment
Financial assets
Investment in associate
Deferred tax asset
Right of use asset

Total non-current assets

Inventories
Trade and other receivables
Current income tax asset
Cash and cash equivalents

Total current assets

Total Assets

Equity and Liabilities
Called up share capital
Shares held in treasury
Share based payments reserve
Retained earnings

Total equity attributable to equity holders of the parent

Liabilities
Lease liabilities

Total non-current liabilities

Trade and other payables
Lease liabilities
Bank Lombard facility

Total current liabilities

Total liabilities

Total Equity and Liabilities

Notes

11
12
15
16
14
8
26

17
18

20
21
22

26

19
26
24

2021
£’000

767
9,644
2,961
3,042
721
1,899
1,245
–––––––
20,279
–––––––
575
1,051
–
5,175
–––––––
6,801
–––––––
27,080
–––––––

1,054
(2,500)
674
23,764
–––––––
22,992
–––––––

1,085
–––––––
1,085
–––––––
643
316
2,044
–––––––
3,003
–––––––
4,088
–––––––
27,080
–––––––

2020 
£’000 

767 
10,325 
3,273 
2,995 
898 
2,130 
1,548 
––––––– 
21,936 
––––––– 
870 
2,982 
76 
4,087 
––––––– 
8,015 
––––––– 
29,951 
––––––– 

1,054 
(2,500) 
674 
28,266 
––––––– 
27,494 
––––––– 

1,401 
––––––– 
1,401 
––––––– 
778 
278 
– 
––––––– 
1,056 
––––––– 
2,457 
––––––– 
29,951 
––––––– 

These financial statements were approved and authorised for issue by the board of directors on 19 November 
2021 and were signed on its behalf by: 

G Stevens
Director

C Hendrie 
Director 

Company Number: 03322928 

Plexus Holdings plc Annual Report 2021

48

 
  
 
  
Consolidated Statement of Changes in Equity 
for the year ended 30 June 2021

Balance as at 30 June 2019
Total comprehensive income 
for the year

Balance as at 30 June 2020
Total comprehensive income 
for the year

Balance as at 30 June 2021

Called Up
Share
Capital
£’000 

Shares
Held in
Treasury
£’000

Share 
Based  
Payments
Reserve
£’000

Retained 
Earnings
£’000

Total 
£’000 

1,054

(2,500)

674

34,873

34,101 

–
––––––––––
1,054

–
––––––––––
(2,500)

–
––––––––––
674

(6,607)
––––––––––
28,266

(6,607) 

–––––––––– 
27,494 

–
––––––––––
1,054
––––––––––

–
––––––––––
(2,500)
––––––––––

–
––––––––––
674
––––––––––

(4,502)
––––––––––
23,764
––––––––––

(4,502) 

–––––––––– 
22,992 
–––––––––– 

49

Plexus Holdings plc Annual Report 2021

Consolidated Statement of Cash Flows 
for the year ended 30 June 2021

Notes

Cash flows from operating activities 
Loss before taxation from continuing activities
Loss before taxation from discontinued activities

Loss before tax
Adjustments for: 
  Depreciation and amortisation charges

(Profit)/loss on disposal of property, plant and equipment

  Share in loss/(profit) of associate
  Property rental income
  Impairment of associate
  Write-down of other receivable
  Lease liability re-assessment
  Fair value adjustment on financial assets
  Investment income
  Interest expense
Changes in working capital: 
  Decrease/(increase) in inventories

(Increase) in trade and other receivables

  Decrease in trade and other payables

Cash used in operating activities
Income taxes refunded

Net cash used from operating activities

Cash flows from investing activities
Funds invested in financial instruments
Property rental income
Purchase of intangible assets
Purchase of property, plant and equipment
Dividend income from associate
Deferred proceeds from sale of discontinued operation
Proceeds of sale of property, plant and equipment
Interest and investment income received

Net cash generated in investing activities

Cash flows from financing activities 
Draw down of Lombard facility
Repayment of loans and banking facilities
Repayments of lease liabilities
Interest paid

Net cash inflow/(outflow) from financing activities

Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July 2020

Cash and cash equivalents at 30 June 2021

24

Plexus Holdings plc Annual Report 2021

50

2021
£’000

(4,372)
20
–––––––
(7,482)

1,701
(1)
77
(123)
–
–
25
19
(143)
84

295
(255)
(135)
–––––––
(2,808)
157
–––––––
(2,651)
–––––––

(66)
123
(235)
(170)
100
2,186
1
143
–––––––
2,082
–––––––

2,044
–
(342)
(45)
–––––––
1,657
–––––––
1,088
4,087
–––––––
5,175
–––––––

2020 
£’000 

(5,050) 
(2,432) 
––––––– 
(3,819) 

1,896 
6 
(265) 
(285) 
134 
2,432 
– 
24 
(192) 
87 

(172) 
(191) 
(1,328) 
––––––– 
(5,336) 
545 
––––––– 
(4,791) 
––––––– 

(183) 
285 
(361) 
(138) 
140 
4,240 
6 
192 
––––––– 
4,181 
––––––– 

– 
(75) 
(315) 
(65) 
––––––– 
(455) 
––––––– 
(1,065) 
5,152 
––––––– 
4,087 
–––––––

 
 
 
 
 
 
  
 
Notes to the Consolidated Financial Statements

1.

Summary of significant accounting policies 
The  following  accounting  policies  have  been  applied  consistently  in  dealing  with  items  which  are 
considered material in relation to the financial information. 

Basis of preparation 

a.
The consolidated financial statements have been prepared in accordance with International Financial 
Reporting Standards (IFRS) and interpretations issued by the International Accounting Standards 
Board as adopted by the European Union and are in accordance with the Companies Act 2006. 

There are a number of standards, amendments to standards, and interpretations which have been issued 
by the IASB that are effective in future accounting. The Directors’ have assessed the impact of these 
standards. The Group has decided not to adopt these standards early as no material impact is expected. 
The following amendments are effective for the period beginning 1 January 2021: 

l

l

l

l

l

l

Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 
and IFRS 16) 
COVID-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) 
Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) 
Annual Improvements to IFRS Standards 2018-2020 
Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) 
Reference to the Conceptual Framework (Amendments to IFRS 3) 

In January 2020, the IASB issued amendments to IAS 1, which clarified the criteria used to determine 
whether liabilities are classified as current or non-current. These amendments clarify that current or 
non-current classification is based on whether an entity has a right at the end of the reporting period to 
defer settlement of the liability for at least twelve months after the reporting period. The amendments also 
clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the 
obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument 
separately from the liability component of a compound financial instrument. The amendments are effective 
for annual reporting periods beginning on or after 1 January 2022. 

The Group is currently assessing the impact of these new accounting standards and amendments. The 
Group does not believe that the amendments to IAS 1 will have a significant impact of the classification 
of its liabilities, as the conversion feature in its convertible debt instruments is classified as an equity 
instrument and therefore, does not affect the classification of its convertible debt as a non-current liability. 

The Group financial statements are presented in sterling and all values are rounded to the nearest thousand 
pounds except where otherwise indicated. 

The financial information has been prepared under the historical cost convention except where fair value 
adjustments are required. 

Going concern 

b.
The Group’s activities and an outline of the developments taking place in relation to its products, services 
and marketplace are considered in the Strategic Review on pages 9 to 16 along with an explanation of 
revenue, trading results and cash flows. 

Note 25 to the Financial Statements sets out the Company’s financial risks and the management of 
capital risks. At the year end, the Group had cash and cash equivalents of £5.18m, £2.04m drawn down 
on a bank Lombard facility and financial assets with a value of £3.04m. 

Accordingly, after careful enquiry and review of available financial information, including projections 
and cash flows for the period to 30 June 2023, the Directors believe that the Company has adequate 
resources to continue to operate for the foreseeable future and that it is therefore appropriate to continue 
to adopt the going concern basis of accounting in the preparation of the consolidated and company 
financial statements. 

Whilst COVID-19 has had a significant impact upon many businesses, with Plexus the negative impact 
has been the delay in the award of work, which the Group has to a degree managed to partially offset 
with cost savings. The pandemic has not halted any revenue streams, as evidenced by the growth in 
revenue in the year. 

51

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 

Basis of consolidation 

c.
The Group’s financial statements consolidate the financial statements of Plexus Holdings plc and the entities 
it controls (its subsidiaries) and are drawn up to 30 June each year. Control comprises the power to govern 
the financial and operating policies of the investee so as to obtain benefit from its activities and is achieved 
through direct and indirect ownership of voting rights; currently exercisable or convertible potential voting 
rights. Subsidiaries are consolidated from the date of their acquisition, being the date on which the group 
obtains control, and continue to be consolidated until the date that such control ceases. The financial 
statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent 
accounting policies. All intercompany balances and transactions, including unrealised profits arising from 
intra group transactions, have been eliminated in full. Unrealised losses are eliminated unless the transaction 
provides evidence of an impairment of the asset transferred. 

Within twelve months of the date of acquisition of a subsidiary undertaking a re-assessment is made of 
the  fair  value  of  the  assets  and  liabilities  acquired  in  order  to  assess  any  provisional  values  used  in 
initial accounting. 

The financial statements of the Company and its subsidiaries are prepared in sterling (the functional 
currency), which is the currency that best reflects the economic substance of the underlying events and 
circumstances relevant to the Group. Transactions and balances in foreign currencies are converted into 
sterling in accordance with the principles set forth by IAS 21 (“The Effects of Changes in Foreign Exchange 
Rates”). Accordingly, transactions and balances have been converted as follows: 

l Monetary assets and liabilities – at the rate of exchange applicable at the reporting date; and 

l

Income  and  expense  items  –  at  exchange  rates  applicable  as  of   the  date  of   recognition  of 
those  items.  Exchange  gains  and  losses  are  recognised  in  the  consolidated  statement  of 
comprehensive income. 

Revenue 
d.
Sale of equipment 
The  Group  sells  a  range  of  equipment  derived  from  its  proprietary  technology,  spares  and  ancillary 
equipment. Revenue from the sale of equipment is recognised when performance obligations are met. This 
is considered to be on acceptance of the equipment by the customer, or where contractual delivery date is 
specified  in  the  terms  and  conditions  of  sale.  Invoicing  and  subsequent  payment  follow  the  transfer 
of ownership. 

Rental income 
The Group rents out equipment to customers. Revenue from rental contacts, all of which are short term, 
is recognised in the statement of comprehensive income on a straight-line basis as the performance 
obligations are satisfied over time. Rental income is invoiced on a monthly basis. 

Service income 
The Group provides Field Service Technicians to its customers, on daily rate basis. Revenue from service 
contracts are recognised on a performance basis as work is undertaken. Customers are invoiced following 
receipt of a signed field service ticket. 

Royalty income 
The Group has licensing agreements which are subject to royalty payments. Royalty income is recognised 
under the terms and conditions of the underlying licensing agreement, and revenue is recognised when 
performance obligations are satisfied. 

Rebillable income 
The Group passes on third party costs to customers at cost plus mark-up where applicable. The level of 
mark-up is specified in the underlying contract with the customer. Revenue is invoiced and recognised, 
along with the associated expenditure in the period in which it relates. 

Plexus Holdings plc Annual Report 2021

52

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 

Cost of sales 

e.
Cost of sales includes salary and related costs for service personnel, depreciation, refurbishment costs 
on rental assets and other costs which are directly attributable to revenue generating projects. 

Income taxes and deferred taxation 

f.
The income tax credit for the period comprises current and deferred tax. Tax is recognised in the income 
statement, except to the extent that it relates to items recognised in other comprehensive income or 
directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in 
equity, respectively. 

The current income tax credit is calculated on the basis of the tax laws enacted or substantively enacted 
at the reporting date in the countries where the company and its subsidiaries operate and generate taxable 
income. Management periodically evaluates positions taken in tax returns with respect to situations in 
which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate 
on the basis of amounts expected to be paid to the tax authorities. 

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and 
liabilities and their carrying amounts in the consolidated financial statements. 

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively 
enacted by the reporting date and are expected to apply when the related deferred income tax asset is 
realised, or the deferred income tax liability is settled. 

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit 
will be available against which the temporary differences can be utilised. 

As set out in note 22 the Group operates a share option scheme. Where the market price of the shares 
at the year-end exceeds the option price there is a potential tax deduction. This is treated as a deferred 
tax asset. The portion of the expected future tax deduction which is less than or equal to the associated 
cumulative IFRS2 charge is recognised in the income statement. The balance of the credit is recognised 
directly in equity. 

Goodwill 

g.
Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value 
of the separable assets acquired) arising on business combinations in respect of acquisitions is capitalised. 

Goodwill is not amortised; it is measured at cost less any accumulated impairment losses. Goodwill is 
reviewed for impairment at least annually. 

Goodwill is monitored by management at the operating segment level. All goodwill has been allocated 
to the single operating segment, which is considered to be a group of  similar cash generating units 
(CGU’s) for impairment purposes. 

Intangible assets and amortisation 

h.
Patents are recorded initially at cost and amortised on a straight-line basis over 20 years which represents 
the life of  the patent. The Group operates a policy of  continual patent enhancement in order that 
technology enhancements and modifications are incorporated within the registered patent, thereby 
protecting the value of technology advances for a full 20-year period. 

Intellectual Property rights are initially recorded at cost and amortised over 20 years on a straight-line 
basis. The technology defined by the Intellectual Property is believed to be able to generate income 
streams for the Group for many years; key Intellectual Property is protected by patents; the lowest 
common denominator in terms of economic life of the intangible assets is the life of the original patents 
and therefore the life of the Intellectual Property has been matched to the remaining life of the patents 
protecting it. 

Development expenditure is capitalised in respect of  development of  patentable technology at cost 
including an allocation of own time when such expenditure is incurred on separately identifiable 

53

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 
technology and its future recoverability can reasonably be regarded as assured. Any expenditure carried 
forward is amortised on a straight-line basis over its useful economic life, which the directors consider 
to be 20 years. 

Computer software is amortised over 2 to 5 years on a straight-line basis. 

In all cases the amortisation period represents the expected useful life of the asset. 

Amortisation is charged to the Administrative Expenses line of the Statement of Comprehensive Income. 

Expenditure on research and development, which does not meet the capitalisation criteria, is written 
off to the Statement of Comprehensive Income in the period in which it is incurred. 

The carrying value of intangible assets is reviewed on an on-going basis by the directors, and where 
appropriate, provision is made for any indication of impairment in value. Where impairment arises, the 
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if 
any). Where it is not possible to estimate the recoverable amount of an individual asset, an estimate is 
made of the recoverable amount of the cash-generating unit to which the asset belongs. 

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value 
in use, the estimated future cash flows are discounted to their present value using a discount rate that 
reflects the current market assessments of the time value of money and the risks specific to the asset. If 
the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount 
of the asset is reduced to its recoverable amount. 

Any impairment loss would be recognised immediately in the Statement of Comprehensive Income. 

Property, plant and equipment 

i.
Property, plant and equipment are stated at cost less accumulated depreciation. Cost represents the cost 
of acquisition or construction, including the direct cost of financing the acquisition or construction 
until the asset comes into use. Depreciation is provided to write off the cost or valuation of property, 
plant and equipment less the estimated residual value by equal instalments over their estimated useful 
economic lives as follows: 

         Buildings                                Over  the  remaining  life  of   the  lease  on  the  land  on  which  the  building 

is constructed 

         Tenant improvements           Over the remaining life of the lease of the relevant building 
         Equipment                             7% – 50% per annum 
         Motor vehicles                      20% per annum 

         The expected useful lives and residual values of property, plant and equipment are reviewed on an annual 

basis and, if necessary, changes in useful life or residual value are accounted for prospectively. 

         The carrying value of property, plant and equipment is reviewed for impairment whenever events or 

changes in circumstances indicate the carrying value may not be recoverable. 

         An item of property, plant and equipment is derecognised upon disposal or when no future economic 
benefits  are  expected  to  arise  from  the  continued  use  of   the  asset.  Any  gain  or  loss  arising  on 
derecognition  of   the  asset  (calculated  as  the  difference  between  the  net  disposal  proceeds  and  the 
carrying amount of the item) is included in the Statement of Comprehensive Income in the period the 
item is derecognised. 

Cash and cash equivalents 

j.
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable 
on demand form an integral part of the Group’s cash management and are included as a component of 
cash and cash equivalents for the purpose of the statement of cash flows. 

Foreign currencies 

k.
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. 
Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange 
ruling at the statement of financial position date and the gains or losses on translation are included in the 
Statement of Comprehensive Income. The functional currency of the Group is pounds sterling. 

Plexus Holdings plc Annual Report 2021

54

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 

Leases 

l.
Operating lease rentals are charged to the Statement of Comprehensive Income on a straight-line basis 
over the period of the lease. 

The Group has adopted IFRS 16, which supersedes IAS 17, sets out principles for the recognition, 
measurement, presentation and disclosure of  leases for both parties to a contract, i.e. the customer 
(‘lessee’) and the supplier (‘lessor’). Lessee accounting changes substantially under this new standard 
while there is little change for the lessor. IFRS 16 eliminates the classification of leases as either operating 
leases or financing leases and, instead, introduces a single lessee accounting model. A lessee will be 
required to recognise assets and liabilities for all leases with a term of more than 12 months (unless the 
underlying asset is of low value) and is required to present depreciation of leased assets separately from 
interest on lease liabilities in the consolidated statement of comprehensive income. 

The Group has taken the exemptions where applicable for low value and short-term leases. A lessor will 
continue to classify its leases as operating leases or financing leases, and to account for those two types 
of leases separately. On inception an asset and liability both valued of £1.95m was recognised. 

In applying IFRS 16 for the first time the Group has used the following practical expedients permitted 
by the standard: 

l

l

l

Accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 
2019 as short-term leases 
Excluding initial direct costs for the measurement of the right-of-use asset at the date of initial 
application; and 
Using hindsight in determining the lease term where the contract contains options to extend or 
terminate the lease. 

The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial 
application. Instead, for contracts entered into before the transition date the Group relied on its assessment 
made applying IAS 17 and Interpretation 4 Determining whether an arrangement contains a lease. 
m.
Inventory is stated at the lower of cost and net realisable value. Cost is determined on a first in first out 
basis and includes all direct costs incurred and attributable production overheads. Net realisable value 
is based on estimated selling price allowing for all further costs to completion and disposal. 

Inventory 

Pensions 

n.
The Group offers a contributory Group stakeholder pension scheme, into which the Group will make 
matching contributions up to a pre-agreed level of base salary; the scheme is open to executive directors 
and permanent employees. Directors may choose to have contributions paid into personal pension plans. 
Payments to the defined contribution retirement benefit plans are recognised as an expense when the 
employees have rendered service entitling them to contributions. 

Dividends 

o.
Dividends are recognised when they become legally payable. In the case of interim dividends to equity 
shareholders, this is when they are paid. In the case of final dividends, this is when approved by the 
shareholders  at  the  AGM.  Dividends  unpaid  at  the  statement  of   financial  position  date  are  only 
recognised as a liability at that date to the extent that they are appropriately authorised and are no longer 
at the discretion of the Company. Unpaid dividends that do not meet these criteria are disclosed in the 
notes to the financial statements. 

Classification of financial instruments issued by the Group 

p.
In accordance with IAS 32, financial instruments issued by the Group are treated as equity (i.e. forming 
part of shareholders’ funds) only to the extent that they meet the following two conditions: 

(a)

they include no contractual obligations upon the Company (or Group as the case may be) to deliver 
cash or other financial assets or to exchange financial assets or financial liabilities with another party 
under conditions that are potentially unfavourable to the Company (or Group); and 

55

Plexus Holdings plc Annual Report 2021

 
Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 
(b) where the instrument will or may be settled in the Company’s own equity instruments, it is either 
a non-derivative that includes no obligation to deliver a variable number of the Company’s own 
equity instruments or is a derivative that will be settled by the Company exchanging a fixed amount 
of cash or other financial assets for a fixed number of its own equity instruments. 

To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. 
Where the instrument so classified takes the legal form of  the Company’s own shares, the amounts 
presented in these financial statements for called up share capital and share premium account exclude 
amounts in relation to those shares. 

Finance payments associated with financial liabilities are dealt with as part of finance charges. Finance 
payments associated with financial instruments that are classified as part of shareholders’ funds (see 
dividends policy), are dealt with as appropriations in the reconciliation of movements in shareholders’ funds. 

Share based payments 

q.
The Group issues share options to directors and employees, which are measured at fair value at the date 
of grant. The fair value of the equity settled options determined at the grant date is expensed on a 
straight-line basis over the vesting period based on an estimate of  the number of  options that will 
actually vest. The Group has adopted a Stochastic model to calculate the fair value of options, which 
enables  the  Total  Shareholder  Return  (TSR)  performance  condition  attached  to  the  awards  to  be 
factored into the fair value calculation. 

r. Management of capital 
The Group’s capital is comprised of share capital, shares held in treasury and retained earnings. (notes 20 
and 21). 

The Group’s objective when managing capital is to safeguard its ability to continue as a going concern so 
that it can continue to provide returns to shareholders. 

The Group sets the amount of capital in proportion to its assessment of the risks that it faces. The Group 
manages the capital structure and adjusts it in the light of changes in economic conditions and the risk 
characteristics of the underlying assets. In order to maintain or adjust the capital structure the Group may 
adjust the value of dividends paid or issue new equity. 

Significant judgements made by management 

s.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, 
including expectations of future events that are believed to be reasonable under the circumstances. 

The principal areas in which significant judgements have been made by management are as follows: 

(a)

In assessing the intangibles assets for impairment the directors have prepared projections of future 
revenues expected to be derived from exploiting the Group’s intangible assets in future periods as part 
of their consideration of impairment. The core technology has proven commercial value, despite the 
recent trading losses made. The projections for future application are subject to a significant degree 
of judgement due to the Group working to establish new markets for its technology after moving away 
from the Jack-up rental exploration wellhead business which was disposed of in 2018. 

(b) The directors have considered the recognition of a deferred tax asset in relation to future utilisation 
of trading losses. That recognition is predicated on a judgement in relation to the probable extent that 
sufficient taxable profit will be available against which the unused tax losses can be utilised. In arriving 
at that judgement the directors have adopted modelling based on approved budgets for the next 12 
months and applied estimates and assumptions consistent with those set out in note 12 in relation to 
expectation of future developments, sales models and growth rates. 

Plexus Holdings plc Annual Report 2021

56

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 

t.

Key assumptions and sources of estimation 

Judgements 

The life of the Group’s Intellectual Property is estimated with reference to the lifespan of the patents 
which help protect the knowledge and the Group’s ability to generate income from it. Changes to these 
estimates  can  result  in  significant  variations  in  the  carrying  value  and  amounts  charged  to  the 
consolidated statement of comprehensive income in specific periods. 

When measuring goodwill and intangible assets for impairment a range of assumptions are required 
and these are detailed in the Goodwill and Intangible Asset notes 1g and 1h. 

Estimates 

Provisions requiring management estimates and judgements: A provision has been made against slow 
moving inventory based upon historical experience of the viability of the older parts as technological 
improvements are made. Changes to these estimates can result in significant variations in the carrying 
value and amounts charged to the consolidated statement of comprehensive income in specific periods. 

2.

Revenue 

By geographical area 
UK
Europe
Rest of World

The revenue information above is based on the location of the customer. 

By revenue stream 
Rental
Service
Sold Equipment
Royalty Fees
Rebillables
Support services and Engineering

2021
£’000

1,992
–
25
–––––
2,017
–––––

2021
£’000

401
235
835
386
19
141
–––––
2,017
–––––

2020 
£’000 

131 
489 
23 
––––– 
525 
––––– 

2020 
£’000 

– 
9 
26 
476 
14 
– 
––––– 
525 
––––– 

Substantially all of the revenue in the current and previous periods derives from the sale, rental and the 
provision of services relating to the Group’s patent protected equipment. 

57

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

3.

Segment Reporting 
The Group derives revenue from the sale of its POS-GRIP technology and associated products, the rental 
of equipment utilising the POS-GRIP technology and service income principally derived in assisting with 
the commissioning and on-going 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 continuing revenue: 

Customer 1
Customer 2

4. Group operating loss 

2021
£’000

1,485
386

2020 
£’000 

489 
– 

Loss on ordinary continuing activities before tax taxation is stated after charging/(crediting). 

2021
£’000

2020 
£’000 

Depreciation of tangible assets
Amortisation of intangible assets: 
– Intellectual property rights
– Research and development
– Computer software
– IFRS 16 lease amortisation
Operating lease charges: 
– Land and buildings
– Other
Foreign currency exchange loss
Gain on disposal of property, plant and equipment
Directors’ emoluments
Inventories recognised as expense
Inventory write down provision

Auditors’ remuneration: 
Fees payable to the Company’s auditors for: 
The audit of the Company’s annual accounts
The audit of the Company’s subsidiary pursuant to legislation
Audit related assurance services

Total audit fees

482

237
676
3
303

17
47
7
1
693
319
569

10
30
3
–––––
43
–––––

680 

237 
664 
11 
304 

7 
46 
6 
6 
737 
12 
134 

10 
30 
3 
––––– 
43 
––––– 

Plexus Holdings plc Annual Report 2021

58

Notes to the Consolidated Financial Statements continued

5.

Staff numbers and costs 
The average number of persons, including executive directors, during the year was: 

Management
Technical
Administrative

The aggregate payroll costs of these persons were as follows: 

Wages and salaries
Social security costs
Pension contributions to defined contribution plans

2021
Number

2020 
Number 

6
25
5
–––––
36
–––––

2021
£’000

2,466
231
111
–––––
2,808
–––––

6 
26 
5 
––––– 
37 
––––– 

2020 
£’000 

2,555 
235 
111 
––––– 
2,901 
––––– 

Key management are considered to be the Board of Directors and details of Directors’ remuneration are 
given in the remuneration report on page 38 and this forms part of the financial statements. 

Other income includes Job Retention Scheme income of £87k (2020: £33k). 

6.

Finance Income 

Bank interest receivable
Investment income
Other interest receivable

7.

Finance Costs 

On bank loans and overdraft
Investment costs
Fair value adjustment on financial assets
Interest on right of use assets

2021
£’000

24
109
10
–––––
143
–––––

2021
£’000

8
37
19
39
–––––
103
–––––

2020 
£’000 

46 
123 
23 
––––– 
192 
––––– 

2020 
£’000 

4 
37 
24 
46 
––––– 
111 
––––– 

59

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

8.

Income tax credit 
(i) The taxation charge for the year comprises:

UK Corporation tax: 
  Adjustment in respect of prior years

Foreign tax
  Current tax on income for the year
  Adjustment in respect of prior years

Total current tax credit

Deferred tax: 
  Origination and reversal of timing differences
  Adjustment in respect of prior years

Total deferred tax

Total tax charge/(credit)

The effective rate of tax is 19% (2020: 19%) 
Tax credit on discontinued activities
Tax credit on continuing activities

Total tax charge/(credit)

(ii) Factors affecting the tax charge on continuing activities for the year

Loss on ordinary activities before tax
Tax on (loss)/profit at standard rate of UK  
corporation tax of 19% (2020: 19%)
Effects of: 
Expenses not deductible for tax purposes
Effect of change in tax rate
Tax adjustments on share-based payments
Adjustments in respect of prior year
Foreign tax rates
Deferred tax not recognised

Total tax credit on continuing activities

2021
£’000

(83)
–––––
(83)
–––––

1
–
–––––
1
–––––
(82)
–––––

(23)
(255)
–––––
232
–––––
150
–––––

412
(262)
–––––
150
–––––

2021
£’000

(4,372)

(831)

186
(816)
–
(92)
–
1,291
–––––
(262)
–––––

2020 
£’000 

(76) 
––––– 
(76) 
––––– 

– 
72 
––––– 
72 
––––– 
(4) 
––––– 

(648) 
(223) 
––––– 
(871) 
––––– 
(875) 
––––– 

117 
(992) 
––––– 
(875) 
––––– 

2020 
£’000 

(5,050) 

(960) 

163 
(153) 
4 
(46) 
– 
– 
––––– 
(992) 
––––– 

Plexus Holdings plc Annual Report 2021

60

 
Notes to the Consolidated Financial Statements continued

8.

Income tax credit (continued) 
(iii) Movement in deferred tax asset balance

Deferred tax asset at beginning of year
Debit/(credit) to Statement of Comprehensive Income

Deferred asset at end of year

(iv) Deferred tax asset balance

The deferred tax asset balance is made up of the following items: 
Difference between depreciation and capital allowances
Tax provisions
Tax losses

Deferred tax asset at end of year

2021
£’000

(2,130)
231
–––––
(1,899)
–––––

2021
£’000

1,131
(1)
(3,029)
–––––
(1,899)
–––––

2020 
£’000 

(1,259) 
(871) 
––––– 
(2,130) 
––––– 

2020 
£’000 

902 
(2) 
(3,030) 
––––– 
(2,130) 
––––– 

As outlined in the accounting policy (note 1f) the deferred tax asset is reviewed at the end of  each 
reporting period. Following a review of the Group’s financial models and taxable profitability the Group 
has a further £1,290k not recognised. The group has recognised a deferred tax asset based upon its 
mid-term forecast profitability. Where recoverability is dependent upon profits arising beyond this 
period, the group has determined that the threshold for recognition is not met and so restricted the 
deferred tax asset recognised. An amount of deferred tax of £1,290k has not been recognised but remains 
available for future loss utilisation. 

9. Discontinued Operations 

On 1st February 2018 the Group sold its “Jack-up Business” to TFMC for an initial gross consideration 
of £15m, with an additional sum of up to £27.5m payable dependent on the future performance of the 
Jack-up Business during a three year earn-out period. 

The recognised profit on discontinued operations in the current year represents the deferred consideration 
received which exceeded the debtor receivable. 

The recognised loss on discontinued operations in the prior year represents the impairment of deferred 
consideration receivable presented in prepayments and other amounts. 

Revenue
Expenses
Gain / (loss) before tax of discontinued operations
Income tax charge
Loss after tax of discontinued operations

Loss after taxation from discontinued operations

2021
£’000

–
20
20
(412)
(392)
–––––
(392)
–––––

2020 
£’000 

– 
(2,432) 
(2,432) 
(117) 
(2,549) 
––––– 
(2,549) 
––––– 

The Statement of cash flows includes the following amounts related to discontinued operations: 

Operating activities
Investing activities
Financing activities

Net cash generated/(used) from discontinued activities

2021
£’000

–
–
–
–––––
–
–––––

2020 
£’000 

– 
– 
– 
––––– 
– 
––––– 

61

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

10. Loss per share 

Loss attributable to shareholders – continuing operations
Loss attributable to shareholders – discontinued operations

Loss attributable to shareholders

Weighted average number of shares in issue
Dilution effects of share schemes

Diluted weighted average number of shares in issue

Loss per share 
Basic Loss per share for continuing operations
Diluted Loss per share for continuing operations

Basic Loss per share for discontinued operations
Diluted loss per share for discontinued operations

2021
£’000

2020 
£’000 

(4,110)
(392)
––––––––––
(4,502)
––––––––––

(4,058) 
(2,549) 
–––––––––– 
(6,607) 
–––––––––– 

Number

Number 

100,435,744
 –
––––––––––
100,435,744
––––––––––

(4.09p)
(4.09p)
––––––––––
(0.39p)
(0.39p)
––––––––––

103,406,041 
– 
–––––––––– 
103,406,041 
–––––––––– 

(3.92p) 
(3.92p) 
–––––––––– 
(2.47p) 
(2.47p) 
–––––––––– 

Basic loss 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 share 
option schemes. As a loss was made on continuing operations for the current year the option schemes 
are considered to be anti-dilutive. 

11. Goodwill 

Cost 
As at 30 June 2019, 2020 and 2021

Impairment 
As at 1 July 2019, 2020 and 2021

Net Book Value 
As at 30 June 2020 and 2021

£’000 

767 
–––––– 

– 
–––––– 

767 
–––––– 

The recoverable amount of goodwill has been determined on a value in use basis. 

The key assumptions on which the valuation is based are that: 

l

l

l

Industry acceptance will over time result in growth of the business above long-term industry growth 
rates.  Management  consider  this  to  be  appropriate  for  a  new  technology  still  gaining  industry 
acceptance, 

Prices will rise with inflation, 

Staff wage inflation will be higher than general inflation but will not rise in line with sales. 

These assumptions were determined from the directors’ knowledge and experience. 

Plexus Holdings plc Annual Report 2021

62

Notes to the Consolidated Financial Statements continued

11. Goodwill (continued) 

The cash flows are based upon a 20-year period which is the period covered by the relevant patents, and, 
in accordance with historical trends and current expectations. In making these calculations Management 
have not included an assessment of the terminal value. The company’s Weighted Average Cost of Capital 
for discounting purposes has been measured at 10.87%. A discounted cashflow model has been prepared 
for both an organic sales model and a licensing sales model. The cashflows are based upon approved 
budgets for the following 12 months, beyond this they are based upon management’s expectations of 
future developments. As the Group are starting from a base point of trading the growth rates are high 
in the initial years (varying from 50% to 400% depending on the model employed), then in later years 
where the technology becomes established the expected rate of growth declines (varying from 5% to 10 
depending on the model employed). 

Management regularly assesses the sensitivity of the key assumptions and the probability that any of 
them would change to the degree that the carrying value would exceed the recoverable amount. It would 
require significant adjustments to key assumptions before the goodwill would be impaired Note 1g 
provides information on the Goodwill. 

12.

Intangible Assets 

Cost 
As at 30 June 2019
Additions
Disposals

As at 30 June 2020
Additions
Disposals

As at 30 June 2021

Amortisation 
As at 30 June 2019
Charge for the year
On disposals

As at 30 June 2020
Charge for the year
On disposals

As at 30 June 2021

Net Book Value
As at 30 June 2021

As at 30 June 2020

Intellectual
Property
£’000

Patent and 
Other
Development 
£’000

4,600
–
–
––––––––––
4,600
–
–
––––––––––
4,600
––––––––––

3,076
237
–
––––––––––
3,313
237
–
––––––––––
3,550
––––––––––

1,050
––––––––––

1,287
––––––––––

13,096
359
–
––––––––––
13,455
235
–
––––––––––
13,690
––––––––––

3,758
664
–
––––––––––
4,422
676
–
––––––––––
5,098
––––––––––

8,592
––––––––––

9,033
––––––––––

Computer 
Software
£’000

332
2
(73)
––––––––––
261
–
–
––––––––––
261
––––––––––

318
11
(73) 

––––––––––
256
3
–
––––––––––
259
––––––––––

2
––––––––––

5
––––––––––

Total 
£’000 

18,028 
361 
(73) 
–––––––––– 
18,316 
235 
– 
–––––––––– 
18,551 
–––––––––– 

7,152 
912 
(73) 
–––––––––– 
7,991 
916 
– 
–––––––––– 
8,907 
–––––––––– 

9,644 
–––––––––– 
10,325 
–––––––––– 

63

Plexus Holdings plc Annual Report 2021

 
Notes to the Consolidated Financial Statements continued

12.

Intangible Assets (continued) 
When assessing the valuation of the Group’s assets the key assumptions on which the valuation is based 
are that: 

l

l

l

l

Industry acceptance will result in continued growth of the business above long-term industry growth 
rates Management considers this to be appropriate for a new technology gaining industry acceptance, 

Prices will rise with inflation, 

Costs, in particular direct costs and staff costs are based on past experiences, and management’s 
knowledge of the industry, 

Staff wage inflation will be higher than general inflation but will not rise in line with sales. 

These assumptions were determined from the directors’ knowledge and experience. 

The value in use calculation is based on cash flow forecasts derived from the most recent financial model 
information available. Although the Group’s technology is proven and has proven commercial value the 
exploitation of opportunities beyond the rental wellhead exploration equipment services market are at 
a relatively early stage and the commercialisation process is expected to be a long term one. The cash 
flow forecasts therefore extend to 2040 to ensure the full benefit of all current projects is realised. The 
rationale for using a timescale up to 2040 with growth projections which increase in the first five years 
and decline thereafter, is that as time progresses, Plexus expects to gain an increasing foothold in the 
surface, subsea and other equipment markets, including the recent re-entry into the Jack-up exploration 
rental wellhead sector. As the Group is starting from a base point of  trading the growth rates are 
expected to be high in the initial years (varying from 50% to 400% depending on the model employed) 
then in later years where the technology becomes established the expected rate of  growth declines 
(varying from 5% to 10 depending on the model employed). 

The key assumptions used in these calculations include discount rate, revenue projections, growth rates, 
expected gross margins and the lifespan of the Group’s technology. Management estimates the discount 
rates using pre-tax rates that reflect current market assessments of the time value of money and risks 
specific to the Group and the markets in which it operates. Revenue projections, growth rates, margins 
and technology lifespans are all estimated based on the latest business models and the most recent 
discussions with customers, suppliers and other business partners. 

Management regularly assesses the sensitivity of the key assumptions and the probability that any of 
them would change to the degree that the carrying value would exceed the recoverable amount. It would 
require significant adjustments to key assumptions before the goodwill and other intangibles would 
be impaired. 

Patent and other development costs are internally generated Note 1h provides additional information 
on intangible assets. 

Plexus Holdings plc Annual Report 2021

64

Notes to the Consolidated Financial Statements continued

13.

Investments 
Included within the consolidated group accounts are the following subsidiaries and associated undertakings: 

Country of Registration Nature of Business

Percentage of Ordinary 
Shares held 

Subsidiary/Associated 
undertaking 

Plexus Ocean Systems
Limited

Scotland

Plexus Limited

Plexus Applied
Technologies Limited 

Scotland

Scotland

Plexus Holdings
USA Inc. 

Plexus Ocean Systems
US. LLC 

Plexus Deepwater
Technologies Limited 

USA

USA

USA

Plexus Response
Services Limited

Turks and
Caicos Islands 

Plexus Subsea
International Limited

Turks and
Caicos Islands

Plexus Ocean Systems
(Malaysia) Sdn Bhd

Malaysia

Plexus Ocean Systems
(Brunei) Sdn Bhd

Brunei

Plexus Offshore Systems Singapore
(Singapore) Pte Ltd

Supply of wellheads
and associated 
equipment for 
oil and gas drilling 

Dormant

Dormant

Investment Holding

Investment Holding

Dormant

Dormant

Commercial exploitation
of subsea applications 

Supply of wellheads and
associated equipment for 
oil and gas drilling 

Supply of wellheads and
associated equipment for 
oil and gas drilling 

Supply of wellheads and
associated equipment for 
oil and gas drilling 

Afrotel Corporation Ltd Turks and

Dormant

Caicos Islands 

Scotland

Kincardine
Manufacturing Services
Limited 

Plexus Pressure Control
Limited

Scotland

The Group’s investments are unlisted. 

Manufacture and machining
of fabricated metal products 

Design, fabrication and
manufacture of valve 
related products 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

49% 

100% 

65

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

14.

Investment in associate 

Investment in associate at 30 June 2019
Share of profit for the period
Dividends received
Impairment of investment

Investment in associate at 30 June 2020

Share of loss for the period
Dividends received

Investment in associate at 30 June 2021

£’000 

907 
265 
(140) 
(134) 
–––––––––– 
898 
–––––––––– 
(77) 
(100) 
–––––––––– 
721 
–––––––––– 

On  14  December  2018  Plexus  Ocean  Systems  Limited  acquired  a  49%  interest  in  Kincardine 
Manufacturing Services Limited ('KMS') for a consideration of £735k plus associated legal fees. KMS 
are a precision engineering company which serves the oil and gas industry. This is viewed as a long-term 
strategic investment by Plexus.  KMS are based at Sky House, Spurryhillock Industrial Estate, Stonehaven, 
Aberdeenshire AB39 2NH. 

Following the investment Graham Stevens PLC Finance Director was appointed to the board of KMS. 
The company remains under the control and influence of the 51% majority shareholders. 

On 30 June 2020, an impairment review was undertaken. The investment was revalued using a profit after 
tax earnings model. This resulted in an impairment charge of £134k. There was no impairment for the 
period to 30 June 2021. 

The  summary  financial  information  of   KMS,  extracted  on  a  100%  basis  from  the  accounts  for  the 
6 months to 30 June 2021 are as follows: 

Assets
Liabilities
Revenue 
(Loss)/profit before tax

2021
£’000

2,888
1,998
3,313
(194)

2020 
£’000 

3,001 
1,714 
2,554 
195 

KMS have a December 31 year-end date. Therefore, the profit before tax figure is based on management 
accounts for the 12-month period to 30 June 2021. 

Plexus Holdings plc Annual Report 2021

66

Notes to the Consolidated Financial Statements continued

15. Property, plant and equipment 

Tenant
Buildings Improvements
£’000

£’000

Assets under
Equipment Construction
£’000

£’000

Motor 
Vehicles
£’000

Total 
£’000 

Cost 
As at 30 June 2019
Additions
Disposals

As at 30 June 2020
Additions
Transfers
Disposals

As at 30 June 2021

Depreciation 
As at 30 June 2019
Charge for the year
On disposals

As at 30 June 2020
Charge for the year
On disposals

As at 30 June 2021

Net book value
As at 30 June 2021

As at 30 June 2020

3,699
41
–
––––––––––
3,740
–
–
–
––––––––––
3,740
––––––––––

1,338
152
–
––––––––––
1,490
153
–
––––––––––
1,643
––––––––––

2,097
––––––––––
2,250
––––––––––

716
–
(2)
––––––––––
714
–
–
–
––––––––––
714
––––––––––

466
61
(2)
––––––––––
525
41
–
––––––––––
566
––––––––––

148
––––––––––
189
––––––––––

5,432
144
(183)
––––––––––
5,393
42
128
(2)
––––––––––
5,561
––––––––––

4,252
464
(147)
––––––––––
4,569
284
(2)
––––––––––
4,851
––––––––––

710
––––––––––
824
––––––––––

–
–
–
––––––––––
–
128
(128)
–
––––––––––
–
––––––––––

–
–
–
––––––––––
–
–
–
––––––––––
-
––––––––––

-
––––––––––
-
––––––––––

17
–
–
––––––––––
17
–
–
–
––––––––––
17
––––––––––

4
3
–
––––––––––
7
4
–
––––––––––
11
––––––––––

6
––––––––––
10
––––––––––

9,864 
185 
(185) 
–––––––––– 
9,864 
170 
- 
(2) 
–––––––––– 
10,032 
–––––––––– 

6,060 
680 
(149) 
–––––––––– 
6,591 
482 
(2) 
–––––––––– 
7,071 
–––––––––– 

2,961 
–––––––––– 
3,273 
–––––––––– 

The value in use of property, plant and equipment is not materially different from the carrying value. 

16. Financial Asset 

Financial instruments held at fair value

2021
£’000

3,042
––––––––––
3,042
––––––––––

2020 
£’000 

2,995 
–––––––––– 
2,995 
–––––––––– 

The financial asset relates to cash invested in an investment portfolio, made up of high-yield bonds held 
at fair value in the statement of financial position. The portfolio can be divested to cash at any time. 
Included in the statement of comprehensive income is a write-down in the carrying value of the financial 
asset of £19k (2020: £24k). The fair value of the investment is evaluated by reviewing the portfolio on 
a quarterly basis, including the reporting date of 30 June 2021. 

67

Plexus Holdings plc Annual Report 2021

 
Notes to the Consolidated Financial Statements continued

17.

Inventories 

Raw materials and consumables
Finished goods and goods for resale

18. Trade and other receivables 

Trade receivables
Prepayment and other amounts

2021
£’000

91
484
––––––––––
575
––––––––––

2021
£’000

772
279
––––––––––
1,051
––––––––––

2020 
£’000 

309 
561 
–––––––––– 
870 
–––––––––– 

2020 
£’000 

503 
2,479 
–––––––––– 
2,982 
–––––––––– 

Trade and other receivables are classified as loans and receivables and are held at amortised cost. The 
carrying value approximates fair value. 

In the prior year prepayments and other amounts included the deferred consideration from the sale of 
the discontinued operation (note 9). Following the final payment of £2,186k in the current year this 
debtor reduced to nil. 

19. Trade and other payables 

Trade payables
Social security and other taxes
Other payables and accruals

20. Share Capital 

Authorised: 
Equity: 110,000,000 (2020: 110,000,000) Ordinary shares of 1p each

Allotted, called up and fully paid: 
Equity: 105,386,239 (2020: 105,386,239) Ordinary shares of 1p each

2021
£’000

136
81
426
––––––––––
643
––––––––––

2020 
£’000 

255 
68 
455 
–––––––––– 
778 
–––––––––– 

2021
£’000

2020 
£’000 

1,100
––––––––––

1,054
––––––––––

1,100 
–––––––––– 

1,054 
–––––––––– 

Plexus Holdings plc Annual Report 2021

68

Notes to the Consolidated Financial Statements continued

21. Shares held in treasury 

Buyback of shares

2021
£’000

2,500
––––––––––

2020 
£’000 

2,500 
–––––––––– 

On 1 February 2019 Plexus Holdings PLC completed the acquisition of 4,950,495 Ordinary Shares 
beneficially held by LLC Gusar. Following the above transaction, the Company's issued share capital 
comprises 105,386,239 Ordinary Shares, of which 4,950,495 Ordinary Shares are held in treasury. The 
Company now has a total of  100,435,744 Ordinary Shares in issue with voting rights. This figure, 
100,435,744, should be used by shareholders as the denominator when determining whether they are 
required to notify their interest in, or a change to their interest in the Company under the Financial 
Conduct Authority's Disclosure Guidance and Transparency Rules. 

22. Share based payments 

Share options have been granted to subscribe for ordinary shares, which are exercisable between 2021 
and  2031  at  prices  ranging  from  £0.385  to  £1.18.  At  30  June  2021  there  were  3,577,899 
options outstanding. 

The Company has an unapproved share option scheme for the directors and employees of the Group. 
Options are exercisable at the quoted mid-market price of the Company’s shares on the date of grant. 
The options may vest in three equal portions, at the end of each of three assessment periods, provided 
that the option holder is still employed by the Group at vesting date and that the Total Shareholder Return 
(TSR) performance conditions are satisfied. Options that do not meet the TSR criteria at the first available 
vesting date may vest at the end of the complete assessment period, provided that the compounded TSR 
performance is met over the complete assessment period. Vested but unexercised options ordinarily expire 
on the tenth anniversary of the date of grant. The options are equity settled. 

On 9 July 2015 the directors approved an amendment to the rules of the scheme such that the Company 
is permitted to extend the exercise period for options granted under the scheme by a further ten years. 
Subsequently on 8 June 2017, 13 December 2019 and 25 March 2021 the Company entered into deeds of 
amendment with Ben van Bilderbeek, Graham Stevens, Craig Hendrie, and eleven employees in respect 
of options granted to them on 20 June 2007 and 17 December 2009 and 25 March 2011 under the scheme, 
to extend the exercise period by ten years, subject to all other terms of the scheme rules. 

Details of the share options outstanding during the year are as follows: 

Outstanding at the beginning of the period
Lapsed during the year
Outstanding at the end of the period
Exercisable at the end of the period

2021

2020 

Weighted
Average
Exercise 
Price

0.52
–
0.52
0.52

Weighted 
Average 
Exercise  
Price 

0.53 
0.60 
0.52 
0.52 

No of
shares

3,677,899
(100,000)
3,577,899
3,577,899

No of
shares

3,577,899
–
3,577,899
3,577,899

The Group has recognised an expense in the current year of  £nil (2020: £nil) towards equity settled 
share-based payments. 

The weighted average contractual life of the share options outstanding at the end of the period is 7 years 
3 months. 

69

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

23. Reconciliation of net cash flow to movement in net cash/debt 

Movement in cash and cash equivalents
Repayment of bank loans
Drawdown of Lombard facility

(Decrease)/increase in net cash in year
Net cash at start of year

Net cash at end of year

24. Analysis of net cash/(debt) 

2021:

Cash in hand and at bank
Bank Lombard facility
Lease Liability

Total

2021
£’000

1,088
–
(2,044)
––––––––––
(956)
4,087
––––––––––
3,131
––––––––––

Cashflow
£’000

1,088
(2,044)
278
––––––––––
(678)
––––––––

2020 
£’000 

(1,065) 
75 
– 
–––––––––– 
(990) 
5,077 
–––––––––– 
4,087 
–––––––––– 

At end 
of year 
£’000 

5,175 
(2,044) 
(1,401) 
–––––––––– 
1,730 
–––––––– 

At beginning
of year
£’000

4,087
–
(1,679)
––––––––––
2,408
––––––––

A maturity analysis of the Bank Lombard Facility and Lease Liability are included in notes 25 and 
26 respectively. 

2020:

Cash in hand and at bank
Bank loans
Lease Liability

Total

At beginning
of year
£’000

5,152
(75)
(1,948)
––––––––––
3,129
––––––––

Cashflow
£’000

(1,065)
75
269
––––––––––
(721)
––––––––

At end 
of year 
£’000 

4,087 
– 
(1,679) 
–––––––––– 
2,408 
–––––––– 

Plexus Holdings plc Annual Report 2021

70

 
 
 
 
 
Notes to the Consolidated Financial Statements continued

25. Financial instruments and risk management 

Treasury management 
The Group’s activities give rise to a number of different financial risks: market risk (including foreign 
currency exchange risk and interest rate risk), credit risk and liquidity risk. The Group’s management 
regularly monitors the risks and potential exposures to which the Group is exposed and seeks to take 
action, where appropriate, to minimise any potential adverse impact on the Group’s performance. 

Risk management is carried out by Management in line with the Group’s Treasury policies. The Group’s 
Treasury policies cover specific areas, such as foreign exchange risk, interest rate risk and investment of 
excess cash. The Group’s policy does not permit entering into speculative trading of financial instruments 
and this policy has been applied throughout the year. 

(a) Market risks 

(i)

Foreign currency exchange risk 

The Group is exposed to foreign exchange risk arising from various currencies. In order to protect 
the Group’s statement of financial position from movements in exchange rates, the Group converts 
foreign currency balances into sterling on receipt so far as they will not be used for future payments 
in the foreign currency. 

The Group carefully monitors the economic and political situation in the countries in which it 
operates to ensure appropriate action is taken to minimise any foreign currency exposure. 

The  Group’s  main  foreign  exchange  risk  relates  to  movements  in  the  sterling/US  dollar  and 
sterling/euro exchange rates. Movements in these rates impact the translation of US dollar and euro 
denominated net assets. Outstanding debts are in GBP and USD, minimal cash is held in foreign 
currency. Therefore, the Group has minimal foreign exchange risk for the reporting period. 

(ii)

Interest rate risk 

The Group has historically financed its operations through a mixture of retained profits and bank 
borrowings. The Group borrows in sterling at floating rates of interest. 

The Group is also exposed to interest rate risk on cash held on deposit. The Group’s policy is to 
maximise  the  return  on  cash  deposits  whilst  ensuring  that  cash  is  deposited  with  a  financial 
institution with a credit rating of ‘AA’ or better. 

The consolidated income statement would be affected by gain/loss £49k (2020: £30k) by a reasonably 
possible 1 percentage point change down/up in LIBOR interest rates on a full year basis. 

(b) Credit risk 
The Group’s credit risk primarily relates to its trade receivables. Responsibility for managing credit risks 
lies with the Company’s management. 

The  Group  applies  the  IFRS  9  simplified  approach  to  measure  expected  credit  losses  for  all  trade 
receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets 
have been grouped based on shared credit risk characteristics and the number of  days past due. The 
expected loss rates are based on payment profiles of sales and the corresponding historical credit losses 
experienced within this period. The amount of expected credit losses is updated at each reporting date to 
reflect changes in credit risk since initial recognition of the respective financial instrument. 

The  investment  portfolio  consists  of   funds  invested  in  high-yield  bonds  with  reputable  financial 
institutions. The Company do not consider the investment portfolio presents a credit risk. 

A customer evaluation is typically obtained from an appropriate credit rating agency. Where required, 
appropriate trade finance instruments such as letters of credit, bonds, guarantees and credit insurance 
will be used to manage credit risk. 

71

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

25. Financial instruments and risk management (continued) 

The Group’s major customers are typically large companies which have strong credit ratings assigned 
by international credit rating agencies. Where a customer does not have sufficiently strong credit ratings, 
alternative forms of security such as the trade finance instruments referred to above may be obtained. 
The Group’s customer base is concentrated on a few major companies, but management believe that 
the calibre of these companies means that no material credit risk provision is required. 

Management review trade receivables across the Group based on receivable days’ calculations to assess 
performance. There is significant management focus on receivables that are overdue. All receivables are 
with  large  corporations  with  good  credit  history  with  which  the  entity  has  not  experienced  any 
recoverability issues in the past. Individual trade receivables and contract assets are written off when 
management deem them not to be collectible. No bad debt provision has been provided for within 
the accounts. 

Amounts deposited with banks and other financial institutions also give rise to credit risk. This risk is 
managed by limiting the aggregate amount of exposure to any such institution by reference to their rating 
and by regular review of these ratings. The possibility of material loss in this way is considered unlikely. 

The currency composition of trade receivables at the year-end was: 

Sterling
U.S Dollar

The ageing of trade receivables at the year-end was: 

Not past due
Past due 0-30 days
Past due 30+ days
Past due 120+ days

(c) Liquidity risk 

2021
£’000

555
217
–––––––
772
–––––––

2021
£’000

772
–
–
–
–––––––
772
–––––––

2020 
£’000 

503 
– 
––––––– 
503 
––––––– 

2020 
£’000 

476 
– 
– 
27 
––––––– 
503 
––––––– 

The Group has historically financed its operations through equity finance and bank borrowings. The 
Group has continued with its policy of ensuring that there are sufficient funds available to meet the 
expected funding requirements of the Group’s operations and investment opportunities. The Group 
monitors its liquidity position through cash flow forecasting. Based on the current outlook the Group 
has sufficient funding in place to meet its future obligations. 

Plexus Holdings plc Annual Report 2021

72

Notes to the Consolidated Financial Statements continued

25. Financial instruments and risk management (continued) 

30 June 2021 
Cash and liquid resources

30 June 2020 
Cash and liquid resources

– Sterling
– US Dollar
– Malaysian

– Sterling
– US Dollar
– Malaysian

Floating Non-interest
bearing
£’000

rates
£’000

Book and 
fair value 
£’000 

4,738
 –
 –
––––––––––
4,738
––––––––––

3,971
 –
 –
––––––––––
3,971
––––––––––

431
4
2
––––––––––
437
––––––––––

94
6
16
––––––––––
116
––––––––––

5,169 
4 
2 
–––––––––– 
5,175 
–––––––––– 

4,065 
6 
16 
–––––––––– 
4,087 
–––––––––– 

At 30 June 2021 the Group had £5,175k of cash. The average rate of interest earned in the year is on a 
floating rate basis and ranged between 0% and 1.25% on sterling deposits. 

Cash is categorised as loans and receivables. 

The Group has classified its financial instruments into the three levels prescribed under the accounting 
standards. The definition of the levels is as follows. 

Level  1:  The  fair  value  of   financial  instruments  traded  in  active  markets  (such  as  publicly  traded 
derivatives, and trading and available-for-sale securities) is based on quoted market prices at the end of 
the reporting period. The quoted market price used for financial assets held by the group is the current 
bid price. These instruments are included in level 1. 

Level 2: The fair value of financial instruments that are not traded in an active market (for example, 
over-the-counter  derivatives)  is  determined  using  valuation  techniques  which  maximise  the  use  of 
observable market data and rely as little as possible on entity-specific estimates. If all significant inputs 
required to fair value an instrument are observable, the instrument is included in level 2. 

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument 
is included in level 3. This is the case for unlisted equity securities. 

Non-current assets (note 16) meet the level 1 criteria and have been recorded in the statement of financial 
position at fair value. As at 30 June 2021 the fair value of the financial assets held by the Group are 
£3,042k (2020: £2,995k). 

.

73

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

25. Financial instruments and risk management (continued) 

The interest rate and currency profiles of the Group’s financial liabilities at 30 June 2021 are as follows: 

30 June 2021 
Bank Lombard facility – Sterling

30 June 2020 
Bank Lombard facility – Sterling

30 June 2021 
Bank Lombard facility – Sterling
Total

30 June 2020 
Bank Lombard facility – Sterling
Total

Floating Non-interest
bearing
£’000

rates
£’000

Book and 
fair value 
£’000 

2,044
––––––––––

 –
––––––––––

2,044 
–––––––––– 

–
––––––––––

– 
––––––––––

– 
–––––––––– 

Due
within
1 Year
£’000

Due
between
2–5 Years
£’000

Due
after
5 Years
£’000

Total 
£’000 

2,044
2,044
––––––––––

–
–
––––––––––

 –
–
––––––––––

2,044 
2,044 
–––––––––– 

–
–
––––––––––

– 
–
––––––––––

 –
–
––––––––––

– 
– 
–––––––––– 

Bank borrowings are other financial liabilities which are measured at amortised cost. The carrying value 
approximates fair value. 

26. Leased assets and liabilities 

Leased Assets 
The  Group’s  leased  assets  relates  to  a  building.  Key  movements  relating  to  the  lease  balance  is 
presented below: 

Creation of asset on inception 1st July 2019
Amortisation charge

Balance at 30 June 2020
Amortisation charge

As at 30 June 2021

£’000 

1,852 
(304) 
––––––– 
1,548 
(303) 
––––––– 
1,245 
––––––– 

Plexus Holdings plc Annual Report 2021

74

 
 
 
 
Notes to the Consolidated Financial Statements continued

26. Leased assets and liabilities (continued) 

Leased Liabilities 
The maturity of the lease liability is as follows 

Less than one year
One to five years

Total lease liability 

2021
£’000

316
1,085
–––––––
1,401
–––––––

2020 
£’000 

278 
1,401 
––––––– 
1,679 
––––––– 

The total interest expense on lease liabilities and the total cash outflow in the year to 30 June 2021 was 
£39k and £342k respectively (2020: £46k and £315k). 

The borrowing rate applied to the lease liability is 2.5%. 

Other leases 
The Group leases storage facilities, IT equipment and other workshop machinery with terms between 
1 month and 2 years. The Group considers these assets to be of  low value or short-term in nature. 
Therefore, no right of use assets and lease liabilities are recognised on these leases. 

Expenses recognised relating to short-term leases and leases of low value for the year to June 2021 was 
£53k and £11k respectively (2020: £62k and £11k). 

The Group had a capital commitment of £nil as at 30 June 2021 (2020: £nil). 

27. Contingent liabilities 

The Group had no contingent liabilities as at 30 June 2021 (2020: £nil). 

28. Related party transactions 

Control 
No one party owns a controlling interest in the Company. 

Ultimate parent company 
There is no ultimate parent company. 

Transactions 
During the year the Group had the following transactions with related parties: 

Purchase of goods and services from Other Related Parties
Payables to Other Related Parties
Repayables from Other Related Parties
Purchases from associate undertaking

2020
£’000

342
–
–
65
–––––––

2020 
£’000 

315 
– 
1 
7 
––––––– 

Other related parties were @SIPP (Pension Trustees) Limited, OFM Holdings Limited and Plexus 
Properties International Limited. The transactions related to accommodation, rent and related charges. 
@SIPP  (Pension  Trustees)  Limited  are  the  trustees  of   Ben  van  Bilderbeek’s  pension  fund.  OFM 
Holdings Limited is a trust of which Ben van Bilderbeek’s family are beneficiaries. Plexus Properties 
International Limited is a company under the control of the van Bilderbeek family. 

All of these transactions were between either Plexus Ocean Systems Limited or Plexus Ocean Systems 
International Limited and the relevant related party. 

75

Plexus Holdings plc Annual Report 2021

Notes to the Consolidated Financial Statements continued

29. General information 

These financial statements are for Plexus Holdings plc and subsidiary undertakings. The Company is 
registered, and domiciled, in England and Wales and incorporated under the Companies Act 2006. The 
nature of the company’s operations and its principal activities are set out in the strategic report on page 
9 and the directors’ report on page 20.

Plexus Holdings plc Annual Report 2021

76

Parent Company Statement of Financial Position 
at 30 June 2021

Assets
Intangible assets
Investments

Total Non-current assets

Trade and other receivables
Current income tax asset
Cash at bank and in hand

Total current assets

Total Assets

Equity and Liabilities
Called up share capital
Shares held in treasury
Share based payments reserve
Retained earnings

Total equity attributable to equity holders of the company

Liabilities
Deferred tax liabilities

Total non-current liabilities

Trade and other payables

Total current liabilities

Total liabilities

Total Equity and Liabilities

Notes

4
5

7

10

9

6

8

2021
£’000

9,380
8,294
–––––––
17,674
–––––––
20,720
–
55
–––––––
20,775
–––––––
38,449
–––––––

1,054
(2,500)
326
38,910
–––––––
37,790
–––––––

489
–––––––
489
–––––––
170
–––––––
170
–––––––
659
–––––––
38,449
–––––––

2020 
£’000 

9,999 
8,294 
––––––– 
18,293 
––––––– 
19,625 
76 
1,013 
––––––– 
20,714 
––––––– 
39,007 
––––––– 

1,054 
(2,500) 
326 
39,704 
––––––– 
38,584 
––––––– 

224 
––––––– 
224 
––––––– 
199 
––––––– 
199 
––––––– 
423 
––––––– 
39,007 
––––––– 

As permitted by section 408 of the Companies Act 2006, the parent company’s Statement of Comprehensive 
Income has not been included in these financial statements. The parent company’s loss after tax for the year 
was £794k (2020: loss of £335k). 

These financial statements were approved and authorised for issue by the board of directors on 19 November 
2021 and were signed on its behalf by: 

G Stevens
Director

C Hendrie 
Director 

Company Number: 03322928

77

Plexus Holdings plc Annual Report 2021

 
  
 
  
 
  
 
(335) 
––––––– 

38,584 
––––––– 

(794) 
––––––– 

37,790 
––––––– 

Parent Company Statement of Changes in Equity 
for the year ended 30 June 2021

Balance as at 30 June 2019
Total comprehensive income 
for the period

Called 
Up
Share
Capital
£’000

Shares 
Held in 
Treasury
£’000

Share 
Based 
Payments
Reserve
£’000

Retained 
Earnings
£’000

Total 
£’000 

1,054

(2,500)

326

40,039

38,919 

–

–

–

(335)

–––––––

–––––––

–––––––

–––––––

Balance as at 30 June 2020

1,054

(2,500)

326

39,704

–––––––

–––––––

–––––––

–––––––

Total comprehensive income 
for the period

–

–

–

(794)

–––––––

–––––––

–––––––

–––––––

Balance as at 30 June 2021

1,054

(2,500)

326

38,910

–––––––

–––––––

–––––––

–––––––

Plexus Holdings plc Annual Report 2021

78

Parent Company Statement of Cash Flows 
at 30 June 2021

Notes

Cash flows from operating activities
Loss before taxation
Adjustments for:
  Amortisation
  Investment income
Changes in working capital:

(Increase) / decrease in trade and other receivables

  Decrease in trade and other payables

Cash (used) / generated from operations activities
Income taxes refunded

Net cash (used) / generated from operations

Cash flows from investing activities
Purchase of intangible assets
Interest received

Net cash generated from investing activities

Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at 1 July 2020

Cash and cash equivalents at 30 June 2021

10

2021
£’000

(611)

854
(423)

(1,095)
(29)
–––––––
(1,304)
159
–––––––
(1,145)
–––––––

(235)
422
–––––––
187

–––––––
(958)
1,013
–––––––
55
–––––––

2020 
£’000 

(438) 

842 
(512) 

784 
(92) 
––––––– 
584 
270 
––––––– 
854 
––––––– 

(359) 
512 
––––––– 
153 

––––––– 
1,007 
6 
––––––– 
1,013 
–––––– 

79

Plexus Holdings plc Annual Report 2021

 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Notes to the Parent Company Financial Statements

1.

Summary of significant accounting policies 
The  following  accounting  policies  have  been  applied  consistently  in  dealing  with  items  which  are 
considered material in relation to the financial information. 

a.  Basis of preparation 
The company financial statements have been prepared in accordance with International Financial 
Reporting Standards (IFRS) and interpretations issued by the International Accounting Standards 
Board as adopted by the European Union and are in accordance with the Companies Act 2006. 

There are a number of standards, amendments to standards, and interpretations which have been issued 
by the IASB that are effective in future accounting periods. The Directors’ have assessed the impact of 
these standards. The Company has decided not to adopt these standards early as no material impact is 
expected. The following amendments are effective for the period beginning 1 January 2021: 

l

l

l

l

l

l

Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 
and IFRS 16) 

COVID-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) 

Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) 

Annual Improvements to IFRS Standards 2018-2020 

Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) 

Reference to the Conceptual Framework (Amendments to IFRS 3) 

In January 2020, the IASB issued amendments to IAS 1, which clarified the criteria used to determine 
whether liabilities are classified as current or non-current. These amendments clarify that current or 
non-current classification is based on whether an entity has a right at the end of the reporting period to 
defer settlement of the liability for at least twelve months after the reporting period. The amendments 
also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless 
the obligation to transfer equity instruments arises from a conversion feature classified as an equity 
instrument  separately  from  the  liability  component  of   a  compound  financial  instrument.  The 
amendments are effective for annual reporting periods beginning on or after 1 January 2022. 

The Company is currently assessing the impact of these new accounting standards and amendments. 
The Company does not believe that the amendments to IAS 1 will have a significant impact of  the 
classification of its liabilities, as the conversion feature in its convertible debt instruments is classified as 
an  equity  instrument  and  therefore,  does  not  affect  the  classification  of   its  convertible  debt  as  a 
non-current liability. 

The Company financial statements are presented in sterling and all values are rounded to the nearest 
thousand pounds except where otherwise indicated. 

The financial information has been prepared under the historical cost convention except where fair value 
adjustments are required. 

Income taxes and deferred taxation 

b.
The income tax expense for the period comprises current and deferred tax. Tax is recognised in the 
income statement, except to the extent that it relates to items recognised in other comprehensive income 
or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in 
equity, respectively. 

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted 
at the reporting date in the countries where the company and its subsidiaries operate and generate taxable 
income. Management periodically evaluates positions taken in tax returns with respect to situations in 
which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate 
on the basis of amounts expected to be paid to the tax authorities. 

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and 
liabilities and their carrying amounts in the consolidated financial statements.

Plexus Holdings plc Annual Report 2021

80

Notes to the Parent Company Financial Statements continued

1.

Summary of significant accounting policies (continued) 
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively 
enacted by the reporting date and are expected to apply when the related deferred income tax asset is 
realised, or the deferred income tax liability is settled. 

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit 
will be available against which the temporary differences can be utilised. 

As set out in note 22 of the Group accounts, the Company operates a share option scheme. Where the 
market price of the shares at the year-end exceeds the option price there is a potential tax deduction. 
This is treated as a deferred tax asset. The portion of the expected future tax deduction which is less 
than or equal to the associated cumulative IFRS2 charge is recognised in the income statement. The 
balance of the credit is recognised directly in equity. 

Intangible assets and amortisation 

c.
Patents are recorded initially at cost and amortised on a straight-line basis over 20 years which represents 
the life of  the patent. The Group operates a policy of  continual patent enhancement in order that 
technology enhancements and modifications are incorporated within the registered patent, thereby 
protecting the value of technology advances for a full 20-year period. 

Intellectual Property rights are initially recorded at cost and amortised over 20 years on a straight-line 
basis. The technology defined by the Intellectual Property is believed to be able to generate income 
streams for the Group for many years; key Intellectual Property is protected by patents; the lowest 
common denominator in terms of economic life of the intangible assets is the life of the original patents 
and therefore the life of the Intellectual Property has been matched to the remaining life of the patents 
protecting it. 

Development expenditure is capitalised in respect of  development of  patentable technology at cost 
including  an  allocation  of   own  time  when  such  expenditure  is  incurred  on  separately  identifiable 
technology and its future recoverability can reasonably be regarded as assured. Any expenditure carried 
forward is amortised on a straight-line basis over its useful economic life, which the directors consider 
to be 20 years. 

Amortisation is charged to the Administrative Expenses line of the Statement of Comprehensive Income. 

Expenditure on research and development, which does not meet the capitalisation criteria, is written 
off to the Statement of Comprehensive Income in the period in which it is incurred. 

The carrying value of intangible assets is reviewed on an on-going basis by the directors and, where 
appropriate, provision is made for any impairment in value. It would require a substantial movement 
(over  100%)  in  the  assumptions  employed  in  valuations  before  there  would  be  any  impairment  to 
intangible assets. 

Potential impairment of intangible assets has been reviewed and is outlined in note 1h in the Group 
accounts, with no impairment required. 

Investments 

d.
The investment in subsidiary and associate undertakings is stated at cost less provision for impairment. 
Cost is the amount of cash paid or the fair value of the consideration given to acquire the investment. 
Income from such investments is recognised only to the extent that the Company receives distributions 
from accumulated profits of the investee company arising after the date of acquisition.  

Potential impairment of investments and the intangible assets each subsidiary undertaking holds has 
been reviewed and is outlined in note 1h in the Group accounts, with no impairment required. 

Cash and cash equivalents 

e.
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable 
on demand form an integral part of the Company’s cash management and are included as a component 
of cash and cash equivalents for the purpose of the statement of cash flows.

81

Plexus Holdings plc Annual Report 2021

Notes to the Parent Company Financial Statements continued

1.

Summary of significant accounting policies (continued) 
f.

Foreign currencies 

Transactions in foreign currencies are recorded using the rate of  exchange ruling at the date of  the 
transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the 
rate of exchange ruling at the statement of financial position date and the gains or losses on translation 
are included in the Statement of Comprehensive Income. 

Pensions 

g.
The Group offers a contributory Group stakeholder pension scheme, into which the Group will make 
matching contributions up to a pre-agreed level of base salary; the scheme is open to executive directors 
and permanent employees. Directors may choose to have contributions paid into personal pension plans. 

h. Dividends 
Dividends are recognised when they become legally payable. In the case of interim dividends to equity 
shareholders, this is when they are paid. In the case of final dividends, this is when approved by the 
shareholders  at  the  AGM.  Dividends  unpaid  at  the  statement  of   financial  position  date  are  only 
recognised as a liability at that date to the extent that they are appropriately authorised and are no longer 
at the discretion of the Company. Unpaid dividends that do not meet these criteria are disclosed in the 
notes to the financial statements. 

Classification of financial instruments issued by the Group 

i.
In accordance with IAS 32, financial instruments issued by the Group are treated as equity (i.e. forming 
part of shareholders’ funds) only to the extent that they meet the following two conditions: 
(a)

they include no contractual obligations upon the Company (or Group as the case may be) to deliver 
cash or other financial assets or to exchange financial assets or financial liabilities with another 
party under conditions that are potentially unfavourable to the Company (or Group); and 
(b) where the instrument will or may be settled in the Company’s own equity instruments, it is either 
a non-derivative that includes no obligation to deliver a variable number of the Company’s own 
equity instruments or is a derivative that will be settled by the Company exchanging a fixed amount 
of cash or other financial assets for a fixed number of its own equity instruments. 

To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. 
Where the instrument so classified takes the legal form of  the Company’s own shares, the amounts 
presented in these financial statements for called up share capital and share premium account exclude 
amounts in relation to those shares. 

Finance payments associated with financial liabilities are dealt with as part of finance charges. Finance 
payments associated with financial instruments that are classified as part of shareholders’ funds (see 
dividends policy), are dealt with as appropriations in the reconciliation of movements in shareholders’ funds. 

Share based payments 

j.
The Company issues share options to directors and employees, which are measured at fair value at the 
date of grant. The fair value of the equity settled options determined at the grant date is expensed on a 
straight-line basis over the vesting period based on an estimate of  the number of  options that will 
actually vest. The Group has adopted a Stochastic model to calculate the fair value of options, which 
enables  the  Total  Shareholder  Return  (TSR)  performance  condition  attached  to  the  awards  to  be 
factored into the fair value calculation. 

Key assumptions and sources of estimation 

k.
The estimated life of the Company’s Intellectual Property is estimated with reference to the lifespan of 
the patents which protect the knowledge and their forecast income generation. 

When measuring Intellectual Property for impairment a range of assumptions are required and these 
are detailed in the Intangible Assets note above. 

The recoverability of loan between parent company and subsidiary is a key estimate. Recoverability is 
based on future financial performance.

Plexus Holdings plc Annual Report 2021

82

Notes to the Parent Company Financial Statements continued

2.

Profit for the year 
As  permitted  by  section  408  of   the  Companies  Act  2006,  the  parent  company’s  Statement  of 
Comprehensive Income has not been included in these financial statements. The parent company’s loss 
after tax for the year was £794k (2020: loss of  £335k). The company had revenue of  £386k for the 
financial year (2020: £476k). 

3.

Staff numbers and costs 

Management
Technical
Administrative

The aggregate payroll costs of these persons were as follows: 

Wages and salaries
Social security costs

2020
Number

3
–
–
–––––––
3
–––––––

2020
£’000

185
24
–––––––
209
–––––––

2019 
Number 

3 
– 
– 
––––––– 
3 
––––––– 

2020 
£’000 

183 
24 
––––––– 
207 
––––––– 

All payroll costs are of a continuing nature. 

Key management are considered to be the Board of Directors and details of Directors’ remuneration 
are given in the remuneration report on page 38 and this forms part of the financial statements.

83

Plexus Holdings plc Annual Report 2021

Notes to the Parent Company Financial Statements continued

4.

Intangible fixed assets 

As at 30 June 2019
Additions

As at 30 June 2020
Additions

As at 30 June 2021

Amortisation
As at 30 June 2019
Charge for the year

As at 30 June 2020
Charge for the year

As at 30 June 2021

Net Book Value
As at 30 June 2021

As at 30 June 2020

Intellectual
Property
£’000

Patent and 
Other 
Development
£’000

2,761
–
–––––
2,761
–
–––––
2,761
–––––

1,619
178
–––––
1,797
178
–––––
1,975
–––––

786
–––––
964
–––––

12,867
359
–––––
13,226
235
–––––
13,461
–––––

3,527
664
–––––
4,191
676
–––––
4,867
–––––

8,594
–––––
9,035
–––––

Total 
£’000 

15,628 
359 
––––– 
15,987 
235 
––––– 
16,222 
––––– 

5,146 
842 
––––– 
5,988 
854 
––––– 
6,842 
––––– 

9,380 
––––– 
9,999 
––––– 

Plexus Holdings plc Annual Report 2021

84

 
 
  
 
 
  
Notes to the Parent Company Financial Statements continued

5.

Investments 

Subsidiary undertakings: 
As at 30 June 2019, 2020 and 2021

The Company’s undertakings are: 

Subsidiary undertaking

Plexus Ocean Systems 
Limited

Plexus Limited

Plexus Applied 
Technologies Limited

Address and
Country of Registration

Johnstone House,
52-54 Rose Street,
Aberdeen, AB10 1HA
Scotland

Johnstone House,
52-54 Rose Street,
Aberdeen, AB10 1HA
Scotland

Highdown House, 
Yeoman Way,  
Worthing, 
West Sussex, BN99 3HH 
England 

£’000 

8,294 
––––– 

Percentage of  
Ordinary 
Shares held 

100%

Nature of Business

Supply of wellheads and
associated equipment for
oil and gas drilling 

Dormant

100% 

Dormant

100% 

100% 

100% 

100% 

100%  

Plexus Holdings USA 
Inc.

4295 San Felipe #1200,
Houston, TX 77027, USA

Investment Holding

Plexus Ocean Systems 
US. LLC

4295 San Felipe #1200,
Houston, TX 77027, USA

Investment Holding

Plexus Deepwater 
Technologies Limited

4295 San Felipe #1200,
Houston, TX 77027, USA  

Dormant

Plexus Response 
Services Limited

Plexus Subsea 
International Limited

Plexus Ocean Systems 
(Malaysia) Sdn Bhd

1, Caribbean Place,
P.O Box 97, 
Leeward Highway, 
Providenciales,  
Turks and Caicos Islands

1, Caribbean Place,
P.O Box 97, Leeward 
Highway, Providenciales,
Turks and Caicos Islands

Commercial exploitation
of subsea applications

Commercial exploitation 
of subsea applications 

100%  

Level 16, Tower C,
Megan Avenue II,
12, Jalan Yap Kwan Seng,  oil and gas drilling
50450, Kuala Lumpur,  
Malaysia

Supply of wellheads and
associated equipment for

100%  

85

Plexus Holdings plc Annual Report 2021

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Parent Company Financial Statements continued

5.

Investments (continued) 

Subsidiary undertaking

Plexus Ocean Systems 
(Brunei) Sdn Bhd

Address and
Country of Registration

Ground Floor Unit 30,
Block D Simpang 21,
Kg Menglait Gadong,
BE4119, Bandar,
Seri Begawan,
Brunei Darussalam

Percentage of  
Ordinary 
Shares held 

100%  

Nature of Business

Supply of wellheads and 
associated equipment for 
oil and gas drilling 

Plexus Offshore Systems  137 Telok Ayer Street,
(Singapore) Pte Ltd

08-01, Singapore,
Singapore

Supply of wellheads and
associated equipment for 
oil and gas drilling

100% 

Afrotel Corporation Ltd 1, Caribbean Place,

Investment Holding

100% 

Design, fabrication and 
manufacture of valve  
related products 

100%  

Plexus Pressure 
Control Limited

P.O Box 97, Leeward  
Highway, Providenciales, 
Turks and Caicos Islands

Johnstone House,
52-54 Rose Street,
Aberdeen, AB10 1HA
Scotland

6. Deferred tax  

i)

 Movement in deferred tax liability balance 

Deferred tax liability at beginning of year
Debit to Statement of Comprehensive Income

Deferred liability at end of year

ii) Deferred tax liability balance 

The deferred tax liability balance is made up of the following
Difference between depreciation and capital allowances
Share based payments
Tax losses

Deferred tax liability at end of year

Plexus Holdings plc Annual Report 2021

86

2021
£’000

224
265
–––––––
489
–––––––

2020 
£’000 

251 
(27) 
––––––– 
224 
––––––– 

2021
£’000

2020 
£’000 

1,601
–
(1,112)
–––––––
489
–––––––

1,336 
– 
(1,112) 
––––––– 
224 
––––––– 

 
 
 
 
 
 
 
 
 
  
Notes to the Parent Company Financial Statements continued

7.

Trade and other receivables 

Trade receivables
Receivables due from group companies
Prepayments and other amounts

2021
£’000

217
20,469
34
–––––––
20,720
–––––––

2020 
£’000 

479 
19,099 
47 
––––––– 
19,625 
––––––– 

Trade and other receivables are classified as loans and receivables and are held at amortised cost. The 
carrying value approximates fair value. 

Prepayments relate to prepaid amounts for services to be consumed over the next 12 months.  

The recoverability of all receivables has been assessed with no impairment required. 

8.

Trade and other payables 

Trade payables
Non-trade payables and accrued expenses

2021
£’000

78
92
–––––––
170
–––––––

2020 
£’000 

84 
115 
––––––– 
199 
––––––– 

Trade and other payables are held at amortised cost. The carrying value approximates fair value. All 
trade and other payable are due within one year. 

9.

 Share Capital 

Authorised: 
Equity: 110,000,000 (2020: 110,000,000) Ordinary shares of 1p each

Allotted, called up and fully paid: 
Equity: 105,386,239 (2020: 105,386,239) Ordinary shares of 1p each

10. Reconciliation of net cash flow to movement in net cash 

Movement in net cash in year
Net cash at start of year

Net cash at end of year

2021
£’000

1,100
–––––––

1,054
–––––––

2021
£’000

(958)
1,013
–––––––
55
–––––––

2020 
£’000 

1,100 
––––––– 

1,054 
––––––– 

2020 
£’000 

1,007 
6 
––––––– 
1,013 
––––––– 

87

Plexus Holdings plc Annual Report 2021

Notes to the Parent Company Financial Statements continued

11. Financial instruments and risk management 

The Company’s activities give rise to a number of different financial risks: market risk (including foreign 
currency exchange risk and interest rate risk), credit risk and liquidity risk. The Company’s management 
regularly monitors the risks and potential exposures to which the Company is exposed and seeks to take 
action, where appropriate, to minimise any potential adverse impact on the Company’s performance. 

Risk management is carried out by Management in line with the Company’s Treasury policies. The 
Company’s Treasury policies cover specific areas, such as foreign exchange risk, interest rate risk and 
investment of excess cash. The Company’s policy does not permit entering into speculative trading of 
financial instruments and this policy has been applied throughout the year. 

(a)  Market risks 

(i)  Foreign currency exchange risk 

The Company is exposed to foreign exchange risk arising from various currencies. In order to protect 
the Company’s statement of financial position from movements in exchange rates, the Company converts 
foreign currency balances into sterling on receipt so far as they will not be used for future payments in 
the foreign currency. 

The Company carefully monitors the economic and political situation in the countries in which it 
operates to ensure appropriate action is taken to minimise any foreign currency exposure. 

(ii) 

Interest rate risk 

The Company is also exposed to interest rate risk on cash held on deposit. The Company’s policy is to 
maximise the return on cash deposits whilst ensuring that cash is deposited with a financial institution 
with a credit rating of ‘AA’ or better. 

(b) Credit risk 

The Company’s credit risk primarily relates to its inter-company loans and inter-company receivables. 
Management have reviewed the recoverability of intercompany loan balances at the reporting date, this 
has resulted in a write-off of £nil (2020: £97k) charged in the year from the assessment of credit losses 
on Group balances. 

Amounts deposited with banks and other financial institutions also give rise to credit risk. This risk is 
managed by limiting the aggregate amount of exposure to any such institution by reference to their 
rating and by regular review of these ratings. The possibility of material loss in this way is considered 
unlikely. 

(c) Liquidity risk 

The  Company  has  historically  financed  its  operations  through  equity  finance  and  the  flow  of 
inter¬company loan repayments. The Company has continued with its policy of ensuring that there are 
sufficient funds available to meet the expected funding requirements of the Company’s operations and 
investment opportunities. The Company monitors its liquidity position through cash flow forecasting. 
Based on the current outlook the Company has sufficient funding in place to meet its future obligations. 

The bank facility provided to the Group includes a fixed and floating charge over the assets of  the 
Company. 

12. Financial commitments 

The Company had no capital commitments as at 30 June 2021 (2020: £nil). 

13. Contingent liabilities 

The Company had no contingent liabilities as at 30 June 2021 (2020: £nil).

Plexus Holdings plc Annual Report 2021

88

Notes to the Parent Company Financial Statements continued

14. Related party transactions 

Control 

No one party owns a controlling interest in the Company. 

Ultimate parent company 

There is no ultimate parent company. 

Transactions 

During the year, the Company had the following transactions with related parties: 

Plexus Ocean Systems Limited, a wholly owned subsidiary made net repayments of  £517k less net 
purchases of £1,887k during the year increasing the balance owed from £19,099k to £20,469k. 

Ben Van Bilderbeek, Graham Stevens and Craig Hendrie are considered to be the Key Management 
Personnel of the parent entity. Details of their remuneration is included in the remuneration report. 

89

Plexus Holdings plc Annual Report 2021

Corporate Information

Directors

Registered Office

Company Number

Company Secretary

Nominated Adviser and Broker

Auditor

Solicitors to the Company

Registrars

Jerome Jeffrey Thrall† (Non-Executive Chairman) 
Bernard Herman van Bilderbeek (Chief Executive)  
Graham Paul Stevens (Finance Director) 
Craig Francis Bryce Hendrie (Technical Director)  
Charles Edward Jones† (Non-Executive Director)  
Kunming Liu (Non-Executive Director) 

† Member of Audit and Remuneration committees 

Highdown House 
Yeoman Way 
Worthing 
West Sussex 
BN99 3HH 

03322928 

Prism Cosec Limited  
Highdown House 
Yeoman Way 
Worthing 
West Sussex 
BN99 3HH 

Cenkos Securities plc 
66 Hanover Street 
Edinburgh 
EH2 1EL 

6-8 Tokenhouse Yard 
London 
EC2R 7AS 

Crowe U.K. LLP 
55 Ludgate Hill 
London 
EC4Y 8EH 

Fox Williams LLP 
10 Finsbury Square 
London 
EC2A 1AF 

Ledingham Chalmers LLP 
52-54 Rose Street 
Aberdeen 
AB10 1HA 

SLC Registrars 
Highdown House 
Yeoman Way 
Worthing 
West Sussex 
BN99 3HH

Plexus Holdings plc Annual Report 2021

90

Perivan      262319

mechanism.

markets.

P L E X U S 

P O S - G R I P   T E C H N O L O G Y 

P O S - G R IP ®
P R O P R I E TA R Y   M E T H O D   O F 
F R I C T I O N   G R I P   E N G I N E E R I N G

POS-GRIP friction-grip technology is based 
on a very simple concept. A compressive 
force is applied on the outside of a wellhead 
or pipe, to flex it inwards. As the bore of 
the vessel moves inwards, it makes contact 
with an inner pipe (or hanger) on the inside. 
Sufficient contact force is generated to fix 
the inner member (hanger) in place through 
friction between the two components.

In wellheads, POS-GRIP can replace the 
conventional load shoulder or slips to 
provide an improved hanger support 

Utilising our patented POS-GRIP technology, 
we are continually developing new wellhead 
equipment to meet our customers’ 
requirements, delivering solutions for 
the surface, subsea and decommissioning 

P O S - G R IP ®
P O S - G R I P ®
P ROPRIETARY METHOD O F 
P ROPRIETARY METHOD O F 
F RICTION GRIP EN GIN EERING
F RICTION GRIP EN GIN EERING

POS-SET Connector recently deployed 
for a well decommissioning project

Plexus HG® technology, is a simple scientific 
POS-GRIP friction-grip technology is based 
method of design for metal interface seals, used to 
on a very simple concept. A compressive 
permanently contain METHANE GAS in wellheads, 
force is applied on the outside of a wellhead 
throughout the life of a producing well.
or pipe, to flex it inwards. As the bore of 
the vessel moves inwards, it makes contact 
The seal system comprises of multiple integral 
with an inner pipe (or hanger) on the inside. 
radiused bump rings, which interact directly with 
Sufficient contact force is generated to fix 
the wellhead bore, to halve the number of leak paths 
the inner member (hanger) in place through 
past the annulus, using a series of redundant gallery 
friction between the two components.
seals. A preload above yield is carefully delivered 
and recorded by the externally controlled horizontal 
In wellheads, POS-GRIP can replace the 
deflection of the housing wall against solid hanger 
conventional load shoulder or slips to 
bodies, thereby equally distributing perimeter 
provide an improved hanger support 
stress, in compliance with the principles of Hertzian 
mechanism.
Stress Theory (HST).

POS-GRIP is ideal for high integrity, low 
fatigue connector applications. Wellhead 
connectors, riser connectors, subsea jumper 
connectors, pipeline connectors, and even 
vessel mooring connectors can benefit from 
the simplicity of POS-GRIP.

Production wellheads and surface subsea 
have all benefitted from POS-GRIP. Casing and 
tubing hangers can be gripped, but POS-GRIP 
can also be used to support wearbushings, 
BOP test tools and seal sleeves.

P O S - G R I P   A P P L I C AT I O N S

Connectors

Wellheads

A potential low cost application of 
POS-GRIP in an “HG” Tubing Head

Metal-to-metal sealing

Wellheads and connectors can both benefit 
from the direct contact created when the 
POS-GRIP metal to metal HG® seal is activated, 
delivering an unrivalled gas-proof seal.

Utilising our patented POS-GRIP technology, 
The system stays permanently rigid, guarantees 
we are continually developing new wellhead 
life-cycle integrity and is maintenance-free, using 
equipment to meet our customers’ 
re-usable components. By matching materials at the 
requirements, delivering solutions for 
seal interface, bi-metallic corrosion is prevented and 
the surface, subsea and decommissioning 
multiple metal seals are used to anticipate the pace 
markets.
of chemical degradation, throughout field-life.

POS-GRIP in OPEN Position

A potential low cost application of 
POS-GRIP in CLOSED Position
POS-GRIP in an “HG” Tubing Head

P L E X U S 
P L E X U S 
P O S - G R I P   T E C H N O L O G Y 
P O S - G R I P   T E C H N O L O G Y 

Plexus has always maintained that 
PREVENTION is a better way of addressing 
fugitive emissions as well as being a more 
effective way of achieving Net Zero at the 
wellhead, compared to simply pursuing a 
monitoring and cure approach. 

Such logic has been clear to see for 
hundreds of years:

Benjamin Franklin famously  
advised fire-threatened Philadelphians  
in 1736 that:

“ An ounce of 

prevention is worth 
a pound of cure.”

POS-GRIP “HG” production wellhead is assembled ready for testing ahead of 
drilling and producing a new North Sea well

P L E X U S 
P O S - G R I P   T E C H N O L O G Y 

POS-SET Connector recently deployed 
POS-GRIP
POS-GRIP
for a well decommissioning project
Production Wellhead System
Production Wellhead System

POS-GRIP “HG” production wellhead is assembled ready for testing ahead of 
drilling and producing a new North Sea well

P L E X U S 
P O S - G R I P   T E C H N O L O G Y 

P OS-G RIP AP PL ICAT IO NS
P OS-G R IP APP LIC AT ION S
Wellheads

Production wellheads and surface subsea 
Wellheads
have all benefitted from POS-GRIP. Casing and 
Production wellheads, both surface and subsea 
tubing hangers can be gripped, but POS-GRIP 
have all benefitted from POS-GRIP. Casing 
can also be used to support wearbushings, 
and tubing hangers can be gripped, but 
BOP test tools and seal sleeves.
POS-GRIP can also be used to support 
wearbushings, BOP test tools and seal 
Connectors
sleeves.
POS-GRIP is ideal for high integrity, low 
fatigue connector applications. Wellhead 
Connectors
connectors, riser connectors, subsea jumper 
POS-GRIP is ideal for high integrity, low 
connectors, pipeline connectors, and even 
fatigue connector applications. Wellhead 
vessel mooring connectors can benefit from 
connectors, riser connectors, subsea jumper 
the simplicity of POS-GRIP.
connectors, pipeline connectors, and even 
vessel mooring connectors can benefit from 
Metal-to-metal sealing
the simplicity of POS-GRIP.
Wellheads and connectors can both benefit 
from the direct contact created when the 
Metal-to-metal sealing
POS-GRIP metal to metal HG® seal is activated, 
Wellheads and connectors can both benefit 
delivering an unrivalled gas-proof seal.
from the direct contact created when the 
POS-GRIP metal to metal HG® seal is 
activated.

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safer  performance    |    leak-proof    |    reduced  costs

A N N U A L   R E P O R T
2 0 2 1

Plexus in July 2021 was recognized by the London 
Stock Exchange as contributing to the global green 
economy by deriving more than 50% of revenues 
from environmental solutions. Plexus has been 
protecting the environment for over 30 years, 
initially with its ‘through the BOP’ (Blow Out 
Preventer) wellhead designs, and subsequently with 
its POS-GRIP® proprietary metal-to-metal  
leak-proof wellhead sealing system.

W W W . P L E X U S P L C . C O M