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FY2022 Annual Report · Poseidon Nickel
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W W W . P L E X U S P L C . C O M

A N N U A L   R E P O R T
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P O S - G R IP ®
P O S - G R I P ®
P O S-G R IP ®
P ROPRIETARY METHOD O F 
P ROPRIETARY M ETHO D OF 
PROPRIETARY METHOD OF 
FRICTION GRIP ENGINEERING
F RICTION GRIP EN GIN EERING
F RICTION GRIP ENGINEERING

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 
mechanism.

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 
markets.

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).

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.

Outlet valve equipment to be 
supplied through PPC

POS-GRIP APPLICATIONS

Connectors

Wellheads

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.

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 
POS-GRIP “HG” Production Wellhead 
multiple metal seals are used to anticipate the pace 
with PPC valves and tree
markets.
of chemical degradation, throughout field-life.

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.

Metal-to-metal sealing

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

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

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
for a well decommissioning project
Production Wellhead System

POS-GRIP
“HG” Production Wellhead installed offshore
POS-GRIP “HG” Production Wellhead recently intalled offshore

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

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

Wellheads

Production wellheads and surface subsea 
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.

Connectors

POS-GRIP is ideal for high integrity, low 
fatigue connector applications. Wellhead 
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 
the simplicity of POS-GRIP.

Metal-to-metal sealing

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, 
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.

Exact EX 18-3/4” 10k Adjustable Surface  
Exploration Rental 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 

Financial and Operational Overview 
Financial Summary 

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Continuing operations sales revenue £2,306k (2021: £2,017k) 

Adjusted EBITDA on continuing activities £2.78m loss (2021: £2.69m loss), (page 10). 

Continuing operations operating loss £4,291k (2021: £4,546k) 

Continuing operations loss before tax £5,556k (2021: £4,372) 

Continuing operations operating loss after tax £7,457k (2021: £4,110k) 

Basic loss per share from continuing activities 7.42p (2021: 4.09p loss) 

Cash and cash equivalents of £5.84m (2021: £5.18m) 

Bank borrowing of £3.96m (2021: £2.04m) relating to a drawn down Lombard facility 

The Group has £0.1m invested in financial assets (2021: £3.04m) 

Operational Overview 

Revenue  streams  are  derived  from  both  direct  sales  and  the  licencing  of  the  Plexus’  POS-GRIP  method  of 
engineering technology to third parties, including Schlumberger. The goal is to establish the Company’s proprietary 
and patented leak-proof wellhead systems and specialist engineering solutions across the oil and gas industry, 
whilst helping to meet ESG and NetZero goals by offering ‘through the BOP’ (Blow out Preventer) designs, and 
leak-proof seals capable of retaining their integrity for the life of well thereby avoiding costs associated with 
maintenance and well shut ins. 

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June 2022 ­ secured Oceaneering order for Plug & Abandonment (“P&A”) equipment and services estimated 
to generate revenues of circa. £500,000 

l March 2022 ­ suspended activities with LLC Gusar (“Gusar”), its Russian licencee partner following the 
outbreak of the war in Ukraine, with little or no impact on the Company’s finances during the period. 

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December 2021 ­ signed a contract with a leading North Sea Operator for a POS­GRIP surface production 
wellhead system 

December 2021 ­ expanded market reach via revised non­exclusive licence agreement terms with Cameron 
International Corporation (“Cameron”), Schlumberger’s wellhead company enabling Cameron to: 

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Design, market and sell Plexus' POS­GRIP and HG® metal­to­metal seal method of wellhead engineering 
for surface production wellheads to its existing clients 

Add additional territories to the agreement to make the licence worldwide and where higher royalty 
rates will apply in the range of 3% to 6% of the revenues generated from the sale, lease, or rental of 
surface wellheads 

August 2021 ­ re­entered the Jack­up Exploration Rental Wellhead market, through a collaboration agreement 
with Cameron 

July 2021 ­ received the London Stock Exchange's Green Economy Mark awarded to companies and funds 
where 50% or more of their revenues are attributable to environmental solutions which contribute to the 
global green economy, in alignment with Net Zero and ESG principles 

Post period end 

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October 2022 ­ raised £1,550,000 through the issue of Convertible Loan Notes (“CLNs”), which will be used 
for working capital and to fund the Group’s activities as it seeks to capitalise on the increasing pipeline of 
opportunities within its target markets.

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Plexus Holdings plc Annual Report 2022 

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Plexus Holdings plc Annual Report 2022

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Chief Executive Ben Van Bilderbeek said: 

“During the year to 30th June 2022, the Group made a loss before tax on continuing operations of £5.56m compared 
to a loss in the prior year of £4.37m. The board is focussing reversing this performance and several pivotal decisions 
have been taken. Perhaps the most significant being the Company’s re­entry into the drilling from Jack­up rigs 
exploration rental wellhead business. This is the sector in which Plexus initially built its name and reputation, 
before we elected to exit this market in 2018 following the collapse of the oil price in 2014 and 2015. During that 
time, capital investment in exploration activity dwindled away and, six years on, the oil and gas market has changed 
once again. 

During the pandemic we saw a major shift in geopolitics and industry sentiment led initially by a boom in renewable 
energy. Followed by Russia’s war against Ukraine which has subsequently led to the recognition of the need to 
increase and deliver energy security closer to home. This has flagged the importance of the oil and gas industry 
investing in exploration and production activities as, without this, as suggested by Saudi Arabia, the world could 
be short of approximately 30 million barrels of oil a day in eight years’ time, while currently the world consumes 
circa 100 million barrels per day. 

This change of industry circumstances is beginning to have a positive effect as evidenced by the significant increases 
in profits of the oil and gas operators, and it is anticipated that the oil services companies will similarly benefit. 
As reported by Rystad Energy, global oil and gas investments will rise 4% to US$628 billion this year from 
US$602 billion in 2021, while Schlumberger’s CEO recently said that it is “one of the strongest outlooks for the 
energy services industry in recent times”, and Baker Hughes head said there are “very busy years ahead” in an 
“accelerating multiyear upcycle”. In the same vein, Shell suggested it will cost billions of dollars just to keep 
production flat as production from existing wells declining at circa 15% to 20% a year; this requires investment 
tied to older wells as well as having to discover and develop new wells to replenish portfolios. 

However, it is not all plain sailing for the industry as investors, governments, and regulators are no longer tolerating 
the oil and gas industry’s previously accepted practices as far as emission levels are concerned, which are now 
recognised as being too high and unsustainable. Pressure continues to build with operators required to operate more 
sustainably with the aim of achieving a 45% reduction in emissions by 2030 and NetZero targets by 2050. While in 
the past, many oil companies have focused on using/fixing old solutions and infrastructure, their hands are now being 
forced to invest in and utilise new technology that can help to prevent rather than cure emissions. I believe that as a 
result, companies like Plexus, which can offer leak proof wellheads with long term integrity for the life of a well, are 
well positioned to benefit from these major green initiatives, whilst also helping to significantly reduce the amount of 
methane gas being released into the atmosphere as a result of fugitive emissions, the polite name for leaks. 

A major step forward in the journey towards a greener and more responsible oil and gas industry was the introduction 
of the Inflation Reduction Act (‘IRA’) in August this year by US President Biden. This is a US$369bn package of 
investment designed to tackle the climate crisis, which holds major oil and gas companies in the US to account for 
their operations and the amount of methane gas leaked into the atmosphere. Estimates suggest that it could cut 
US greenhouse gas emissions by 40% by 2030. Aside from penalising the worst polluters, the fund has set aside 
US$1.5bn in subsidies to help the companies affected invest in the technology to fix the leaks, as well as providing 
tax breaks for those that invest in green energy solutions. It is hoped that, as suggested by Jonathan Banks at the 
Clean Air Task Force, a similar fee “could be repeated elsewhere in the world”. 

I believe that Plexus can make a meaningful contribution to such emission reduction demands, particularly in 
relation  to  supplying  the  industry  with  its  HG®  metal­to­metal  wellhead  seals  which  can  deliver  leak  proof 
performance for surface and subsea production wellheads, and specialist POS­GRIP applications such as P&A. 
We gained a boost in recognition of our green technology credentials in July 2021 when Plexus was recognised by 
the London Stock Exchange as contributing to the green economy by deriving more than 50% of revenues from 
environmental solutions with the Green Economy Mark accreditation. 

Encouragingly, we are experiencing an increased level of interest in our Exact­EX ‘through the BOP’ exploration 
wellhead rental services, Centric­15 mudline hangers and our POS­GRIP “HG” surface production wellhead 
technology, for which we are positioning the Company to benefit, by way of planned investment in additional rental 
inventory and increased customer, industry partner and licencee engagement. 

For example, in December 2021, we signed a purchase order for a POS­GRIP surface production wellhead system for 
a leading North Sea operator, and we are pursuing a number of other additional prospects. This is in line with our 
IP­led strategy to gain surface production wellheads market share in conjunction with a licence co­operation agreement 
signed with Cameron, a Schlumberger Group company, the scope of which was expanded in mid­December 2021. 

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Plexus Holdings plc Annual Report 2022 

Our research and development (“R&D”) team continues to work hard to ensure that our innovative patented 
POS­GRIP technology is fully utilised and deployed across various applications. For example, the high­growth, 
multi­billion P&A market, which focuses on preparing a well to be closed permanently at the end of its life, is such 
an opportunity. Towards the end of the period in June 2022, we were delighted to announce a Purchase Order for 
P&A equipment and services from Oceaneering International Services Limited (“Oceaneering”), a division of 
Oceaneering International Inc., a leading subsea engineering and applied technology company, to support its 
vessel­based P&A services for a six­operator joint campaign in the Dutch Sector of the North Sea. Given the size 
and rapid growth prospects for the P&A market, we hope this project will lead to other similar work in the North 
Sea and internationally both with Oceaneering and other customers. 

Another pressing topic we believe that we can help address is the mitigation of problems related to subsea wellheads 
such as Sustained Casing Pressure (“SCP”), which is a major threat to subsea wellhead integrity and for which no 
means  of  remediation  currently  exists.  Since  2015,  following  an  industry  Joint  Industry  Project,  Plexus  has 
considered a unique subsea annulus management solution, as part of our patented Python® subsea wellhead system, 
without needing penetrations through the wellhead body in line with API standards. As subsea wellheads are difficult 
and expensive to access and maintain, and in some cases are not able to have remedial work carried out at all, the 
new regulations and demands bring into sharp focus the argument that Plexus has always promoted which is that 
prevention is better than supposed cures. 

As the oil and gas industry transitions to being more responsible and innovative, an area that is developing fast, 
where  I  believe  Plexus  can  also  play  a  part  is  gas  storage,  whether  natural  gas,  CO2,  or  indeed  hydrogen. 
Such long­term gas storage applications demand equipment and infrastructure that can last for periods well beyond 
that expected of conventional oil and gas equipment. Wellheads are still required, but for injection rather than 
extraction purposes, and being able to supply leak proof wellheads, where our unique seal design can address 
corrosive conditions, such as exists with CO2 delivers unique benefits. With one of the largest potential carbon 
dioxide storage capacities in Europe, the North Sea, the UK Government is committed to supporting the deployment 
of large­scale carbon capture, usage, and storage facilities. Accordingly, in June, the North Sea Transition Authority 
(“NSTA”) launched the UK’s first carbon storage licensing round, inviting applications for 13 areas across the United 
Kingdom Continental Shelf (“UKCS”), which, alongside the six licences issued previously, could have the ability 
to store circa 20­30 million tonnes of CO2 by 2030. We are assessing how Plexus could play a part in this unfolding 
opportunity. 

To help ensure Plexus continues to have sufficient working capital to expedite our growth plans, post period end, 
in October 2022, we raised £1,550,000 through the issue of Convertible Loan Notes (“CLNs”). My fellow board 
member, Jeffrey Thrall, and my family interests took part in this raise, demonstrating our belief in the contributions 
Plexus  can  once  again  make  to  the  oil  and  gas  industry  in  reaching  NetZero  targets,  and  confidence  that  its 
increasingly diversified product and services mix will deliver value to shareholders. The funds raised will be used 
to support day to day activities including re­entering the Jack­up Exploration (Adjustable) Rental Wellhead market, 
and our ongoing R&D programme. 

In summary, I am optimistic that as momentum grows for greater efficiency and environmentally responsible 
extraction of fossil fuels, oil and gas companies will look to innovative engineering companies like Plexus to support 
their growth trajectory with the provision of safer, more reliable, and sustainable solutions. Furthermore, those 
companies in related industries such as gas storage and carbon capture can also benefit from using our technology. 
I look forward to reporting on progress during the 2022 /2023 financial year.” 

Summary of Results for the year ended 30 June 2022 

2022                   2021 
£’000                  £’000 

Revenue (continuing operations)                                                                                            2,306                  2,017 
Adjusted EBITDA (page 10) (continuing operations)                                                          (2,780)               (2,692) 
Operating Loss (continuing operations)                                                                                (4,291)               (4,546) 
Loss before taxation (continuing operations)                                                                        (5,556)               (4,372) 
Loss after taxation (continuing operations)                                                                           (7,457)                (4,110) 
Loss after taxation (discontinued operation)                                                                                 –                    (392) 
Loss after taxation (combined)                                                                                              (7,457)               (4,502) 
Basic loss per share (pence) (continuing operations)                                                            (7.42p)               (4.09p) 
Basic (loss) / earning per share (pence) (discontinued operation)                                                 –                 (0.39p)

Plexus Holdings plc Annual Report 2022

4

Contents

Chairman’s Statement

Strategic Report

6 

9 

– Principal Activity                                                                                                                                                    9 

– Financial Results                                                                                                                                                     9 

– Operations                                                                                                                                                             12 

– 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 2022 

Chairman’s Statement 

Business progress 

The Group’s revenues increased in the 12 months to 30 June 2022 to £2,306k (2021: £2,017k), with a loss on 
continuing  operations  before  tax  of  £5.56m  compared  to  loss  in  the  prior  year  of  £4.37m  in  the  prior  year. 
Encouragingly, the global outlook for growth in oil and gas development in the coming years is, as a result of the 
war in Ukraine and the consequent increase in global energy prices, becoming more stable and positive after a 
period of extreme volatility. In the North Sea, and internationally, there is a continued pickup in activity for 
exploration and appraisal, production drilling and P&A work. As is usual in the cyclical oil and gas business, 
operators’ initial priority in the up cycle is to increase production from existing wells and assets, and then turn to 
pursuing new exploration work and field developments. 

The August 2021 co­operation agreement with Cameron has enabled Plexus to re­enter the Jack­up exploration rental 
wellhead market with the proven Exact and Centric wellhead and mudline suspension products. With the significant 
increase in the planning of new exploration wells, and an established reputation in the exploration drilling market, 
Plexus is well positioned to benefit from this growth in activity. During the period, Plexus has manufactured and 
tested several sets of this equipment in response to enquiries and an anticipated growth in demand from customers. 

This year saw a major order from Oceaneering for decommissioning work with innovative Plexus products. The 
initial project scope will take place during the first half of 2023 where the equipment will be deployed on several 
wells in the Dutch sector of the North Sea. Importantly, this contract has the potential for follow­on work both with 
Oceaneering and with other contractors and operators with similar requirements. 

As Plexus continues to be known as experts in Jack­up exploration drilling and mudline suspension systems and has 
knowledge of many of the legacy wells in the North Sea and worldwide which are now being considered for re­entry 
and permanent decommissioning, there is plenty of scope for gaining contracts in this growing space. Plexus has 
also been active in general product engineering and support for several specialised projects, such as P&A. 

The Company’s investment in associate company Kincardine Manufacturing Services Limited (“KMS”) has, like 
many other similar companies in the sector, suffered a downturn in business over the past two years, primarily 
driven by the effects of the COVID­19 pandemic. KMS has managed to navigate through these turbulent times 
with reasonable success by careful management of costs and utilisation of available Government support, such as 
the furlough scheme. In the period, earnings have been lower than previous years and KMS has not been in a 
position to pay dividends. Accordingly, an impairment charge of £109k has been taken by the Company after an 
Impairment Review as required under IAS36. Management is confident that KMS is well positioned to recover as 
activity levels continue to pick up in the second half of 2022 and into 2023. 

Plexus’ primary core strength is its intellectual property (“IP”), together with its broad family of products and associated 
equipment, which feature and incorporate this IP. The IP consists of a mix of patents, confidential test results and 
analysis methods, as well as field experience and extensive product know­how, and has in the year been recognised 
by the LSE for its emissions reducing features with the accreditation of the Green Economy Mark. This all combines 
to continue to give Plexus a robust and long­term level of protection, which is evidenced by ongoing licensing with 
industry  majors  TechnipFMC  and  Schlumberger. Although  product  patents  expire  over  time,  the  additional  IP 
surrounding the technology continues to protect all Plexus and licenced products. In addition to this, new Method 
Patents for POS­GRIP are expected to be published in the coming months, which are anticipated to give Plexus and 
its licensees further general protection of the POS­GRIP method for another 20 years in the UK and worldwide. 

Overview 

Plexus is a wellhead engineering and engineering technology led business. While the industry norm is often for 
companies to try to win business with products which just meet the lowest acceptable technical requirement at the 
lowest price, Plexus has always pushed for ways to significantly enhance safety and performance of the products 
offered to result in a significantly improved value proposition for the end user, especially when considered over 
the life of a well. These proprietary products are invariably protected by Plexus IP, such as POS­GRIP technology 
and “HG” metal­to­metal seals. The Company has demonstrated that its products and technology perform and can 
be profitable over a wide range of products and applications and has also licenced its technology to industry majors, 
whilst at the same time delivering green ESG and NetZero compliant features in relation to being “through the 
BOP” and most importantly offering leak­proof sealing throughout the life of a well thereby avoiding periodic and 
often unsuccessful seal maintenance. 

Plexus Holdings plc Annual Report 2022

6

Chairman’s Statement continued

As well as supporting licensees to begin to deploy the Plexus technology on a worldwide basis in markets that 
Plexus is best placed to reach through its licencee partners, the Company continues to pursue surface and subsea 
wellhead opportunities directly. In addition to this, Plexus is also actively pursuing opportunities in the Jack­up 
exploration wellhead business through a second licensing deal with Cameron which enables Plexus to offer Exact 
exploration wellhead and Centric mudline suspension systems once again. 

Staff 
On behalf of the Board, I would once again like to thank all our employees for their dedication and hard work 
during the year. Following the relaxation of COVID­19 working restrictions we were pleased to welcome all staff 
back to working in our Dyce, Aberdeen operational headquarters. Having weathered this difficult period, I am sure 
that future developments and the anticipated increase in sales activity will be positive for our staff, and for future 
employment opportunities within Plexus. 

Outlook 
The past year has highlighted the critical need for energy independence, and it is clear that the West is still beholden 
to a variety of global macroeconomic factors, with some of these beyond its control. Whilst in an ideal world energy 
independence would come solely from renewable energy, the world is still a long way from that being possible, 
and at the same time population growth and energy demand continues to grow. In the meantime, with natural gas 
being recognised and utilised as a cleaner transitional energy source, it is vitally important that it is extracted as 
cleanly as possible. 

The major importance of gas, and the unavoidable role that it has to play in the world’s energy future needs was 
perhaps most clearly illustrated by statements made very recently to the Financial Times by Saad al­Kaabi the chief 
executive of QatarEnergy. He argues that natural gas, which emits significant carbon when burnt but less than oil 
and coal, should be central to the world’s energy transition, and said – “I agree with going green, but I always say 
gas is not a transition fuel, it is a destination fuel. If you look at the base load of electricity in the world, it’s either 
going to be gas, or nuclear for the ones that accept to have nuclear and can afford it. The rest is going to be some 
fuel oils and a lot of renewables.” 

The war in Ukraine and closure of the Nord Stream 1 gas pipeline highlighted the need for energy security in the 
UK and Europe, leading to a demand for a resurgence in the exploration and development of oil and gas fields, 
including in the North Sea. Governments across the globe have a precarious tightrope to walk – delivering on 
promises  to  cut  methane  emissions  in  half  by  2030  whilst  safeguarding  the  reliable  supply  of  energy  to  its 
population. It is clear that currently hydrocarbons have a key role to play in energy provision and will do so for 
many years to come. 

We are confident that Plexus’ proprietary POS­GRIP HG wellhead sealing technology, which offers leak­free 
performance over the life of the well, can be utilised to simultaneously help operators secure energy independence 
whilst helping achieve pledges on methane emissions reductions in line with ESG and NetZero strategies of 
governments, regulators and organisations worldwide. This is key; as Durwood Zaelke, president of the Institute 
for Governance & Sustainable Development pointed out when he said, “If you think of fossil fuel emissions as 
putting the world on a slow boil, methane is a blow torch that is cooking us today.” 

Accordingly, we are delighted with positive progress being made in this regard. Recently, the USA issued a 
first­of­its­kind fee on methane leaks from the oil and gas sector, with the law imposing a charge of US$900 per 
ton of fugitive methane emitted from oil and gas company wells. Whilst some of the oil and gas majors have pushed 
back on this, others, including Shell, have supported this approach, which we hope will galvanise the industry into 
eradicating leaks wherever possible whilst recognising that leaking wellheads would always be better addressed 
through prevention rather than cure. 

Another positive step towards reducing methane emissions is the creation of a Responsibly Sourced Gas (“RSG”) 
stamp, which certifies and demonstrates to a buyer that the gas has been produced with minimal or even zero 
methane leaks or other environmentally ‘responsible’ procurement practices. In time, I am hopeful that stamps like 
these and other similar steps will become more commonplace to ensure that natural gas is the clean transitional 
energy source that it has been earmarked to become. 

7

Plexus Holdings plc Annual Report 2022 

Chairman’s Statement continued

With this fast­changing background and following the recent raising of £1,550,000 through the issue of convertible 
loan notes which I supported alongside CEO Ben van Bilderbeek’s family interests, I am confident that our sales 
team will convert the increasing number of enquiries and tenders into contracts, and that accordingly Plexus’ outlook 
is a positive one. 

J Jeffrey Thrall 
Non-Executive Chairman 
24 November 2022

Plexus Holdings plc Annual Report 2022

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 POS­GRIP Technology. This involves squeezing one tubular member against 
another within the elastic range to effect gripping between the components and can also set metal­to­metal 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 metal­to­metal 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. It has also recently re­entered the rental exploration wellhead from Jack­up rigs market through a licence 
arrangement with Schlumberger and it is hoped that this can be a main focus for Plexus to generate revenues from. 

In  addition  to  Plexus’  organic  activities,  the  Company  also  pursues  licencing  opportunities,  and  is  currently 
supporting  Cameron  International  Limited,  a  Schlumberger  group  company,  to  enable  Cameron  to  use  the 
Company’s technology under a non­exclusive licence for the development of conventional and unconventional oil 
and gas surface production wellheads. Cameron is in the process of testing, completing Performance Verification 
Testing, and marketing two new POS­GRIP products, which should lead to a royalty revenue stream for the 
Company. 

The Company retains the right to pursue Jack­up exploration rental wellhead related business with POS­GRIP 
products in Russia and the CIS where it has existing licence agreements with LLC Gusar and CJSC Konar. However, 
the licence agreement with Gusar is currently suspended due to the war in Ukraine and resulted in a bad debt 
provision of £277k being recognised in the year. 

Following the sale of the Company’s POS­GRIP based rental wellhead exploration business to TFMC in 2018 
revenues fell away as focus was turned to building up a new range of activities, namely production wellheads and 
other specialist engineering opportunities, and longer­term subsea wellheads. This change of strategic direction 
coincided with market challenges, and losses have had to be incurred over the past few years. However, having 
re­entered the rental wellhead sector, and having begun to make progress in the production wellhead sector it is 
anticipated that this situation will begin to reverse in the 2023 calendar year. 

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 non­financial 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 £2,306k, an increase from £2,017k in the previous year. The increase in 
continuing sales revenue is a result of increased operational project work taking place during the year. 

Margin 
Gross margin on continuing operations increased to 64.7% (compared to 47.3% in the previous year). The increase 
in margin is largely driven by higher margins on sold equipment being achieved when compared to the prior year. 
Additionally, cost of sales includes a stock provision charge of nil in the current year compared to £569k in the 
prior year. 

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Strategic Report continued

Overhead expenses 
Continuing activities administrative expenses have increased when compared to the prior year with expenditure of 
£5.78m (2021: £5.50m). Included within administrative expenses is a bad debt provision of £277k, relating to a 
licensing fee due from Gusar LLC which has been compromised by the suspension of activities due to the war in 
Ukraine. Overhead expenses also include an impairment charge of £109k following a review of the carrying value 
of the Group’s associate undertaking KMS. 

Continuing salary and benefit costs remain the largest component of administrative expenses at £2.87m compared 
to £2.79m in the prior year. 

Non-recurring item 
The statement of comprehensive income includes a fair value adjustment on an asset held for sale of £1.03m, 
relating to the write­down in a building’s value to its fair value. 

Adjusted EBITDA 
The Directors use, amongst other things, Adjusted EBITDA on continuing operations as a non­GAAP 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 £2.78m, compared to a loss of £2.69m in the 
previous year. Adjusted EBITDA on continuing operations is calculated as follows: 

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

Adjusted EBITDA on continuing operations

2022                   2021 
£’000                  £’000  
(4,291)               (4,546) 

449                     482 
1,230                  1,219 
111                      (77) 
(513)                      19 
109                         – 
125                     211 
–––––––            ––––––– 
(2,780)               (2,692) 
–––––––            –––––––  

Loss Before Tax 
Loss before tax on continuing operations of £5.56m compared to a loss in the prior year of £4.37m. The loss on 
discontinued operations is nil compared to a profit of £0.02m in the prior year. 

Tax 
The Group shows a total income tax credit of £0.04m for the year compared to a tax credit of £0.39m for the prior 
year. The income tax credit wholly relates to continuing activities compared to the prior year split of £0.26m credit 
on continuing activities and £0.41m charge on discontinued activities. 

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 year­end a share in profit of associate of 
£111k (2021: loss £77k) has been recognised. Following an impairment of the investment overhead expenses include 
an impairment charge of £109k (2021: nil). 

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EPS 
The Group reports basic loss per share on continuing activities of 7.42p compared to a loss per share of 4.09p in 
the prior year. The basic loss per share on discontinued activities of nil, compared to a loss per share of 0.39p in 
the prior year. 

Statement of Financial Position 

Intangible Assets and Intellectual Property (“IP”) 
The net book value of goodwill and intangible assets was £9.17m, a decrease of 4.9% from £9.64m last year. 
This movement represents investment of £0.45m less the annual amortisation charge of £0.93m. 

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 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 
know­how in relation to the POS­GRIP friction grip method of engineering and related activities. 

The loss in the year and the market capitalisation of the company being less than the carrying value of the assets 
are clear indicators of impairment. Following a thorough review, including a discounted cashflow model which 
has included cashflows for 20 years. the Directors have concluded no impairment of IP is required. Therefore, the 
Directors consider the current carrying values to be appropriate. 

Research and Development (“R&D”) 
R&D expenditure including patents increased from £0.24m in 2021 to £0.45m in 2022. Continued investment as 
and where necessary in R&D demonstrates the Group is protecting, developing, and broadening the range of 
proprietary POS­GRIP friction­grip method of engineering applications, related IP and Plexus products. 

Tangible Assets 
The net book value of property, plant and equipment including items at the year­end was £0.82m compared to 
£2.96m last year. Current assets include a property held for sale with a carrying value of £1.1m. Capital expenditure 
on tangible assets increased to £0.25m compared to £0.17m in the prior year. 

Cash and Cash Equivalents 
Net cash at the year­end was £1.88m (cash and cash equivalents of £5.84m less the bank Lombard facility of 
£3.96m) compared to net cash of £3.14m in the prior year (cash and cash equivalents of £5.18m less the bank 
Lombard facility of £2.04m) reflecting a net cash outflow for the year of £1.26m (net increase in cash of £0.66m 
per Statement of Cash Flows plus net increase in bank borrowings of £1.92m). 

The increase in bank borrowing represents £3.96m, which has been drawn down on a Lombard facility. This facility 
was repaid in its entirety in July 2022. 

It should also be noted that the Group has financial asset investments with a value of £0.10m (2021: £3.04m) at the 
reporting date. These investments are included in non­current 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 on­going 
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 suspend the payment of dividends in light of the ongoing capital and operational 
requirements of the business. 

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Operations 

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

The Company’s primary focus continues to be the marketing of its POS­GRIP­enabled products and supporting 
licensees  of  the  technology,  as  well  as  the  re­entry  to  the  rental  exploration  market  with  its  non­POS­GRIP 
equipment designs. Plexus continues to supply surface production wellheads and is also pursuing supplemental 
business opportunities relating to well abandonment and decommissioning, which are anticipated to be growth 
areas as the world’s older producing oil and gas fields, such as in the North Sea, come to the end of their lives. 

Plexus continued to invest in R&D during the year, with significant focus on optimising the Exact rental exploration 
wellhead product range for the current market, and also to complete product development and testing required for 
the Oceaneering decommissioning work. R&D remains an important operational activity and further develops the 
value of our IP and ability to extend the range of applications of POS­GRIP technology. Innovation in the oil and 
gas industry continues to be an essential part of developing both cost saving initiatives and ever safer drilling 
methods, particularly in relation to greener leak­proof 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 2022 (excluding non­executive directors) comprised of 35 employees, including 1 international 
employee, which compared to a weighted average total of 35 in the current year and 33 in the prior year. 

Competency across the business has continued to evolve and broaden, with a system developed and implemented 
within the existing appraisal process, to demonstrate the competency of office­based personnel. The Company 
continues to maintain the OPITO accreditation for its competency management system, ensuring a robust assessment 
of employees in safety­critical roles. 

Public Health Scotland is no longer delivering a Healthy Working Lives Award but Plexus’ commitment to the 
health and wellbeing of its employees will continue with a programme of activities aiming to encourage habits of 
wellbeing and inspiring individuals to take responsibility for their own health. 

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. 
This is reflected in the business being once again lost time injury (“LTI”) free this year. Plexus has now passed its 
seventh anniversary of this milestone in September 2022. 

Plexus continues to comply with the requirements of the API Q1/ISO 9001 and ISO 45001 standards to include the 
retention of both API 6A and 17D Licences. 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. Plexus 
has continued to develop its in­house systems to ensure the Company is able to react swiftly to changing market 
requirements, and constantly review the Company’s IT infrastructure. 

Strategy and Future Developments 

Technology 
Plexus’ proprietary POS­GRIP 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 Jack­up drilling, especially HP/HT applications, and for surface 
production. The Company is now focused on replicating this past success in other wellhead markets including 

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Strategic Report continued

surface production, subsea, gas storage and geothermal, as well as other initiatives such as a POS­GRIP Crown 
Plugs and POS­GRIP Lateral Trees. Plexus’ re­entry into the exploration rental wellhead for the Jack­up drilling 
market will be built on non­POS­GRIP technology but with specific benefits and features including “through 
the BOP”. 

POS­GRIP 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’ POS­GRIP enabled product suite also includes the innovative Python® Subsea Wellhead as well as the 
POS­SET 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, pack­offs, lock­rings, and lockdown sleeves, whilst 
delivering instant rigid lock­down in all directions, and is fully reversible for ease of workover, side­tracking 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  deep­water  under  certain 
conditions which, depending on water depth, Plexus estimates could result in a saving of over $10m for the operator. 
The POS­SET Connector, which is designed to re­connect to bare conductor pipe for well re­entry 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 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. 

POS­GRIP friction­grip technology has wide ranging applications both within and outside the oil and gas industry. 
As POS­GRIP 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 POS­GRIP 
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 non­exclusive licence to use the POS­GRIP 
and  HG®  metal­to­metal  seal  method  of  wellhead  engineering  for  the  development  of  conventional  and 
unconventional oil and gas surface wellheads. The scope of this licence was further expanded in December 2021. 
Schlumberger continue to make good progress with their engineering and testing of their new wellhead which will 
incorporate Plexus technology, and it is anticipated that marketing and sales by Schlumberger to its customers will 
begin in the first half of 2023 calendar year. 

In addition to POS­GRIP Technology, Plexus is now re­entering the Jack­up Exploration Wellhead market with 
Cameron’s Exact and Centric wellhead and mudline suspension products. 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. As the exploration market regrows in the North Sea and 
internationally, these products, combined with Plexus’ experience and reputation in this business means that we 
are well placed to win a significant share of the work now being planned. 

Business Model and Markets 
The Company is proprietary technology driven and its extensive patent protected IP and many years’ worth of 
specialist  know­how  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 Jack­up exploration wellhead market. The Directors believe that this 
success can over time be replicated and extended to the wider and much larger energy sectors including surface 
production, subsea, geothermal and fracking applications based on its POS­GRIP technology. In addition to this 
there is a surge in interest in subsurface storage wells for gas, CO2 and hydrogen, for which POS­GRIP technology 
is also ideally placed. 

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Plexus has a good reputation for the agility and customer focus required to succeed in the Jack­up Exploration 
Wellhead market, and so the agreement with Cameron to allow Plexus to re­enter this market with field proven 
products is welcome and is anticipated to see an addition to revenues as global exploration activity increases. 

Strategy 
Plexus’ long­term goal is to establish POS­GRIP technology as a new industry standard for wellhead and metal 
sealing designs, whilst continuing to develop new Plexus 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 POS­GRIP 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 
POS­GRIP. 

The Company has taken on the Cameron Exact adjustable wellhead and Centric mudline suspension products. 
This has resulted in initial minor orders for P&A and decommissioning work associated with this equipment. 
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. 

As the world and the oil and gas industry strives to implement a range of ESG compliant initiatives, particularly in 
relation to achieving NetZero. Plexus believes that its technology can make a valuable contribution in terms of its 
leak­free sealing capabilities, and its ‘through the BOP’ wellhead designs. 

Key Performance Indicators 

The Directors monitor the performance of the Group by reference to certain financial and non­financial 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. Non­financial indicators include Health and Safety statistics, equipment utilisation 
rates,  geographical  diversity  of  revenues  and  customers,  the  level  of  ongoing  customer  interest  and  support, 
geopolitical 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 non­financial 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. This has for example been evidenced by the impact of the war in Ukraine. The current global 
political and environmental landscape, particularly in relation to climate change issues and NetZero 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 COVID­19 which materialised in 2020 and continued in the prior year. Although 
Plexus has taken all reasonable steps to mitigate the effects of this risk, both economic and to the health and 
well­being 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. For example ongoing 
and future changes to oil and gas industry windfall taxes may have an adverse impact on investment levels. 

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Strategic Report continued

To help address and balance such risks, the Group where possible seeks to broaden its geographic footprint 
and customer base, as well as actively look 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 and monitoring 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 IP­led 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. 

(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 
COP26 and COP 27 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.  The  impending  Methane 
Emissions Reduction Act in the US and similar legislation being progressed in Europe demonstrate regulations 
are increasingly becoming more stringent. 

(c) Technology 

Having  originally  proved  the  superior  qualities  of  POS­GRIP  technology  within  the  Jack­up  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 de­commissioning, both organically and through licence partners. Plexus has since re­entered the rental 
exploration wellhead market with non­POS­GRIP designed equipment following a licence agreement with 
Schlumberger in August 2021. Further, in November 2020 Plexus entered into a licence agreement with 
Cameron International Limited, which grants the Schlumberger group company a non­exclusive licence to 
use the POS­GRIP and HG® metal­to­metal seal method of wellhead engineering for the development of 
conventional and unconventional oil and gas surface wellheads. The scope of this licence was further expanded 
in December 2021. 

(d) Competitive risk 

The Group operates in highly competitive markets and often competes directly with large multi­national 
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 
‘know­how’ to ensure that it continues to be able to offer unique superior wellhead design solutions. 

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(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 volatile oil price and market challenges and a corresponding reduction 
in drilling activity and related levels of capex spend. These adverse trading conditions had been magnified 
since early 2020 by the Covid­19 pandemic, which in turn has coincided with an acceleration in the world’s 
desire to reduce its dependence on hydrocarbons, particularly following the start of the war in Ukraine in 
February 2022. Therefore, although there are now some encouraging signs of a pick­up 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 R&D 
initiatives, at the rate that may be required. 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. In addition, there are signs that certain pressure groups such as Just 
Stop Oil and Extinction Rebellion are increasing their level of activity and this may also impact on oil and 
gas investment and drilling activities, at least in the West. 

(f) Going Concern, 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. Also, the significant decline in the size of Plexus’ market cap 
is a negative factor if consideration is given to raising additional funds in the public markets. 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 NetZero. The Group undertakes cashflow forecasting throughout 
the  year  to  ensure  the  going­concern  assumption  is  still  appropriate.  The  recent  raising  of  funds  from 
convertible loans is an example of this and helps to ensure the Group has adequate working capital headroom 
to see it through the next 12 months. 

(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 non­payment 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 on­going 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 as and when appropriate and can be associated with a variety of internal and external sources 
including  regulatory  requirements,  disruption  to  information  systems  including  cyber­crime,  control 
breakdowns and social, ethical, environmental and health and safety issues. 

(i) COVID-19 

Although the regulations around COVID­19 were relaxed during the year, Plexus places the health and safety 
of its employees as its highest priority and in line with this has implemented various protocols. The Board 
continuously monitors the situation, should Government guidance change. 

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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 long­term holders that are aligned to our strategy. By communicating 
our strategy and objectives, we seek to maintain continued support from our investor base. Such opportunities have 
been compromised by the financial performance of Plexus over the past few years, and the resultant decline in the 
size of the market cap of the business. It is the Directors’ intention that as soon as positive news flow begins to be 
generated a fresh approach to the investment community market to both existing and new potential shareholders 
will take place in conjunction with its advisors. 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 36, although over the 
past years, as a result of the Covid pandemic, such interactions have been adversely impacted; in common with 
many other businesses those impacts have gradually lessened over the past year since the rollout of the vaccine 
programme and we are able to resume “normal” interaction levels. 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 ad­hoc meetings. In the prior year the 
Company re­launched 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 NetZero commentary. During the year several key decisions were made 
by the board, including the re­entering of the exploration market, the decision to sell a building (currently held as 
an asset held for sale at the financial year end), and post year end the raising of funds through convertible loans. 
All of these decisions are aimed at increasing long­term shareholder value. 

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 36. During the year, the Company successfully achieved seven 
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 course of the year under review, there was a gradual return of staff from 
home­working to permanent working in the office; at the time of writing, all staff are now fully returned to office 
based working. The challenges of maintaining close contact with employees presented by remote working were 
very successfully managed by use of appropriate software such as Microsoft Teams alongside the use of a secure 
VPN and other network security protocols. The easing of restrictions has enabled more in­person contact to be 
achieved and the Company is now operating under normal – and importantly, safe – direct conditions. 

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 anti­bribery 
and modern slavery. 

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Plexus Holdings plc Annual Report 2022 

Strategic Report continued

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. Following the announcement in November 2020 of entering into a non­exclusive surface 
wellhead licencing agreement with Cameron and the extension of this agreement in December 2021, regular Teams 
meetings and occasional face to face meetings have been held as part of the process of transferring Plexus’ relevant 
IP  so  that  Cameron  can  design  and  develop  its  own  low­cost  wellhead  with  POS­GRIP  technology  inside. 
The licence agreement with our Russian partner LLC Gusar was indefinitely suspended by Plexus in March 2022 
following the Russian invasion of Ukraine and remains suspended. 

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 
24 November 2022

Plexus Holdings plc Annual Report 2022

18

 
Board of Directors

Jerome Jeffrey Thrall BBA MBA (aged 73), Non-Executive Chairman 
Jeff joined Thrall Enterprises, Inc. (“TEI”), a family­owned 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 74), 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, Dril­Quip, 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 Dril­Quip. 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 POS­GRIP technology was invented 
and then developed and commercialised for the oil services wellhead equipment market. 

Graham Paul Stevens BA (Hons) (aged 64), 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 non­executive director of Netplay TV PLC, the AIM listed largest UK interactive TV gaming 
company.  He  was  previously  a  non­executive  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 49), 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 POS­GRIP 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 
POS­GRIP technology both internally and externally. 

Charles Edward Jones BSc M. Eng (Age 63), Non-Executive Director 
Charles has over 30 years of senior management and Board experience in the energy sector. In 2007, Charles was 
CEO of Houston­based 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 US$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 45), 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 multi­billion­dollar 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.

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Plexus Holdings plc Annual Report 2022

Directors’ Report

The  directors  present  their  annual  report  together  with  the  audited  financial  statements  for  the  year  ended 
30 June 2022. 

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 on­going research and development initiatives designed to expand and 
develop the range of commercial applications deriving from its technology, including an in­house R&D engineering 
team. For the year, R&D expenditure including capitalised wage and salary costs totalled £0.39m (2021: £0.24m). 

Results and dividends 
The results for the year show a loss from continuing operations before taxation of £5.56m (2021: loss £4.37m), 
and a loss from discontinued operations before taxation of £nil (2021: gain £20k) and are set out on page 50. 

The directors do not recommend the payment of a final dividend for the year ended 30 June 2022 (2021: 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 AIM­listed 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 29 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 26 to the accounts. 

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

Subsequent event 
In October 2022 the Group raised £1,550,000 through the issue of Convertible Loan Notes (“CLNs”), which will 
be used for working capital and to fund the Group’s activities as it seeks to capitalise on the increasing pipeline of 
opportunities within its target markets. 

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 2022

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 2022 were 
as follows: 

Number of

Number of 
Ordinary Shares Ordinary Shares 
of 1p each 
2021 

of 1p each
2020

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 2022 
was 42,700,001 (2021: 42,700,001). Additionally, J. Jeffrey Thrall has both a direct and an indirect beneficial 
interest in Thrall Enterprises Inc., 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 2022, 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 Thrall and Ms Liu will retire by rotation at the Annual General Meeting (“AGM”) and, being eligible, will offer 
themselves for re­election. 

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 
CGWL Nominees Limited 
Vidacos Nominees Limited
Hargreaves Lansdown Nominees Limited
Jereh International (Hong Kong) Co. Ltd 
HSDL Nominees Limited
Interactive Investor Services Nominees Limited

Shares Held

% In Issue 
 share capital 

42,700,001
15,069,767
7,698,020
7,295,395
7,171,129
4,468,537
3,251,065
3,065,479

42.51% 
15.00% 
7.66% 
7.26% 
7.14% 
4.45% 
3.24% 
3.05% 

Executive 2005 Share Option Scheme and Non-Executive 2005 Share Option Scheme 
Details of the Executive and Non­Executive Schemes in addition to details of the directors’ remuneration can be 
found in the Remuneration Committee Report on page 40. 

Plexus is a non­discriminatory 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, 
employment status, age or membership or non­membership of a trade union. 

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Plexus Holdings plc Annual Report 2022

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 AGM of the Company will be held on 23 December 2022. The Notice convening the meeting may be found 
on the Company’s website www.plexusplc.com under the Investors tab. 

The Notice comprises the 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. 

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 re­appointment of Crowe U.K. LLP as auditor of the Company and authorising 
the directors to determine its remuneration will be proposed at the forthcoming AGM. 

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

By order of the Board 

G Stevens  
Director 
24 November 2022 

Plexus Holdings plc Annual Report 2022

22

Corporate Governance

Chairman’s Introduction 

Plexus’ long­term goal is to establish POS­GRIP friction grip technology as a superior industry standard for wellhead 
and metal sealing systems, whilst continuing to develop new POS­GRIP 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 long­term 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 patent­protected POS­GRIP friction­grip 
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 de­commissioning, 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  non­exclusive  licence  to  use  the 
POS­GRIP and HG metal­to­metal seal method of wellhead engineering for the development of conventional and 
unconventional oil and gas surface wellheads. The scope of this licence was extended in December 2021. 

In August 2021 Plexus has taken the opportunity to re­enter the exploration rental wellhead market from Jack­up 
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. This activity will now be built around non­POS­GRIP technology 
with bespoke Plexus design features, and “through the BOP” for enhanced safety. Shortly after the beginning of 
the conflict in Ukraine, all licensed activities in Russia and the CIS were suspended indefinitely. 

Since it was established, Plexus has focused on being an innovative, IP­led company mainly built around its 
proprietary POS­GRIP technology. POS­GRIP 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. POS­GRIP 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  POS­GRIP,  Plexus  has 
successfully raised wellhead test standards to equal or exceed those of premium couplings and there are numerous 
applications and products beyond Jack­up exploration drilling which the Board believes could benefit from the 
POS­GRIP method of engineering now and in the future. 

The Company has, over many years, invested, and indeed continues to invest in R&D and IP development and 
areas and applications outside of Jack­up 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 

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Plexus Holdings plc Annual Report 2022

Corporate Governance continued

Industries  Inc);  the  development  of  the  POS­SET  Connector®  (“POS­SET”)  product  for  the  growing 
de­commissioning and abandonment market; development of HP/HT dual marine barrier risers to provide an 
efficient, safe and cost­effective solution for use on Jack­up rigs; an innovative HP/HT Tie­Back connector product 
and a Well Tree product. Plexus is also assessing opportunities in geothermal drilling and for gas storage. Plexus 
can also offer outlet valves and Xmas trees, resulting in a complete package offering to its customers. 

Prior to the sale of the POS­GRIP Jack­up 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 blue­chip customers. An Asian business hub was established to increase the 
supply of POS­GRIP 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’ Jack­up drilling exploration wellhead equipment into the Russian Federation 
and the other CIS states’ oil and gas markets. The licencing relationship with Gusar is outside of the business 
activities that were sold to TFMC. However, as noted above, all activities in Russia and the CIS have been suspended 
indefinitely following the start of the war in Ukraine. 

One of the key challenges faced by the Company continues to be the impact of a volatile oil price, which combined 
with the overhang impact of Covid­19 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 Covid­19, 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. Furthermore, the ongoing conflict in Ukraine is causing 
widely reported Russian oil and gas supply interruptions and constraints, and this has led to increased prices and a 
surge in activity as the world scrambles to replace Russian hydrocarbons. Plexus sees this as positive indicator for 
new business opportunities outside of Russia and is seeing a marked increase in tender opportunities. 

Plexus’ long­term goal is to establish POS­GRIP technology as a superior industry standard for wellhead and 
leak­free 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 POS­GRIP 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 POS­GRIP. 

Production wellheads are required for the entire field life, and the size of the market for production wellheads is 
many times that of Jack­up 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 long­term 
metal­to­metal leak­free sealing technology and integrity has never been greater. 

In terms of performance, the Board monitors the Group by reference to certain financial and non­financial 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. Non­financial 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 focused on both financial and non­financial 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.

Plexus Holdings plc Annual Report 2022

24

Corporate Governance continued

2: Seek to understand and meet shareholder needs and expectations 
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  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/contact­us  

As the Company is too small to have a dedicated investor relations department, the Finance Director is primarily 
responsible for reviewing 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, 
whenever possible 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, in 2020 and 2021 as a direct result of the Covid­19 pandemic, the 
Company held “closed” annual general meetings where only a quorum of members was present in a compliant and 
secure arrangement. The Board intends to return to pre­pandemic arrangements for this year’s AGM and looks 
forward to welcoming shareholders once again in person. 

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 full­year and 
half­year results.  

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 investors 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 Non­Executive Chairman and Non­Executive 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 an expanded licencing agreement with Cameron and post year­end re­entered 
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. Stakeholders continue to consist of shareholders, employees, 
suppliers, customers, licensees and advisers.

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Plexus Holdings plc Annual Report 2022

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 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 decision­making. 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 non­discriminatory 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 non­membership of a trade union. 

Staff and staff development continues to be important to the Group. To achieve this, the Group operates in­house 
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 office­based staff areas. The workshop competency system has been developed under the OPITO standards 
with a view to being accredited by OPITO. The office­based competency system has been developed under the 
OPITO standard as it is a concise system that supports the requirements of ISO9001:2015, for which Plexus has 
received and retains APIQR certification. 

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 continues 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 sub­contracted to carefully selected and assessed manufacturers and machine shops who must 
operate to prescribed high standards and requirements for delivering Plexus’ products’ high­quality threshold levels. 
Such relationships are of course important to Plexus and tend to be of a long­term 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 certification in January 2022. 

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 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 

Plexus Holdings plc Annual Report 2022

26

Corporate Governance continued

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 continues not to have an internal audit programme 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) 

any changes in accounting policies and practices; 

to review the half year and annual financial statements before submission to the Board, focusing 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 non­audit services provided by the external auditors (if any) and be satisfied 
that the auditors’ independence and objectivity is maintained; 

(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; 

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Corporate Governance continued

(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 day­to­day activities of the Group by the Executive Directors; 
l An organisational structure with defined levels of responsibility, which promotes responsible decision­making 

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 as necessary both financial and non­financial controls 
areas and risks including Business (including IT); Compliance; Finance; Cash; Debtors; Fixed Assets; Other 
Debtors/Pre­payments; Creditors; Legal and Personnel. Such risks are assessed and reviewed, and changes made 
where appropriate. The key elements of the non­financial 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, anti­bribery, gifts, intellectual 
property and design rights. 

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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 Non­Executive Chairman, J. Jeffrey Thrall; three Executive Directors comprising 
Ben van Bilderbeek (CEO), Graham Stevens (FD); and Craig Hendrie (Technical Director); and two Non­Executive 
Directors, Kunming Liu and Charles Jones; and a Company Secretary (non­director) is in attendance at board 
meetings. 

The Audit Committee comprises two Non­Executive 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 16 years and there are no current plans to 
retender. 

The Remuneration Committee comprises two Non­Executive 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 as currently it is 
not felt appropriate to consider annual reviews or bonus arrangements. 

The Board considers that the Non­Executive 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 Non­Executives understanding 
and therefore contribution to the business. The executive members of the Board have considered the independence 
of their non­executive colleagues and have concluded they remain independent in the context that they provide 
independent oversight of the Company removed from day­to­day 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 five 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. 

Executive Directors and Non­Executive 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 non­routine course of business activity is going on, such as the Board 
approval of the expanded Licence Agreement with Cameron in November 2021, and the Jack­up Exploration 
Wellhead Agreements in August 2021. 

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

Details of the Directors along with their experience and skills may be found here https://www.plexusplc.com/board­
of­directors/  

                                                                                                                                                              Audit               Board  
                                                                                                            Board               Board           Committee      Committee 
2021:                                                                                               03.08.2021        11.11.2021        11.11.2021        19.11.2021  

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

                                                          Audit                                        Board                                                                 Board 
                                                     Committee           Board           Committee           Board               Board           Committee 
2022:                                             16.03.2022       16.03.2022       18.03.2022       18.07.2022       07.09.2022         19.10.22 

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

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 AGM. Further details 
of the Directors’ experience and skills are set out on page 19 of this report.  

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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 one­third of 
the Directors must stand for re­election by shareholders annually in rotation and that any new Directors appointed 
during the year must stand for re­election at the AGM immediately following their appointment. Jeff Thrall and 
Kunming Liu will retire by rotation this year, and being eligible, will offer themselves for re­election.  

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 out­sources the company secretarial duties and responsibilities to a firm of professional company 
secretaries, (“the Out­Sourced Provider”), which engagement is overseen by the Finance Director. In addition to 
the routine company secretarial compliance work, the Out­Sourced Provider fulfils a wide­ranging 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 Out­Sourced 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 
day­to­day 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.

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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. 

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  cyber­crime,  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 e.g. Code of conduct; anti­bribery 
and corruption policy, HR policy etc. 

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 
and when necessary considers a formal agenda of reserved matters for its decision. 

Companies Act Requirements 
1.
2.
3.
4.
5.

Approval of interim and final financial statements. 
Approval of the interim dividend and recommendation of the final dividend. 
Approval of any significant changes in accounting policies or practices. 
Appointment or removal of the company secretary. 
Remuneration of the auditors and recommendations for the appointment or removal of auditors, following 
recommendation of the Audit Committee. 
Draft resolutions and corresponding documentation to be put forward to shareholders at a General Meeting. 

6.

Stock Exchange/Financial Services Authority 
7.
8.

Approval of all circulars, listing particulars and announcements. 
Approval of press releases concerning matters decided by the Board. 

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Corporate Governance continued

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. 

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 re­elected 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 long­term 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. 

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Corporate Governance continued

40. Approval of the Group’s share dealing, code of conduct, health and safety, environmental and corporate social 

responsibility policies. 

41. Approval of third­party 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 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 long­term 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 full­time staff members 
and are responsible for the day­to­day 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 
non­financial 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, which did not meet during the year 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 

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Corporate Governance continued

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 performance­related criteria and monitor their 
operation,  and  to  consider  any  recommendations  of  the  Chairman  of  the  Company  regarding  bonuses  or 
performance­related remuneration 

l to advise on and determine all performance­related 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): 

(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, full­year and half­year announcements, the Annual General Meeting (AGM), and when 
required one­to­one meetings with existing or potential institutional new shareholders. 

Most day­to­day 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. 

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Corporate Governance continued

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/aim­rule­26/ 

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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 sub­committee of the Board and has the responsibility for reviewing and, where 
appropriate, recommending the approval of the Annual Reports and Accounts and interim financial statements by 
the  Board  with  whom  ultimate  responsibility  for  their  approval  rests.  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 2019­20 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 

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: 

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

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 non­audit 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.

37

Plexus Holdings plc Annual Report 2022

Audit Committee Report continued

Annual Report and Accounts  
General 
The Committee has satisfied itself that the 2021­22 Annual Report and Accounts have been prepared in accordance 
UK­adopted internal accounting standards, 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 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 54, and in the Parent company 
Accounts on page 83  

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 2021­22 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 2021­22. 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 on­going 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 cyber­crime, 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  Jack­up  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.

Plexus Holdings plc Annual Report 2022

38

Audit Committee Report continued

Auditor Independence 
The Committee satisfied itself on the auditors’ independence. Mr John Charlton has replaced Mr Stephen Bullock 
as the senior statutory auditor in this period, in accordance with the auditor’s internal mandatory rotation policy. 

Whistleblowing 
The Committee had no whistleblowing incidents reported directly or indirectly during the year to 30 June 2022. 

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

Jerome J Thrall 
Chairman of the Audit Committee 

39

Plexus Holdings plc Annual Report 2022

 
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 Non­Executive 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 pre­agreed 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 Non­Executive 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 re­elected as a director either party 
can terminate upon three months’ notice being given. The subsequently appointed Non­Executive 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 re­elected 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 2022

40

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
£

295,815
167,191
138,777

–
–
–
––––––––––
601,783
––––––––––

5,881 
15,328 
1,236 

– 
– 
– 
––––––––––
22,445 
––––––––––

Pension
£

–
–
19,857

2022
Total
£

2021 
Total 
£ 

301,696
182,519 
159,870

348,595 
185,216  
159,389 

–
–
–
––––––––––
19,857
––––––––––

–
–
–
––––––––––
644,085
––––––––––

– 
– 
– 
–––––––––– 
693,200 
–––––––––– 

The highest paid director is the Group CEO with total remuneration for the year of £302k (2020: £349K). This 
compares to the average of all company employees (salaries and benefits plus pension) of £75k (2021: £78k). 

Directors’ interest in share options 
The options and awards have been granted pursuant to the Executive 2005 Share Option Scheme and Non­Executive 
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 
30/06/21 &
30/06/22
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 
30/06/22
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 2022 and 
2021. No share options have been exercised since 2015. 

41

Plexus Holdings plc Annual Report 2022

 
 
 
Remuneration Committee Report continued

Non-executive 2005 Share Option Scheme 

No of 
options at
30/06/21

No of 
Lapsed 
during options at 
30/06/22
40,169

21/22
40,169                   –

No of
Options 
Date of  Vested at 
30/06/22
Grant
40,169
09/12/05

Expiry 
Date
08/12/25

Exercise  
Price 
0.59 

Name
J. Thrall

No non­executive share options have been granted, forfeited or exercised during the years to 30 June 2022 and 2021.  

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 mid­market price of the Company’s shares in the year to 30 June 2022 was 2.80p on the 30th June 2022. 
The high price in the period to 30 June 2022 was 14.35p on 9th August 2021. The mid­market price on 30 June 
2022 was 2.80p. 

The  6­year  history  of  the  share  price  on  reporting  date  (30  June)  is  as  follows,  2022:  2.80p,  2021: 
13.25p, 2020: 14.00p, 2019: 40.50p, 2018: 46.90p and 2017: 57.00p. 

Total staff remuneration costs for the year, as set out in note 5 was £2.86m (2021: £2.81m). This compares to 
distributions to shareholders of nil (2020: £nil). 

Plexus Holdings plc Annual Report 2022

42

 
 
 
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 UK­adopted 
international accounting standards. 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 
24 November 2022

43
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Plexus Holdings plc Annual Report 2022

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 2022, which comprise: 

l

l

l

l

l

the Group statement of comprehensive income for the year ended 30 June 2022; 
the Group and Parent Company statements of financial position as at 30 June 2022; 
the Group and Parent Company statements of cash flows for the year then ended; 
the Group and Parent Company statements of changes in equity for the year then ended; and 
the notes to the financial statements, including significant accounting policies. 

The financial reporting framework that has been applied in the preparation of the financial statements is applicable 
law and UK­adopted international accounting standards. 

In our opinion the financial statements: 

l

l

l

give a true and fair view of the state of the Group’s and of the Parent Company's affairs as at 30 June 2022 
and of the Group’s loss for the period then ended; 
have been properly prepared in accordance with UK­adopted international accounting standards; and 
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 and the Parent Company 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  as  applied  to  listed  entities,  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.  

We have identified going concern as a key audit matter, and our audit response to this and the directors’ assessment 
of the Group’s and Parent Company’s ability to continue to adopt the going concern basis of accounting is disclosed 
in the key audit matters section of this report. 

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 2022

44
44

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 £275,000 (2021 £205,000), based on 5% percent of Group loss before taxation (2021: approximately 
4.6% of the Group’s loss before taxation). Materiality for the Parent Company financial statements as a whole was 
set at £65,000 (2021: £40,000) based on a percentage of net assets. These metrics were considered to be those of 
most interest to shareholders and users of the financial statements, given the Group’s trading activity. 

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. This is set at £192,500 (2021: £143,500) for the group and £45,500 (2021: £28,000) 
for the parent. This level was set based on our assessment of the overall control environment, and a low level of 
expected misstatements. 

We agreed with the Audit Committee to report to it all identified errors in excess of £13,750 (2021: £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 
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including the Group’s 
system of internal control and assessing the risks of material misstatement in the financial statements. We also 
addressed the risk of management override of internal controls, assessing whether there was evidence of bias by 
the directors that may have represented a risk of material misstatement. 

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. 
These two entities were subject to full scope audits 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. 

45
45

Plexus Holdings plc Annual Report 2022

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 

1. Impairment of intangible assets, including goodwill  
(notes 11 and 12) 
The Group carries intangible assets at a net book value 
of £9.9 million (2021: £10.4 million). This balance is 
primarily represented by intellectual property, patent 
and other development expenditure. 

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

The performance of the impairment review requires 
management to make key judgements and assumptions. 
As a result, we identified the impairment of intangible 
assets, including goodwill, as a significant risk.

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 
and growth rates. We reviewed the appropriateness 
and  consistency  of  the  process  for  making  such 
estimates. 
Sensitivity analysis was performed by management 
on the key assumptions such as the discount rate to 
identify those assumptions to which that the goodwill 
or intangible asset valuation was highly sensitive. We 
have applied further sensitivity to create a worst­case 
scenario  and  challenged  management  on  the 
likelihood of such a scenario occurring, and on what 
remedial actions would be taken. 

l

l We challenged the likelihood of occurrence of key 
contracts supporting the cashflows in the models. 
We also had regard to other evidence that supports 
the fair value less costs to sell of the intangibles.

2. Revenue recognition (notes 1d and 2) 
Revenue  is  recognised  in  accordance  with  the 
accounting policy set out in the financial statements. 
The  principal  income  stream  during  the  period  was 
revenue from sale of equipment. 

l We assessed that the accounting policy conformed 
with  the  requirements  of  IFRS15  and  tested  its 
application to a sample of contracts. 

l We performed cut off testing to ensure revenue is 

The  principal  areas  of  risk  were  considered  to  be 
cut­off, being that revenue is recognised in the correct 
period;  and  existence,  being 
that  performance 
obligations have been met and so revenue should be 
recognised.  

l

Given the significance of revenue to the financial result, 
this is considered to be a key audit matter. 

being recorded in the correct period. 
A sample of revenue transactions were verified to 
supporting  invoices,  delivery  confirmation,  and 
traced through to receipt of cash. 

Plexus Holdings plc Annual Report 2022

46
46

 
 
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 

3. Going concern (note 1b) 
The Group has incurred a loss for the year, and has 
made losses in previous periods. The level of cash and 
liquid assets available to the Group has reduced during 
the year, given the divestment of much of the Groups 
investment portfolio (note 17). 

Accordingly,  the  directors  must  assess  whether  the 
Group  and  Parent  Company  has  sufficient  cash 
balances to support its operations for a period of at least 
12 months from the date of approval of the financial 
statements.  

We have identified going concern as a key audit matter 
as a result of the judgements and estimates which the 
directors make in their going concern assessment. 

l

l

l We  obtained  the  director’s  assessment  of  going 
concern, which covered a period up to 30 November 
2023, including cash flow forecasts for this period. 
Income  from  sales  receipts  was  challenged  to 
management against amounts that were currently 
contracted. 
Following our challenge, management produced a 
stress­tested version of their forecast excluding all 
non­contracted  income  other  than  two  contracts. 
Management provided detail on the nature of these 
two  projects,  and  supporting  detail  over  the 
certainty of them proceeding. 
The  expenditure  planned  on  administrative 
expenses  was  compared  to  the  prior  year  actual 
costs, and expectations for the period considered. 
The sensitivity of the cash flows in the stress­test 
forecast was reviewed, including the impact of the 
two non­contracted projects and projected income 
from the sale of a building. If one or both of these 
events  occurred,  the  Group  would  not  have 
sufficient  cash  to  support  the  operations  in  the 
stress­test scenario. 

l

l

l Management  consider  that  the  conditions  of  the 
stress­test to be an extreme scenario. In order to 
address the potential outcome, a letter of support 
has  been  provided  by  the  Chief  Executive,  to 
confirm  he  is  willing  to  provide  funding  to  the 
Group  up  to  £3  million  if  required  to  allow  the 
Group to meet its obligations as they fall due. 
l We have obtained confirmation from a reputable 
third­party source of the Chief Executive’s ability 
to access these funds if required. 

l We have assessed the completeness and accuracy of 
the  matters  described  in  the  going  concern 
disclosure within the significant accounting policies 
as set out in Note 1b. 

l We held discussions with management to determine 
whether indicators of impairment existed in relation 
to these balances and concurred with their conclusion 
that  an  impairment  review  was  required.  The  key 
considerations  were  an  assessment  of  the  future 
trading  expectations  for  Plexus  Ocean  Systems 
Limited,  together  with  the  carrying  value  of  the 
Group’s intangible assets and the market capitalisation 
of the Group. 
In  assessing  whether  impairment  was  required, 
because  the  recoverability  of  these  amounts  is 
closely linked to the impairment consideration of 
the intangible assets, our work was substantially 
that as set out in KAM number 1 above. 

l

47
47

Plexus Holdings plc Annual Report 2022

4. Carrying value of Parent Company investments  
in subsidiaries and intercompany receivables  
(parent company note 7) 
The carrying value of investments in subsidiaries in the 
Parent Company financial statements at 30 June 2022 
was £8.3m (2021: £8.3m) as well as an intercompany 
balance of £7.5m (2021: £20.5m) after a current year 
impairment of £12.8m. The value of these investments 
and the recoverability of the intercompany balance are 
almost entirely dependent on the successful trading of 
the subsidiary Plexus Ocean Systems Limited, utilising 
the  IP  included  as  intangible  assets  in  the  Group 
financial statements. 

 
 
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 contained within the annual report. 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. 

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 this gives rise to a material misstatement in the financial statements themselves. 
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 directors’ report and strategic 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 the 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 statement of directors’ responsibilities set out on page 43, 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. 

Plexus Holdings plc Annual Report 2022

48
48

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. 

Irregularities, including fraud, are instances of non­compliance 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: 

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 regulations identified were the Companies 
Act 2006, AIM rules and the QCA Corporate Governance Code. Our work included direct enquiry of the 
directors, who oversee all legal proceedings, reviewing Board minutes and inspection of correspondence. 
l We communicated the relevant laws and regulations identified to all members of the engagement team, and 
remained alert to any indication of non­compliance with laws and regulations, or potential fraud, throughout 
our audit work. 
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 estimation or judgement, this included 
specific testing of journal transactions, both at the year end and throughout the year. 

l

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  is  available  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 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. 

John Charlton (Senior Statutory Auditor) 
for and on behalf of  
Crowe U.K. LLP 
Statutory Auditor 
London 
24 November 2022

49
49

Plexus Holdings plc Annual Report 2022

Consolidated Statement of Comprehensive Income 
for the year ended 30 June 2022

Revenue
Cost of sales

Gross profit
Administrative expenses

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

Non-recurring item
Fair­value adjustment on asset held for sale

Loss before taxation
Income tax charge / (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 

2022
£’000

2,306
(813)
–––––––
1,493
(5,784)
–––––––
(4,291)
164
(640)
111
125
–––––––

(1,025)
–––––––
(5,556)
(1,901)
–––––––
(7,457)
–
–––––––
(7,457)
–
–––––––

(7,457)
–––––––

(7.42p)
(7.42p)
–
–

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) 

Plexus Holdings plc Annual Report 2022

50

 
Consolidated Statement of Financial Position  
at 30 June 2022

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

Total non-current assets

Asset held for sale
Inventories
Trade and other receivables
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
17
14
8
27

16
18
19

21
22
23

27

20
27
25

2022
£’000

767
9,165
821
101
723
–
941
–––––––
12,518
–––––––
1,100
1,394
971
5,840
–––––––
9,305
–––––––
21,823
–––––––

1,054
(2,500)
674
16,307
–––––––
15,535
–––––––

761
–––––––
761
–––––––
1,245
324
3,958
–––––––
5,527
–––––––
6,288
–––––––
21,823
–––––––

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 
––––––– 

These financial statements were approved and authorised for issue by the board of directors on 24 November 2022 
and were signed on its behalf by: 

G Stevens
Director

C Hendrie 
Director 

Company Number: 03322928 

51

Plexus Holdings plc Annual Report 2022

 
  
 
  
Consolidated Statement of Changes in Equity 
for the year ended 30 June 2022

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

Balance as at 30 June 2021
Total comprehensive income for the year

Balance as at 30 June 2022

Called Up
Share
Capital
£’000 

1,054
–
––––––––––
1,054
–
––––––––––
1,054
––––––––––

Shares
Held in
Treasury
£’000

(2,500)
–
––––––––––
(2,500)
–
––––––––––
(2,500)
––––––––––

Share 
Based  
Payments
Reserve
£’000

674
–
––––––––––
674
–
––––––––––
674
––––––––––

Retained 
Earnings
£’000

28,266
(4,502)
––––––––––
23,764
(7,457)
––––––––––
16,307
––––––––––

Total 
£’000 

27,494 
(4,502) 

–––––––––– 
22,992 
(7,457) 

–––––––––– 
15,535 
–––––––––– 

Plexus Holdings plc Annual Report 2022

52

Consolidated Statement of Cash Flows 
for the year ended 30 June 2022

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 on disposal of property, plant and equipment
 Share in (profit)/loss of associate
 Property rental and dilapidations income
 Lease liability re­assessment
 Fair value adjustment on asset held for sale
 Impairment of associate
 Fair value adjustment on financial assets
 Investment income
 Interest expense
Changes in working capital:
 (Increase)/decrease in inventories
 Decrease/(increase) in trade and other receivables
 Increase/(decrease) in trade and other payables

Cash used in operating activities
Income taxes (paid)/refunded

Net cash used in operating activities

Cash flows from investing activities
Funds divested/(invested) in financial instruments
Property rental and dilapidations income
Purchase of intangible assets
Purchase of property, plant and equipment
Preparation costs for asset held for sale
Proceeds of sale of property, plant and equipment
Interest and investment income received
Dividend income from associate
Deferred proceeds from sale of discontinued operation

Net cash generated in investing activities

Cash flows from financing activities 
Draw down of Lombard facility
Repayments of lease liabilities
Interest paid

Net cash inflow from financing activities

Net increase in cash and cash equivalents
Cash and cash equivalents at 1 July 2021

Cash and cash equivalents at 30 June 2022

25

2022
£’000

(5,556)
–
–––––––
(5,556)

1,679
(4)
(111)
(114)
–
1,025
109
513
(164)
127

(819)
80
602
–––––––
(2,633)
(2)
–––––––
(2,635)
–––––––

2,428
114
(447)
(253)
(180)
3
164
–
–
–––––––
1,829
–––––––

1,914
(347)
(96)
–––––––
1,471
–––––––
665
5,175
–––––––
5,840
–––––––

2021 
£’000 

(4,372) 
20 
––––––– 
(4,352) 

1,701 
(1) 
77 
(123) 
25 
– 

19 
(143) 
84 

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

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

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

53

Plexus Holdings plc Annual Report 2022

 
  
 
 
  
 
 
  
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 UK­adopted international 
accounting standards and interpretations issued by the International Accounting Standards Board 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 
and do not expect any significant impact to the Group on their adoption. 

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 26 to the Financial Statements sets out the Group’s financial risks and the management of capital risks. 
At the year end, the Group had cash and cash equivalents of £5.84m, financial assets with a value of £0.1m 
and a drawdown Lombard facility with a balance of £3.96m, which was subsequently repaid post year end. 
The Group also had a further cash inflow of £1.55m from the issue of convertible loan notes subsequent to 
the year end (note 30). 

Accordingly, after careful enquiry and review of available financial information, including multi­scenario 
projections and cash flows for the period to 30 November 2023 (which included a severe, but plausible 
downside scenario), the Directors believe that the Group has adequate resources to continue to operate for 
the foreseeable future. A letter of support from the Chief Executive has also been provided, confirming that 
he will provide financial support to the Group if required, to meet its obligations as they fall due. The Directors 
therefore consider it appropriate to continue to adopt the going concern basis of accounting in the preparation 
of the consolidated and company financial statements. 

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 re­assessment is made of the 
fair  value  of  the  assets  and  liabilities  acquired  in  order  to  assess  any  provisional  values  used  in 
initial accounting. 

Plexus Holdings plc Annual Report 2022

54

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 
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. 

d.
Revenue 
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 straight­line 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 mark­up where applicable. The level of 
mark­up 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. 

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. 

55

Plexus Holdings plc Annual Report 2022

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 
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 23 the Group operates a share option scheme. Where the market price of the shares at the 
year­end 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 straight­line 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 20­year period. 

Intellectual Property rights are initially recorded at cost and amortised over 20 years on a straight­line 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 straight­line 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 straight­line 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. 

Plexus Holdings plc Annual Report 2022

56

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 
The  carrying  value  of  intangible  assets  is  reviewed  on  an  on­going  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 cash­generating 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. 

IFRS 5 sets out the criteria for designating an asset as held for sale: 

l Management must be committed to a plan to sell the asset; 

l

l

l

l

An active program to find a buyer must have been initiated; 

The asset must be actively marketed for sale at a price reasonable to its current fair value; 

The sale is expected to be completed within 1 year from the date of classification; 

Significant changes to the plan are unlikely. 

Should the above criteria be met the asset, or group of assets, is reclassified to current assets, at the lower of 
its carrying amount and its fair value less costs to sell. 

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.

57

Plexus Holdings plc Annual Report 2022

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 

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. 

Leases 

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

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 right of use asset is initially measured at cost, and is subsequently measured at cost less accumulated 
depreciation and impairment, and adjusted for any amendment to the lease liability. The lease liability is 
initially measured at the present value of the lease payments due at inception, and is subsequently adjusted 
for lease payments and interest, or any amendment to the lease liability. 

The Group has taken the exemptions where applicable for low value and short­term 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. 

Inventory 

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. 

Pensions 

n.
The Group offers a contributory Group stakeholder pension scheme, into which the Group will make matching 
contributions up to a pre­agreed 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 

(b) where the instrument will or may be settled in the Company’s own equity instruments, it is either 
a non­derivative 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.

Plexus Holdings plc Annual Report 2022

58

Notes to the Consolidated Financial Statements continued

1.

Summary of significant accounting policies (continued) 
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 straight­line 
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. 

Management of capital 

r.
The Group’s capital is comprised of share capital, shares held in treasury and retained earnings. (notes 21 
and 22). 

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. 

(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 modelling for an additional two years, 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. 

(c)

Included within administrative expenses is an impairment charge of £109k relating to the Group’s 
investment in an associate undertaking. A profit before tax multiple model has been used to revalue the 
investment. 

59

Plexus Holdings plc Annual Report 2022

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. When reviewing the Intellectual Property 
(“IP”) for impairment a multi scenario model is employed which includes an organic sales model and a 
licensing model for the two main stands of IP, Conventional and Deepwater. A number of assumptions and 
judgements are used in the modelling, including assumed growth rates, cost inflation and salary inflation. 
A sensitivity analysis is applied to the modelling including flexing the weight average cost of capital and 
revenue growth rate. In all scenarios the discounted cash flows are in excess of the carrying values of the IP. 

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. 

In forming their assessment of going concern, the Directors prepare budgets and forecasts, which include 
multi­scenario modelling. The main area of estimation within the modelling is revenue levels. The Directors 
estimate revenues based on their current expectation from contracted works and other projects considered very 
likely to proceed. These are sensitised for more severe scenarios, to ensure that the Group has enough cash 
headroom to ensure the going­concern assumption is appropriate. Refer to going concern disclosure at note 1b. 

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

2022
£’000

1,984
277
45
–––––
2,306
–––––

2022
£’000

417
167
1,289
277
24
132
–––––
2,306
–––––

2021 
£’000 

1,992 
– 
25 
––––– 
2,017 
––––– 

2021 
£’000 

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

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.

Plexus Holdings plc Annual Report 2022

60

Notes to the Consolidated Financial Statements continued

3.

Segment Reporting 
The Group derives revenue from the sale of its POS­GRIP technology and associated products, the rental of 
equipment utilising the POS­GRIP technology and service income principally derived in assisting with the 
commissioning and on­going service requirements of our equipment. These income streams are all derived 
from the utilisation of the technology which the Group believes is its only segment. 

Per IFRS 8, the operating segment is based on internal reports about components of the group, which are 
regularly reviewed and used by the board of directors being the Chief Operating Decision Maker (“CODM”). 

All of the Group’s non­current 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
Customer 3

2022
£’000

1,471
277
–

2021 
£’000 

1,485 
– 
386 

4. Group operating loss 

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

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

2022
£’000

2021 
£’000 

449

238
687
1
304

17
48
15
4
644
598
–

10
30
3
–––––
43
–––––

482 

237 
676 
3 
303 

17 
47 
17 
1 
693 
319 
569 

10 
30 
3 
––––– 
43 
––––– 

61

Plexus Holdings plc Annual Report 2022

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

2022
Number

6
26
6
–––––
38
–––––

2022
£’000

2,509
239
115
–––––
2,863
–––––

2021 
Number 

6 
25 
5 
––––– 
36 
––––– 

2021 
£’000 

2,466 
231 
111 
––––– 
2,808 
––––– 

Key management are considered to be the Board of Directors and details of Directors’ remuneration are given 
in the remuneration report on page 40 and this forms part of the financial statements. 

Other income includes Job Retention Scheme income of £11k (2021: £87k). 

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

Plexus Holdings plc Annual Report 2022

62

2022
£’000

19
143
2
–––––
164
–––––

2022
£’000

29
67
513
31
–––––
640
–––––

2021 
£’000 

24 
109 
10 
––––– 
143 
––––– 

2021 
£’000 

8 
37 
19 
39 
––––– 
103 
––––– 

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 charge/(credit)

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

Total deferred tax

Total tax (credit)/charge

The effective rate of tax is 19% (2021: 19%) 
Tax charge on discontinued activities
Tax credit on continuing activities

Total tax (credit)/charge

(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% (2021: 19%)
Effects of: 
Expenses not deductible for tax purposes
Effect of change in tax rate
Tax adjustments on share­based payments 
Adjustments in respect of prior year
Foreign tax rates
Deferred tax not recognised

Total tax credit on continuing activities

2022
£’000

–
–––––
–
–––––

2
–
–––––
2
–––––
2
–––––

(14)
(23)
–––––
(37)
–––––
(35)
–––––

–
(35)
–––––
(35)
–––––

2022
£’000

(5,784)

(1,098)

282
(257)

(22)
– 
1,060
–––––
(35)
–––––

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) 
––––– 

63

Plexus Holdings plc Annual Report 2022

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 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

2022
£’000

(1,899)
1,899
–––––
–
–––––

2022
£’000

–

–
–––––
–
–––––

2021 
£’000 

(2,130) 
231 
––––– 
(1,899) 
––––– 

2021 
£’000 

1,131 
(1) 
(3,029) 
––––– 
(1,899) 
––––– 

As outlined in the accounting policy (note 1f) deferred tax assets are recognised only to the extent that it is 
probable that future taxable profit will be available. The deferred tax asset relates to losses and is reviewed 
at the end of each reporting period. The Group has previously recognised a deferred tax asset based upon its 
mid­term  forecast  profitability.  On  the  basis  losses  have  not  been  utilised  in  the  current  financial  year 
management consider that the probable threshold is not met and have released the asset to the extent there 
are not sufficient taxable temporary differences. Once this threshold can be demonstrated an asset will be 
recognised. At 30 June 2022 the Group has tax losses available of £21.5m and have not recognised a potential 
deferred tax asset in relation to these of £4.29m. 

9.

Discontinued Operations 
On 1st February 2018 the Group sold its “Jack­up 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 Jack­up 
Business during a three year earn­out period. 

The recognised profit on discontinued operations in the prior year represented an increase in the expected 
deferred consideration received. 

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

Loss after taxation from discontinued operations

2022
£’000

–
–
–
–
–
–––––
–
–––––

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

Plexus Holdings plc Annual Report 2022

64

2022
£’000

–
–
–
–––––
–
–––––

2021 
£’000 

– 
20 
20 
(412) 
(392) 
––––– 
(392) 
––––– 

2021 
£’000 

– 
– 
– 
––––– 
– 
–––––

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

2022
£’000

2021 
£’000 

(7,457)
–
––––––––––
(7,457)
––––––––––

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

Number

Number 

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

(7.42p)
(7.42p)
––––––––––
–
–
––––––––––

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

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

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 anti­dilutive. 

11. Goodwill 

Cost 
As at 30 June 2020, 2021 and 2022

Impairment 
As at 1 July 2020, 2021 and 2022

Net Book Value 
As at 30 June 2021 and 2022

£’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

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

Prices will rise with inflation, 

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

65

Plexus Holdings plc Annual Report 2022

 
Notes to the Consolidated Financial Statements continued

11. Goodwill (continued) 

The cash flows are based upon a 20­year 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).  

To scrutinise the model a sensitivity analysis has been conducted on the WACC and the revenue growth rates 
which has not highlighted impairment of the intangible assets is required. 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 2020
Additions
Disposals

As at 30 June 2021
Additions
Disposals

As at 30 June 2022

Amortisation 
As at 30 June 2020
Charge for the year
On disposals

As at 30 June 2021
Charge for the year
On disposals

As at 30 June 2022

Net Book Value 
As at 30 June 2022

As at 30 June 2021

Intellectual
Property
£’000

Patent and 
Other
Development 
£’000

Computer 
Software
£’000

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

3,313
237
– 
––––––––––
3,550
238
– 
––––––––––
3,788
––––––––––

812
––––––––––

1,050
––––––––––

13,455
235
– 
––––––––––
13,690
447
– 
––––––––––
14,137
––––––––––

4,422
676
–
––––––––––
5,098
687
–
––––––––––
5,785
––––––––––

8,352
––––––––––

8,592
––––––––––

261
–
–
––––––––––
261
–
(17)
––––––––––
244
––––––––––

256
3
–
––––––––––
259
1
(17)
––––––––––
243
––––––––––

1
––––––––––

2
––––––––––

Total 
£’000 

18,316 
235 
– 
–––––––––– 
18,551 
447 
(17) 
–––––––––– 
18,981 
–––––––––– 

7,991 
916 
– 
–––––––––– 
8,907 
926 
(17) 
–––––––––– 
9,816 
–––––––––– 

9,165 
–––––––––– 
9,644 
–––––––––– 

Plexus Holdings plc Annual Report 2022

66

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

Industry acceptance will result in continued growth of the business above long­term 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, 

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 2042 to ensure the full benefit of all current projects is realised. The rationale 
for using a timescale up to 2042 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 re­entry into the Jack­up 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 pre­tax 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, including a sensitivity analysis, 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. 

67

Plexus Holdings plc Annual Report 2022

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

Plexus Limited

Plexus Applied
Technologies Limited 

Plexus Holdings
USA Inc. 

Plexus Ocean Systems
US. LLC 

Plexus Deepwater
Technologies Limited 

Plexus Response
Services Limited

Plexus Subsea
International Limited

Plexus Ocean Systems
(Malaysia) Sdn Bhd

Scotland

Scotland

Scotland

USA

USA

USA

Turks and
Caicos Islands 

Turks and
Caicos Islands

Malaysia

Plexus Ocean Systems
(Brunei) Sdn Bhd

Brunei

Plexus Offshore Systems
(Singapore) Pte Ltd

Singapore

Turks and
Caicos Islands 

Scotland

Afrotel Corporation Ltd

Kincardine
Manufacturing Services
Limited 

Plexus Pressure Control
Limited 

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 

Dormant

Manufacture and machining
of fabricated metal products 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

49% 

100% 

Scotland

Dormant

The Group’s investments are unlisted. 

Plexus Holdings plc Annual Report 2022

68

Notes to the Consolidated Financial Statements continued

14.

Investment in associate 

Investment in associate at 30 June 2020
Share of loss for the period
Dividends received

Investment in associate at 30 June 2021

Share of profit for the period
Impairment of investment

Investment in associate at 30 June 2022

£’000 

898 
(77) 
(100) 
–––––––––– 
721 
–––––––––– 
111 
(109) 
–––––––––– 
723 
–––––––––– 

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 long­term 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 2022, an impairment review has been undertaken. The investment has been revalued using a profit 
after tax earnings model. This has resulted in an impairment charge of £109k. 

The summary financial information of KMS, extracted on a 100% basis from the accounts for the 6 months to 
30 June 2022 are as follows: 

Non­current assets
Current assets
Current liabilities
Non­current liabilities
Revenue 
(Loss) / profit before tax

2022
£’000

846
1,951
844
836
3,473
(196)

2021 
£’000 

1,066 
1,822 
787 
1,211 
3,313 
(194) 

KMS have a December 31 year­end date. Therefore, the profit before tax figure is based on management 
accounts for the 12­month period to 30 June 2022. 

69

Plexus Holdings plc Annual Report 2022

Notes to the Consolidated Financial Statements continued

15. Property plant and equipment 

Assets under
Buildings Improvements Equipment Construction
£’000

Tenant

£’000

£’000

£’000

Motor 
Vehicles
£’000

Total 
£’000 

Cost 
As at 30 June 2020
Additions
Transfers
Disposals

As at 30 June 2021
Additions
Transfers
Reclassified to assets  
held for sale
Disposals

As at 30 June 2022

Depreciation 
As at 30 June 2020
Charge for the year
On disposals

As at 30 June 2021
Charge for the year
Reclassified to assets  
held for sale
On disposals

As at 30 June 2022

Net book value 
As at 30 June 2022

As at 30 June 2021

3,740
–
–
–
––––––––––
3,740
–
–

(3,055)
–
––––––––––
685
––––––––––

1,490
153
–
––––––––––
1,643
153

(1,111)
–
––––––––––
685
––––––––––

–
––––––––––
2,097
––––––––––

714
–
–
–
––––––––––
714
130
–

–
–
––––––––––
844
––––––––––

525
41
–
––––––––––
566
40

–
–
––––––––––
606
––––––––––

238
––––––––––
148
––––––––––

5,393
42
128
(2)
––––––––––
5,561
69
54

(3)
(321)
––––––––––
5,360
––––––––––

4,569
284
(2)
––––––––––
4,851
252

(3)
(321)
––––––––––
4,779
––––––––––

581
––––––––––
710
––––––––––

–
128
(128)
–
––––––––––
–
54
(54)

–
–
––––––––––
–
––––––––––

–
–
–
––––––––––
–
–

–
–
––––––––––
–
––––––––––

–
––––––––––
–
––––––––––

17
–
–
–
––––––––––
17
–
–

–
–
––––––––––
17
––––––––––

7
4
–
––––––––––
11
4

–
–
––––––––––
15
––––––––––

2
––––––––––
6
––––––––––

9,864 
170 
– 
(2) 
–––––––––– 
10,032 
253 
– 

(3,058) 
(321) 
–––––––––– 
6,906 
–––––––––– 

6,591 
482 
(2) 
–––––––––– 
7,071 
449 

(1,114) 
(321) 
–––––––––– 
6,085 
–––––––––– 

821 
–––––––––– 
2,961 
–––––––––– 

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

Plexus Holdings plc Annual Report 2022

70

Notes to the Consolidated Financial Statements continued

16. Asset held for sale 

Cost
Accumulated depreciation

Net book value
Preparation costs
Cost of sale

Fair value adjustment

2022
£’000

3,058
(1,114)
––––––––––
1,944
172
9
––––––––––
(1,025)
––––––––––
1,100
––––––––––

2021 
£’000 

– 
– 
–––––––––– 
– 
– 
– 
–––––––––– 
– 
–––––––––– 
– 
–––––––––– 

The asset held for sale relates to a property that will be sold during the financial year ended 30 June 2023.  

The Group has agreed a sale in principle prior to the year end, with the building having been previously 
marketed for sale. In line with IFRS5 the asset is held for sale at the lower of its carrying value and fair value. 
A fair value adjustment to reduce the carrying value of the asset to its fair value has been recognised as shown 
above. The fair value was assessed by reference to an independent property agent.  

17. Financial Assets 

Financial instruments held at fair value

2022
£’000

101
––––––––––
101
––––––––––

2021 
£’000 

3,042 
–––––––––– 
3,042 
–––––––––– 

The financial asset relates to cash invested in an investment portfolio, made up of high­yield 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 write­down in the carrying value of the financial asset of £513k 
(2021: £19k). The fair value of the investment is evaluated by reviewing the portfolio on a quarterly basis, 
including the reporting date of 30 June 2022. 

18.

Inventories 

Raw materials and consumables
Finished goods and goods for resale

2022
£’000

662
732
––––––––––
1,394
––––––––––

2021 
£’000 

91 
484 
–––––––––– 
575 
–––––––––– 

71

Plexus Holdings plc Annual Report 2022

Notes to the Consolidated Financial Statements continued

19. Trade and other receivables 

Trade receivables
Prepayments and other amounts

2022
£’000

336
635
––––––––––
971
––––––––––

2021 
£’000 

772 
279 
–––––––––– 
1,051 
–––––––––– 

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

20. Trade and other payables 

Trade payables
Social security and other taxes
Other payables and accruals

21. Share Capital 

Authorised:
Equity: 110,000,000 (2021: 110,000,000) Ordinary shares of 1p each

Allotted, called up and fully paid:
Equity: 105,386,239 (2021: 105,386,239) Ordinary shares of 1p each

22. Shares held in treasury 

Buyback of shares

2022
£’000

724
90
431
––––––––––
1,245
––––––––––

2021 
£’000 

136 
81 
426 
–––––––––– 
643 
–––––––––– 

2022
£’000

2021 
£’000 

1,100
––––––––––

1,054
––––––––––

2022
£’000

2,500
––––––––––

1,100 
–––––––––– 

1,054 
–––––––––– 

2021 
£’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. 

Plexus Holdings plc Annual Report 2022

72

 
 
Notes to the Consolidated Financial Statements continued

23. 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 2022 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 mid­market 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
Outstanding at the end of the period
Exercisable at the end of the period

2022

2021 

Weighted
Average
Exercise 
Price

No of
shares

0.52
0.52
0.52

3,577,899
3,577,899
3,577,899

Weighted 
Average 
Exercise  
Price 

0.53 
0.52 
0.52 

No of
shares

3,577,899
3,577,899
3,577,899

The Group has recognised an expense in the current year of £nil (2021: £nil) towards equity settled share­based 
payments. 

The weighted average contractual life of the share options outstanding at the end of the period is 6 years 
3 months. 

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

Movement in cash and cash equivalents
Drawdown of Lombard facility

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

Net cash at end of year

2022
£’000

665
(1,914)
––––––––––
(1,249)
3,131
––––––––––
1,882
––––––––––

2021 
£’000 

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

73

Plexus Holdings plc Annual Report 2022

 
 
 
 
Notes to the Consolidated Financial Statements continued

25. Analysis of net cash/(debt) 

2022:

Cash in hand and at bank
Bank Lombard facility

(3,958) 

Lease Liability

(1,085) 

Total

At beginning
of year
£’000

5,175
(2,044)

(1,401)

Cashflow
£’000

665
(1,914)

316

At end 
of year 
£’000 

5,840 

––––––––––
1,730
––––––––

––––––––––
(933)
––––––––

–––––––––– 
797 
–––––––– 

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

2021:

Cash in hand and at bank
Bank Lombard facility

(2,044) 

Lease Liability

(1,401) 

Total

At beginning
of year
£’000

4,087
–

Cashflow
£’000

1,088
(2,044)

(1,679)

278

At end 
of year 
£’000 

5,175 

––––––––––
2,408
––––––––

––––––––––
(678)
––––––––

–––––––––– 
1,730 
–––––––– 

26. 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. 

Plexus Holdings plc Annual Report 2022

74

Notes to the Consolidated Financial Statements continued

26. Financial Instruments and risk management (continued) 

(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 £69k (2021: £49k) by a reasonably 
possible 1 percentage point change down/up in LIBOR interest rates on a full year basis. Post year­end 
the Lombard facility was repaid which significantly minimises interest rate risk. 

(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 high­yield 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. 

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. A bad debt provision of £277k has been 
included in relation to LLC Gusar, which cannot currently be settled while current economic sanctions remain 
in place. 

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. 

75

Plexus Holdings plc Annual Report 2022

Notes to the Consolidated Financial Statements continued

26. Financial Instruments and risk management (continued) 

The currency composition of trade receivables at the year­end was: 

Sterling
U.S Dollar

The ageing of trade receivables at the year­end was: 

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

(c) Liquidity risk 

2022
£’000

336
–
–––––––
336
–––––––

2022
£’000

333
3
–
–
–––––––
336
–––––––

2021 
£’000 

555 
217 
––––––– 
772 
––––––– 

2021 
£’000 

772 
– 
– 
– 
––––––– 
772 
––––––– 

The Group has historically financed its operations through equity financing 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. 

30 June 2022 
Cash and liquid resources

30 June 2021 
Cash and liquid resources

– Sterling
– US Dollar
– Malaysian Ringgit

– Sterling
– US Dollar
– Malaysian Ringgit

Floating Non-interest
bearing
£’000

rates
£’000

Book and 
fair value 
£’000 

5,241
 –
 –
––––––––––
5,241
––––––––––

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

596
–
3
––––––––––
599
––––––––––

431
4
2
––––––––––
437
––––––––––

5,837 
– 
3 
–––––––––– 
5,840 
–––––––––– 

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

Plexus Holdings plc Annual Report 2022

76

 
 
 
 
Notes to the Consolidated Financial Statements continued

26. Financial Instruments and risk management (continued) 

At 30 June 2022 the Group had £5,840k 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 available­for­sale 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, 
over­the­counter derivatives) is determined using valuation techniques which maximise the use of observable 
market data and rely as little as possible on entity­specific 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. 

Non­current assets (note 17) meet the level 1 criteria and have been recorded in the statement of financial 
position at fair value. As at 30 June 2022 the fair value of the financial assets held by the Group are £101k 
(2021: £3,042k).  

The interest rate and currency profiles of the Group’s financial liabilities at 30 June 2022 are as follows: 

30 June 2022 
Bank Lombard facility – Sterling

30 June 2021 
Bank Lombard facility – Sterling

30 June 2022 
Bank Lombard facility – Sterling

Total

30 June 2021 
Bank Lombard facility – Sterling

Total

Floating Non-interest
bearing
£’000

rates
£’000

Book and 
fair value 
£’000 

3,958
––––––––––

 –
––––––––––

3,958 
–––––––––– 

2,044
––––––––––

 –
––––––––––

2,044 
–––––––––– 

Due
within
1 Year
£’000

Due
between
2–5 Years
£’000

3,958
––––––––––
3,958
––––––––––

2,044
––––––––––
2,044
––––––––––

 –
––––––––––
–
––––––––––

 –
––––––––––
–
––––––––––

Due
after
5 Years
£’000

 –
––––––––––
–
––––––––––

 –
––––––––––
–
––––––––––

Total 
£’000 

3,958 
–––––––––– 
3,958 
–––––––––– 

2,044 
–––––––––– 
2,044 
–––––––––– 

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

77

Plexus Holdings plc Annual Report 2022

 
 
 
 
Notes to the Consolidated Financial Statements continued

27. 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: 

As at 30 June 2020
Amortisation charge

(303) 

As at 30 June 2021
Amortisation charge

(304) 

As at 30 June 2022

Leased Liabilities 
The maturity of the lease liability is as follows 

Less than one year
One to five years

Total lease liability 

£’000 

1,548 

––––––– 
1,245 

––––––– 
941 
––––––– 

2021 
£’000 

316 
1,085 
––––––– 
1,401 
––––––– 

2022
£’000

324
761
–––––––
1,085
–––––––

The total interest expense on lease liabilities and the total cash outflow in the year to 30 June 2021 was £31k 
and £347k respectively (2021: £39k and £342k). 

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 short­term in nature. Therefore, no right 
of use assets and lease liabilities are recognised on these leases. 

Expenses recognised relating to short­term leases and leases of low value for the year to June 2022 was £53k 
and £11k respectively (2021: £53k and £11k). 

The Group had a capital commitment of £nil as at 30 June 2022 (2021: £nil). 

28. Contingent liabilities 

The Group had no contingent liabilities as at 30 June 2022 (2021: £nil). 

Plexus Holdings plc Annual Report 2022

78

Notes to the Consolidated Financial Statements continued

29. Related Party Transactions 

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

Ultimate parent company 
There is no ultimate parent company. 

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

2022
£’000

347
–
–
57
–––––––

2021 
£’000 

342 
– 
– 
65 
––––––– 

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. 

30. Subsequent Event 

In October 2022 the Group raised £1,550,000 through the issue of Convertible Loan Notes (“CLNs”), which 
will be used for working capital and to fund the Group’s activities as it seeks to capitalise on the increasing 
pipeline of opportunities within its target markets. 

31. 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. 

79

Plexus Holdings plc Annual Report 2022

 
Parent Company Statement of Financial Position 
at 30 June 2022

Assets
Intangible assets
Receivables due from subsidiary undertakings
Investments

Total Non-current assets

Trade and other receivables
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
7
5

7
10

9

6

8

2022
£’000

8,962
7,466
8,294
–––––––
24,722
–––––––
53
8
–––––––
61
–––––––
24,783
–––––––

1,054
(2,500)
326
25,383
–––––––
24,263
–––––––

358
–––––––
358
–––––––
162
–––––––
162
–––––––
520
–––––––
24,783
–––––––

2021 
£’000 

9,380 
20,469 
8,294 
––––––– 
38,143 
––––––– 
251 
55 
––––––– 
306 
––––––– 
38,449 
––––––– 

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

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

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 £13,527k 
(2021: loss of £794k). 

These financial statements were approved and authorised for issue by the board of directors on 24 November 2022 
and were signed on its behalf by: 

G Stevens
Director

C Hendrie 
Director 

Company Number: 03322928

Plexus Holdings plc Annual Report 2022

80

 
 
  
 
  
 
Parent Company Statement of Changes in Equity 
for the year ended 30 June 2022

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

Balance as at 30 June 2021

Total comprehensive income  
for the period

Balance as at 30 June 2022

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

39,704

38,584 

–
–––––––

1,054
–––––––

–
–––––––

1,054
–––––––

–
–––––––

(2,500)
–––––––

–
–––––––

(2,500)
–––––––

–
–––––––

326
–––––––

–
–––––––

326
–––––––

(794)
–––––––

38,910
–––––––

(13,527)
–––––––

25,383
–––––––

(794) 
––––––– 

37,790 
––––––– 

(13,527) 
––––––– 

24,263 
––––––– 

81

Plexus Holdings plc Annual Report 2022

Parent Company Statement of Cash Flows 
at 30 June 2022

Notes

Cash flows from operating activities 
Loss before taxation
Adjustments for:
 Amortisation
 Intercompany loan impairment
 Investment income
Changes in working capital:
 Decrease / (Increase) 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 2021

Cash and cash equivalents at 30 June 2022

10

2022
£’000

(13,658)

865
12,819
(530)

382
(8)
–––––––
(130)
–
–––––––
(130)
–––––––

(447)
530
–––––––
83

–––––––
(47)
55
–––––––
8
–––––––

2021 
£’000 

(611) 

854 
– 
(423) 

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

(235) 
422 
––––––– 
187 

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

Plexus Holdings plc Annual Report 2022

82

 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
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. 

Basis of preparation 

a. 
The  Company’s  financial  statements  have  been  prepared  in  accordance  with  UK­adopted  international 
accounting standards and interpretations issued by the International Accounting Standards Board 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 
and do not expect any significant impact to the Company on their adoption. 

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. 

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 23 of the Group accounts, the Company operates a share option scheme. Where the market 
price of the shares at the year­end 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 straight­line 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 20­year period. 

83

Plexus Holdings plc Annual Report 2022

Notes to the Parent Company Financial Statements continued

1.

Summary of significant accounting policies (continued) 
Intellectual Property rights are initially recorded at cost and amortised over 20 years on a straight­line 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 straight­line 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  on­going  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 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. 

Foreign currencies 

f.
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 pre­agreed 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. 

Dividends 

h.
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. 

Plexus Holdings plc Annual Report 2022

84

Notes to the Parent Company Financial Statements continued

1.

Summary of significant accounting policies (continued) 

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 
non­derivative 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 straight­line 
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. 

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 £13,527k (2021: loss of £794k). The Company had revenue of £277k for the financial year (2021: £386k). 

3.

Staff numbers and costs 

Management

2022
Number

3
–––––––
3
–––––––

2021 
Number 

3 
––––––– 
3 
––––––– 

85

Plexus Holdings plc Annual Report 2022

 
Notes to the Parent Company Financial Statements continued

3.

Staff numbers and costs (continued) 
The aggregate payroll costs of these persons were as follows: 

Wages and salaries
Social security costs

2022
£’000

183
25
–––––––
208
–––––––

2021 
£’000 

185 
24 
––––––– 
209 
––––––– 

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 40 and this forms part of the financial statements. 

4.

Intangible fixed assets 

As at 30 June 2020
Additions

As at 30 June 2021
Additions

As at 30 June 2022

Amortisation
As at 30 June 2020
Charge for the year

As at 30 June 2021
Charge for the year

As at 30 June 2022

Net Book Value
As at 30 June 2022

As at 30 June 2021

Intellectual
Property
£’000

Patent and 
Other 
Development
£’000

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

1,797
178
–––––
1,975
178
–––––
2,153
–––––

608
–––––
786
–––––

13,226
235
–––––
13,461
447
–––––
13,908
–––––

4,191
676
–––––
4,867
687
–––––
5,554
–––––

8,354
–––––
8,594
–––––

Total 
£’000 

15,987 
235 
––––– 
16,222 
447 
––––– 
16,669 
––––– 

5,988 
854 
––––– 
6,842 
865 
––––– 
7,707 
––––– 

8,962 
––––– 
9,380 
––––– 

Plexus Holdings plc Annual Report 2022

86

 
 
 
  
 
 
  
Notes to the Parent Company Financial Statements continued

5.

Investments 

Subsidiary undertakings: 
As at 30 June 2020, 2021 and 2022

The Company’s undertakings are: 

Subsidiary undertaking Country of Registration

Nature of Business

Address and

£’000 

8,294 
––––– 

Percentage of  
Ordinary 
Shares held 

100%

Plexus Ocean Systems 
Limited

Plexus Limited

Plexus Applied 
Technologies Limited

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

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

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

Supply of wellheads and
associated equipment for
oil and gas drilling 

Dormant

100% 

Dormant

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

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

Commercial exploitation
of subsea applications

Commercial exploitation 
of subsea applications 

Supply of wellheads and
associated equipment for
oil and gas drilling

100% 

100% 

100% 

100%  

100%  

100%  

87

Plexus Holdings plc Annual Report 2022

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Parent Company Financial Statements continued

5.

Investments (continued) 

Subsidiary undertaking Country of Registration

Nature of Business

Address and

Percentage of  
Ordinary 
Shares held 

100%  

Supply of wellheads and 
associated equipment for 
oil and gas drilling 

Supply of wellheads and
associated equipment for 
oil and gas drilling

100% 

Investment Holding

100% 

Design, fabrication and 
manufacture of valve  
related products 

100%  

2022
£’000

489
(131)
–––––––
358
–––––––

2022
£’000

1,470

(1,112)
–––––––
358
–––––––

2021 
£’000 

224 
265 
––––––– 
489 
––––––– 

2021 
£’000 

1,601 
– 
(1,113) 
––––––– 
488 
––––––– 

Plexus Ocean Systems 
(Brunei) Sdn Bhd

Plexus Offshore Systems 
(Singapore) Pte Ltd

Afrotel Corporation Ltd

Plexus Pressure 
Control Limited

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

137 Telok Ayer Street,
08­01, Singapore,
Singapore

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

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

6.

Deferred tax 

i) Movement in deferred tax liability balance 

Deferred tax liability at beginning of year
(Credit) / 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 items:
Difference between depreciation and capital allowances
Share based payments
Tax losses

Deferred tax liability at end of year

Plexus Holdings plc Annual Report 2022

88

 
 
 
 
 
 
 
 
 
  
Notes to the Parent Company Financial Statements continued

7.

Trade and other receivables 

Trade receivables
Receivables due from group companies
Prepayments and other amounts

2022
£’000

–
7,466
53
–––––––
7,519
–––––––

2021 
£’000 

217 
20,469 
34 
––––––– 
20,720 
––––––– 

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, a provision of £12.8m has been provided against 
a balance due from a subsidiary undertaking. 

8.

Trade and other payables 

Trade payables
Non­trade payables and accrued expenses

2022
£’000

68
94
–––––––
162
–––––––

2021 
£’000 

78 
92 
––––––– 
170 
––––––– 

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 (2021: 110,000,000) Ordinary shares of 1p each

Allotted, called up and fully paid:
Equity: 105,386,239 (2021: 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

2022
£’000

1,100
–––––––

1,054
–––––––

2022
£’000

(47)
55
–––––––
8
–––––––

2021 
£’000 

1,100 
––––––– 

1,054 
––––––– 

2021 
£’000 

(958) 
1,013 
––––––– 
55 
––––––– 

89

Plexus Holdings plc Annual Report 2022

 
  
 
  
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  inter­company  loans  and  inter­company  receivables. 
Management have reviewed the recoverability of intercompany loan balances at the reporting date, this has 
resulted in a write­off of £nil (2021: £nil) 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 intercompany 
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. 

12. Financial commitments 

The Company had no capital commitments as at 30 June 2022 (2021: £nil). 

13. Contingent liabilities 

The Company had no contingent liabilities as at 30 June 2022 (2021: £nil).

Plexus Holdings plc Annual Report 2022

90

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 £660k less net purchases 
of £844k, following review the balance has been written down by £12,819k decreasing the balance owed 
from £20,469k to £7,466k. 

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. 

15. Subsequent Event 

In October 2022, the Company raised £1,550,000 through the issue of Convertible Loan Notes (“CLNs”), 
which will be used for working capital and to fund the Group’s activities as it seeks to capitalise on the 
increasing pipeline of opportunities within its target markets. 

91

Plexus Holdings plc Annual Report 2022

Corporate Information

Directors

Jerome Jeffrey Thrall† (Non­Executive Chairman) 
Bernard Herman van Bilderbeek (Chief Executive)  
Graham Paul Stevens (Finance Director) 
Craig Francis Bryce Hendrie (Technical Director)  
Charles Edward Jones† (Non­Executive Director)  
Kunming Liu (Non­Executive Director) 

† Member of Audit and Remuneration committees 

Registered Office

Highdown House 
Yeoman Way 
Worthing 
West Sussex 
BN99 3HH 

Company Number

03322928 

Company Secretary

Nominated Adviser and Broker

Auditor

Solicitors to the Company

Registrars

Prism Cosec Limited  
Highdown House 
Yeoman Way 
Worthing 
West Sussex 
BN99 3HH 

Cenkos Securities plc 
66 Hanover Street 
Edinburgh 
EH2 1EL 

6­8 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 
52­54 Rose Street 
Aberdeen 
AB10 1HA 

SLC Registrars 
Highdown House 
Yeoman Way 
Worthing 
West Sussex 
BN99 3HH

Plexus Holdings plc Annual Report 2022

92

Perivan   264659

P O S - G R IP ®
P O S - G R I P ®
P O S-G R IP ®
P ROPRIETARY METHOD O F 
P ROPRIETARY M ETHO D OF 
PROPRIETARY METHOD OF 
FRICTION GRIP ENGINEERING
F RICTION GRIP EN GIN EERING
F RICTION GRIP ENGINEERING

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 
mechanism.

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 
markets.

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).

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.

Outlet valve equipment to be 
supplied through PPC

POS-GRIP APPLICATIONS

Connectors

Wellheads

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.

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 
POS-GRIP “HG” Production Wellhead 
multiple metal seals are used to anticipate the pace 
with PPC valves and tree
markets.
of chemical degradation, throughout field-life.

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.

Metal-to-metal sealing

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

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

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
for a well decommissioning project
Production Wellhead System

POS-GRIP
“HG” Production Wellhead installed offshore
POS-GRIP “HG” Production Wellhead recently intalled offshore

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

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

Wellheads

Production wellheads and surface subsea 
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.

Connectors

POS-GRIP is ideal for high integrity, low 
fatigue connector applications. Wellhead 
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 
the simplicity of POS-GRIP.

Metal-to-metal sealing

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, 
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.

Exact EX 18-3/4” 10k Adjustable Surface  
Exploration Rental 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

L

E

X

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L

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