Plexus Holdings confirmed its wholly owned subsidiary Afrotel Corporation has divested its sole asset, consisting of a 25% shareholding interest in KSW Engineering Limited for £1.5million.
The firm will use the earnings to fund global expansion, according to chief executive Ben Van Bilderbeek.
He said: “As Plexus continues to extend its geographic reach and product range, we continue to see new enquiries from across the globe from operators that are considering POS-GRIP technology for its unique technical, safety and time saving capabilities.
“In tandem with positioning Plexus as the supplier of choice in the high pressure high temperature (‘HP/HT’) exploration market in the North Sea, we are working hard to move our products into new operating regions such as Asia, Australia, China, Russia, and West Africa. The need to align Plexus with alternative lower cost manufacturing capacity for POS-GRIP applications to be sold to our customers, is the primary driver behind the divestment of our 25% shareholding interest in the private UK engineering company.
“In addition to increasing Plexus’ global footprint, we remain committed to POS-GRIP product innovation. To this end we will be launching our new Python® Subsea Wellhead in Aberdeen at the Offshore Europe 2015 show this September, which has been designed to achieve a new best in class standard for subsea wellheads, as well as addressing key technical issues as highlighted by regulators following the Gulf of Mexico incident in April 2010.
“We look forward to updating the market on all of these latest developments in the coming months as we look to broaden our Company offering and increase shareholder value.”
Plexus’ POS-GRIP has seen the company earn a premium P/E rating of 35 times 2015 forecast earnings. Shares are expected to increase a further 8% this year.
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