Please see Cenkos BUY (sp 255p, target 287p) research for Plexus Holdings, a profitable, AIM quoted, UK oil and gas engineering company on the back record Final Results this morning (PBT: �4.7m; revenues �25.57m; and EBITDA to �7.60m), driven by continued strong growth of its wellhead supply business. Using its proprietary POS-GRIP� technology, Plexus is a British success story and has pioneered a safer, more cost effective, reliable and technically superior wellhead which it supplies to many of the blue-chip oil and gas companies worldwide (BG, BHP Billiton, BP, Brunei Shell Petroleum, ConocoPhillips, Tullow Oil, and Wintershall to name a few), which is a testament to the commercial strength of Plexus technology.

Having battled with incumbent suppliers who have dominated the industry for many years, it appears Plexus wellhead equipment with its proven technology is gaining traction within the industry and to date the Company has supplied over 300 wells worldwide. Kindest regards Felicity Plexus Holdings (AIM:POS)/ Market Cap �207M/ SP 255p/ Target Price 270p
Prelim results
Demand for POS-GRIP wellheads continues with new customers and repeat contracts driving FY revenue up 30% to �25.6m, EBITDA up 22% to �7.6m and EPS up 24% to 3.7p.

Organic growth was supported by record investment in HP/HT wellhead inventory of �5.7m which increased the number of sets from 25 to 35 during the period.

Progress beyond the core rental business was highly encouraging with both JIPs delivering upon development milestones.

In our view growing momentum in the HP/HT market and related investment across the equipment subsector supports our long term investment case for POS-GRIP technology and the investment Plexus is making in new subsea applications.

We have increased our SOTP valuation from 270p to 287p, reflecting higher peer multiples and new 2014 EBITDA forecast of �8.5m.
� Results.

Revenue of �25.6m was 9% higher than our recently upgraded forecast reflecting strong demand for POS-GRIP HP/HT wellheads from existing and new customers (Lotus, Lundin and Glencore).

Gross margin was broadly flat at 71%.

Investment in personnel and infrastructure resulted in operating expenses increasing 28% to �13.8m.

Strong cash generation assisted by a net inflow of working capital of just over �1m funded record capex of c.

�8m resulting in net debt of �1.4m at the year end. � JIPs.

The HP/HT Tieback Connector is in the final testing stage and the company is beginning to initiate sales promotion activity.

We believe the next major milestone would be to move to a field trial and given the quantum of estimated cost saving to the customer we expect so see substantial interest in the market.

The design of the HGSS HP/HT Subsea Wellhead is largely completed with system testing expected Q3 calendar year 2014 (detail on both JIPs are contained in our research report 30 July 2013). � Recommendation.

Plexus is establishing a track record of delivering on financial and operational growth targets in tandem with making the required investment in its IP to create long term value for shareholders.

The company is moving toward its goal of transferring the demonstrable competitive advantage POS-GRIP technology has in surface applications subsea.

Given the scale of the potential market opportunity and progress to date we maintain our Buy recommendation.
[cid:image002.png@01CECBDD.61F8A860] Felicity Edwards St Brides Media & Finance Ltd 3 St Michaels Alley, London, EC3V 9DS www.stbridesmedia.co.uk Tel: 0207 236 1177 | Mob: 07748843871 | Twitter: @StBrides1