Plexus wins £2.5 million engineering deal with Cactus Wellhead Proactive uses images sourced from Shutterstock
Plexus Holdings PLC (AIM:POS) has signed a two-year agreement with Cactus Wellhead, the international service company, to develop and qualify a range of wellhead products for offshore energy applications.
The AIM-quoted wellhead services business will receive an initial commitment payment of £1 million, with additional revenue of up to approximately £1.5 million expected over the course of the programme.
Work will begin immediately at Plexus’ operational facility in Aberdeen, carried out by its engineers and technicians.
There is also potential for the scope of work to expand during the programme, which could generate further revenue.
Under the terms of the agreement, Plexus will undertake engineering, analysis and testing services for Cactus, drawing on its core expertise in wellhead engineering and offshore applications.
The initial £1 million prepayment will be secured by a debenture over all company assets until the contracted work has been discharged, which is expected within two years.
Chief executive Craig Hendrie said the work had been awarded to Plexus as a result of its reputation for technology excellence and successful product development and qualification testing over many decades.
“We are very excited and proud to be given the opportunity to take on this work, and I commend the team at Plexus for their dedication and professionalism, which has been instrumental in securing this opportunity,” he said.
Hendrie added that using Plexus’ existing engineering capability and testing infrastructure for an international company allowed it to retain and build its capabilities in Aberdeen at a time when investment in the North Sea has been under pressure.