SHARES in oil and gas engineering business Plexus Holdings have fallen eight per cent after the company noted the challenges it will face following the sale of a division that generated the bulk of its revenues.

Aberdeen-based Plexus sold a business that supplies equipment used on exploration wells to TechnipFMC in 2018 for up to £42.5m.

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It is now focusing on winning business from firms operating in other markets such as oil and gas production.

The company’s chairman Jeff Thrall told Plexus shareholders at yesterday’s annual general meeting: “Much work remains to be done to regain and in due course surpass, previous revenue and profit levels, and we have reported that revenues for the current financial year to June 2020 are expected to be lower than last year.”

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However, he added: “We strongly believe that we have a solid foundation upon which we can build a successful future.” Mr Thrall said a ten-fold increase in revenues generated from continuing operations to £3.6m in the year to June 30, showed the progress it was making.

Plexus Holdings shares closed down 2p at 24p.