OIL and gas well engineering specialist Plexus Holdings has cut losses after seeing revenues quadruple in the latest year.

Aberdeen-based Plexus record a £4.5million loss on continuing operations in the year to June 30, compared with a loss of £5.7m in the preceding year.

The company, which designs specialised wellhead equipment, grew revenues from continuing operations to £2m, from £0.5m last time.

“The increase in continuing sales revenue is a result of operational project work taking place during the year compared to none in the prior year, with the main component being licensing income,” Plexus told investors.

Oil and gas services firms were hit by the downturn in activity triggered by the fallout from the coronavirus crisis. This started as the industry emerged from the deep slump that followed the plunge in oil prices from the summer of 2014.

READ MORE: Value of North Sea production underlined by oil firm amid Cambo controversy

However, Plexus’s chairman Jeffrey Thrall said the downturn in the sector seems to be nearing the end “as we start to see a cycle of rapidly rising oil and gas prices”.

He noted: “It is now obvious there will continue to be demand for hydrocarbons for decades to come, particularly gas although the focus will be increasingly on extracting these resources in the most environmentally responsible way possible.”

READ MORE: Edinburgh entrepreneur sure gas boilers have a future amid net zero drive

Mr Thrall thanked employees for their dedication and hard work during what he described as another very challenging year.

He added: “I am sure that the coming developments and increase in activity will be positive for our staff, and for future employment opportunities within Plexus.”

Plexus employs 33 people in Aberdeen.

The company sold a business that supplies equipment used on exploration wells to TechnipFMC in 2018 for an initial £15m. It is now focused on firms operating in markets such as oil and gas production.