UK’s Plexus has seen a significant slowdown in planned activity by its customers to the extent that it cannot see the reduced activity levels being recovered in the current financial year as a result of a number of projects being delayed, postponed or cancelled, the company said Monday.

This has affected the company’s performance in H1 FY16 and will have a ‘very significant impact’ on the financial results for the full year to June 30, 2016 (FY 2016).

Plexus anticipates that revenues for H1 FY16 will be below £7 million, and revenues for H2 FY16 are expected to be approximately 20 per cent below those for H1 FY16.

To place the revenue reduction in perspective, the last quarter sales for calendar year 2015 were circa 50% below those of the previous quarter with the fall off accelerating in November and December 2015.

“Although H2 FY16 will be weaker than H1 FY16 it is anticipated that sales will stabilise going into the 2017 financial year prior to what the directors and other commentators expect to be a strong recovery in relation to exploration drilling activity when the oil price recovers to sustainable levels,” the company said in today’s trading update.

As a result of this, the company said that its financial results for the year to 30 June 2016 will be very significantly below market expectations.