TIDMTGP
RNS Number : 7396P
Tekmar Group PLC
21 October 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
TEKMAR GROUP PLC
("Tekmar Group", the "Group" or the "Company")
Trading Update for the 18-month period to 30 September 2021
Tekmar Group (AIM: TGP), a leading provider of technology and
services for the global offshore energy markets, announces an
update on trading for the extended 18-month financial period to 30
September 2021.
Strategic update
The Group continues to make encouraging progress in delivering
on the plans to support the strategic ambition to double organic
revenue growth over the next five years, and to deliver a
sustainable mid-to high teen EBITDA margin in the later years of
the five-year plan. Recent highlights supporting our strategic
execution include:
-- contract award with Van Oord to supply Tekmar's Cable
Protection System ("CPS") for the Baltic Eagle offshore wind farm
in the Baltic Sea, Germany
-- partnership agreement with DeepWater Buoyancy announced in
August 2021, which supports Tekmar's ambition for the global
floating wind market and the US fixed offshore wind market
-- contract award from EPC contractor to design, build and
supply an Emergency Pipeline Repair System for a subsea project in
Qatar
-- contract award from EPC contractor to manufacture and supply
concrete mattresses for a subsea project in the UK
-- various contract awards in support of Offshore Wind Operations and Maintenance projects.
This activity has helped to support growth in the current
enquiry book to GBP359 million, an increase of 31% on that reported
on 1 June 2021 of GBP273 million, in addition to an increase in
preferred bidder tenders from GBP4.5 million to GBP10.4 million in
the same period.
Current trading
As has been widely experienced in many sectors, the dislocation
to global trade flows has impacted Tekmar's operations including
challenges with shipping goods for delivery, supply chain
constraints and cost control pressures. These headwinds impacted
Tekmar's financial performance, particularly through cost pressure
and reduced volume, such that the Company expects to report revenue
of GBP46 million and an adjusted EBITDA loss in the region of
GBP1.2 million for the extended financial period to 30 September
2021. The Board expects the profitability from the size and nature
of contract mix to improve in the current financial year to
September 2022, albeit the financial impact of continued disruption
to global trade remains harder to quantify at this time.
Financial position
Cash balance at the period end to 30 September 2021 was GBP3.5
million. The Group has extended its CBILs facility of GBP3.0
million for a further 12 months to October 2022 and has also worked
with its relationship bank Barclays, together with UK Export
Finance, to introduce an additional trade loan facility of GBP4.0
million, which is available at least to November 2022. This
provides the Group with capacity to fund growth and the flexibility
to support the working capital requirements typical in delivering
the type of contracts that it undertakes in this industry.
Alasdair MacDonald, CEO of Tekmar Group said: "From a trading
perspective the Company has not been immune from the dislocation to
global trade flows and its impact on global economic activity.
Whilst this has impacted our financial performance in the near
term, our cash position is sound and we continue to be greatly
encouraged with the operational progress we are making in
delivering on our strategic goals and by the increase in enquiry
book to GBP359 million, reflecting increased confidence in activity
levels in our markets.
We are securing landmark contracts with major global partners
and this helps underscore our confidence in our customer-led growth
strategy. We remain very energised about the opportunities we have
ahead which is further reinforced by the recent pledge of GBP9.7
billion announced earlier this week at the Global Investment Summit
in sectors including wind energy. The industry is at a major
inflection point in terms of significant acceleration in offshore
wind capacity investment. This combined with the broader energy
transition aligned with the net zero by 2050 imperative and our
initiatives to deepen and extend our capability across energy
projects' life cycles provide clear drivers for sustained future
growth."
Enquiries:
Tekmar Group plc
Alasdair MacDonald, CEO
Derek Bulmer, CFO +44 (0)1325 349 050
Singer Capital Markets (Nominated Adviser and
Joint Broker)
Rick Thompson / Rachel Hayes +44 (0)20 7496 3000
Berenberg (Joint Broker)
Chris Bowman / Ben Wright / Ciaran Walsh +44 (0)20 3207 7800
Bamburgh Capital Limited (Financial PR & Investor
Relations)
Murdo Montgomery +44 (0) 191 249 7442
About Tekmar Group plc - www.tekmargroup.com
Tekmar Group plc's vision is to be the leading provider of
technology and services for the global offshore energy markets. The
Group has five primary operating companies; these are Tekmar Energy
Limited, Subsea Innovation Limited, AgileTek Engineering Limited,
Ryder Geotechnical Limited and Pipeshield International
limited.
Tekmar Energy is a global market leader in protection systems
for subsea cable, umbilical and flexible pipe. Tekmar Energy has
been trusted to protect billions of Euros worth of assets in the
offshore wind, oil & gas, wave, tidal and interconnector
markets since 1985.
Subsea Innovation is a global leader in the design, manufacture
and supply of complex engineered equipment and technology used in
the offshore energy market. Its products include large equipment
handling systems which operate on the back of pipelay installation
vessels; emergency pipeline repair clamps (EPRC) which protect
major oil and gas pipelines, and bespoke equipment for use in the
construction of offshore energy projects.
AgileTek Engineering is an award-winning subsea engineering
consultancy for offshore energy projects. AgileTek helps its
clients de-risk projects through advanced computer simulation and
analysis. AgileDat, a division of AgileTek, provides software
development, cloud architecture and data analytics services.
Ryder Geotechnical provides expert geotechnical design and
consulting services to the offshore wind and subsea oil and gas
sectors. Services include offshore structure foundation design,
geohazard assessment and subsea cable routing and burial
assessment.
Pipeshield International is a market leading provider of
specialised subsea protection solutions in the form of concrete
mattresses used for the stabilisation and impact protection of
subsea equipment in areas where they cannot be buried and further
to limit the development of scour (seabed erosion) particularly
local to that of a foundation, pipeline or in marine ports.
Tekmar Energy is headquartered in Newton Aycliffe in the United
Kingdom; AgileTek operates from an office in London; Subsea
Innovation has its head office and manufacturing centre in
Darlington, United Kingdom. Ryder operates in Newcastle and within
AgileTek London, Pipeshield headquarters are in Lowestoft with
manufacturing in Montrose and Blyth. Tekmar Group plc also has
strategic supply bases and representation across Europe, Africa,
the Middle East and Asia Pacific.
Subscribe to further news from around the Group at Group
News
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTMMBLTMTITBLB
(END) Dow Jones Newswires
October 21, 2021 02:00 ET (06:00 GMT)
Tekmar (LSE:TGP)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Tekmar (LSE:TGP)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
