TIDMTGP
RNS Number : 8861L
Tekmar Group PLC
05 May 2020
5 May 2020
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
TEKMAR GROUP PLC
("Tekmar Group" or the "Group")
TRADING UPDATE
For the year ended 31 March 2020
Tekmar Group (AIM: TGP), a leading technology provider of subsea
protection systems for the global offshore energy markets,
announces the following trading update ahead of the Group's results
for the year ended 31 March 2020 ("FY20" or the "Period"), which
are expected to be in line with market expectations.
Financials
Revenue in the Period is expected to be in line with
expectations, showing above 40% growth on the prior financial year.
This significant increase in sales has been achieved, despite the
lockdown and social distancing measures associated with COVID-19
impacting the Group's activity in the heavily Q4 weighted
period.
The Board is also pleased to announce that the Group ended the
Period with a record year end Order Book(1) of no less than GBP10
million, up 39% on the prior year end (FY19: GBP7.2m).
The Company's balance sheet remains strong with net cash at year
end of circa GBP2.1 million. In addition, as a prudent measure, the
Group recently applied for and was granted a Coronavirus Business
Interruption Loan ("CBIL") of GBP3.0 million from its bank,
Barclays. Given the Group's strong Order Book(1) , robust balance
sheet and available liquidity, the Board believes that Tekmar Group
is well placed to navigate this period of uncertainty.
COVID-19 update
Further to the Trading Update announced on 18 February 2020, the
Board is pleased to report that the Group has continued to operate
across all of its sites throughout the lockdown. Specific risk
assessments have been undertaken and actioned to provide a robust
solution for business continuity, whilst ensuring the health and
well-being of the Tekmar Group team. We have implemented
home-working for the majority of our office-based staff with full
access to the Group's IT systems and split-shifts for our
manufacturing team, which has involved a low level of essential
furloughing (circa 8% of staff) to ensure effective social
distancing. Those furloughed will be reinstated at the earliest,
safe opportunity.
As a precautionary short-term measure, discretionary cash
preserving initiatives have been put in place, including a freeze
on the Group's annual pay review, recruitment and capital
expenditure.
Management is closely monitoring the situation and potential
impacts on the Group, and are able to take swift action in response
to any changes in the evolving situation.
James Ritchie, CEO of Tekmar, said :
"I would like to say a big thank you to the team at Tekmar and
all our other stakeholders for their resilience, cooperation and
support during these challenging times. While our growth in the
Period has been impacted by COVID-19, the demand for offshore wind
remains strong."
(1) Order Book is defined as signed contracts with clients.
Expected revenue recognition within 6 months.
Enquiries:
Tekmar Group plc
James Ritchie-Bland, Chief Executive Officer
Sue Hurst, Chief Financial Officer +44 (0)1325 379 520
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett / Jen Clarke +44 (0)20 7383 5100
Berenberg (Broker)
Chris Bowman / Ben Wright / Richard Salmond +44 (0)20 3207 7800
Belvedere Communications (Financial PR)
Cat Valentine) +44 (0) 7715 769 078
Keeley Clarke +44 (0) 7967 816 525
About Tekmar Group plc - https://investors.tekmar.co.uk/
Tekmar's vision is to be the partner of choice for the supply
and installation support of subsea protection equipment to 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 has been
trusted to protect billions of Euros worth of assets in the
offshore wind, oil and gas, wave, tidal and interconnector markets
since 1985: https://www.tekmar.co.uk/
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:
https://www.subsea.co.uk/
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. https://agiletek.co.uk/ . AgileDat, a division of
AgileTek, provides software development, cloud architecture and
data analytics services. https://agiledat.co.uk/
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. https://www.rydergeotechnical.com/
Pipeshield International is a market leading provider of
specialised subsea protection solutions, in the form of concrete
mattresses. These mattresses are used for the stabilisation and
impact protection of subsea equipment, in areas where they cannot
be buried, and to limit the development of scour (seabed erosion),
particularly local to that of a foundation, pipeline or in marine
ports. http://www.pipeshield.com/ .
The Group and Tekmar Energy are headquartered in Newton
Aycliffe; AgileTek and Ryder operate from offices in London and
Newcastle; Subsea Innovation has its head office and manufacturing
centre in Darlington. Pipeshield's headquarters are in Lowestoft
with manufacturing in Blyth, Northumberland. Tekmar also has
representation in South Korea, USA, China and across the Middle
East.
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END
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