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”)
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.
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 Book1 of no less than £10 million, up 39% on the prior year end (FY19: £7.2m).
The Company’s balance sheet remains strong with net cash at year end of circa £2.1 million. In addition, as a prudent measure, the Group recently applied for and was granted a Coronavirus Business Interruption Loan (“CBIL”) of £3.0 million from its bank, Barclays. Given the Group’s strong Order Book1, robust balance sheet and available liquidity, the Board believes that Tekmar Group is well placed to navigate this period of uncertainty.
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.
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
Chris Bowman / Ben Wright / Richard Salmond
+44 (0)20 3207 7800
Belvedere Communications (Financial PR)
+44 (0) 7715 769 078
+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.