Tekmar’s highest profitability level in last four years
These results demonstrate we now have a stronger platform to drive near-term growth, Alasdair Macdonald
OFFSHORE group Tekmar has signalled its highest levels of profitability in four years in a trading update.
The Darlington firm has issued interim half-year results for the period to the end of March in which it says its revenues rose slightly to £16.2m, while gross profit was up 33% at £5.4m.
The company still recorded a group loss before tax of £400,000, it said, though this was lower than the levels recorded last year.
Tekmar said that its order book of £24.1m included work across the energy and subsea markets, and that its sale earlier this month of the Subsea Innovation (SIL) subsidiary had strengthened the core business.
The company said current trading was encouraging and though it was still being impacted by the phasing and timing of major projects it was working on, it was expecting improved financial performance in its full year.
CEO Alasdair MacDonald said: “We are pleased to report our best results and highest level of adjusted EBITDA for four years. The business performed well in the first half of 2024 as we continue to build a better-quality and derisked order book, returning the business to sustained profitability.
“We have strengthened our platform for consistent growth by divesting the SIL business, which also supports our focus on efficient capital allocation. Our offshore wind business returned to making a material contribution to group profitability in the first half, and we continue to benefit from the consistent profit generation of our Pipeshield business. “Overall, these results demonstrate we now have a stronger platform to drive near-term growth and accelerate growth through targeted and potentially transformational M&A.”
Tekmar has been battling significant challenges in the offshore sector and effectively put itself up for sale two years ago in a bid to safeguard its future. Last May it secured £22m investment from US-based private equity firm SCF Partners and indicated that it looking to grow in the offshore wind market.