Tekmar Group PLC – Half Year Results
Tekmar Group (AIM: TGP), a leading technology provider of subsea protection systems for the global offshore energy markets, announces its half year results for the six months ended 30 September 2019 (“HY20” or the “Period”).
Highlights:
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Strong revenue growth across all divisions and results in line with management expectations |
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Record Order Book3 of £15.9m – up 23.26% YOY with several contract wins across divisions throughout the Period |
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Enquiry Book5 increased YOY and sales conversion on track |
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Diversification strategy on track with acquisitions making valuable strategic contribution – Subsea Innovation and Ryder Geotechnical delivering strong results |
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Tekmar Energy revenues up by 73% YOY, strengthening its position overseas securing work in APAC and USA |
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Awarded the London Stock Exchange’s Green Economy Mark |
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Business remains debt free with a positive cash balance of £3.9m |
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Long term global outlook in the Group’s key markets improving, with forecasts for future offshore wind generation up by 43.5% YOY and the oil price anticipated to remain above the investment floor of $50pbl |
Key financials:
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HY20 |
HY19 |
FY19 |
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Revenue |
£17.1m |
£7.1m |
£28.1m |
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Adjusted EBITDA1 |
£2.0m |
(£0.8m) |
£4.8m |
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Cash |
£3.9m |
£7.6m |
£4.2m |
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Market Visibility2 |
£40.5m |
£38.1m |
£50.2m |
Sales KPIs:
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HY20 |
HY19 |
FY19 |
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Order Book3 |
£15.9m |
£12.9m |
£7.2m |
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Preferred Bidder4 |
£7.5m |
£18.1m |
£15.0m |
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Enquiry Book5 |
£186m |
£170m |
£195m |
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LTM sales conversion6 |
56% |
50% |
62% |
Outlook:
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Group firmly on track to meet market expectations for FY20 |
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Anticipated seasonality in product mix and associated margins continues with Group’s revenue expected to be H2 weighted |
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Revenue split expected to remain at current levels of c.60% Offshore Wind and c.40% Subsea |
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Group acquired Pipeshield International Limited (“Pipeshield”) on 9 October 20197 and integration progressing well, with an additional £45 million contribution to the Enquiry Book5 (not reflected in HY20 numbers)7 |
Alasdair MacDonald, Non-executive Chairman of Tekmar Group, said:
“We have made great progress in the first half of the year, delivering record revenue growth and securing the Company’s largest ever Order Book. All our businesses performed well, the outlook remains very positive with our core market, offshore wind, forecast to grow substantially in the long term and the integration of our acquisitions and long-term strategy have progressed well. We believe that the Group is firmly on track to meet our expectations in the current year with positive market indications for the future.”