Tekmar Announces Interim Results for 6-month Period Ending 31 March 2022

Source: www.gulfoilandgas.com 6/13/2022, Location: Europe

Tekmar Group, a leading provider of technology and services for the global offshore energy markets, announces its half year results for the 6-month period ending 31 March 2022 ("H1 2022" or the "Period") and also notifies it is separately announcing today that the board of directors (the "Board") has determined to undertake a review of the strategic options open to the Company in order to maximise value for shareholders. These options include, but are not limited to, a sale of the Company which will be conducted under the framework of a "formal sale process" in accordance with the Takeover Code.

Headlines
Current trading remains challenging albeit consistent with management expectations
• Revenue of £13.0m (6M to 31 March 2021: £13.9m) and Adjusted EBITDA loss of £1.8m (6M to 31 March 2021: loss of £1.1m), is in-line with management expectations for the period
• On a statutory basis Group loss before tax was £3.2m (6M to 31 March 2021: £2.2m loss)

Recent landmark contract awards highlight the appeal of Tekmar's differentiated and engineering-led solutions, and signal that the market environment for commissioning offshore wind projects is improving
• Contract award to design, manufacture and supply Cable Protection System Solution ("CPS") for Dogger Bank Offshore Wind Farm
• US$10m award for pipeline support and protection for a major subsea customer in the Middle East, Tekmar's largest single contract award to date
• Further expansion into the strategically important US offshore wind market with the recent award to provide an integrated engineering and CPS solution for a US offshore wind farm project
• The above contract awards support a healthy order book of £20.1m as at the end of March 2022

Significant actions taken during the period to stabilise the Group's balance sheet
• The Group extended its £3.0m CBILs facility to October 2022 and extended and increased its trade loan facility to £4.0 million, which is available at least to November 2022
• The Group raised additional cash proceeds of £3.7m, net of expenses, through a Firm Placing and Open Offer of new ordinary shares which completed in March 2022
• Cash on the balance sheet of £10.3m at the period-end is overstated by £5.2m due to a customer overpayment, which has now been repaid. Available cash at the period-end net of this overpayment was £5.1m and includes the funds received from the equity fundraise and draw down of bank facilities of £5.7m

Alasdair MacDonald, CEO, commented:
"We continue to see 2022 and 2023 as transition years for Tekmar as we stabilise the business through the residual impacts of the pandemic and drive our business improvement programs to recover a sustainable level of profitability and cash generation for the business. Whilst we are making satisfactory progress in delivering on our strategic plans, our planned timeframes to establish the improved financial performance for the business we are targeting are being hampered by the prevailing industry conditions, which remain challenging.

On a more positive note, we are greatly encouraged by the momentum we have in securing landmark contracts. These contracts provide a good level of forward visibility for the business as we work on the transition and are an important marker of the market starting to recover.

We remain focused on managing the business through the current industry-wide pressures to benefit from this recovery. Whilst cautious on the environment in the near-term, with a focus on cash preservation prevalent across the industry an added pressure, the market opportunity for Tekmar remains significant, with our differentiated and integrated solutions adding value to our customers in large addressable markets."

Notes:
(1) Adjusted EBITDA is defined as profit before finance costs, tax, depreciation, amortisation, share based payments charge, and exceptional items is a non-GAAP metric used by management and is not an IFRS disclosure.
(2) Order Book is defined as signed and committed contracts with clients.
(3) Order intake is the value of contracts awarded in the Period, regardless of revenue timing.
(4) Enquiry Book is defined as all active lines of enquiry within the Tekmar Group. Expected revenue recognition within 3 years.
(5) Book to Bill is the ratio of order intake to revenue.


Australia >>  8/15/2022 - FY22 highlights
• De-risking growth with safe delivery of key milestones
o Offshore Otway Basin drilling completed; one gas discovery and si...

Australia >>  8/15/2022 - McDermott International has been awarded a Pre Front-End Engineering Design (Pre-FEED) contract from Woodside Energy for the proposed H2Perth project ...

Falkland Islands >>  8/15/2022 - Argos Resources Limited, the Falkland Islands based company focused on the North Falkland Basin, is pleased to announce its interim financial results ...
Argentina >>  8/12/2022 - President Energy, the international energy company announces key highlights from the independently reviewed results from the first six months of the y...

Australia >>  8/12/2022 - Warrego Energy Limited provides the following Appendix 3Y Change of Director’s Interest Notice on behalf of Managing Director and Group CEO, Mr Dennis...
Bermuda >>  8/12/2022 - Second Quarter 2022 Highlights
· Revenue of $247 million
· EBITDA before exceptional items of $20.9 million
· Available liqu...





Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.