Newspaper article The Journal (Newcastle, England)

Tekmar Hopeful for the Future - despite Its Loss

Newspaper article The Journal (Newcastle, England)

Tekmar Hopeful for the Future - despite Its Loss

Article excerpt

Byline: JONATHON MANNING Reporter jonathon.manning@reachplc.com @JONNYAMANNING

NEWTON Aycliffe's Tekmar has posted a loss in its first set of interim results since the cable protection company listed on the London Stock Exchange.

Tekmar, which specialises in manufacturing protection systems for subsea cables and umbilicals, made an operating loss of PS1.6m for the six months ending September 30 2018 - down from a profit of PS2.2m during the same period in 2017.

The company also saw its turnover dip to PS7.1m during the period, down from PS11.4m.

In June the company successfully listed on the London Stock Exchange, raising approximately PS61.8m in funds.

Despite the loss the firm said it had a record order book of PS12.9m at the half-year end and is also in final negotiations on larger higher-margin contracts worth PS18.1m.

Tekmar's non-executive chairman Alastair MacDonald said the firm was in a strong position for further growth and the interim results had been impacted by a delayed contract.

He said: "We were delighted with the success of the IPO in June 2018 and in many ways the business has never been in a better position.

"We have extremely strong forward market visibility.

"Tekmar Energy is maintaining its unrivalled market share in our core market, offshore wind, having won every European array project awarded during the period and Subsea Innovation, our first acquisition since IPO, delivered a solid performance.

"Contracting activity has increased during the period and the group has a record order book of PS12.9m.

"There has however, been a delay in the award of higher-margin TekLink offshore wind contracts, on which we have preferred bidder status.

"Our customers have changed lead times from order placement to delivery by up to six months, deferring the signing of contracts by a similar period."

Mr MacDonald added the company was expecting to generate record revenues in FY19 due to it carrying out a large amount of lower margin work. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.