Offshore energy specialist Tekmar Group is set to invest up to £12m into the business as it embarks on a five-year plan to double turnover.
The Newton Aycliffe company has revealed how it plans to capitalise on expanding global offshore wind markets by expanding its technical capability, service and geographical reach. The investment follows a full business review by group CEO Alasdair MacDonald, who was appointed last October.
The plans are outlined in interim results for the company which cover the 12 months ended March 31, after Tekmar last year extended its financial year to September 30 last year.
Compared with the full year results for 2020, revenue dropped from £40.9m to £29.1m, while last year’s operating profit of £2.045m fell to a loss of £2.365m as a result of the pandemic.
Mr MacDonald hailed the resilient results and detailed his plan to double Tekmar’s revenue within five years through organic growth, from the 2020 revenue run-rate of around £40m, and deliver a sustainable mid-to high teen Ebitda margin in the later years of the plan.
The plan also anticipates phased investment of £10m to £12m to deliver the growth, self-funded from cash generation.
Highlights for the new financial period included a 22% increase in its enquiry book to £273m, which it said reflects the opportunities in the core offshore wind market.
It has also seen a 45% increase in its order book to £14.5m, which it said highlights the value its customers place on the services it delivers, despite the industry-wide slowdown in commercial activity.
Most Read
Mr MacDonald said: “Tekmar has traded resiliently during these unprecedented times, supported by the strength of our market leading position in offshore wind and the commitment of our people.
“We are in a period of transition both for Tekmar and the industry more broadly, and our refreshed strategy gives us great confidence in the future success of Tekmar in this maturing and evolving industry, which continues to face near-term pressures relating to the pandemic.
“We are managing this transition from a strong position and will continue to focus on delivering our innovative technology, expertise and services to our customers in tandem with refocusing our efforts within the organisation to deliver accelerated, profitable growth in line with our strategic plan.
“As part of our refreshed strategy, we have identified significant market opportunities and set out today our ambition to double our revenue organically over the next five years.
“In achieving this ambition, we are investing to strengthen our core business and to diversify further into the adjacent market opportunities in the offshore wind industry where our capability will resonate strongly.
“We are excited about the opportunity ahead and, whilst the path to delivering on our ambition will not be linear, we are building a more balanced, more predictable and more profitable business that will sustain its industry leadership position over the long term.
“The journey has started and we look forward to providing investors with more detail on our strategic plan at our upcoming capital markets event.”
Tekmar also announced that Derek Bulmer, former chief financial officer at AIM-listed Kromek, has been appointed to the board as chief financial officer with immediate effect, replacing Sue Hurst who has stepped down.