The new CEO of County Durham tech firm Tekmar has unveiled a new three-year plan to reach record results, as headwinds ease within offshore markets.
Richard Turner took up the role of chief executive in September, bringing to a conclusion a multi-year strategy to stabilise the Newton Aycliffe based business, which provides technology and services for the global offshore energy markets. Now Mr Turner says the company is targeting record financial performance as headwinds of recent years subside, with its plans for growth including making complementary acquisitions.
He has outlined a new three-year strategy to increase market share “in an improving and growing market”, by driving higher order intake across the group’s existing portfolio of products and services alongside its strategic acquisition plan, where Tekmar will seek to bring further scale and complementary technology into the group.
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He said: “Having worked across the oil and gas and offshore wind markets for more than 15 years, my enthusiasm for the opportunity we have ahead of us at Tekmar has only been strengthened by my initial weeks as CEO. We have differentiated technology that sets us apart in the market. Our know-how and industry expertise are hard-earned and our technology is without equal in the industry.
“Like many others in our industry, our capability has not borne satisfactory results in recent years, evident by sub-scale order intake, earnings and weak cash flow. Market conditions have been challenging, in particular across the offshore wind sector as developers struggled to contend with systemic design issues, escalating material costs and higher interest rates - factors that were incompatible with historic low strike prices.
“Despite the obvious toll of this period on our business, we have used this time wisely, taking the opportunity to realign and refocus our teams, whilst working proactively with customers to understand their evolving needs. Through doing so we have developed next generation protection and assurance technology that will be crucial in ensuring security and certainty of supply from offshore assets forming the backbone of future energy supply.
“Many of the headwinds in offshore renewables and conventional energy markets are subsiding and there is a higher volume of projects now being sanctioned than ever before. We remain cautious on how this market recovery will translate to backlog in the short-term, but we believe that market demand is set to increase steadily into 2025 and beyond. This provides us with real enthusiasm about the role we can play in supporting energy transition whist maximising shareholder value.”
“2024 has been a transitionary year for Tekmar, where we have focused on the basics - providing high-quality engineering, delivering on time and maintaining consistent commercial discipline. Looking forward, we now have a structured organic growth plan which aims to progressively build a business with true strength and resilience. Resilience afforded to us by larger and more diversified revenue streams, with higher margins and positive cash flows. 2025 is where we underpin the foundations of growth where we focus on backlog expansion to support sustained and profitable growth in the years to follow.”
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Mr Turner said the firm’s recent appointments of Lars Bondo Krogsgaard and David Kemp as non-executive directors, who have experience gained at large, global organisations, highlights the scale of the opportunity for Tekmar.
He added: “We look ahead with confidence and renewed purpose as we unlock the true potential of Tekmar.”
The business said it expects to report revenue of around £32m for its 2024 financial year, down on the previous year’s £36m, but it expects to see a significant increase in adjusted Ebitda, from £600,000 to £1.8m – the highest it has reached in four years.