26th Jun 2025 13:43
(Alliance News) - Tekmar Group PLC on Thursday said it expects second half order intake to be strong after a sluggish first half which saw the firm report a widened loss and lower sales.
The Newton Aycliffe, England-based technology and services provider for global offshore energy markets said pretax loss from continuing operations stretched to GBP2.7 million in the six months to March 31 from GBP358,000 a year prior.
Revenue fell 24% to GBP12.3 million from GBP16.2 million, reflecting anticipated lower activity levels in the first half of the financial year. Profit delivery is expected to be weighted towards the second half of financial 2025.
Gross margin declined to 29% in the half-year from 33% a year ago, while order intake during the period more than halved to GBP10 million from GBP21 million.
"Whilst awards were slower than anticipated, effective cost control helped offset the impact of lower revenue," Tekmar said.
More positively, Tekmar pointed to GBP50 million worth of projects scheduled for award in the second half of the calendar year.
Chief Executive Richard Turner said the build of order book has been "slower than we anticipated" but he remains "confident in the strength of our bidding pipeline and expect H2 order intake to be strong".
"Our priorities for the second half of the year are to drive the business to meet our financial commitments for FY25 and win good quality orders that lead to a strong starting backlog for FY26," he added.
Shares in Tekmar fell 6.4% to 5.50 pence each in London on Thursday.
Tekmar said it had reduced overheads by 11% year-on-year, achieving over GBP1 million of annualised cost savings, providing a "leaner" cost base and "opportunities to invest in growth".
"The board continues to actively assess and progress accretive M&A opportunities," it added.
By Jeremy Cutler, Alliance News reporter
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