18th Feb 2020 09:48
(Alliance News) - Tekmar Group PLC on Tuesday said financial 2020 earnings will miss market expectations, but will be broadly in line with the year prior, due to disruptions caused by the effects of the coronavirus.
Shares in the company plunged 35% lower to 100.50 pence per share in London.
In the year ended March 31, 2019, Tekmar - which provides subsea protection systems for energy markets - posted pretax profit of GBP2.0 million on revenue of GBP28.1 million.
The Newton Aycliffe-based business said that mandatory business shut-downs in China and travel restrictions hurt its performance.
All projects scheduled for shipment to China have been delayed, the company said. Additionally, the company noted that its Shanghai office, which serves all of the Asia Pacific, has been placed on official shut-down.
China accounted for around 10% of the company's expected revenue for the year ending March 31.
"The disruption caused by the outbreak of the coronavirus on the our activities and performance has been unpredictable and rapid, impacting the group materially in our crucial, heavily-weighted fourth quarter. With the situation in China and the surrounding APAC countries evolving, we are not yet able to evaluate the full impact of the virus on financial 2021," said Chair Alasdair MacDonald.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Tekmar Group