10th Oct 2022 11:28
(Alliance News) - Tekmar Group PLC on Monday said it has extended its banking facility, as sales talks continue with potential buyers.
Shares in the Darlington, England-based offshore energy services firm were up 6.1% to 8.75 pence each in London on Monday around midday.
Tekmar said it has agreed a 12-month extension to its GBP3.0 million loan facility with Barclays PLC. This extended the maturity date to October 31, 2023.
Tekmar reported gross cash at September 30 of GBP8.5 million, compared to GBP5.1 million at March 31.
After a GBP7.0 million drawdown of banking facilities, net cash was GBP1.5 million, an improvement of more than GBP2.0 million since March 31.
Tekmar said that this demonstrates "strong" cash collection over the last six months.
Chief Financial Officer Derek Bulmer said: "We remain focused on improving the group's cash position and it is encouraging to see the hard work of the team reflected in the company being cash generative in the last six months."
In May, Tekmar launched a formal sale process in hopes of finding a "strategic partner" to provide support on its balance sheet.
At the time, it had reported a decrease in revenue to GBP13.0 million in the six months that ended March 31 from GBP13.9 million a year before. Meanwhile, its pretax loss widened to GBP3.2 million from GBP2.2 million.
On Monday, Tekmar said it has received "indications of interest" and it is now exploring several options with interested parties.
"There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made," the company added.
By Sophie Rose; [email protected]
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