13th Jun 2022 11:08
(Alliance News) - Tekmar Group PLC on Monday said its half-year results highlighted the "continued challenging environment" it has operated under in the past two years and announced the launch of a formal sale process as a result.
In the six months ended March 31, the Darlington, County Durham-based offshore energy services firm said its pretax loss widened to GBP3.2 million from GBP2.2 million the previous year. Tekmar said this was in line with its expectations.
Revenue fell 6.2% to GBP13.0 million from GBP13.9 million. At March 31, its order book stood at GBP20.1 million, while its order intake totalled GBP22.7 million, up 39% and 5.6% respectively year-on-year.
The company explained that it endured the impact of delayed financial investment decision during Covid pandemic. In addition, it said it has felt cost pressure and suffered inefficiencies as a result of lower volumes, supply chain issues and logistics matters.
"Whilst the group is currently operating with sufficient working capital for its present requirements, the combination of sustained trading losses and increased pressure on working capital mean that the group may not have the necessary cash to make all the required investment to deliver fully the turnaround strategy to return the group to profitable cash generation," it explained.
As a result of these challenging conditions, Tekmar said it seeking a strategic partner to support the company and is undertaking a review of the strategic options open to it, which include - but are not limited to - a sale of the company.
Any discussions with third parties relating to an offer for the company will now take place within the context of a formal sale process, it explained. Tekmar has hired Bamburgh Capital Ltd as its financial adviser to manage the formal sale process.
Shares in Tekmar were down 34% at 25.55 pence on Monday morning in London.
By Heather Rydings; [email protected]
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