20th Mar 2025 14:06
(Alliance News) - Tekmar Group PLC on Thursday said it has reached a commercial settlement with an unnamed customer, in relation to legacy defect notifications.
The Newton Aycliffe, England-based technology and services provider for global offshore energy markets said the settlement entailed no admission of liability and no conclusion of defect with the company's product.
Tekmar has "consistently denied any responsibility" for the issues raised within the case.
The investigation related to legacy defect notifications, which Tekmar noted was part of an industry-wide issue relating to the abrasion of legacy cable protection systems installed at offshore windfarms.
Tekmar did not on Thursday disclose the value of the settlement, but said in its full-year results in early March that it recognised a net charge of GBP700,000 in its statements of profit and loss. This represented the net impact of a GBP5.8 million provision, Tekmar said, which was partially offset by a GBP5.2 million insurance payout.
"We are pleased to conclude this agreement, which is entirely covered by an insurance settlement, and expect to make further progress on other legacy matters throughout the course of 2025 whilst we continue to focus on growing our orderbook and delivering projects on behalf of our customers," said Chief Executive Officer Richard Turner.
Shares in Tekmar were down 4.4% at 5.50 pence in London on Thursday afternoon. The stock has fallen 42% over the past year.
By Emily Parsons, Alliance News reporter
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