Shares of offshore energy technology and services provider Tekmar Group took a battering this week after the company issued a profit warning and said supply chain issues and cost control pressures have impacted its financials.
Shares in Tekmar Group PLC – which moved its operational HQ from Aycliffe Business Park to Darlington earlier this year – fell 15% on Thursday.
The firm said it expects to report an adjusted Ebitda loss for the current business period, blaming supply-chain issues and cost-control pressures as well as delivery challenges.
However, Tekmar did reveal several contract wins, helping it deliver on the plans to support its strategic ambition to double organic revenue growth over the next five years and have a sustainable mid-to-high teen EBITDA margin in the later years of the five-year plan.
The contract wins helped support growth in Tekmar’s current enquiry book to £359m, a rise of 31% on the £273m reported on June 1. It has also seen an increase in preferred bidder tenders from £4.5m to £10.4m.
Nevertheless, Tekmar has not been able to avoid the global supply chain woes.
Its annual sales dropped to £46m, with projected annual losses of £1.2m, and its shares have dropped 7p to 41p.
Alasdair MacDonald, CEO of Tekmar Group (pictured above), said: “From a trading perspective the company has not been immune from the dislocation to global trade flows and its impact on global economic activity.
“Whilst this has impacted our financial performance in the near term, our cash position is sound and we continue to be greatly encouraged with the operational progress we are making in delivering on our strategic goals and by the increase in enquiry book to £359m, reflecting increased confidence in activity levels in our markets.”
Tekmar Energy, which is part of the Tekmar Group, still has its manufacturing facility on Aycliffe Business Park, but the firm also relocated its HQ to Darlington earlier this year.