Tekmar Group revenue dipped in the first half of the 2018-2019 financial year, compared with 2017-2018, mainly because of delays in lead times for projects in the company’s core cable protection business for the offshore wind sector.
Revenue was down to £7.1m (€8.0m) in the first half of 2018-2019 from £11.4m in the same period last year. The company said it expects revenue to be boosted in the fourth quarter of the year with works recognised prior to the 2019 summer offshore campaign.
The order book was £12.9m at the end of September, up from £8.9m last year, and Tekmar was also preferred bidder on contracts worth £18.1m in the first six months of this financial year, compared with £2.9m 12 months ago.
Tekmar Group non-executive chairman Alastair MacDonald said: “We were delighted with the success of the IPO in June 2018 and in many ways, the business has never been in a better position.
“We have extremely strong forward market visibility; Tekmar Energy is maintaining its unrivalled market share in our core market, offshore wind, having won every European array project awarded during the period; and Subsea Innovation, our first acquisition since IPO, delivered a solid performance.”
“Contracting activity has increased during the period and the group has a record order book of £12.9m. There has however, been a delay in the award of higher margin TekLink offshore wind contracts, on which we have preferred bidder status.
“Our customers have changed lead times from order placement to delivery by up to six months, deferring the signing of contracts by a similar period.
“As a consequence, the group is expecting to generate record revenues in FY19, ahead of current market expectations. However, due to the change in margin relating to product mix, the board now expects profit for FY19 to be closer to that achieved in FY18.
“It is important to note that this impact on FY19 profit is purely a timing issue, which will be partially mitigated by profits generated by newly acquired Subsea Innovation.”