Disposal of Subsea Innovation Limited

Tekmar Group PLC

03 May 2024

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

TEKMAR GROUP PLC

("Tekmar Group", "Tekmar", the "Group" or the "Company")

Disposal of Subsea Innovation Limited

Tekmar Group (AIM: TGP), a leading provider of technology and services for the global offshore energy markets, announces the sale of Subsea Innovation Limited ("Subsea Innovation" or "SIL") to Unique Group through its subsidiary, Unique System (UK) Limited ("Unique" or the "Purchaser"), for a total cash consideration of £1.9 million (the "Disposal" and/or the "Transaction").   Completion of the Transaction occurred on 2 May 2024 ("Completion").

Key headlines for the Transaction

·      SIL provides engineering consultancy and subsea products to the energy industry, particularly the oil and gas sector. 38 employees will transfer with SIL to the Purchaser.

·      Innovation House, the premises in Darlington currently occupied by SIL, is being retained by the Group on Completion (the "Property").  The Property was valued at £2.8 million as at the latest audited financial statements to 30 September 2023. The Group has agreed for the Purchaser to use the Property on a rent-free basis for a 12-month period following Completion, with the option for both parties to enter into a lease agreement after the rent-free period. 

·      The consideration value comprises an initial cash payment of £27,000, a cash payment of £1.4 million relating to a trade debtor, payable post-Completion, and a further cash payment of £549,000 payable 12 months post-Completion.  

·      These proceeds will be available to support the Group's disciplined investment programme to drive near-term growth and for general working capital purposes.

·      For FY23, the latest audited period prior to announcing the Transaction, SIL reported an Adjusted EBITDA loss of £1.4 million and net assets of £1.4 million. The effect of the Disposal on the ongoing Group is expected to be broadly EBITDA neutral for FY24. 

Alasdair MacDonald, CEO, commented: "The disposal of SIL reflects our strategic focus on strengthening Tekmar's performance and financial position through efficient resource allocation and portfolio management. SIL has an established reputation in the energy industry and we are particularly pleased for SIL's employees and customers that they can look forward to realising its full potential under the ownership of Unique.

From a Tekmar perspective, we continue to execute our strategy to drive profitable growth organically across our balanced portfolio, and to complement this growth through targeted M&A to strengthen and broaden our core offering. The disposal supports this objective. We also reiterate our expectations for FY24 to be a year of profit improvement for the business with the Group having delivered Adjusted EBITDA profit in the first half in line with management's expectations."  

Enquiries:

Tekmar Group plc Alasdair MacDonald, CEO Leanne Wilkinson, CFO	[phone]
Singer Capital Markets (Nominated Adviser and Joint Broker) Rick Thompson / Sam Butcher	[phone]
Berenberg (Joint Broker) Ben Wright / Ciaran Walsh	[phone]
Financial media & investor relations Murdo Montgomery	[phone]

The person responsible for arranging for the release of this announcement on behalf of Tekmar is Leanne Wilkinson, Chief Financial Officer. 

About Tekmar Group plc

Tekmar Group plc (LON:TGP) collaborates with its partners to deliver robust and sustainable engineering led solutions that enable the world's energy transition.

Through our Offshore Energy and Marine Civils Divisions we provide a range of engineering services and technologies to support and protect offshore wind farms and other offshore energy assets and marine infrastructure. With near 40 years of experience, we optimise and de-risk projects, solve customer's engineering challenges, improve safety and lower project costs. Our capabilities include geotechnical design and analysis, simulation and engineering analysis, bespoke equipment design and build, subsea protection technology and subsea stability technology. 

We have a clear strategy focused on strengthening Tekmar's value proposition as an engineering solutions-led business which offers integrated and differentiated technology, services and products to our global customer base.

Headquartered in Darlington, UK, Tekmar Group has an extensive global reach with offices, manufacturing facilities, strategic supply partnerships and representation in 18 locations across Europe, Africa, the Middle East, Asia Pacific and North America.

For more information visit: www.tekmargroup.co.uk.

Subscribe to further news from Tekmar Group at Group News.

 

END