Marine engineer 'confident' as contracts lift revenues

A marine engineer has hailed its “positive momentum” after contract successes pushed revenues higher.

Tekmar Group saw earnings rise more than 30 per cent to £16.2 million in the six months to March 31.

Bosses at the County Durham-headquartered firm say the uptick was weighted towards oil and gas work, which helped reverse a £700,000 EBITDA loss into a £100,000 gain.

They add post-tax losses came in at £1.1 million – which represented a 59 per cent improvement from the £2.7 million deficit recorded a year ago – and flagged continued progress through its Project Aurora restructuring plan launched to create new asset protection technology and offshore energy services divisions.

The company – whose wider portfolio boasts Pipeshield, which supplies equipment to protect subsea energy lines, and the Ryder-branded engineering consultancy – picked up contracts including a £7 million UK wind farm deal, a £4 million-plus European offshore wind farm agreement and a £3 million Middle East contract in recent months.

Cheering its progress, chief executive Richard Turner said the Newton Aycliffe-based operator – which saw order intake rise from £10 million to £29.5 million in the comparative period – had performed well despite market challenges including the Middle East conflict.

He said: “The business performed well in the first half of this year, delivering a material improvement in year-on-year profitability.

“We are encouraged by the continued progress we are making on Project Aurora.

“The reorganisation and refocus of the front-end of our business, combined with improved commercial effectiveness, has enabled the group to operate with a record level of work, increased utilisation, improved visibility and a stronger balance sheet.

“The ongoing impact of events in the Middle East has had some disruption to projects and the supply chain in the region.

“But the board anticipates strong revenue and profit delivery in the second half, (and) this momentum, together with the healthy pipeline we see ahead of us, supports our confidence in delivering sustained and profitable growth.”

The business earlier this year sold a former Darlington factory and office site for £2.8 million, with officials saying the “milestone” agreement will support growth plans.

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