Tekmar Group plc (TGP) AI Stock Analysis

• Market Cap: £16.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -24.64%
• EPS Growth: 39.47%
• Country: UK
• Employees: 133
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 139,551,390
• 10 Day Avg. Volume: 520,703
• 30 Day Avg. Volume: 1,339,420
• PEG Ratio: 0.04
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 10.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 6.00p ▼(-52.00% Downside)

Tekmar Group plc's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow issues. The technical analysis provides some positive signals, but these are not strong enough to offset the financial challenges. The valuation is also unattractive due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Business Model Strength

Tekmar's focus on renewable energy solutions positions it well in a growing industry, leveraging its expertise in offshore wind and subsea cable installation.

Competitive Advantages

Strategic partnerships enhance Tekmar's market position, providing access to large projects and reinforcing its role as a key player in renewable energy infrastructure.

Gross Profit Margin Improvement

Improved gross profit margins suggest effective cost control measures, which can enhance profitability and provide a buffer against market fluctuations.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses challenges for growth and sustainability, indicating potential issues in market demand or competitive pressures.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which can hinder long-term financial health and strategic investments.

Cash Flow Concerns

Weak cash flow performance affects liquidity and limits the company's ability to invest in growth opportunities or weather financial downturns.

Tekmar Group plc Business Overview & Revenue Model

Company Description

Tekmar Group plc, together with its subsidiaries, designs, develops, manufactures, installs, and sells subsea stability and protection solutions to offshore energy markets. The company offers subsea cable, and umbilical and flexible pipe protection systems; subsea engineering consulting services; and geotechnical design and consulting services, such as offshore structure foundation design, geohazard assessment, and subsea cable routing and burial assessment, as well as project management services. It also designs, manufactures, and supplies equipment handling systems, emergency pipeline repair clamps, and equipment for use in the construction of offshore energy projects. The company offers its products for subsea cable, rigid and flexible pipeline, umbilical, seabed, vessel back deck, and structural applications. It serves offshore wind, oil and gas, interconnector, wave and tidal, marine civil, and telecom sectors in the United Kingdom, the European Union, the Middle East, Africa, North America, South America, the Asia Pacific, and China. The company was founded in 1985 and is headquartered in Darlington, the United Kingdom.

How the Company Makes Money

Tekmar Group generates revenue primarily through the sale of its specialized products and services to clients in the offshore wind and subsea cable sectors. The company's revenue model is based on a combination of direct sales, project-based contracts, and long-term service agreements. Key revenue streams include the manufacture and supply of cable protection systems and other subsea infrastructure components, as well as consulting and project management services for the deployment of renewable energy projects. Significant partnerships with major energy companies and participation in large-scale renewable energy projects also contribute to its earnings, as these collaborations can lead to substantial contracts and ongoing service agreements.

Tekmar Group plc Financial Statement Overview

Summary

Tekmar Group plc is facing significant financial challenges, particularly in terms of profitability and cash flow generation. While the company has managed to improve its gross profit margin, it continues to struggle with negative net income and cash flow issues. The balance sheet remains relatively stable with low leverage, but the negative return on equity underscores the need for improved operational performance.

Income Statement

Tekmar Group plc has shown a declining revenue trend with a negative revenue growth rate of -14.57% in the most recent year. The gross profit margin improved to 32.06%, indicating better cost management. However, the company continues to face profitability challenges with a negative net profit margin of -19.55% and negative EBIT and EBITDA margins, reflecting ongoing operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.27, indicating a conservative leverage position. However, the return on equity is negative at -22.77%, highlighting profitability issues. The equity ratio stands at a healthy level, suggesting a stable capital structure despite the negative returns.

Cash Flow

Tekmar Group plc's cash flow performance is concerning, with a significant decline in free cash flow growth of -134.27%. The operating cash flow to net income ratio is positive but low at 0.16, and the free cash flow to net income ratio is 0.41, indicating challenges in converting earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	28.94M	32.81M	39.91M	30.19M	47.03M	40.94M
Gross Profit	9.13M	10.52M	9.30M	7.04M	10.72M	11.88M
EBITDA	-4.38M	-1.97M	-7.20M	-2.08M	-1.75M	4.24M
Net Income	-8.32M	-6.41M	-10.12M	-5.13M	-5.44M	1.96M
Balance Sheet
Total Assets	43.27M	50.91M	53.26M	56.94M	56.42M	63.67M
Cash, Cash Equivalents and Short-Term Investments	3.90M	4.63M	5.22M	8.50M	3.48M	2.13M
Total Debt	6.96M	7.48M	7.88M	7.39M	6.34M	814.00K
Total Liabilities	18.22M	22.74M	18.60M	17.73M	16.20M	17.70M
Stockholders Equity	25.05M	28.16M	34.65M	39.21M	40.22M	45.98M
Cash Flow
Free Cash Flow	2.21M	1.37M	-7.00M	-71.00K	-4.03M	-68.00K
Operating Cash Flow	3.75M	3.30M	-5.67M	1.57M	-1.52M	2.37M
Investing Cash Flow	-417.00K	-1.95M	-1.29M	-1.64M	-2.50M	-4.07M
Financing Cash Flow	-864.00K	-1.61M	3.97M	4.76M	5.53M	-355.00K

Tekmar Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TGP, the sentiment is Neutral. The current price of 12.5 is above the 20-day moving average (MA) of 11.97, above the 50-day MA of 8.36, and above the 200-day MA of 6.20, indicating a neutral trend. The MACD of 1.05 indicates Positive momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TGP.

Tekmar Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HILS	78 Outperform	£1.82B	22.72	17.29%	2.34%	3.88%	5.10%
BILN	70 Neutral	£49.03M	8.11	11.79%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£51.44M	10.14	3.98%	2.45%	5.54%	209.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VANL	57 Neutral	£40.03M	21.51	5.90%	3.29%	-6.46%	-56.20%
TGP	48 Neutral	£16.05M	-2.27	-25.08%	―	-24.64%	39.47%
NEXS	48 Neutral	£10.62M	-3.33	-10.69%	2.47%	-3.17%	69.15%

Tekmar Group plc Corporate Events

Tekmar Wins $1.5m Middle East Port Scour Protection Contract

Tekmar Group plc has secured a US$1.5 million contract with an existing EPC customer to design and supply bespoke scour protection solutions for a major port infrastructure development in the Middle East, with delivery scheduled for the third quarter of 2026. The deal strengthens Tekmar’s relationship with a key client, underscores the value of its technology in the expanding ports and harbours segment, and supports the Group’s strategy to diversify its global footprint and reinforce its positioning as an engineering solutions-led business in marine infrastructure and offshore energy.

The most recent analyst rating on (GB:TGP) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar Group Lands €8 Million Offshore Wind Contract

Tekmar Group plc has secured a substantial €8 million contract for its innovative 10th Generation Cable Protection System (CPS) and related services for a major UK offshore wind project. This milestone deal underscores Tekmar’s market leadership in subsea asset protection, where its technologies safeguard two-thirds of the world’s offshore wind capacity, and bolsters its growing order book and long-term revenue prospects, enhancing operational visibility.

The most recent analyst rating on (GB:TGP) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar Group Expands Stake in Ryder Geotechnical with New Share Issuance

Tekmar Group plc has issued 458,716 ordinary shares as part of its agreement to acquire the remaining 20% of Ryder Geotechnical. This transaction, which involves the issuance of shares to Nigel Martin and Fraser Gibson, reflects Tekmar’s strategic efforts to consolidate its holdings and strengthen its market position in the offshore energy sector. The new shares will be admitted to trading on AIM, increasing the total number of shares in issue to 139,551,387, which stakeholders should consider for their shareholding calculations.

The most recent analyst rating on (GB:TGP) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar Group Secures €8 Million Offshore Wind Contract, Strengthening Market Position

Tekmar Group plc announced a significant €8 million contract for a UK offshore wind farm, marking a milestone in its asset protection and offshore energy services. The contract, alongside multiple recent wins, underscores Tekmar’s strong market position and operational momentum, with a record order book and improved financial performance. The company’s strategic focus on diversifying its market presence and enhancing project delivery capabilities supports a positive outlook for future growth and stakeholder value.

The most recent analyst rating on (GB:TGP) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar Group Secures Major Middle East Contract for Cable Protection

Tekmar Group plc has secured a significant contract worth over €3.5 million to supply cable protection technology for a major offshore energy project in the Middle East, marking its largest polyurethane cable protection deal with this customer. This contract underscores Tekmar’s growing influence and trust in the region, following a previous $10 million contract, and highlights its position as a leader in asset protection technology, driven by innovation and proven performance.

The most recent analyst rating on (GB:TGP) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar Group Expands Share Capital with New Ordinary Shares Issuance

Tekmar Group plc announced the issuance of 203,934 new ordinary shares following the exercise of options under the company’s Share Option Plan. This move is part of the company’s strategy to strengthen its market position by expanding its share capital, which now totals 139,092,671 ordinary shares. The new shares will be admitted to trading on AIM, enhancing liquidity and potentially attracting more investors. This development reflects Tekmar’s ongoing efforts to optimize its operations and reinforce its standing in the offshore energy sector.

The most recent analyst rating on (GB:TGP) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.