Tekmar Group plc (TGP) AI Stock Analysis

• Market Cap: £12.91M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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: 0.09
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -3.88
• 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): >-0.01
• Revenue Forecast (FY): £38.60M

• Rating: 43 Neutral
• Price Target: 8.50 p ▼(-32.00% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily driven by weak financial performance (persistent losses, steep FY2025 revenue decline, and a return to operating/free-cash-flow burn), which outweighs improving margins and moderate leverage. Technical indicators add pressure due to bearish trend signals and oversold momentum, while valuation remains unattractive/unclear with negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Niche engineering product franchise

Tekmar’s specialized subsea cable protection and project delivery focus targets offshore wind and subsea infrastructure, creating a durable, project-driven revenue model. Engineering specialization and contract work provide long-term client relationships and technical barriers to entry that support stable demand across project cycles.

Improving gross margins

Margin expansion to 37.2% suggests better product mix or cost control, improving the firm's ability to cover fixed costs. If sustained, higher gross margins enhance operating leverage, shorten the runway to profitability, and provide buffer against revenue volatility across multi-month project cycles.

Moderate leverage

A debt-to-equity ~0.28 indicates conservative leverage relative to riskier peers, affording balance-sheet flexibility. This lowers immediate refinancing pressure and supports funding of project working capital or capex needs over the medium term without forcing dilutive equity or aggressive cost cutting.

Negative Factors

Persistent losses and revenue collapse

Sustained losses and a 67% revenue drop materially weaken operating resilience. Persistent negative margins limit reinvestment, reduce creditor and customer confidence, and make execution of longer capital-intensive offshore projects harder, raising structural risk over the coming months.

Negative operating and free cash flow

A return to negative operating and free cash flow increases reliance on external funding and elevates execution risk for multi-stage projects. Continued cash burn can force tighter credit terms, delay supplier payments or require dilutive financing, constraining operational flexibility for several months.

Eroding equity and negative returns

Shrinking equity and a ~-16% ROE signal erosion of shareholder value and weakening asset base, reducing the company's capacity to scale or absorb project setbacks. Persistent negative returns limit internal capital for growth and raise the prospect of covenant stress or dilution if funding is required.

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 plc makes money primarily by selling engineered subsea cable protection and support products and delivering associated services to offshore project developers, EPC contractors and installation contractors. Its core revenue stream is contract-based revenue from designing and manufacturing subsea protection systems (commonly used around offshore wind farm inter-array and export cables and at subsea connection points) and supplying those products to specific projects. Revenue is typically recognized through project orders that bundle product design/engineering, manufacture, and supply, and may include project management and technical support tied to installation and commissioning. Additional revenue can come from complementary offshore energy/infrastructure offerings across the group’s operating businesses (e.g., related subsea components, installation support, and other project-specific engineering services), but specific product/service line splits, customer concentration, and partnership details are null if not publicly specified in the provided context.

Tekmar Group plc Financial Statement Overview

Summary

Financial performance is weak overall: losses in every year since 2021, FY2025 net margin -13.6% and operating margin -10.2%, plus a sharp FY2025 revenue contraction (-67%). Positives include narrowing losses versus FY2023–FY2024 and improved gross margin (37.2% vs 32.1%), with moderate leverage (debt-to-equity ~0.28). Cash flow deterioration (negative operating and free cash flow in FY2025) keeps the score low.

Income Statement

Profitability remains weak: the company posted losses in every year since 2021, with FY2025 net margin at -13.6% and operating margin at -10.2%. A positive is that losses have narrowed versus FY2023–FY2024 (net loss improved to -3.9m in FY2025 from -6.4m in FY2024), and gross margin improved to 37.2% in FY2025 from 32.1% in FY2024. The key concern is the sharp revenue contraction (down 67% in FY2025 after declines in FY2024 and FY2022), which limits operating leverage and makes the turnaround harder to sustain.

Balance Sheet

Leverage is moderate, with debt-to-equity around 0.28 in FY2025 (debt ~6.8m vs equity ~24.4m), which provides some balance-sheet flexibility versus highly levered peers. However, equity and total assets have been shrinking since FY2021, and returns on equity are consistently negative (FY2025 ROE about -16%), reflecting ongoing losses and erosion of shareholder value over time.

Cash Flow

Cash generation is volatile and recently deteriorated: operating cash flow turned negative in FY2025 (-1.5m) and free cash flow was also negative (-2.1m), reversing the positive free cash flow in FY2024. While cash flow can sometimes look better than reported earnings in loss-making years, the swing back to cash burn in FY2025 raises funding and execution risk if profitability does not improve quickly.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	28.75M	32.81M	39.91M	30.19M	47.03M
Gross Profit	10.69M	10.52M	9.30M	7.04M	10.72M
EBITDA	-1.14M	-1.97M	-7.20M	-2.08M	-1.75M
Net Income	-3.91M	-6.41M	-10.12M	-5.13M	-5.44M
Balance Sheet
Total Assets	42.09M	50.91M	53.26M	56.94M	56.42M
Cash, Cash Equivalents and Short-Term Investments	3.41M	4.63M	5.22M	8.50M	3.48M
Total Debt	6.85M	7.48M	7.88M	7.39M	6.34M
Total Liabilities	17.64M	22.74M	18.60M	17.73M	16.20M
Stockholders Equity	24.44M	28.16M	34.65M	39.21M	40.22M
Cash Flow
Free Cash Flow	-2.14M	1.37M	-7.00M	-71.00K	-4.03M
Operating Cash Flow	-1.47M	3.30M	-5.67M	1.57M	-1.52M
Investing Cash Flow	1.06M	-1.95M	-1.29M	-1.64M	-2.50M
Financing Cash Flow	-784.00K	-1.61M	3.97M	4.76M	5.53M

Tekmar Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.50
• 50DMA: Negative
• 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 10.15, above the 50-day MA of 10.55, and above the 200-day MA of 7.27, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 20.09 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	70 Outperform	£1.78B	20.83	17.29%	2.34%	3.88%	5.10%
BILN	70 Neutral	£46.82M	10.36	11.64%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£46.59M	9.18	4.00%	2.45%	5.54%	209.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VANL	57 Neutral	£37.87M	2,272.39	0.90%	3.29%	-6.46%	-56.20%
NEXS	44 Neutral	£10.62M	-4.84	-10.69%	2.47%	-3.17%	69.15%
TGP	43 Neutral	£12.91M	-2.12	-25.08%	―	-24.64%	39.47%

Tekmar Group plc Corporate Events

Tekmar Group Publishes 2025 Report and Sets March AGM

Tekmar Group plc, a specialist in engineering-led solutions for offshore energy and marine infrastructure, focuses on geotechnical design, simulation and analysis, bespoke equipment, and subsea protection and stability systems. With nearly four decades of experience and operations spanning 18 global locations, the company aims to de-risk projects, enhance safety and lower costs for customers involved in the energy transition.

The company has published its annual report and accounts for the year ended 30 September 2025 and confirmed that its Annual General Meeting will be held on 31 March 2026 in Newcastle upon Tyne. The release underscores Tekmar’s strategy to strengthen its position as an integrated engineering solutions-led business, which may support its market standing in offshore wind and broader offshore energy services as it engages shareholders on its latest financial year.

The most recent analyst rating on (GB:TGP) stock is a Sell with a £5.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar builds record order book and boosts visibility as Project Aurora gains traction

Tekmar Group reported audited results for the year to 30 September 2025 showing revenue of £28.7m and adjusted EBITDA of £0.1m, in line with expectations but down on the prior year, while gross margins improved to 34% as its Project Aurora restructuring created a leaner cost base and sharper commercial focus. The company highlighted a strong second-half recovery, substantial progress in resolving legacy defect notifications with no cash impact, a record £40.7m order book with £26m of FY26 revenue already secured, and a strengthened balance sheet following the sale of Innovation House, giving management greater visibility and confidence to pursue its strategy of organic and acquisition-led growth in structurally expanding offshore energy markets.

The board said momentum has continued into FY26, with £43m of new orders since July 2025 and expectations that first-half performance will exceed the prior year and full-year results will meet current market forecasts. Management argues that the successful execution of Project Aurora, supported by a refreshed board and new CFO, is positioning Tekmar as a more diversified and profitable engineering technology business poised to outperform its growing markets and deliver sustainable returns for shareholders.

The most recent analyst rating on (GB:TGP) stock is a Sell with a £5.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar Sells Surplus Property to Bolster Balance Sheet and Fund Growth

Tekmar Group plc has completed the sale of Innovation House and adjacent land, the former freehold premises of Subsea Innovation Limited, for £2.84m in cash, matching the property’s net book value and resulting in no profit or loss on disposal. The site, vacated in 2024 and classified as an asset held for sale after the SIL divestment, had not generated income in the year to 30 September 2024 and has been acquired by Trackwork Group Limited.

Proceeds from the disposal will be used to support Tekmar’s growth initiatives and general working capital, which management says will strengthen the balance sheet and streamline the asset base. The transaction provides additional financial headroom for the company’s Project Aurora strategy, underlining Tekmar’s effort to reinforce its position as an engineering solutions-led partner to the offshore energy and marine infrastructure sectors.

The most recent analyst rating on (GB:TGP) stock is a Sell with a £5.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

Tekmar lands £4m European offshore wind contract, bolstering order book and growth plans

Tekmar Group plc, a specialist in offshore asset protection technology and energy services, has secured a contract worth more than £4m to supply its 10th Generation Cable Protection Systems and ancillaries to a major European offshore wind farm. The deal, awarded by an existing customer, will draw on Tekmar’s in-house engineering and holistic design capabilities, with deliveries scheduled in FY27 and revenue recognised across FY26 and FY27.

The award deepens Tekmar’s record order book and extends visibility into FY27, contributing to the £43m of orders secured since July 2025, of which over £15m is slated beyond September 2026. Management said the win underscores Tekmar’s leading position in offshore wind, where its systems protect more than two thirds of installed global capacity, and aligns with its Project Aurora growth strategy amid supportive policy signals such as Europe’s Hamburg Declaration and the UK’s record 8.4GW offshore wind auction.

The most recent analyst rating on (GB:TGP) stock is a Sell with a £5.00 price target. To see the full list of analyst forecasts on Tekmar Group plc stock, see the GB:TGP Stock Forecast page.

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.