Tekmar Group plc (TGP) AI Stock Analysis

• Market Cap: £6.39M
• Dividend Yield: N/A
• Average Volume (3M): 155.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -24.64%
• EPS Growth: 39.47%
• Country: UK
• Employees: 133
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 138,888,730
• 10 Day Avg. Volume: 331,071
• 30 Day Avg. Volume: 155,449
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £6.00
• Price Target Upside: 30.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: 6.00p ▲(30.43% Upside)

Tekmar Group plc's overall stock score is primarily influenced by its financial performance challenges, particularly in profitability and cash flow. However, recent corporate events, including securing major contracts and strategic leadership changes, provide a positive outlook for future growth. Technical analysis indicates neutral momentum with potential for improvement, while valuation metrics remain a concern due to ongoing losses.

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	-2.10M	-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: Negative
• Last Price: 4.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TGP, the sentiment is Negative. The current price of 4.6 is below the 20-day moving average (MA) of 5.39, below the 50-day MA of 5.83, and below the 200-day MA of 5.82, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 7.44 is Positive, neither overbought nor oversold. The STOCH value of 7.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TGP.

Tekmar Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILN	74 Outperform	£45.23M	5.40	16.40%	6.99%	-14.67%	-19.63%
Sector *	65 Neutral	$2.68B	14.89	12.46%	3.50%	2.94%	43.39%
VANL	65 Neutral	£43.82M	23.55	5.90%	2.96%	-6.46%	-56.46%
SMJ	57 Neutral	£46.62M	29.85	1.28%	2.69%	15.39%	1240.00%
TGP	51 Neutral	£6.39M	―	-25.08%	―	-24.64%	39.47%
KINO	51 Neutral		―		―	0.20%	79.77%
NEXS	48 Neutral	£13.14M	―	-10.69%	2.17%	-3.17%	69.15%

Tekmar Group plc Corporate Events

Tekmar Group Secures Major Offshore Grouting Contracts in Qatar

Tekmar Group plc has secured two significant offshore grouting contracts in Qatar, valued at approximately US$1.6 million, to support subsea infrastructure Inspection Maintenance and Repair campaigns. These contracts, awarded by existing customers, enhance Tekmar’s regional presence and demonstrate its strategic growth in grouting services, reflecting strong demand and trust in its offshore energy solutions.

Tekmar Group Announces New CFO Amid Strategic Growth Plans

Tekmar Group plc has announced a significant change in its executive leadership, with Phil Lanigan set to join as Chief Financial Officer and Executive Director, following the departure of current CFO Leanne Wilkinson. Lanigan brings extensive experience in business transformation, growth, and mergers and acquisitions, which is expected to enhance Tekmar’s strategic initiatives, including their 3-5 year plan, Project Aurora. This leadership change is anticipated to strengthen Tekmar’s position in the offshore energy sector and drive future growth, benefiting stakeholders and aligning with the company’s strategic goals.

Tekmar Group Secures Major Middle East Contract

Tekmar Group plc has secured a significant contract to supply bespoke subsea infrastructure technology for a major pipeline project in the Middle East. Valued at approximately £2.0 million, this contract highlights Tekmar’s expertise in delivering complex offshore projects and strengthens its position in the growing offshore energy market. The project is expected to be completed by September 2025, reinforcing Tekmar’s reputation for providing high-value infrastructure solutions and maintaining strong customer trust.

Tekmar Group Reports Interim Results with Strategic Focus on Growth

Tekmar Group plc reported a decrease in revenue to £12.3m for the six-month period ending March 2025, with a gross margin of 29% and an adjusted EBITDA of £(0.7)m. Despite lower than anticipated order intake, the company maintained strong cost control and a visible pipeline exceeding £50m for the second half of the year. Tekmar is focusing on strategic initiatives under Project Aurora, achieving significant cost savings and restructuring its business into two verticals. The company is optimistic about the second half of the year, expecting improved EBITDA and a strong order intake, driven by its robust bidding pipeline and strategic focus on offshore wind and energy services.