Good morning, it's Paul here with the SCVR for Tuesday.

Timings - a bit late today, but should be done by 3pm.
Today's report is now finished
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Please see the header for company announcements I'll be looking at.

Jack has kindly sent me a section on Air Partner (LON:AIR), which I've copied in below. Thanks Jack! Always good to have a contribution from you.


Tekmar (LON:TGP)

Share price: 120p (up 4% today)
No. shares: 51.3m
Market cap: £61.6m

(I have a long position in this)

Trading update

Tekmar Group (AIM: TGP), a leading technology provider of subsea protection systems for the global offshore energy markets, announces the following trading update ahead of the Group's results for the year ended 31 March 2020 ("FY20" or the "Period"),

We're not seeing many positive updates like this at the moment - it's in line with expectations for FY 03/2020, together with a positive outlook statement.

  • Revenues - up over 40% - despite Covid-related problems. All the more impressive given that Q4 (Jan-Mar 2020) is seasonally important to profits
  • Order book at year end was up 39% on prior year, at c.£10m
  • Net cash of £2.1m at year end
  • Received a £3m loan via Barclays, under Govt's CBIL scheme - good to see this paying out
  • Liquidity - well placed, given above cash headroom
  • All sites continuing to operate, with only 8% of staff furloughed
  • Temporary freeze on capex, recruitment, and pay rises, to conserve cash
  • Outlook - demand for offshore wind remains strong

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There is a catch though - the company warned on profits in Feb 2020, and broker forecast was considerably lowered. Hence it has only achieved the reduced forecast number. It's always worth checking this! See below;

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Valuation - this is a rare case where I can actually use broker forecasts! Or rather, I could if there were any broker notes available, which I cannot find on Research Tree or elsewhere for Tekmar.

Going by the Stockopedia numbers (Thomson Reuters data) they have 5.41p EPS forecast for FY 03/2020, and we know the company is in line with that. At 120p per share, that's a historic PER of 22.2 - not exactly a bargain. I can live with that PER, because the order book is up a lot, and outlook promising. The company seems to have excellent niche…

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