REG - Tekmar Group PLC - Disposal of Subsea Innovation Limited

TekmarAnnouncement

03/05/2024 07:00

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RNS Number : 0925N  Tekmar Group PLC  03 May 2024

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

TEKMAR GROUP PLC

("Tekmar Group", "Tekmar", the "Group" or the "Company")

 

Disposal of Subsea Innovation Limited

 

Tekmar Group (AIM: TGP), a leading provider of technology and services for the
global offshore energy markets, announces the sale of Subsea Innovation
Limited ("Subsea Innovation" or "SIL") to Unique Group through its subsidiary,
Unique System (UK) Limited ("Unique" or the "Purchaser"), for a total cash
consideration of £1.9 million (the "Disposal" and/or the "Transaction").
  Completion of the Transaction occurred on 2 May 2024 ("Completion").

 

Key headlines for the Transaction

·      SIL provides engineering consultancy and subsea products to the
energy industry, particularly the oil and gas sector. 38 employees will
transfer with SIL to the Purchaser.

·      Innovation House, the premises in Darlington currently occupied
by SIL, is being retained by the Group on Completion (the "Property").  The
Property was valued at £2.8 million as at the latest audited financial
statements to 30 September 2023. The Group has agreed for the Purchaser to use
the Property on a rent-free basis for a 12-month period following Completion,
with the option for both parties to enter into a lease agreement after the
rent-free period.

·      The consideration value comprises an initial cash payment of
£27,000, a cash payment of £1.4 million relating to a trade debtor, payable
post-Completion, and a further cash payment of £549,000 payable 12 months
post-Completion.

·      These proceeds will be available to support the Group's
disciplined investment programme to drive near-term growth and for general
working capital purposes.

·      For FY23, the latest audited period prior to announcing the
Transaction, SIL reported an Adjusted EBITDA loss of £1.4 million and net
assets of £1.4 million. The effect of the Disposal on the ongoing Group is
expected to be broadly EBITDA neutral for FY24.

 

Alasdair MacDonald, CEO, commented: "The disposal of SIL reflects our
strategic focus on strengthening Tekmar's performance and financial position
through efficient resource allocation and portfolio management. SIL has an
established reputation in the energy industry and we are particularly pleased
for SIL's employees and customers that they can look forward to realising its
full potential under the ownership of Unique.

 

From a Tekmar perspective, we continue to execute our strategy to drive
profitable growth organically across our balanced portfolio, and to complement
this growth through targeted M&A to strengthen and broaden our core
offering. The disposal supports this objective. We also reiterate our
expectations for FY24 to be a year of profit improvement for the business with
the Group having delivered Adjusted EBITDA profit in the first half in line
with management's expectations."

 

Enquiries:

 

 Tekmar Group plc

 Alasdair MacDonald, CEO                                       +44 (0)1325 349 050

 Leanne Wilkinson, CFO

 Singer Capital Markets (Nominated Adviser and Joint Broker)

 Rick Thompson / Sam Butcher                                   +44 (0)20 7496 3000

 Berenberg (Joint Broker)

 Ben Wright / Ciaran Walsh                                     +44 (0)20 3207 7800

 Financial media & investor relations                          +44 (0) 131 376 0901

 Murdo Montgomery

The person responsible for arranging for the release of this announcement on
behalf of Tekmar is Leanne Wilkinson, Chief Financial Officer.

 

About Tekmar Group plc

 

Tekmar Group plc (LON:TGP) collaborates with its partners to deliver robust
and sustainable engineering led solutions that enable the world's energy
transition.

Through our Offshore Energy and Marine Civils Divisions we provide a range of
engineering services and technologies to support and protect offshore wind
farms and other offshore energy assets and marine infrastructure. With near 40
years of experience, we optimise and de-risk projects, solve customer's
engineering challenges, improve safety and lower project costs. Our
capabilities include geotechnical design and analysis, simulation and
engineering analysis, bespoke equipment design and build, subsea protection
technology and subsea stability technology.

We have a clear strategy focused on strengthening Tekmar's value proposition
as an engineering solutions-led business which offers integrated and
differentiated technology, services and products to our global customer base.

 

Headquartered in Darlington, UK, Tekmar Group has an extensive global reach
with offices, manufacturing facilities, strategic supply partnerships and
representation in 18 locations across Europe, Africa, the Middle East, Asia
Pacific and North America.

 

For more information visit: www.tekmargroup.co.uk
(http://www.tekmargroup.co.uk) .

Subscribe to further news from Tekmar Group at Group News
(http://eepurl.com/cN91l5) .

 

 

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