Tekmar Group (AIM:TGP) said full-year revenue for the year ended 30 September will be more than 20% ahead of FY25, even as it acknowledged that growth in near-term volumes has come in slower than expected.
The AIM-listed provider of asset protection technology and offshore energy services said second-half revenue exceeded both the first half and the equivalent period last year, driven by a ramp-up in UK manufacturing and an order book pivoting toward European offshore renewables.
At its interim results in June, Tekmar had guided to stronger second-half revenue and profit versus FY25, with H1 revenue up 31% to £16.2m and adjusted EBITDA swinging to a £0.1m profit from a £0.7m loss a year earlier.
The company now says some fourth-quarter Middle East work scopes and awards have been deferred amid the prolonged conflict there, alongside added logistical costs, while a power outage at a UK supplier's facility pushed planned deliveries into October, shifting that revenue into FY27.
Adjusted EBITDA for the second half is now expected to be broadly similar to the second half of 2025, though full-year adjusted EBITDA will still rise on FY25, with second-half profit after tax nearing breakeven.
Tekmar also announced a €6m contract extension for a European offshore wind project, covering cable protection systems and engineering services manufactured at its Newton Aycliffe facility, subject to the project's Final Investment Decision expected in the first quarter of FY27, with an option for a similarly sized second phase.
The company said it expects to enter FY27 with an order book more than 50% higher than at the start of FY26.
Tekmar secured a further £4m working capital facility, an invoice discounting arrangement supplementing its existing UKEF-backed trade loan, following an amortising £2m loan that replaced a £3m facility last October and the £2.8m disposal of an investment property in February.
"The overall direction of travel for the business remains positive, as reflected in the growing orderbook, in-line with our plans under Project Aurora," said chief executive Richard Turner.