North East offshore specialist Tekmar Group has sealed a €6m contract extension for a European offshore wind project. The Newton Aycliffe company, which provides asset protection technology and offshore energy services to customers around the globe, will supply concrete protection solutions and associated accessories, together with specialist engineering, analysis and design services delivered by its in-house team. Manufacturing will be undertaken at Tekmar’s facility in County Durham.
Working capital facility secured
The company says that, in line with ongoing momentum in its pipeline of projects, and to support project delivery, it has also secured a further £4m working capital facility, supplementing the existing UKEF backed trade loan with an invoice discounting facility.
Bosses at Tekmar say the firm expects to enter its 2027 financial year with an order book more than 50% higher than at the start of the previous year, backed by the latest multimillion-pound contract extension and other smaller contract wins.
Revenue growth despite challenges
It expects FY26 revenue to be more than 20% up on FY25, despite the impact and continued uncertainty caused by the events in the Middle East, as trading volumes continued to grow in the second half. However, it warned that growth in the second half of 2026 has been slower than anticipated because of the conflict in the Middle East and UK supply chain constraints.
In a note to shareholders it said: “The Group is pleased to report that trading volumes in the second half of FY26 have continued to grow, resulting in the company delivering higher revenues than in H1 2026 and in the equivalent period in 2025. This was reflected in the ramp up in UK based manufacturing, resulting in better utilisation, as planned, with the order book pivoting to European offshore renewables projects in H2 2026. Accordingly, the group expects to report revenue in FY26 being more than 20% up on FY25.
“However, while trading momentum and the overall trajectory remains positive, the pace of growth in near-term volumes and revenues in H2 2026 has been slower than anticipated, with some trading volumes now expected to be realised after the FY26 year end.
“This change reflects the prolonged nature of the conflict in the Middle East and some supply chain constraints within the UK. In the Middle East, the conflict has resulted in some Q4 FY26 work scopes and awards being deferred, alongside added logistical challenges and costs.
“In the UK, some material planned deliveries were pushed into October, due to a power outage at a supplier’s facility, resulting in the associated revenue now being recognised in FY27.”
Outlook for FY27
As a result of the challenges, the company anticipates that adjusted Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortisation) in the second half of the year will be broadly similar to the second half of 2025, with FY26 adjusted EBITDA up on FY25 and FY26 H2 Profit After Tax nearing break-even.
The stock market announcement added: “Despite these disruptions, the company’s order book continues to strengthen, in-line with Project Aurora. Due to the €6m contract extension being announced today, and other smaller contract wins, the company expects to enter FY27 with an order book more than 50% higher than at the start of FY26, supporting higher future revenue targets and giving longer term visibility into 2028 and beyond.”
