Tekmar Group will IPO on AIM (Ticker TGP) raise about £61.8 million

Tekmar, a market-leading technology provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services, said the sale of 47.5million shares would raise about £61.8 million. Dealings in the shares should start on June 20th,2018.

Having worked with Tekmar equipment offshore since 2009 and visited the Newton Aycliffe site during my employment with DeepOcean UK. This is a story Share Talk are interested in and have watched the company grow over the past decade.  This month we see Tekmar list on the London Stock Exchange.

Tekmar is a recognised market leader in the protection of subsea assets in the offshore wind farm market and has deep relationships with global clients. The Group has a 74 per cent. market share across all installed offshore wind farm assets in Europe.

Tekmar will have a market capitalisation of £65m. The Shares will trade under the ticker TGP.

Tekmar chief executive James Ritchie said: “Being a quoted company will, we believe, allow us to execute our strategy, to become the partner of choice for the supply of subsea protection equipment to the global offshore energy markets, whilst retaining our independence with customers and suppliers.

“Importantly, our strengthened balance sheet post admission to trading on AIM will allow us to invest more readily in the Group’s expansion going forward.

“We also believe that admission to AIM will enhance our profile and brand recognition amongst potential clients and assist in the recruitment, retention and incentivisation of senior management and employees at all levels.”

The Group operates two primary divisions: the Offshore Wind Farm division which focuses on the provision of subsea protection for power transmission cables from and between offshore wind turbines, and the Subsea division which focuses primarily on the provision of subsea protection for umbilicals and flexible pipes to the oil and gas market. Both divisions are supported by AgileTek which provides subsea analysis, simulation and engineering consultancy services.

Key strengths

•    Tekmar is a recognised market leader in the protection of subsea assets in the offshore wind farm market and has deep relationships with global clients. Its patented TekLink® CPS is the recognised solution for offshore wind cable protection and the Group has a 74 per cent. market share across all installed offshore wind farm assets in Europe. The Group has to date supplied over 6,170 cable protection systems to 63 named projects on three continents, more than any other supplier globally.

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•    The Group is well-positioned for continued growth in a marketplace shaped by technological progress, growth in the scale of the offshore wind industry and a reduction in the cost of capital.  According to forecasts from Westwood Global Energy, global offshore wind capacity is expected to grow from 17.1 GW in 2017 to 102.7 GW by 2026.

•    The Group has clear long-term visibility on potential offshore wind farm projects, relating to new wind farms or extensions to existing wind farms, due to the large-scale nature of such projects. The Offshore Wind Farm division has a current sales pipeline of actively tendered projects with a potential aggregate sales value of £68 million, represented by 60 potential projects. Tekmar tracks projects for years in advance as they go through the consenting process, anywhere from three to ten years, and is currently tracking an additional 210 offshore wind farm projects. In the three year period to 31 March 2018, the Group has delivered a conversion rate of tenders won to sales enquiries in excess of 70 per cent.

•    Building on the significant growth already achieved in recent years, the Group has the potential to accelerate its growth to meet demand in the expanding offshore wind market as a consequence of the lower cost of offshore wind farm projects in Europe which is expected to lead to more projects coming online more quickly, and the growing emerging market opportunity for renewables in new geographies such as Asia-Pacific.

•    The Company intends to grow its business by increasing its market share in the subsea oil and gas market; adding new product variations to meet the needs of existing and future clients, and making selective acquisitions.

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James Ritchie, Chief Executive Officer of Tekmar, said:  

“We are delighted to announce our intention to float. Our plans to join the AIM market follow a period of consistent, strong organic growth supported by the Group’s current owners, Elysian Capital.

“Tekmar is already the undisputed leader in offshore wind cable protection systems and it is our objective to become the partner of choice for the supply of subsea protection equipment to the global offshore energy markets. Admission to AIM will enhance our profile and brand recognition further in our sectors and allow us to execute our strategy to grow in both existing and new markets and geographies.”

About Tekmar – www.tekmar.co.uk

The Group is headquartered in Newton Aycliffe in the United Kingdom in a 70,000 sq ft facility that includes the manufacturing centre, HSQE centre and business administration, and a 30,000 sq ft facility that includes product testing, client-training centre and the sales, project and engineering offices. The Group also operates AgileTek from an office in London and has offices supporting its Offshore Wind Farm division in Hamburg (Germany) and Shanghai (China). It has appointed sales agents in Busan (South Korea) and Boston (United States) for the Offshore Wind Farm division and in Singapore and Abu Dhabi (United Arab Emirates) for the Subsea division.

www.linkedin.com/company/tekmar

Abm

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