Offshore group Tekmar has said it is “exploring several options with interested parties” after putting itself up for sale earlier this year.
The Darlington firm said in June that it was seeking a “strategic partner” as it did not have enough cash available to turn around a loss-making position. After kicking off a formal sale process, Tekmar has issued a new statement to the Stock Exchange saying that had received a number of indications of interest, though it could not be certain they would lead to a takeover offer.
The company has also announced an agreement with Barclays Bank to extend its £3m CBILs loan facility until October next year. Tekmar’s gross cash at September 30 was £8.5m compared to £5.1m at March 31, while net cash had improved £2m over the period thanks to what it described as “strong cash collection over the last six months.”
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Tekmar’s CFO Derek Bulmer said: “We are pleased to have extended the £3m CBILs facility by a further 12 months and thank Barclays for their ongoing support and look forward to building on our strong relationship going forward. We remain focused on improving the group’s cash position and it is encouraging to see the hard work of the team reflected in the company being cash generative in the last six months.”
Tekmar, which was founded in 2011, floated on the AIM market in 2018 in a deal that valued it at around £65m. The group has five primary operating companies that provide services in the subsea and offshore energy markets.
Its position as a key supplier to firms in the booming offshore energy industry had raised hopes that it would see substantial growth in the coming years. But last October the company issued a profit warning and in March it released accounts for a “challenging” 18 months in which it slipped to an Ebitda loss of £2.1m.
It blamed its troubles in part on the pandemic and said it hoped recovery in the market would boost its position.
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