Market's view on Tekmar Group P.
Published on April 2024
- There is optimism around American windfarm approval potentially leading to a significant contract for the company.
- An expected 10% increase in order intake for the full year has been predicted, assuming the next six months perform as expected, and profit margins improve.
- An announcement of approximately £23 million in new contract awards in the current financial year aligns with expectations based on last year’s sales and recent positive company statements.
- The company secures £6 million in contract awards, noteworthy given its £12 million market cap.
- Using the Times Revenue method, a stock watcher valued the company at a potential 40 million market cap or 65 pence per share, suggesting significant potential growth.
- The company’s forward-looking statement about achieving profitability has been positively received.
- Concerns are raised about the company’s ongoing cash flow issues, particularly in relation to operations in China and the impact of receivable collection times.
- Discussion on the use of EBITDA to demonstrate operational profitability, despite the company being far from debt-free or able to provide dividends.
- A potential need for additional funding is highlighted, due to operational costs and a lingering legacy abrasion issue.
- Tekmar Group announces a significant new contract, valued over GBP 3.5 million, for the design and supply of its Generation 10 cable protection system.
- The company has several promising global project opportunities, contingent on effective management of costs and profit margins.
- Shareholder expresses concerns due to lack of news and general market trends affecting stock prices, hoping for an upcoming trading update.
- Acquisition of new contracts in the Middle East, valued over GBP 2.5 million, is announced, enhancing the company’s portfolio.
- Potential benefits from new oil and gas licenses in the North Sea are discussed.
- Discussion of a significant involvement in constructing the world’s largest offshore wind farm, Dogger Bank, which is expected to power six million UK homes.