Shares of offshore energy technology and services provider Tekmar (LON: TGP) have fallen after the company issued a profit warning and said supply chain issues and cost control pressures have impacted its financials.
However, Tekmar did reveal several contract wins, helping it deliver on the plans to support its strategic ambition to double organic revenue growth over the next 5 years and have a sustainable mid-to-high teen EBITDA margin in the later years of the 5-year plan.
The contract wins helped support growth in Tekmar's current enquiry book to £359 million, a rise of 31% on the £273 million reported on June 1. It has also seen an increase in preferred bidder tenders from £4.5 million to £10.4 million.
Nevertheless, Tekmar has not been able to avoid the global supply chain woes.Â
“The dislocation to global trade flows has impacted Tekmar's operations including challenges with shipping goods for delivery, supply chain constraints and cost control pressures,” stated Tekmar.Â
The headwinds have impacted Tekmar's financial performance, mainly through cost pressure and reduced volume. As a result, the company expects to report revenue of £46 million and an adjusted EBITDA loss in the region of £1.2 million for the extended financial period to September 30.Â
While Tekmar expects the profitability from the size and nature of its contract mix to improve in the current financial year to September 2022, the impact of continued disruption to global trade means they are unable to quantify it at this time.
Alasdair MacDonald, CEO of Tekmar Group said: “From a trading perspective the company has not been immune from the dislocation to global trade flows and its impact on global economic activity.Â
“Whilst this has impacted our financial performance in the near term, our cash position is sound and we continue to be greatly encouraged with the operational progress we are making in delivering on our strategic goals and by the increase in enquiry book to £359 million, reflecting increased confidence in activity levels in our markets.”
Tekmar shares are down over 15% at 41p following the update.
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