Tekmar Group plc has delivered a significant improvement in profitability this year, reporting its highest profit margins since 2020. The Newton Aycliffe-based offshore engineering company recorded an adjusted profit (EBITDA) of £1.7 million, nearly triple last year’s £0.6 million. Revenue stood at £33 million, slightly down from £36 million, but the company’s profit margins rose to 32%, up from 23% last year.

The company also reduced its operating loss to £3.8 million, down from £7.9 million, highlighting the success of its profit improvement strategy. CEO Richard Turner, who joined in September, credited the positive results to a renewed focus on quality engineering, on-time delivery, and financial discipline.

"Overall, these results demonstrate we now have a stronger platform from which we can execute our medium-term plan to deliver true scale and diversification,” Turner said. “This year was a transitionary period for Tekmar, where we focused on the basics - providing high-quality engineering, delivering on time, and maintaining consistent commercial discipline. 

"This supported the Group reporting its highest level of adjusted EBITDA since 2020 and a material improvement in gross margin to 32%. Looking ahead, our markets are aligned for growth like never before. Our strategy looks to capitalise on our industry pedigree to drive organic growth across all revenue streams, leverage our operational gearing to enhance our returns on sales, drive value through strategic M&A, and generate cash to build our reserves and fuel our growth.”

Tekmar also strengthened its financial position, holding £4.6 million in cash and reducing net debt to £1.6 million. As part of its strategy to focus on higher-margin business, the company sold its Subsea Innovation division for £1.9 million.

With a growing pipeline of opportunities in offshore wind and marine infrastructure, Tekmar expects demand for its technology to rise as the industry expands. The company will provide further insights at its Annual General Meeting on 27 March, followed by a site visit at its Newton Aycliffe headquarters, where investors and stakeholders can learn more about its operations and future plans.