The Group’s objective is to become the partner of choice for the supply of subsea protection equipment to the global offshore energy markets.
The Group has a strong track record of organic growth and intends to grow its business in the following ways:
- Maintain dominance in the existing and growing offshore wind farm market – The Directors consider that there is substantial scope to grow in the offshore wind farm market by maintaining its significant market share in a segment that is according to Bloomberg will show global growth of offshore wind installations at a CAGR of 16 per cent. between 2017 and 2030. This will incorporate continuing overseas growth, driven by local representation and manufacturing operations in global markets and supported by the Group’s experienced teams based in the UK.
- Grow market share in subsea oil and gas market – The Group has demonstrated its ability to penetrate the subsea oil and gas market and has already established a customer base of over 30 approved vendors. Gaining API certification has enabled the Group to be included on the approved vendor lists of key operators in the industry, a significant barrier to new market entrants. By utilising innovative technology developed within the Group, the Directors believe that they can grow this market share through delivery of more cost effective, higher quality technical solutions that facilitate faster product installation by the customer.
- Add new product variations to deliver to existing and new clients – In addition to the 20 product variances offered by the Group, Tekmar currently has a three year pipeline of products in development stage, which includes 10 new product variances. The Group will continue to evaluate market demand for products to deliver to both existing and new customers in both existing and new jurisdictions.
- Make selective acquisitions – In addition to organic growth, the Group will consider small-scale acquisitions of businesses that own complementary technology and intellectual property, or provide access to new markets, territories or clients. The Directors believe that there is significant opportunity to expand into other areas of the offshore wind farm and oil and gas subsea markets, building on existing relationships within the respective sectors. This expansion could include areas such as (i) offshore maintenance, repair and replacement of subsea assets, (ii) the development of emergency pipeline repair clamps, (iii) buoyancy systems for floating production, and (iv) the development of installation equipment that is used on the back-deck of a vessel to deploy subsea assets. The Directors estimate that the potential market size of these additional areas is in the region of £325 million.
- The Directors intend to seek acquisition opportunities that would allow the Group to add customers – particularly entities that have approved vendor list status within the oil and gas market, add technologies – particularly technology that can assist in expansion into the other areas of offshore wind and oil and gas set out above, add services – offering Tekmar the ability to smooth some of the existing revenue fluctuations, and add engineering capacity – enabling further innovation of Tekmar’s product range.