Investment case

The Directors believe that Tekmar’s strategy, together with the following competitive strengths, distinguish it from its competitors in its chosen marketplaces.

 

  • Leading market position and deep relationships with global clients – Tekmar is a market leader in the protection of subsea assets in the offshore wind farm market. Its patented TekLink® CPS is the recognised solution for offshore wind cable protection and the Group has a 74 per cent. market share across all installed offshore wind farm assets in Europe. The Directors believe that the Group’s reputation in the offshore wind farm market has enabled it to successfully penetrate the subsea oil and gas market.
  • Exposure to a structural high growth market – Building on the significant growth already achieved in recent years, the Directors believe that the Group has the potential to accelerate its growth in the offshore wind market to meet demand in an expanding market as a consequence of (i) the lower cost of offshore wind farm projects in Europe which is expected to lead to more projects coming online more quickly, and (ii) the growing emerging market opportunity for renewables in new geographies such as Asia-Pacific.
  • A culture of innovation – Tekmar’s entry into the offshore wind farm market with the TekLink® CPS product was a direct consequence of developing an innovative solution to meet a market need. The Group has continued to build on this pedigree and its heritage of product innovation to develop a market leading range of products and solutions offered to the offshore wind and oil and gas subsea markets.
  • Strong track record of historical financial growth with clear visibility on organic growth revenues and pipeline – the Group has delivered a consistent record of growth with a revenue CAGR of 12.7 per cent. from £17.2 million for the year ended 31 March 2016 to £21.9 million for the year ended 31 March 2018. This significant revenue growth has been accompanied by a CAGR in Adjusted EBITDA of 28.5 per cent. over the same period, reaching £4.9 million for the year ended 31 March 2018. The Group has forward revenue visibility with £146 million of sales enquiries across 280 projects.
  • Proven, experienced high-calibre management team – The Group benefits from a high-calibre senior management team with substantial industry experience, led by James Ritchie-Bland, the Group’s Chief Executive Officer. Together, the management team has driven the growth and strong financial performance of the business over the past several years and has a proven track record of delivering results. Further details of the Board and the Group’s senior management team are set out in paragraph 10 of this Part I.

The Directors believe that the competitive advantages as described above will enable the Group to continue delivering profitable growth.