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(Sharecast News) - Tekmar Group said on Tuesday that it expects to break even on an adjusted EBITDA basis for the year ending 30 September, after delays in customer procurement decisions pushed some expected revenue into the next financial year.
The AIM-traded offshore energy services and asset protection specialist said the bidding pipeline remained strong, with the fourth quarter particularly robust for new awards.
However, slower-than-anticipated conversion into firm orders has dampened second-half revenue expectations, though the group still expects improved trading versus the first half when it posted a 0.7m EBITDA loss.
Adjusted EBITDA for the full year was now expected to be around break-even, reflecting higher margins and a stronger second half, the company said.
Net debt stood at 2.6m as of 30 June, with loan facilities in place to meet working capital needs and repay its CBILs loan by the end of October.
"We continue to see strength in our inquiry pipeline, which supports a very healthy near-term bidding pipeline for the remainder of 2025 and into 2026," said chief executive Richard Turner.
"As we flagged with our interim results, the outturn for the current financial year was predicated on the timing of securing significant tender opportunities.
"Whilst the timing of these awards has been pushed out, impacting the current financial year, the shape of the near-term pipeline remains encouraging and supports our efforts to build a sustainably stronger backlog for FY2026 and beyond."
Turner, who joined in September last year, had been leading the company's Project Aurora strategy to drive medium-term growth through operational efficiencies, tighter cost control, and expansion into new business verticals.
Tekmar had reorganised into two divisions - Asset Protection Technology and Offshore Energy Services - with the latter achieving a much higher sales run rate in 2025 as it targeted 25% of group revenue, up from 6% in 2024.
The company said it had also resolved two legacy warranty claims with no cash impact and continued to strengthen its balance sheet, including progress on aged debt collection and maintaining annual capital expenditure below 0.5m.
An active acquisition pipeline remained under review as Tekmar focussed on building scale and profitability in the coming years.
At 0942 BST, shares in Tekmar Group were down 8.1% at 4.83p.
Reporting by Josh White for Sharecast.com.