Tekmar narrows losses as it reports record level of work

The offshore specialist is confident of further growth despite events in the Middle East having disrupted some projects

Offshore engineering group Tekmar has increased revenue and narrowed losses amid a record level of work.

The County Durham-based cable protection specialist issued unaudited interim results which show a 31% rise in revenue to £16.2m across the six months to the end of March, as operating losses fell from £2.3m in the first half of 2025 to £877,000. Losses after tax in the same period was £1.1m, compared with £2.7m.

Bosses at the Newton Aycliffe firm said there had been higher orders during the half year with a current book of £30.1m set to help second half revenue and profits. And while they warned of uncertainty in the market caused by conflict in the Middle East, Tekmar told investors that trading momentum was expected to continue and lead to improved full year 2026 numbers.

CEO Richard Turner said: “The business performed well in the first half of this year, delivering a material improvement in year-on-year profitability consistent with our guidance. We are encouraged by the continued progress we are making in delivering on the Project Aurora strategic plan.

“The reorganisation and refocus of the ‘front end’ of our business combined with improved commercial effectiveness has enabled the group to operate with a record level of work, increased utilisation, improved visibility and a stronger balance sheet. The ongoing impact of events in the Middle East has had some disruption to projects and supply chain in the region.

“Despite this, the board anticipates strong revenue and profit delivery in the second half as we continue to build our improved revenue visibility into FY27. This momentum, together with the healthy pipeline we see ahead of us, supports our confidence in delivering sustained, profitable growth and enhanced value for shareholders.”

Growth came across Tekmar’s asset protection technology and offshore energy services divisions with revenue rises of 30% and 52% respectively. Gains in offshore energy services were below managers’ expectations given low revenue in 2025 with war in the Middle East said to have exacerbated delays to project starts.

Tekmar has been carrying out a transformation plan – Project Aurora – since its 2025 financial year. That plan is intended to create a larger and more diversified business, with the recent growth in orders pointed to as success.

In the last year, work worth more than £20m has come from three European offshore wind projects which will deliver a bulk of revenue beyond the 2026 financial year. Directors also pointed to “high quality” oil and gas projects secured over the last year and encouraging progress in marine infrastructure revenues including two important contracts secured in the first half supporting ports and harbour infrastructure projects.